Nigeria Foodservice Market Size

The Nigeria Foodservice Market is experiencing significant growth, with the quick service restaurant (QSR) segment holding the largest market share. This expansion is driven by an increase in dining out, particularly in major cities like Lagos, where fast-food chains are proliferating due to their affordability and convenience. The rise of online delivery services has further enhanced the QSR sector by broadening customer reach. Full service restaurants (FSRs) also contribute substantially to the market, with Asian cuisine gaining popularity. Additionally, cloud kitchens are emerging rapidly, indicating a dynamic shift in the foodservice landscape.

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Nigeria Foodservice Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 10.01 Billion
svg icon Market Size (2029) USD 17.24 Billion
svg icon Largest Share by Foodservice Type Quick Service Restaurants
svg icon CAGR (2024 - 2029) 11.49 %
svg icon Fastest Growing by Foodservice Type Cloud Kitchen

Major Players

Nigeria Foodservice Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Nigeria Foodservice Market Analysis

The Nigeria Foodservice Market size is estimated at 10.01 billion USD in 2024, and is expected to reach 17.24 billion USD by 2029, growing at a CAGR of 11.49% during the forecast period (2024-2029).

10.01 Billion

Market Size in 2024 (USD)

17.24 Billion

Market Size in 2029 (USD)

3.93 %

CAGR (2017-2023)

11.49 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

50.01 %

value share, Quick Service Restaurants, 2023

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Because of the increased consumption of pastry, cakes, pies, and other baked goods in the country, the bakery segment is expected to be Nigeria's fastest-growing QSR segment.

Largest Segment by Outlet Type

79.39 %

value share, Independent Outlets, 2023

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The huge demand for traditional and local cuisines among residents and visitors is one of the main proponents for the growth of this sector in the country.

Fastest-growing segment by Foodservice Type

21.62 %

Projected CAGR, Cloud Kitchen, 2024-2029

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The demand for cloud kitchens in Nigeria has been driven by several factors, such as the rise of e-commerce, changing consumer preferences, and the convenience of food delivery.

Fastest-growing segment by Outlet Type

11.72 %

Projected CAGR, Chained Outlets, 2024-2029

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Quick service restaurants dominate the segment, which is majorly boosted by the expansive network of international franchise outlets of KFC, Domino's Pizza, and Subway.

Leading Market Player

1.65 %

market share, Eat & Go Limited, 2022

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The company holds master franchises of Domino's Pizza, Cold Stone Creamery, and Pinkberry, and in recent years, it heavily invested in expanding these brands in Nigeria.

Increased tourist arrivals from Asia led to great exposure to diverse Asian cuisines

  • Quick service restaurants (QSRs) held the highest market share by foodservice type. With the increasing frequency of dining out in pivotal cities like Lagos, there has been an expansion in domestic and international fast-food chains. Residents in Lagos spent USD 125.4 per capita in dining out in 2022, representing 34% of total food expenditure. Fast-food consumption is popular among the residents owing to the affordability of the menu options and the convenience of consumption. The growth of online delivery services has also helped in improving the QSR landscape of the country by assisting the newly opened fast-food franchises in spreading their brand name to a wide base of customers. As of 2021, almost 97% of residents declared that they had ordered food via Jumia, one of the leading online food delivery services in Nigeria.
  • FSR holds the second major share of the market. In the full service restaurants (FSRs) segment, Asian cuisine is expected to be the second most popular cuisine by market value. It is projected to register a CAGR of 10.91% by value over the study period. South Africa is a diverse country with a multicultural population. This exposure has led to a greater appreciation and demand for Asian flavors and dishes. In 2022, Nigeria witnessed the most tourist arrivals from Niger and India, with 9% and 5% of the total arrivals that year, respectively, followed by China, accounting for 4%. Also, owing to its close proximity to top tourist destinations in Africa, Morocco, Egypt, and Kenya, Nigeria is expected to attract more visitors from the Asian continent in the future.
  • Cloud kitchens are projected to register a CAGR of 21.80% by value during the study period. Hephie's Cloud Kitchen and Hearth Cloud Kitchen and Cafe are some of the prominent cloud kitchens operating in Nigeria.
Nigeria Foodservice Market

Nigeria Foodservice Industry Segmentation

Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.

