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May, 2021     

MENA Food Service Market – Going Back to Normal

Online Food service market penetration to remain stable at around 15-20%


1. Online food service market expected to grow 4x compared to 2018; Offline saw a dip in 2020 and is expected to recover by 2022

The online market will continue to grow as consumers continue to prioritize convenience, quick delivery and availability of vast food/restaurants options. In the offline market, we expect that consumers will start going out again which will result in rise in sales specifically for the full service and café restaurants which are currently suffering.

2. Online Food service market penetration to remain stable at around 15-20%; Both – online and offline expected to double compared to 2020

Food penetration will remain stable as offline recovery rate and online growth rate will be similar. We expect that the offline market will start consolidating and will be driven by chained restaurants as consumers seek quality experience.

3. Within online, food aggregators are dominant …followed by brands own apps (especially QSRs) and click and collect/curb side delivery

Food aggregators will keep dominating the market because of high quality delivery experience as well as superior delivery infrastructure. In own-app delivery segment, QSR restaurants are dominated as most of the restaurants are chained and have capital to build online capability.

Also, new models (such as click and collect, curb side delivery, ordering kiosks, etc.) are emerging in the market which tends to complement the offline market.