Market Insights eCommerce Online Food Delivery Meal Delivery

Restaurant Delivery - Western Africa

Western Africa

The Restaurant Delivery market in Western Africa is projected to reach a revenue of US$1.21bn in 2024.
This market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 13.21%, resulting in a projected market volume of US$2.25bn by 2029.
By that time, the number of users in the Restaurant Delivery market is predicted to amount to 42.8m users.
The user penetration rate in this market is expected to be 5.8% in 2024 and is projected to reach 9.2% by 2029.
Furthermore, the average revenue per user (ARPU) is expected to be US$50.70.
When comparing the Restaurant Delivery market globally, United States is anticipated to generate the highest revenue, estimated at US$36,950.00m 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 53.1%.
In Western Africa, the restaurant delivery market is rapidly expanding due to the increasing demand for convenient and accessible food options.

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Analyst Opinion

The food delivery market in Western Africa has been rapidly growing over the past few years, with an increasing number of consumers opting for the convenience of having food delivered to their doorstep.

Customer preferences: The younger generation in Western Africa is the primary driver of the food delivery market. They are tech-savvy, and with the rise of smartphones, they are increasingly using food delivery apps. These apps offer a wide variety of cuisines and the convenience of delivery, making them an attractive option for busy individuals. Additionally, the COVID-19 pandemic has further accelerated the growth of the food delivery market, as more people are staying at home and avoiding crowded places.

Trends in the market: Nigeria is the largest market for food delivery in Western Africa, with several international players such as Uber Eats, Jumia Food, and Glovo entering the market. These players have been expanding rapidly, with a focus on offering a diverse range of cuisines and partnering with local restaurants. Ghana is another country in the region that has seen significant growth in the food delivery market, with players such as Bolt Food and Yum Deliveries gaining popularity. However, the market in other countries in the region such as Sierra Leone and Liberia is still in its nascent stage.

Local special circumstances: One of the challenges faced by food delivery companies in Western Africa is the lack of physical addresses and proper street names. This makes it difficult for delivery drivers to locate customers, resulting in delayed deliveries and increased costs for the companies. Additionally, the high cost of data and internet services in some countries in the region can be a hindrance to the growth of food delivery apps.

Underlying macroeconomic factors: The growth of the food delivery market in Western Africa can be attributed to several underlying macroeconomic factors. The region has a large and growing population, with a significant proportion of the population being young and tech-savvy. Additionally, the rise of the middle class in the region has led to an increase in disposable income, which has resulted in a higher demand for convenience services such as food delivery. The COVID-19 pandemic has also accelerated the growth of the food delivery market, as more people are staying at home and avoiding crowded places. In conclusion, the food delivery market in Western Africa is rapidly growing, driven by the younger generation's preference for convenience and the rise of the middle class. However, challenges such as the lack of proper street names and high cost of data and internet services need to be addressed to ensure the sustained growth of the 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.