Online food delivery market poised for growth

Kenya’s online food delivery market will register a 50 percent increase in terms of revenue by 2020, according to latest findings by Jumia Food Index.

The firm attributes this to affordable menu items, enhanced availability of popular vendors, increased mobile penetration and a growing awareness of online marketplace with convenience that comes with it.

“By 2020 we foresee a strong growth in On-Demand deliveries of non-restaurant items such as groceries, pharmaceutical products, alcohols and other on-demand categories such as cosmetics, gifting and flowers,” said Jumia Food Kenya On-Demand Services, Managing Director for East Africa, Shreenal Ruparelia.

The Jumia Food Index report also indicated taste profiles are different in different cities in Kenya. In Nairobi, chicken, pizza and burger were cited as the most popular items while in Mombasa, customers preferred continental followed by chicken and pizza.

The report further found that chicken ranked as the most popular food delivery in the past three years. Pizza ranked consistently second, in terms of popularity and burgers moved from fifth most popular cuisine in 2017, to third in 2019. Indian food lost popularity but is still fifth in ranking. The top three cuisines with potential for growth are Indian, Ethiopian and Thai.

Jumia Food Index report indicates the estimated market size for food and beverage is between Sh830 and Sh880 Billion. According to World Bank Economic Update Report, Kenya growth in Food and Accommodation services at 10.6 percent is outpacing the real GDP growth which is at 5.6 percent and the growth in the services sector at 6.6 percent.