Online Food Delivery

In 2024, the revenue in the Online Food Delivery market in the GCC is projected to reach US$14.96bn.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.59%, resulting in a projected market volume of US$19.63bn by 2029.
The Grocery Delivery market in the GCC is expected to show a revenue growth of 20.2% in 2025.0.
By 2024, it has a projected market volume of US$12.37bn.
In global comparison, China is expected to generate the most revenue in the Online Food Delivery market, with US$450.50bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$554.00 in 2024.
By 2029, the number of users in the Meal Delivery market is expected to amount to 26.3m users.
The user penetration rate in the Meal Delivery market will be at 37.0% in 2024.
The online food delivery market in the GCC is experiencing rapid growth as consumers in the region increasingly embrace the convenience of ordering meals from their favorite restaurants with just a few clicks.

Definition:

Online Food Delivery refers to the intersection of ordering groceries and prepared meals online. Orders are typically placed through an app or website and delivery times vary.

Structure:

The Online Food Delivery market contains the user and revenue development of two different delivery service solutions: (1) Meal Delivery and (2) Grocery Delivery. Included are services that deliver prepared meals and food ordered online for direct consumption (Meal Delivery) and non-prepared food and beverage products, household, and personal care products (Grocery Delivery). Meal delivery includes the delivery of meals carried out directly by restaurants (Restaurant Delivery) and online delivery services that provide customers with meals from partner restaurants that do not necessarily have to offer food delivery themselves (Platform Delivery). Grocery Delivery consists of fresh, nonprepared products delivered from supermarkets or retailers where delivery is scheduled (Retail Delivery), Delivery that is under 3 hours and operates dark stores or own warehouses (Quick Commerce), and prepared fresh ingredients to be prepared at home, typically offered through a subscription service (Meal Kit Delivery).

Additional Information:

Revenue figures are the gross merchandise value (GMV), defined as the total sales dollar value for merchandise/food sold through the Online Food Delivery marketplace. User and revenue figures represent B2C services.

Meals and groceries ordered online that are directly delivered by the restaurant, retailer, or platform no matter if ordered via a platform (e.g. Delivery Hero, Instacart) or a restaurant/retailer website (e.g. Domino's, Walmart.com)
Online meal and grocery order and delivery both carried out by a platform (e.g. Deliveroo, Grab, Flink)

Phone orders
Click & collect Grocery orders
Ready-to-eat meals

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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