Nigeria Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Nigeria Foodservice Market Analysis

The Nigeria Foodservice Market size is estimated at 11.09 billion USD in 2025, and is expected to reach 19.31 billion USD by 2030, growing at a CAGR of 11.73% during the forecast period (2025-2030).

The Nigerian food service industry is experiencing significant transformation driven by rapid urbanization and changing consumer lifestyles. The sector has witnessed a notable shift in dining habits, particularly in major urban centers like Lagos, where residents spent USD 125.4 per capita on dining out in 2022, representing 34% of their total food expenditure. This trend reflects the growing prominence of out-of-home dining services culture, especially among the young urban population. The increasing disposable income and busy lifestyles of urban dwellers have led to a surge in demand for convenient dining options, with statistics showing that 70% of the population consumed fast food at least once per week in 2022, while 25% dined out more than three times weekly.

Digital transformation is revolutionizing the Nigerian foodservice landscape, with technology playing a pivotal role in reshaping customer engagement and service delivery. The country's robust digital infrastructure, supported by 152.2 million internet users and a 51% internet penetration rate in 2022, has facilitated the rapid adoption of online food service delivery platforms and digital payment solutions. This digital evolution has enabled restaurants to expand their reach beyond traditional dine-in services, leading to the emergence of innovative business models such as cloud kitchens and virtual restaurants, which operate primarily through digital channels. Food service technology is thus a key driver in this transformation.

The hospitality sector's growth has significantly influenced the foodservice industry's development, with 1,700 registered hotels offering more than 20,000 rooms and maintaining an impressive 85% occupancy rate in 2022. This robust hospitality infrastructure has created numerous opportunities for hospitality food service operators to establish a presence in high-traffic locations. The integration of food services offerings within these establishments has led to the diversification of cuisine options and service formats, catering to both domestic and international visitors. Urban Nigerians' significant investment in dining, evidenced by their allocation of 56.98% of income to food in 2022, has encouraged establishments to enhance their culinary offerings and service quality.

International influences are reshaping Nigeria's culinary landscape, driven by increasing tourist arrivals and expatriate populations. The country's position as a regional business hub has attracted diverse international visitors, with significant arrivals from Niger (9%), India (5%), and China (4%) in 2022. This multicultural exposure has led to the proliferation of various international cuisine options, particularly in urban centers. The trend has encouraged local establishments to incorporate global flavors while maintaining traditional offerings, creating a unique fusion dining experience that appeals to both local and international consumers. This cultural integration in the food service sector has contributed to the sophistication of Nigeria's dining scene, with establishments ranging from casual eateries to upscale restaurants adapting their menus and service styles to meet evolving consumer preferences. The food service industry analysis reveals these dynamics as critical to understanding the market's evolution.

Nigeria Foodservice Market Trends

Foodservice expansion driven by tourism, as Lagos emerges as the fourth most visited city in Africa, with visitors drawn to its rich culture and cuisine.

• Quick service restaurants (QSRs) occupy the largest share of the Nigerian foodservice market, owing to the high rate of consumption of fast food in the country. The market is characterized by local and international franchising models while it continues to expand and evolve. QSRs provide a wide range of fast-food options, including regional and international cuisines. Some of the major fast-food franchises in the country are Chicken Republic, PieXpress, and The Chop Box franchise. Chicken Republic has announced its expansion plans in the country to open 430 stores by the end of 2024. A few multinational QSR brands, such as Domino's Pizza, KFC, and Pizza Hut, are also present in the country.
• Lagos in Nigeria was the fourth most visited city in Africa in 2021, up by 5.8% from the previous year. Lagos welcomed 1.3 million visitors in 2021, and the tourist expenditure increased by USD 26 million to USD 710 million. The United Kingdom, the United States, Canada, and South Africa were the main source markets in Nigeria. Owing to the high propensity of visitors in the country, casual and fine diners have expanded in the country to cater to this base. Most international visitors prefer to try out traditional dishes while visiting Africa, owing to the richness of their culinary culture. This can be attributed to the 49.26% market share occupied by African cuisine in the sub-segment for other full service restaurant (FSR) cuisines. Some prominent African restaurants in the region include The Yellow Chilli Restaurant & Bar, Terra Kulture, and L'Afric. Cloud kitchen is expected to be the fastest-growing segment in the market. It is projected to register a CAGR of 9.44% over the forecast period, owing to the increasing internet penetration and usage of smartphone applications.

