Jumia launches 2020 Africa Food Index
Ahead of World Food Day on 16 October, Jumia has published its first Africa Food Index showing the impact of COVID-19 on food trends in Africa.
According to the e-commerce firm, online food delivery is changing habits in unexpected ways for businesses and consumers due to the pandemic.
“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 Africa,” Jumia claims.
According to the Africa Development Bank, the continent’s US$313-billion food and beverage market is projected to reach US$1-trillion by 2030.
Jumia believes this projection offers the prospect of increased jobs, greater prosperity, reduced hunger and improved opportunities for African farmers and entrepreneurs to participate in the global economy.
Over the last three years, Africa’s growing online audience has seen an increase in international brands setting up shop to tap into the growing middle-income segment.
Direct investment from players such as KFC, McDonalds, Burger King have been achieved.
Online food delivery players such as Jumia have also played a key role in shaping supply chains and opening up the markets to new entrants. Local producers and restaurants have embraced this evolution and reached new consumers as well as grown their businesses in spite of these challenging times.
“This pandemic crisis has shown the world that online food delivery is not just a commodity, but a necessity. The food business adapted quickly to the new normal, by availing contactless and cashless deliveries,” said Shreenal Ruparelia, Chief Commercial Officer, Jumia Food.
“We also started to provide support to local food vendors to keep their businesses running during this difficult time.” With our food partners, we will continue to deploy capabilities across the food value chain to ensure consumers buy food online safely and at the right price, in line with the theme of this year’s World Food Day celebration of Grow, Nourish, Sustain Together.”
The report highlighted two major drivers of the growth observed in 2020: demography and COVID-19 lockdowns. With a growing population averaging 18 years old, a new generation of African middle class consumers are spending more money online on food and grocery services, while the lockdowns also contributed to this evolution in habits.
Overall, grocery retailing continues to expand, as consumers seek comfort and convenience when shopping for food. The report shows that while Quick Service Restaurants (QSR) are popular, Lagos and Nairobi lead as the largest cities with the volume of online food orders.
International institutions like the United Nations Development Program (UNDP), International Quick Service Restaurants such as KFC and local brands like Tunisian Al Jazeera Olive Oils have contributed to the Africa Food Index, based on Jumia data and external data from different institutions.