Market Insights eCommerce Online Food Delivery

Grocery Delivery - GCC

The Grocery Delivery market in the GCC is projected to reach a revenue of US$5.66bn by 2024.
This represents an annual growth rate (CAGR 2024-2029) of 15.63%, resulting in a projected market volume of US$11.70bn by 2029.
In comparison, the Retail Delivery market is expected to have a market volume of US$5.07bn in 2024.
Among the global market, China is anticipated to generate the highest revenue of US$266,000.00m in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$381.30 in 2024.
By 2029, the number of users in the Grocery Delivery market is expected to reach 21.2m users.
The user penetration in the Grocery Delivery market is estimated to be at 24.6% in 2024.
Grocery delivery in the GCC region is witnessing a surge in demand due to the convenience it offers to customers in countries like Saudi Arabia, UAE, and Qatar.

Market

Region

Region comparison

Currency

Analyst Opinion

The demand for online grocery delivery services has been on the rise in the GCC region in recent years.

Customer preferences: One of the key reasons for the growth of the grocery delivery market in the GCC is the convenience it offers to customers. With busy work schedules and long commutes, customers are increasingly looking for ways to save time and simplify their daily routines. Online grocery delivery services provide a solution to this problem by allowing customers to order groceries from the comfort of their own homes and have them delivered to their doorstep.

Trends in the market: The grocery delivery market in the GCC is characterized by a number of trends. One of the most notable trends is the increasing popularity of mobile apps for grocery delivery. Many customers now prefer to order groceries through mobile apps, which offer a more seamless and user-friendly experience than traditional websites.Another trend in the market is the emergence of specialized grocery delivery services. Some companies are now focusing on delivering specific types of groceries, such as organic or halal products, to cater to the needs of niche customer segments.

Local special circumstances: The grocery delivery market in the GCC is also influenced by local special circumstances. One of the most significant factors is the high temperatures in the region, which can make it difficult for customers to shop for groceries in person. Online grocery delivery services provide a more comfortable and convenient alternative, especially during the hot summer months.Another factor that has contributed to the growth of the grocery delivery market in the GCC is the large expat population in the region. Many expats are not familiar with the local grocery stores and products, and may prefer to order groceries online from familiar brands or retailers.

Underlying macroeconomic factors: Finally, the growth of the grocery delivery market in the GCC is also influenced by underlying macroeconomic factors. The region has a young and tech-savvy population, which is driving the adoption of new technologies and services. In addition, the GCC has a high per capita income, which means that customers have more disposable income to spend on convenience services like online grocery delivery.Overall, the grocery delivery market in the GCC is expected to continue growing in the coming years, driven by changing customer preferences, local special circumstances, and underlying macroeconomic factors.

Methodology

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.