Increasing affluence and popularity of dining out drive demand for full service restaurants in Nigeria.

• The average order value was observed to be the highest among the full service restaurants (FSRs) in 2022, compared to other foodservice types, with a price of USD 29.92. The demand for FSRs in the country is driven by the increasing affluence of the population, the growing popularity of dining out, and the availability of a wide variety of cuisines like Asian cuisine, which accounted for a significant contribution. Some of the most popular FSRs in the country include Izanagi, Bungalow, Orchid House, and Jade Palace. These restaurants offer a variety of Asian cuisine, a popular choice among consumers. Popular dishes offered by the FSRs in the country were Abacha/Ugba, Iyan, Ewa Agoyin, and Soup, priced at USD 2.58, USD 3.45, USD 4.15, and USD 4.80 per 300 g, respectively, in 2022.
• Cloud kitchens are expected to grow at a faster rate in the country due to their ability to provide high-quality food at a lower cost. Cloud kitchens also have a significant opportunity for growth due to the increasing demand for food delivery services. The market is expected to expand rapidly, driven by technological advancements and a growing number of food delivery platforms. The average order value of the cloud kitchen segment was USD 9.75 in 2022. Popular dishes in the segment were fried chicken products and Suya - Spicy Grilled Kebab, priced at USD 3.45 and USD 3.78 per 250 g, respectively, in 2022.
• The average order value of quick service restaurants (QSRs) increased by 4.25% from 2017 to 2022. The QSR segment has been expanding rapidly due to the increasing number of international and local fast-food chains entering the market. Popular dishes offered by the QSRs in the country include Puff Puff Fried Sweet Dough Ball and Akara, priced at USD 2.54 and USD 1.86 per 300, respectively, in 2022.

Segment Analysis: Foodservice Type

Quick Service Restaurants Segment in Nigeria Foodservice Market

Quick Service Restaurants (QSR) dominate the Nigerian foodservice market, commanding approximately 50% market share in 2024. The segment's strong performance is driven by the increasing frequency of dining out in key cities like Lagos, where residents spend around USD 125 per capita on dining out, representing 34% of total food expenditure. The growth of online food delivery services has significantly enhanced the QSR landscape by helping newly opened fast food franchises expand their reach to a wider customer base. International chains like KFC, Domino's Pizza, and Burger King have established a strong presence in the country, while local chains such as Chicken Republic continue to expand their footprint. The segment's success is further bolstered by the affordability of menu options and convenience of consumption, making it particularly attractive to the country's large youth population.

Cloud Kitchen Segment in Nigeria Foodservice Market

The cloud kitchen segment is experiencing remarkable growth in the Nigerian foodservice market, projected to expand at approximately 22% during 2024-2029. This explosive growth is primarily driven by the increasing adoption of smartphones and internet access, with active internet users reaching around 152.2 million and internet penetration standing at 51% of the total population. Popular cloud kitchen operators like Kitchenly, Easykitchen, and Foodlocker are revolutionizing the market by offering diverse cuisines through food delivery platforms such as Jumia Food and Uber Eats. These kitchens have successfully reduced meal costs by 30% through improved scalability, particularly in Lagos. The segment's growth is further supported by changing consumer preferences, the rise of e-commerce, and the increasing demand for convenient and contactless food delivery services.

Remaining Segments in Foodservice Type

The Full Service Restaurants (FSR) and Cafes & Bars segments play crucial roles in Nigeria's foodservice landscape. FSRs cater to a more affluent demographic, offering diverse international cuisines including Asian, European, and local African dishes, while maintaining higher quality standards and providing a more refined dining experience. The Cafes & Bars segment has evolved to meet changing consumer preferences, with establishments offering a mix of traditional and modern beverage options, including specialty coffee and tea, along with complementary food items. Both segments have adapted to market demands by incorporating online ordering systems and delivery services, while maintaining their distinct value propositions in terms of ambiance, service quality, and menu offerings.

