Market Size of Middle East and Africa Online Grocery Delivery Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 26.40 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
MEA Online Grocery Delivery Market Analysis
During the time frame of the forecast, the Middle East and Africa online grocery delivery market is expected to grow at a CAGR of about 26.4%. During the forecast period, the Middle East and Africa are expected to grow quickly because more people are getting access to the internet and moving to cities.
- The outbreak of COVID-19 had a positive impact on the market. The preference for online grocery delivery apps improved rapidly as people stayed at home to contain the spread of the ongoing health crisis at that time. Grocery delivery applications became the savior of people in trying times.
- In the last few years, grocery delivery apps have seen a sudden increase in the number of online grocery orders and a sudden increase in revenue.Large and small retailers alike were using grocery delivery platforms to reach out to people stuck at home.
- The online grocery delivery market has grown because more people in the area have smartphones and more people have access to the internet.Changes in the region's population, like the growing number of young people and the large number of immigrants in big cities like Dubai, Abu Dhabi, and Johannesburg, have also led to a rise in the number of people who want online grocery delivery services.
- Online grocery shopping has many advantages over going to a store in person, like not having to spend time or money getting there or waiting in long lines to pay. It also offers the additional benefit of instinctive buying from home comfort. A population aged between 25 and 44 is considered the most influential consumer base in the Middle East and Africa, opting for online grocery delivery over conventional ones.
MEA Online Grocery Delivery Industry Segmentation
In terms of service types, the market is segmented into retail delivery, quick commerce, and meal kit delivery, and the geographical scope of the report includes the UAE, Saudi Arabia, South Africa, and the rest of the Middle East and Africa.
Middle East and Africa Online Grocery Delivery Market Size Summary
The Middle-East and Africa online grocery delivery market is experiencing significant growth, driven by increased internet access and urbanization. The COVID-19 pandemic accelerated this trend as consumers turned to online grocery delivery services to avoid exposure to the virus. This shift in consumer behavior has led to a surge in online orders and revenue for grocery delivery apps, with both large and small retailers leveraging these platforms to reach customers. The region's demographic changes, such as a growing young population and a high number of immigrants in major cities, have further fueled the demand for online grocery services. The convenience of shopping from home, coupled with the appeal of avoiding travel and long queues, has made online grocery delivery particularly attractive to the influential consumer base aged 25 to 44.
The retail delivery segment has emerged as a dominant force in the industry, with mobile apps playing a crucial role in facilitating grocery deliveries and offering features like extensive menus and customer loyalty programs. The growth of quick commerce, spurred by the pandemic, has also contributed to the market's expansion, with companies competing to offer rapid delivery times. In Saudi Arabia, government initiatives and investments in grocery and food delivery services have bolstered the market, while global players' acquisitions of local companies have further strengthened the sector. Market players are increasingly focusing on tier-two cities to tap into new customer bases, and collaborations with restaurants and acquisitions of smaller services are common strategies. Notable players in the region include InstaShop, Trolley Trading, El Grocer, Kibsons International LLC, and NRTC Fresh, all of which are actively innovating and expanding their offerings to meet evolving consumer needs.
Middle East and Africa Online Grocery Delivery Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Service Type
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2.1.1 Retail Delivery
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2.1.2 Quick Commerce
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2.1.3 Meal Kit Delivery
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2.2 Geography
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2.2.1 UAE
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2.2.2 Saudi Arabia
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2.2.3 South Africa
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2.2.4 Rest of Middle East and Africa
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Middle East and Africa Online Grocery Delivery Market Size FAQs
What is the current Middle East and Africa Online Grocery Delivery Market size?
The Middle East and Africa Online Grocery Delivery Market is projected to register a CAGR of 26.40% during the forecast period (2024-2029)
Who are the key players in Middle East and Africa Online Grocery Delivery Market?
InstaShop, Trolley Trading, elgrocer, Kibsons International LLC and NRTC Fresh are the major companies operating in the Middle East and Africa Online Grocery Delivery Market.
