Market Insights Digital Online Food Delivery

Meal Delivery - Nigeria

Nigeria

In Nigeria, the Meal Delivery market is forecasted to record a revenue of US$2.01bn by 2024.
This sector is expected to exhibit an annual growth rate of 15.04% (CAGR 2024-2028), resulting in a projected market volume of US$3.52bn by 2028.
Moving on to the Restaurant Deliverymarket, it is projected to reach a market volume of US$1.11bn in 2024.
In terms of global comparison, in China is expected to generate the highest revenue in the Meal Delivery market, amounting to US$182,900.00m in 2024.
Shifting our focus to the average revenue per user (ARPU), it is projected to be US$55.08 in 2024.
Furthermore, the number of users in the Meal Delivery market in Nigeria is expected to reach 62.5m users by 2028.
Finally, the user penetration rate in the Meal Delivery market is estimated to be 16.0% in 2024.
The meal delivery market in Nigeria is experiencing significant growth due to the increasing urbanization and busy lifestyles of Nigerians.

Market

Region

Region comparison

Currency

Analyst Opinion

Since Pizza Hut launched the first-ever pizza online order back in 1994, online food delivery has become a billion-dollar business. Aggregator platforms like Takeaway.com or Delivery Hero have expanded all over the world through the sale of reliable infrastructure solutions and attractive commission rates for restaurants. Platform-to-Consumer Delivery companies like Deliveroo or Uber Eats operate a more cost intensive business model, but are taking care of the whole delivery logistics. Those companies have also gained track over the last years, especially in densely populated regions. Both models will likely converge with stronger competition between in-house and third-party solutions.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.