Online Food Delivery

The projected revenue for the Online Food Delivery market in Ethiopia is expected to reach US$163.50m in 2024.
This is projected to grow at an annual growth rate (CAGR 2024-2029) of 12.85%, resulting in a projected market volume of US$299.20m by 2029.
In the Grocery Delivery market, a revenue growth of 21.7% is expected in 2025.0.
The projected market volume for this market in Ethiopia is US$138.80m in 2024.
In comparison to other countries, China is expected to generate the most 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 be US$13.67 in 2024.
In the Grocery Delivery market, the number of users is expected to reach 20.2m users by 2029.
The user penetration rate in this market is projected to be 9.2% in 2024.
Ethiopia's online food delivery market is experiencing rapid growth, driven by increasing demand for convenient and accessible food options in urban areas.

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

Ethiopia, a country known for its diverse cuisine, has seen a surge in the online food delivery market in recent years.

Customer preferences: Ethiopians have a strong culture of communal eating, with large platters of food shared among family and friends. However, with the rise of urbanization and a busy lifestyle, there has been a shift towards individual meals and convenience. This has led to an increase in demand for online food delivery services.

Trends in the market: The online food delivery market in Ethiopia is still in its nascent stage, but it is growing rapidly. Local startups are competing with global players to capture a share of the market. One of the trends in the market is the use of mobile apps for ordering food. This has made it easier for customers to place orders and track their delivery. Another trend is the expansion of delivery services to smaller towns and cities.

Local special circumstances: Ethiopia has a unique food culture, with a variety of dishes that are not commonly found in other parts of the world. This has created opportunities for local startups to specialize in traditional Ethiopian cuisine. However, these startups face challenges in terms of logistics and supply chain management, as many of the ingredients used in Ethiopian dishes are sourced from rural areas.

Underlying macroeconomic factors: Ethiopia is one of the fastest-growing economies in Africa, with a large and young population. The country has made significant progress in terms of infrastructure development, which has created opportunities for online food delivery services. However, there are also challenges such as a lack of digital payment infrastructure and limited internet penetration in rural areas. These factors could impact the growth of the online food delivery market in Ethiopia in the long run.

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.