Retail Delivery - GCC

GCC

Highlights

The Reail Delivery market in the GCC is projected to reach a revenue of US$2.16bn by 2024.
It is expected to experience an annual growth rate (CAGR 2024-2029) of 14.03%, resulting in a projected market volume of US$4.17bn by 2029.
Furthermore, the number of users in this market is expected to amount to 17.4m users by 2029.
In terms of user penetration, it is anticipated to be 20.9% in 2024 and is expected to increase to 27.2% by 2029.
The average revenue per user (ARPU) is projected to be US$171.20.
When comparing the Reail Delivery market globally, United States is predicted to generate the highest revenue, reaching US$195.40bn in 2024.
On the other hand, United States is expected to have the highest user penetration rate, projected at 30.4%.
The GCC region is experiencing a shift towards online retail delivery, with a growing number of consumers opting for the convenience of home delivery services.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The retail delivery market in GCC is currently experiencing a significant growth due to various factors that have been driving the sector in recent years.

Customer preferences: The current customer preferences in the GCC region have been shifting towards online shopping, with consumers opting for the convenience of having their orders delivered to their doorstep. This trend has been further accelerated by the ongoing COVID-19 pandemic, which has led to an increase in demand for contactless delivery services.

Trends in the market: One of the major trends in the retail delivery market in the GCC region is the adoption of new technologies such as drones and autonomous vehicles for last-mile delivery. This has been driven by the need to improve delivery times and reduce costs associated with traditional delivery methods. Additionally, there has been a rise in demand for same-day delivery and hyperlocal delivery services, with companies investing in new infrastructure and logistics networks to meet this demand.

Local special circumstances: The retail delivery market in the GCC region is unique due to the high concentration of expatriates in the region. This has led to a diverse and multicultural consumer base with varying preferences and demands. Additionally, the region's extreme weather conditions, particularly during the summer months, have posed a challenge for companies operating in the sector, requiring them to adapt their delivery methods and schedules.

Underlying macroeconomic factors: The growth of the retail delivery market in the GCC region can be attributed to several underlying macroeconomic factors, including the region's growing population, rising disposable incomes, and increasing internet penetration rates. Additionally, the GCC region's strategic location as a hub for international trade has led to an increase in cross-border e-commerce, further driving the growth of the retail delivery market.

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.