Online Food Delivery - Southern Africa

  • Southern Africa
  • The Online Food Delivery market in Southern Africa is projected to reach a revenue of US$2.60bn in 2024.
  • It is expected to show an annual growth rate (CAGR 2024-2029) of 9.70%, resulting in a projected market volume of US$4.13bn by 2029.
  • In the Grocery Delivery market, a revenue growth of 17.9% is expected in 2025.
  • The Grocery Delivery market in Southern Africa has a projected market volume of US$1.37bn in 2024.
  • In global comparison, China is expected to generate the most revenue with US$448.90bn in 2024.
  • The average revenue per user (ARPU) in the Grocery Delivery market is projected to amount to US$204.20 in 2024.
  • In the Meal Delivery market, the number of users is expected to reach 24.2m users by 2029.
  • User penetration in the Meal Delivery market will be at 27.1% in 2024.
  • The online food delivery market in South Africa is experiencing rapid growth as more consumers embrace the convenience and variety it offers.
 
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Analyst Opinion

The Online Food Delivery market in Southern Africa has been steadily growing in recent years, with more and more consumers opting for the convenience of having food delivered to their doorstep.

Customer preferences:
In Southern Africa, customers are increasingly looking for fast and reliable delivery services, with a wide variety of food options available. This is particularly true in urban areas, where busy lifestyles and long working hours make it difficult for consumers to find time to cook or eat out.

Trends in the market:
One of the key trends in the Southern African Online Food Delivery market is the rise of local delivery startups, which are competing with larger international players. These local startups are often able to offer more personalized service and a greater selection of local cuisine, which is particularly appealing to consumers who are looking for something unique and authentic.Another trend in the market is the increasing use of mobile apps for ordering food online. Many major players in the market have developed their own apps, which allow customers to easily browse menus and place orders from their smartphones. This trend is particularly popular among younger consumers, who are more likely to use their phones for online shopping and other activities.

Local special circumstances:
One of the unique challenges facing the Online Food Delivery market in Southern Africa is the lack of reliable infrastructure, particularly in rural areas. This can make it difficult for delivery companies to reach customers in these areas, and may limit the growth of the market in some regions.Another challenge is the high cost of data and internet services in many parts of the region. This can make it difficult for consumers to access online ordering services, and may limit the growth of the market among lower-income consumers.

Underlying macroeconomic factors:
The growth of the Online Food Delivery market in Southern Africa is being driven by a number of underlying macroeconomic factors, including rising urbanization and a growing middle class. As more people move to cities and achieve higher levels of income, they are increasingly looking for convenient and affordable food options.Another factor driving the growth of the market is the increasing availability of online payment systems, which make it easier for consumers to order food online and pay for it securely. This trend is particularly important in Southern Africa, where cash-based transactions are still common in many parts of the region.

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.

Overview

  • Revenue
  • Analyst Opinion
  • Users
  • Global Comparison
  • Methodology
  • Key Market Indicators
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