Market Insights eCommerce Online Food Delivery

Meal Delivery - Southern Africa

Southern Africa

In 2024, the Meal Delivery market in Southern Africa is projected to reach a revenue of US$1.23bn.
This represents a significant growth opportunity for the industry.
Furthermore, it is expected that the market will experience an annual growth rate (CAGR 2024-2029) of 6.05%, resulting in a projected market volume of US$1.65bn by 2029.
The Platform Deliverymarket in Southern Africa is also expected to perform well, with a projected market volume of US$0.84bn in 2024.
However, it is worth noting that in global comparison, China is anticipated to generate the highest revenue in this market, with an estimated US$182,900.00m in 2024.
When analyzing the Meal Delivery market in Southern Africa, it is important to consider the average revenue per user (ARPU), which is projected to amount to US$65.08 in 2024.
This metric provides valuable insights into the financial performance of the industry.
Additionally, the number of users in the Meal Delivery market is expected to reach 24.2m users by 2029.
This indicates a growing consumer base and highlights the potential for expansion within the market.
Moreover, user penetration in the Meal Delivery market is predicted to be at 27.1% in 2024, indicating the proportion of the population that actively engages in this market.
Overall, the Meal Delivery market in Southern Africa presents promising opportunities for growth and development.
The projected revenue and market volume figures, along with the expected user penetration and ARPU, provide a comprehensive understanding of the market's potential in the coming years.
Meal delivery services in Southern Africa are booming, with a wide range of local and international cuisines being delivered right to people's doorsteps.

Market

Region

Region comparison

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Analyst Opinion

The Meal Delivery market in Southern Africa has been showing signs of growth in recent years.

Customer preferences: The convenience of having meals delivered to one's doorstep has become increasingly popular among consumers in Southern Africa. With the rise of urbanization and busy lifestyles, many consumers are opting for meal delivery services as a time-saving solution. Additionally, the COVID-19 pandemic has further accelerated the demand for meal delivery services as more people are staying at home and avoiding crowded places.

Trends in the market: South Africa is the largest market for meal delivery services in Southern Africa, with several local and international players competing for market share. The market is expected to continue growing as more consumers become aware of the convenience and affordability of meal delivery services. In addition, there has been a rise in demand for healthy and sustainable meal options, which has led to the emergence of niche meal delivery companies that cater to specific dietary requirements.

Local special circumstances: The meal delivery market in Southern Africa is unique due to the diverse range of cuisines and food cultures in the region. Local meal delivery companies have capitalized on this by offering a wide range of options that cater to different tastes and preferences. Additionally, many companies have partnered with local restaurants and chefs to offer authentic and traditional meals to consumers.

Underlying macroeconomic factors: The growth of the meal delivery market in Southern Africa can be attributed to several macroeconomic factors. The rise of e-commerce and digital payments has made it easier for consumers to order and pay for meals online. Additionally, the growth of the middle class in the region has led to an increase in disposable income and consumer spending on food. Finally, the COVID-19 pandemic has accelerated the shift towards online ordering and home delivery, which has benefited the meal delivery market.

Methodology

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.