Online Food Delivery

The Online Food Delivery market in Algeria is projected to reach revenue of US$91.21m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 9.08%, resulting in a projected market volume of US$140.80m by 2029.
In the Grocery Delivery market, there is an expected revenue growth of 11.6% in 2025.0.
The projected market volume for Grocery Delivery in Algeria is US$55.86m in 2024.
When compared globally, China is anticipated to generate the highest revenue in the Online Food Delivery market, with US$450.50bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to amount to US$29.21 in 2024.
In the Grocery Delivery market, the number of users is expected to reach 9.7m users by 2029.
The user penetration rate in the Grocery Delivery market in Algeria will be at 15.0% in 2024.
The online food delivery market in Algeria is experiencing rapid growth due to a rising demand for convenience and a growing tech-savvy population.

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

The Online Food Delivery market in Algeria has been steadily growing in recent years.

Customer preferences: Algerian customers are increasingly turning to online food delivery services for their convenience and speed. With a young and tech-savvy population, many Algerians are comfortable with using mobile apps to order food. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as more people are staying at home.

Trends in the market: One of the main trends in the Algerian online food delivery market is the emergence of local players. While international companies like Uber Eats and Deliveroo have a presence in the country, local companies like Yassir and Glovo have gained significant market share by catering to local tastes and preferences. These companies have also been able to navigate the unique challenges of operating in Algeria, such as navigating complex regulations and logistics.Another trend in the market is the increasing popularity of healthy and organic food options. As Algerians become more health-conscious, they are looking for food delivery services that offer fresh and nutritious meals. This has led to the emergence of new players in the market that specialize in healthy food delivery.

Local special circumstances: The Algerian online food delivery market faces several unique challenges. One of the biggest challenges is the country's underdeveloped logistics infrastructure. This makes it difficult for companies to deliver food quickly and efficiently, especially in more remote areas. Additionally, the country's regulatory environment can be complex and unpredictable, making it difficult for companies to navigate.

Underlying macroeconomic factors: Algeria's economy has been heavily impacted by the COVID-19 pandemic, which has led to increased unemployment and reduced consumer spending. However, the online food delivery market has been able to weather the storm due to its convenience and affordability. Additionally, Algeria has a young and growing population, which bodes well for the long-term growth of the market. Overall, while there are challenges to operating in Algeria, the online food delivery market is poised for continued growth in the coming years.

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.