The demand for online grocery delivery services in Saudi Arabia has been on the rise in recent years.
Customer preferences: Saudi Arabia is a country with a high smartphone penetration rate, and consumers are becoming increasingly comfortable with online shopping. The convenience of having groceries delivered directly to their doorstep is a major factor driving the growth of the online grocery delivery market in the country. Additionally, with the ongoing COVID-19 pandemic, many consumers are opting for online shopping to avoid crowded supermarkets.
Trends in the market: One of the major trends in the online grocery delivery market in Saudi Arabia is the increasing number of players entering the market. Both local and international companies are launching their own delivery services, which is increasing competition and driving innovation. Another trend is the expansion of services beyond traditional grocery items, with many companies offering delivery of household essentials and even cooked meals.
Local special circumstances: Saudi Arabia has a unique retail market, with a large number of small, independent grocery stores and supermarkets. However, these stores are facing increased competition from larger chains and online retailers. Additionally, the country's large expat population has different shopping preferences and may be more likely to use online delivery services.
Underlying macroeconomic factors: The Saudi government has been actively promoting the growth of e-commerce in the country, and this has helped to create a favorable environment for online grocery delivery services. Additionally, the country's young and tech-savvy population is driving demand for digital services. However, the market is not without challenges, including logistical difficulties and the need to adapt to local market preferences.
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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