Online Food Delivery

Revenue in the Online Food Delivery market in Africa is projected to reach US$12.29bn in 2024.
The market is expected to show an annual growth rate (CAGR 2024-2029) of 10.13%, resulting in a projected market volume of US$19.90bn by 2029.
Regarding the Meal Delivery market, it is expected to show a revenue growth of 18.2% in 2025.0.
The market has a projected market volume of US$8.21bn in 2024.
In global comparison, China is anticipated to generate the most revenue in the Online Food Delivery market, with an estimated US$450.50bn in 2024.
The average revenue per user (ARPU) in the Meal Delivery market is projected to amount to US$58.17 in 2024.
In the Grocery Delivery market, the number of users is expected to amount to 226.5m users by 2029.
User penetration in the Grocery Delivery market will be at 10.8% in 2024.
In Nigeria, the online food delivery market is experiencing significant growth due to the increasing urban population and the rising demand for convenient and quick meal options.

Definition:

Online Food Delivery refers to the intersection of ordering groceries and prepared meals online. Orders are typically placed through an app or website and delivery times vary.

Structure:

The Online Food Delivery market contains the user and revenue development of two different delivery service solutions: (1) Meal Delivery and (2) Grocery Delivery. Included are services that deliver prepared meals and food ordered online for direct consumption (Meal Delivery) and non-prepared food and beverage products, household, and personal care products (Grocery Delivery). Meal delivery includes the delivery of meals carried out directly by restaurants (Restaurant Delivery) and online delivery services that provide customers with meals from partner restaurants that do not necessarily have to offer food delivery themselves (Platform Delivery). Grocery Delivery consists of fresh, nonprepared products delivered from supermarkets or retailers where delivery is scheduled (Retail Delivery), Delivery that is under 3 hours and operates dark stores or own warehouses (Quick Commerce), and prepared fresh ingredients to be prepared at home, typically offered through a subscription service (Meal Kit Delivery).

Additional Information:

Revenue figures are the gross merchandise value (GMV), defined as the total sales dollar value for merchandise/food sold through the Online Food Delivery marketplace. User and revenue figures represent B2C services.

Meals and groceries ordered online that are directly delivered by the restaurant, retailer, or platform no matter if ordered via a platform (e.g. Delivery Hero, Instacart) or a restaurant/retailer website (e.g. Domino's, Walmart.com)
Online meal and grocery order and delivery both carried out by a platform (e.g. Deliveroo, Grab, Flink)

Phone orders
Click & collect Grocery orders
Ready-to-eat meals

Online food delivery has been on the rise in Africa in recent years. The convenience of ordering food online and having it delivered to one's doorstep has become increasingly popular among consumers across the continent.

Customer preferences: African consumers are increasingly turning to online food delivery services due to their busy lifestyles and the convenience of being able to order food from their phones or computers. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery as more people are staying at home and avoiding crowded places.

Trends in the market: In Nigeria, the online food delivery market has seen significant growth in recent years with the entry of international players such as Uber Eats and Bolt Food. Local players such as Jumia Food and KongaFood have also gained a strong foothold in the market. In South Africa, the online food delivery market is dominated by Mr D Food, Uber Eats, and OrderIn. However, there is still room for growth in the market as more consumers become aware of the convenience of online food delivery.

Local special circumstances: One of the challenges facing the online food delivery market in Africa is the lack of adequate infrastructure such as roads and transportation networks. This can make it difficult for delivery companies to reach customers in remote areas. Additionally, there is a lack of trust among some consumers who are wary of using online payment methods.

Underlying macroeconomic factors: The growth of the online food delivery market in Africa is also being driven by underlying macroeconomic factors such as the growth of the middle class and increasing urbanization. As more people move to cities and become more affluent, they are more likely to use online food delivery services. Additionally, the rise of mobile phone usage in Africa has made it easier for consumers to order food online.

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.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.