Online Food Delivery - Nigeria
- Nigeria
- The Online Food Delivery market in Nigeria is expected to achieve a revenue of US$2.83bn by 2024.
- This market is projected to grow at an annual rate of 14.83% from 2024 to 2029, resulting in a market volume of US$5.65bn by 2029.
- In the Grocery Delivery market, a revenue growth of 28.7% is anticipated in 2025.
- In 2024, this market is projected to have a market volume of US$2.01bn.
- When compared globally, China is expected to generate the highest revenue in the Online Food Delivery market, reaching US$448.90bn in 2024.
- The Average Revenue Per User (ARPU) in the Grocery Delivery market is projected to be US$72.90 in 2024.
- In the Meal Delivery market, the number of users is expected to reach 47.3m users by 2029.
- The user penetration rate in this market is estimated to be 12.4% in 2024.
- The online food delivery market in Nigeria has witnessed significant growth due to the increasing demand for convenience and variety in food choices.
Analyst Opinion
The food industry in Nigeria has seen a significant transformation over the years, with the introduction of online food delivery services being one of the most notable changes.
Customer preferences: Nigerians have always been known for their love of food, and this has translated to a growing demand for online food delivery services. Customers are increasingly looking for convenience, speed, and affordability when it comes to food delivery. As a result, online food delivery services have become a popular option for many Nigerians, as it allows them to order food from the comfort of their homes or offices, and have it delivered to their doorstep in a matter of minutes.
Trends in the market: The online food delivery market in Nigeria has witnessed significant growth in recent years, with several players entering the market to cater to the growing demand. One of the key trends in the market is the rise of aggregator platforms, which allow customers to order food from multiple restaurants through a single platform. This has made it easier for customers to access a wide variety of food options, while also providing restaurants with a larger customer base.Another trend in the market is the increasing use of technology to improve the delivery process. Many online food delivery services are now using GPS tracking and real-time updates to keep customers informed about the status of their orders. This has helped to improve the overall customer experience, while also ensuring that deliveries are made in a timely and efficient manner.
Local special circumstances: Despite the growth in the online food delivery market in Nigeria, there are still some challenges that players in the market have to contend with. One of the major challenges is the lack of proper addressing systems in many parts of the country, which can make it difficult for delivery drivers to locate customers. Additionally, the high cost of data and internet services in Nigeria can make it difficult for some customers to access online food delivery services.
Underlying macroeconomic factors: The growth of the online food delivery market in Nigeria can be attributed to several underlying macroeconomic factors. One of the key factors is the rapid growth of the country's middle class, which has led to an increase in disposable income and a growing demand for convenience. Additionally, the increasing penetration of smartphones and the internet in Nigeria has made it easier for customers to access online food delivery services. Finally, the COVID-19 pandemic has also played a role in the growth of the market, as many customers are now looking for safer and more convenient ways to order food.
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