Online Food Delivery

The revenue in the Online Food Delivery market in Kenya is projected to reach KES US$436.20m in 2024.
This is expected to show an annual growth rate (CAGR 2024-2029) of 7.77%, resulting in a projected market volume of KES US$634.10m by 2029.
In the Meal Delivery market, revenue is expected to grow by 22.1% in 2025.0.
The projected market volume for Meal Delivery in Kenya is KES US$371.90m in 2024.
In global comparison, China is forecasted to generate the highest revenue in the Online Food Delivery market, reaching CNY US$450.50bn in 2024.
The average revenue per user (ARPU) in the Meal Delivery market in Kenya is projected to amount to KES US$24.17 in 2024.
In the Meal Delivery market, the number of users in Kenya is expected to reach 21.5m users by 2029.
User penetration in the Meal Delivery market will be at 27.4% in 2024.
Kenya's online food delivery market is rapidly expanding, driven by the growing middle class and increasing smartphone penetration.

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

Kenya, known for its vibrant culture, diverse wildlife and beautiful landscapes, is also experiencing a surge in the online food delivery market.

Customer preferences: Kenya's online food delivery market is driven by a young and tech-savvy population that demands convenience and speed. With the rise of e-commerce and mobile payments, consumers are increasingly turning to online platforms to order food. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery as people prefer to stay at home and order food online.

Trends in the market: The online food delivery market in Kenya is witnessing a rapid growth with the entry of international players and the expansion of local players. The market is becoming increasingly competitive, with companies offering a wide range of cuisines and delivery options. Moreover, there is a growing trend of healthy and organic food options, which is driving the demand for online food delivery services.

Local special circumstances: Kenya's online food delivery market is unique due to its diverse cuisine and food culture. Nairobi, the capital city of Kenya, is known for its street food and traditional dishes, which are now available for delivery through online platforms. Additionally, Kenya has a large expatriate population, which is driving the demand for international cuisine and food delivery services.

Underlying macroeconomic factors: Kenya's online food delivery market is supported by a growing economy and increasing internet penetration. The country has a young and growing population, with a median age of 20 years, which is driving the demand for online services. Moreover, the government is promoting the use of digital payments, which is making it easier for consumers to order food online. Despite the challenges of COVID-19, Kenya's economy is expected to rebound in the coming years, which will further boost the online food delivery market.

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.