Food and Drink E-Commerce in Nigeria

PROSPECTS

Jumia late-night food and Jumia Party boost growth for food and drink e-commerce, being the perfect solutions for late-night food and drink

The launch of Jumia late night food delivery, in addition to Jumia Party, which launched in 2017, was a strong boost to food and drinks e-commerce in 2019. Jumia Food launched the online alcoholic drinks platform Jumia Party in late 2017, which enables consumers to place an order and have it delivered within the hour.

Young professional adults who appreciate the convenience and quick delivery will support growth for food and drink e-commerce

The growing number of young adult professionals in paid employment with busy working schedules and a lack of time, particularly in cities such as Lagos, is supporting the development of food and drink e-commerce. Due to the essential nature of food and drinks, consumers appreciate the convenience of quick delivery; so offering a fast delivery service will be key to the growth of this channel over the forecast period.

Economic recovery and the rise of women in the workforce are both crucial for further growth

Over the forecast period, the growing population of young women in the labour force, and their lack of time for shopping, will continue to drive growth for food and drink e-commerce. This growing population will appreciate their needs being met through convenient grocery shopping solutions, that also have comfortable delivery time.

COMPETITIVE LANDSCAPE

Supermart continues to lead the channel, appealing to consumers through its strong reputation and a wide variety of fresh groceries

Supermart continued to lead food and drink e-commerce in 2019, thanks to strong brand identity and consumer trust that has been built from a strong reputation for having efficient delivery service. Supermart also benefits from its strong supply chain and quick delivery.

Drinks.ng saw a solid performance in 2019, allowing consumers to pay online and collect offline

Drinks.ng performed well in 2019, with a wide variety of drinks and a strong improvement in its consumer service - meeting consumers demands and providing consistent, excellent customer service.

Despite the growth, there is still strong competition from other retail channels

Although food and drinks e-commerce is growing at a rapid rate, it still faces substantial challenges from other retail outlets, many of which are the major players in food and drink retail. Most consumers are still used to buying their food and drinks from traditional grocery retailers, as well as modern outlets.

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