The popularity of Online Food Delivery services has been increasing rapidly in the GCC region.
Customer preferences: Customers in the GCC region prefer the convenience of ordering food online and having it delivered to their doorstep. The busy lifestyle of people in the region has led to a rise in demand for online food delivery services. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as people have been avoiding crowded places and prefer to order food online.
Trends in the market: In the UAE, the online food delivery market has become highly competitive with the entry of new players. The market is dominated by international players such as Uber Eats, Deliveroo, and Talabat, but local players such as Zomato and Careem Now have also gained a significant market share. The competition has led to a rise in innovative features such as cashless payments, loyalty programs, and partnerships with restaurants.In Saudi Arabia, the market is dominated by local players such as HungerStation and Jahez. These players have gained a significant market share by offering localized services and partnering with local restaurants. Additionally, the Saudi Arabian government has been promoting the growth of the online food delivery market by providing licenses to new players and offering subsidies.In Kuwait, the online food delivery market has been growing rapidly with the entry of new players such as Carriage and Talabat. The market is expected to grow further as the government has been promoting the growth of the e-commerce industry in the country.
Local special circumstances: The GCC region has a diverse population with a mix of locals and expatriates. The food preferences of people in the region vary widely, and online food delivery services have been successful in catering to these preferences. Additionally, the region has a large number of tourists, and online food delivery services have been successful in catering to their needs as well.
Underlying macroeconomic factors: The GCC region has a high per capita income, and people in the region are willing to spend on convenience. Additionally, the region has a young population that is tech-savvy and prefers to use online services. The growth of the online food delivery market in the region is also driven by the growth of the e-commerce industry and the increasing penetration of smartphones and the internet.
Data coverage:
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.
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