Nairobi tops in online food and beverage delivery in sub-sahara Africa ahead of Lagos, Casablanca, Kampala and Ivory coast, according to latest Kenya food index 2020 report released by Jumia.
The report which analyses market share of online food trends in Africa during the pandemic says Kenya’s 1.8 billion online food and beverage market is projected to reach Ksh 3.8 billion by 2024.
Sam Chappatte, chief executive officer Jumia Kenya attributes the rise in online food delivery to mobile penetration and lockdown that saw majority of urban population resort to online food deliveries.
Out of the country’s 2.1 million online consumers who account for 4 percent user penetration, more than 70 percent of consumers are urban, tech savvy youth below 34 years.
The projections show that online consumers is expected to hit 7.1 percent by 2024.
The report, says the projection offers the prospect of increased jobs, greater prosperity, reduced hunger and improved capacities for Kenyan farmers and entrepreneurs to integrate into the global economy.
Chappatte noted that during the period, most popular cuisine ordered by Kenyans through online are Chicken, Pizza, burger, European and grill.
While most popular local vendors include; Baba Nyama Choma, Marita’s Baijahs, Swahili plate and Wok Wheels, while international vendors include KFC restaurant and Carrefour supermarket.
“Consumers’ behavior toward online channels continue to change following the outbreak and the shifts are likely to stick on the post-pandemic era. The increased digitization has led to different cuisines and price points,” said the CEO.
He noted that even in COVID-19 times they see new exciting concepts that introduce consumers to new tastes and experiences.
“The increase in food deliveries has given the vendors the possibility to experiment more with vendors using the spare capacity in their restaurants to open dark restaurants.”
According to Shreenal Ruparelia, chief commercial officer, Jumia, Kenyans prefer fast food cuisine of (Chicken, Pizza & Burger) due to affordability, convinience and fast delivery.
The report also notes that Kenyans are fast developing appetite for foreign cuisines such as Indian, Thai and Chinese foods.
“Consumer disposable income and convenience is a push for online orders coupled with high commercial activities in Nairobi as a major business hub in East Africa,” said Rupareria.
Ruparelia observed that since the pandemic they have seen more customer subscription to JumiaPrime which means they don’t have to worry about delivery fees.
Overall people are looking for affordable options and ways to save money especially during the pandemic.
“There is consumer acceleration on digital payments up 15 percent on JumiaPay showing preference for cashless and contactless delivery.”
Online retail in Food and Beverage industry is the fastest-growing product category in e-Commerce.
E – commerce integration is top priority for retailers in Kenya with with 53 percent of businesses acknowledging increased consumer demand for online sales due to COVID-19 restrictions according to a recent report by Retail TradeAssociation of Kenya.
The pandemic has seen more people turn to online for convenience and affordability. As the pressure of the pandemic is felt heavily in the restaurant and Quick-Service Restaurants (QSR) the shift to food delivery becomes more important as an option for these businesses to reach their consumers.