Market Insights eCommerce Online Food Delivery Meal Delivery

Restaurant Delivery - Eastern Africa

Eastern Africa

The Restaurant Delivery market in Eastern Africa is expected to witness significant growth in the coming years.
It is projected that the revenue in this market will reach US$417.30m by 2024.
Furthermore, the market is anticipated to exhibit a compound annual growth rate (CAGR 2024-2029) of 8.34%, resulting in a projected market volume of US$622.90m by 2029.
This growth is driven by an increasing number of users, which is expected to amount to 26.5m users by 2029.
In terms of user penetration, it is estimated that it will be 4.0% in 2024 and is projected to grow to 5.1% by 2029.
This indicates a growing demand for restaurant delivery services in Eastern AfriThe average revenue per user (ARPU) is expected to be US$22.76, highlighting the potential for revenue growth in this market.
When compared globally, United States is expected to generate the highest revenue in the Restaurant Delivery market, reaching US$36,950.00m in 2024.
This underscores the dominance of the US market in this segment.
On the other hand, South Korea is projected to have the highest user penetration rate in the Restaurant Delivery market, with a rate of 53.1%.
This showcases the popularity and adoption of restaurant delivery services in the country.
Overall, in Eastern Africa is poised to experience significant growth in the Restaurant Delivery market, driven by increasing revenue, user penetration, and market volume.
Despite the challenges of poor infrastructure and limited internet access, the restaurant delivery market in Eastern Africa is steadily growing, driven by an increasing demand for convenience and a rising middle class.

Market

Region

Region comparison

Currency

Analyst Opinion

The demand for restaurant delivery services in Eastern Africa has been on the rise in recent years.

Customer preferences: Customers in Eastern Africa have shown a growing preference for convenience and speed in their dining experiences. With busy work schedules and traffic congestion in major cities, many people are opting for the convenience of having their meals delivered to their homes or offices. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as people avoid crowded places and opt for contactless delivery.

Trends in the market: Kenya, Tanzania, and Uganda are the leading markets for restaurant delivery services in Eastern Africa. In Kenya, the market is dominated by local players such as Jumia Food, Uber Eats, and Glovo, while in Tanzania and Uganda, international players like Uber Eats and Jumia Food are the major players. The market is highly competitive, with players offering a wide range of cuisines and delivery options such as motorbike and bicycle deliveries.

Local special circumstances: The restaurant delivery market in Eastern Africa is unique due to the diverse cuisines and cultures in the region. Players in the market have had to tailor their offerings to meet the different tastes and preferences of consumers in each country. For example, in Tanzania, Swahili cuisine is popular, while in Uganda, traditional dishes like matooke and groundnut sauce are common. Additionally, the market is heavily influenced by the tourism industry, with many players offering delivery services to hotels and tourist destinations.

Underlying macroeconomic factors: The growth of the restaurant delivery market in Eastern Africa is also driven by macroeconomic factors such as the increasing urbanization and rising disposable incomes in the region. As more people move to urban areas, the demand for convenience and speed in their dining experiences increases. Additionally, the rising middle class in the region has more disposable income to spend on dining out or ordering food delivery. However, challenges such as poor infrastructure and the high cost of internet connectivity may hinder the growth of the market in some areas.

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.