  • Quick service restaurants (QSRs) held the highest market share by foodservice type. With the increasing frequency of dining out in pivotal cities like Lagos, there has been an expansion in domestic and international fast-food chains. Residents in Lagos spent USD 125.4 per capita in dining out in 2022, representing 34% of total food expenditure. Fast-food consumption is popular among the residents owing to the affordability of the menu options and the convenience of consumption. The growth of online delivery services has also helped in improving the QSR landscape of the country by assisting the newly opened fast-food franchises in spreading their brand name to a wide base of customers. As of 2021, almost 97% of residents declared that they had ordered food via Jumia, one of the leading online food delivery services in Nigeria.
  • FSR holds the second major share of the market. In the full service restaurants (FSRs) segment, Asian cuisine is expected to be the second most popular cuisine by market value. It is projected to register a CAGR of 10.91% by value over the study period. South Africa is a diverse country with a multicultural population. This exposure has led to a greater appreciation and demand for Asian flavors and dishes. In 2022, Nigeria witnessed the most tourist arrivals from Niger and India, with 9% and 5% of the total arrivals that year, respectively, followed by China, accounting for 4%. Also, owing to its close proximity to top tourist destinations in Africa, Morocco, Egypt, and Kenya, Nigeria is expected to attract more visitors from the Asian continent in the future.
  • Cloud kitchens are projected to register a CAGR of 21.80% by value during the study period. Hephie's Cloud Kitchen and Hearth Cloud Kitchen and Cafe are some of the prominent cloud kitchens operating in Nigeria.
Foodservice Type
Cafes & Bars
By Cuisine
Bars & Pubs
Cafes
Juice/Smoothie/Desserts Bars
Specialist Coffee & Tea Shops
Cloud Kitchen
Full Service Restaurants
By Cuisine
Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants
By Cuisine
Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
Outlet
Chained Outlets
Independent Outlets
Location
Leisure
Lodging
Retail
Standalone
Travel
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Nigeria Foodservice Market Size Summary

The Nigeria foodservice market is experiencing significant growth, driven by the increasing frequency of dining out and the expansion of both domestic and international fast-food chains. Quick service restaurants (QSRs) dominate the market, benefiting from the affordability and convenience of fast food options. The rise of online delivery services has further enhanced the QSR landscape, allowing new franchises to reach a broader customer base. Full service restaurants (FSRs) also hold a substantial market share, with Asian cuisine gaining popularity due to Nigeria's multicultural exposure and tourist arrivals from countries like Niger and India. The market is characterized by a mix of local and international franchising models, with major players such as Chicken Republic and multinational brands like Domino's Pizza and KFC contributing to its expansion.

Cloud kitchens are emerging as a rapidly growing segment, fueled by technological advancements and the increasing demand for food delivery services. These kitchens offer high-quality food at lower costs, appealing to a tech-savvy consumer base. The market's fragmentation is evident, with a few key players holding a small share, while numerous outlets continue to open across the country. The average order values vary across different foodservice types, with FSRs commanding higher prices due to their diverse and upscale offerings. The market's growth is supported by partnerships, such as the collaboration between Jumia Food and Domino's Pizza, which enhances consumer access to a wide range of meals.

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Nigeria Foodservice Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Foodservice Type

      1. 1.1.1 Cafes & Bars

        1. 1.1.1.1 By Cuisine

          1. 1.1.1.1.1 Bars & Pubs

          2. 1.1.1.1.2 Cafes

          3. 1.1.1.1.3 Juice/Smoothie/Desserts Bars

          4. 1.1.1.1.4 Specialist Coffee & Tea Shops

      2. 1.1.2 Cloud Kitchen

      3. 1.1.3 Full Service Restaurants

        1. 1.1.3.1 By Cuisine

          1. 1.1.3.1.1 Asian

          2. 1.1.3.1.2 European

          3. 1.1.3.1.3 Latin American

          4. 1.1.3.1.4 Middle Eastern

          5. 1.1.3.1.5 North American

          6. 1.1.3.1.6 Other FSR Cuisines

      4. 1.1.4 Quick Service Restaurants

        1. 1.1.4.1 By Cuisine

          1. 1.1.4.1.1 Bakeries

          2. 1.1.4.1.2 Burger

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Meat-based Cuisines

          5. 1.1.4.1.5 Pizza

          6. 1.1.4.1.6 Other QSR Cuisines

    2. 1.2 Outlet

      1. 1.2.1 Chained Outlets

      2. 1.2.2 Independent Outlets

    3. 1.3 Location

      1. 1.3.1 Leisure

      2. 1.3.2 Lodging

      3. 1.3.3 Retail

      4. 1.3.4 Standalone

      5. 1.3.5 Travel

Nigeria Foodservice Market Size FAQs

The Nigeria Foodservice Market size is expected to reach USD 10.01 billion in 2024 and grow at a CAGR of 11.49% to reach USD 17.24 billion by 2029.

In 2024, the Nigeria Foodservice Market size is expected to reach USD 10.01 billion.

Nigeria Food Service Market Report Snapshots

Nigeria Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029