Eight years after its launching Jumia Food in 2012, leading African eCommerce firm – Jumia – has revealed in its maiden Africa Food Index that the COVID-19 pandemic helped to accelerate growth for businesses engaging in online food delivery.
The report, which was seen by Nairabrands, further revealed that the growing popularity of fast food, coupled with the growing trends for convenience and value for money, have opened up opportunities for the food market in Nigeria.
The report alluded to the fact that Nigeria’s agricultural sector experienced a major boom in 2019, a development that was significantly responsible for the 90.23% contribution which the non-oil sectors made to the country’s GDP. The index also showed that the food and grocery retail market had total revenues of $44.9 billion, representing a compound annual growth rate (CAGR) of 8.7 percent in the last eight years.
There were two major drivers of the growth observed in 2020 – demography and the COVID-19 lockdowns. While with a growing population averaging 18 years old, a new generation of Nigerian middle class consumers are spending more money online on food and grocery services, the lockdowns induced by the COVID-19 pandemic also contributed to this evolution in habits.
Another important fact to note is that Lagos restaurants took the lead in terms of the volume of online food order, more than all the restaurants in Abuja, Port Harcourt, and Ibadan. Also should also be noted that among other foods, pizza, Chinese and shawarma are the most promising cuisines
Lunch is the leading time for orders, with 65 percent; weekdays record the biggest volume in orders, peaking on Wednesday at 16 percent; males place more orders (56 percent) than females (44 percent); and Port Harcourt leads in delivery timing at 26 minutes.
The Index also showed that, while Kentucky Fried Chicken (KFC), Cold Stone Creamery and Pizza Hut come out as the most popular international brands in the country due to consumers’ proclivity to chicken-related orders, Chicken Republic, The Place, Kilimanjaro, Sweet Sensation and Drumstick are the most popular local food vendors due to the affordability of their offers.
Read the full report here.