Kenya's food on demand to grow 50%
Kenya's food on demand market is poised for double growth next year on high internet penetration and insatiable appetite for junk foods by a time- conscious burgeoning middle class.
Speaking when she unveiled the annual Jumia Food Index Tuesday in Nairobi, Jumia Food Kenya, Managing Director East Africa, Shreenal Ruparelia said innovations in the delivery sector that focus on convenience and affordability will be key drivers for growth.
“2020 is poised for a strong growth in On-Demand deliveries of non-restaurant items such as groceries, pharma products, alcohols and other on-demand categories such as cosmetics, gifting and flowers," Ruparelia said.
The report predicts a 50 per cent increase in On-Demand deliveries on the back of a continuation of more affordable menu items, enhanced availability of popular vendors, increased mobile penetration and a growing awareness.
The World Bank Economic Update Report puts Kenya growth in Food and Accommodation services at 10.6 per cent is outpacing the real GDP growth which is at 5.6 per cent and the growth in the services sector at 6.6 per cent.
According to the index, urban middle class dwellers prefer chicken as the most popular cuisine followed by pizza and burgers in that order, with total delivery orders rising marginally compared to last year.
The report further revealed that, dinner delivery requests dropped to 54.2 per cent from 56.6 per cent last year while that of lunch and breakfast rose to 41.1 and 4.6 per cent respectively from 39.4 and four per cent last year.
The survey further shows Nairobi's Kilimani, Kileleshwa and Ngong Road led in number of delivery orders while residents of Nyali, City Mall and Mamba Village ordered the most in Mombasa. In Nakuru, people residing in middle income areas of the CBD, Milimani and Naka ordered
International food brands dominated places where urban dwellers order their food from, with KFC, Java House, Debonaires, Big Square, Subway, Artcaffe and Mugg and Beans leading. Others are Ohcha and Connect Coffee. Naivas was the only local retailer on the list.
Kuku Foods East Africa chief operations officer Jacques Theunissen said convenience is the biggest determinant in the food delivery in Kenya.
“I believe that the biggest change has been the increased need for convenience with consumers. Consumers are starting to value convenience more and more. They are willing to spend a little bit extra to save time and effort,'' Theunissen said.