Restaurant Delivery - Nigeria

Nigeria

Highlights

The projected revenue in the Restaurant Delivery market in Nigeria is set to reach US$934.00m in 2024.
This is expected to show an annual growth rate (CAGR 2024-2029) of 12.01%, resulting in a projected market volume of US$1.65bn by 2029.
In Nigeria's Restaurant Delivery market, the number of users is projected to reach 31.3m users by 2029.
The user penetration Nigeria's Restaurant Delivery market is expected to be 8.0% in 2024 and is projected to increase to 12.2% by 2029.
The average revenue per user (ARPU) in Nigeria is expected to amount to US$51.14.
In global comparison, United States is projected to generate the most revenue in the Restaurant Delivery market, with an estimated amount of US$36.95bn in 2024.
On the other hand, South Korea is expected to have the highest user penetration rate in the Restaurant Delivery market, with a projected rate of 44.8%.
The restaurant delivery market in Nigeria is experiencing a surge in demand due to the increasing urban population and the convenience-seeking behavior of consumers.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The food delivery market in Nigeria has been on a steady rise in recent years, driven by the increasing demand for convenience and the growing popularity of online ordering.

Customer preferences: Nigerians are known for their love of good food, and this is reflected in their increasing demand for restaurant delivery services. Customers prefer the convenience of having their favorite meals delivered to their doorstep, especially during rush hour traffic or when they do not have the time or energy to cook. The rise of e-commerce platforms and online ordering has made it easier for customers to access a variety of food options from the comfort of their homes or offices.

Trends in the market: One of the major trends in the Nigerian food delivery market is the increasing competition among delivery platforms. Both local and international players are entering the market, offering a variety of services such as fast delivery, discounts, and loyalty programs to attract and retain customers. Another trend is the growing popularity of healthy food options, with more customers opting for meals that are low in calories and high in nutrients.

Local special circumstances: The Nigerian food delivery market is unique in that it is heavily influenced by local cuisine and culture. Customers have a preference for traditional dishes such as jollof rice, suya, and pepper soup, which are often not available on international food delivery platforms. This has led to the emergence of local delivery startups that specialize in delivering traditional Nigerian meals.

Underlying macroeconomic factors: The Nigerian food delivery market is also influenced by macroeconomic factors such as the state of the economy and the purchasing power of consumers. The country has experienced periods of economic recession, which have affected consumer spending and the overall growth of the market. However, the market has remained resilient, with delivery platforms adapting to the changing economic environment by offering more affordable meal options and discounts. Additionally, the rise of mobile technology and internet penetration has made it easier for customers to access food delivery services, contributing to the growth of the 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.