Segment Analysis: Outlet

Independent Outlets Segment in Nigeria Foodservice Market

Independent outlets dominate the Nigerian foodservice market, commanding approximately 79% market share in 2024. The segment's strong presence is primarily driven by the high rate of consumer spending on food, with Nigerians spending about 55% of their income on food consumption. Independent full-service restaurants have successfully attracted a more affluent and older demographic who value upscale dining experiences. These establishments often offer more unique and innovative menus, along with a more personalized and authentic dining experience. The growth of independent QSRs in Nigeria has been particularly notable in major urban centers like Lagos, Abuja, and Port Harcourt, where they offer a range of local and international cuisines at more affordable prices compared to their branded counterparts. The segment's success is further bolstered by the increasing urbanization in Nigeria, with more than 50% of the population residing in urban areas.

Chained Outlets Segment in Nigeria Foodservice Market

The chained outlets segment is projected to grow at approximately 12% during the forecast period 2024-2029, emerging as the fastest-growing segment in the Nigerian foodservice market. This growth is primarily driven by the expansion of international and domestic franchise models across the country. Chained restaurants, being part of larger brands or franchises, benefit from economies of scale in procurement, marketing, and management, allowing them to offer competitive pricing that appeals to budget-conscious consumers. The segment's growth is particularly strong among millennials, who show a marked preference for chained outlets. Several international fast-food chains have recognized this potential and are actively expanding their presence in Nigeria. The trend of quick service restaurants and fast-food chains incorporating local menus in their outlets has also contributed to their success, offering Nigerian consumers a blend of international standards with local flavors.

Segment Analysis: Location

Standalone Segment in Nigeria Foodservice Market

Standalone restaurants continue to be the dominant force in Nigeria's foodservice market, commanding approximately 83% market share in 2024. The segment's strong performance is primarily driven by restaurants establishing their presence in densely populated areas with popular food offerings. In cities like Ikeja and Lagos, independent burger and pizza restaurants operate with diverse product offerings, with nearly 81% of burger restaurants and 83% of pizza restaurants choosing standalone locations. These establishments offer a wide range of items including cheese chicken burgers, beef patty burgers, and gourmet burgers. The segment's success is further bolstered by strategic location choices in high-traffic areas and the ability to cater to local taste preferences while maintaining operational flexibility.

Leisure Segment in Nigeria Foodservice Market

The leisure segment is experiencing remarkable growth in Nigeria's foodservice market, projected to grow at approximately 14% during 2024-2029. This growth is primarily driven by the increasing number of foodservice establishments in movie theaters, amusement parks, gaming areas, and museums. Quick service restaurants dominate the foodservice market in leisure locations with higher availability of fast food at affordable prices, offering items like fried chicken at USD 1.11, pizza at USD 5.43 per 300g, and burgers at USD 1.60. Specialist coffee shops are particularly thriving in the leisure segment, capitalizing on the increased penetration of coffee and tea as recreational beverages. The segment's growth is further supported by the rising consumer traffic in movie theaters, with several new cinema theaters opening to accommodate the growing audience demand.

Remaining Segments in Location

The other location segments - travel, retail, and lodging - each contribute uniquely to Nigeria's foodservice market landscape. Travel locations, including airports, railway stations, and highways, serve as crucial touchpoints for foodservice operators, particularly benefiting from increasing passenger traffic. The retail segment, predominantly comprising foodservice outlets in shopping malls, supermarkets, and hypermarkets, offers consumers a wide range of dining options under one roof. Meanwhile, the lodging segment, encompassing hotels, resorts, and other accommodation establishments, plays a vital role in providing diverse dining experiences to both domestic and international travelers, with many establishments offering multiple foodservice concepts to cater to varying customer preferences.

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We provide a complimentary and exhaustive set of data points on regional and country level metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various countries on number of outlets, average order values, and menu analysis by foodservice channels, cuisine specific insights related to full service restaurants and quick service restaurants, market trends and market size insights on cafes, bars & pubs, juice/smoothies bars, specialty tea and coffee shops, and cloud kitchen etc.