In recent years, Africa has experienced a significant transformation in its food delivery industry. This transformation has been fueled by technological advancements, changing consumer preferences, and a growing urban population. As we enter 2023-2025, it becomes crucial to examine emerging perspectives and trends in the food delivery sector across the continent.
Online food delivery platforms have witnessed exponential growth in Africa, connecting consumers to a diverse range of cuisines conveniently and efficiently. During the forecast period of 2023-2025, the expansion of these platforms is expected to accelerate further. This is due to increased investments and new players entering the market. As the digital infrastructure improves across the continent, more customers will have access to these platforms, boosting their popularity and reach.
Generally speaking, the revenue annual growth rate (CAGR) for the forecasted period 2023-2027 in Food delivery is expected to reach 18.91%, resulting in a projected market volume of US$14.90bn. And it is very significant that the growth of Meal delivery and Grocery delivery is quite similar. Grocery delivery is expected to outperform Meal delivery in 2025 and beyond.
Now let’s dive deeper and focus on this chart: the table below speaks volumes. The most rapidly growing region is the Nigeria region. It is expected to reach 1,58bn in 2023 and grow to +72% in the next two years. South Africa shows positive growth dynamics, and even with a decline in 2024, it shows +20% growth up to 2025. Otherwise, Kenya, Morocco, and Egypt show systematic and even accelerated revenue growth.
Revenue per user for meal delivery is rising smoothly and evenly, while grocery delivery shows rapid growth which will nearly equal the value of meal delivery by 2027 with its average revenue per user rate. Together with the predicted growth in the number of users, it shows significant potential for both segments.
Africa's food delivery landscape is undergoing a profound transformation, driven by technological advancements, changing consumer behaviour, and entrepreneurial innovation. The industry is expected to grow and diversify in the coming years. By embracing localization, leveraging technology, and addressing the distinct challenges of the African market, food delivery services are poised to cater to African consumers' evolving demands.
We already have experience launching and operating in the African region, we have partners in Nigeria, Zambia, and Ethiopia. Join us and start your own food delivery playfully!
With increasing investments, strategic collaborations, and a focus on sustainability and efficiency, the food delivery sector in Africa has the potential to unlock new economic opportunities. This will create jobs and drive inclusive growth. As stakeholders continue to adapt and innovate, Africa's food delivery perspectives are set to flourish. This will deliver not only meals but also contribute to the overall development and progress of the continent.