Growth in KSA Online Grocery Market: Ken Research
- 62% of grocery orders were placed by customers belonging to 25-44 age groups. Population aged between 25 and 44 stood at 13.6 million in 2019.
- More than 70% of online grocery orders are fulfilled in Central and Western Saudi Arabia. Riyadh, Medina and Makkah recognised as major demand and supply regions in the Kingdom.
- Working professional mapped as target audience for online grocery delivery companies in the Kingdom. Male & female working population stood at 10.8 million and 2.5 million respectively in 2019.
Increasing Demand among Working Professionals: The demand for online grocery is rising among working professionals & married couples as they have less time to physically visit a store for grocery shopping. In addition to this, demand for online grocery has increased among the people living independently as they are increasingly outsourcing their chores, such as grocery shopping to reliable vendors online. Approximately 30% of the online grocery buyers are frequent shoppers.
Challenges in Online Grocery Industry: The online grocery industry in KSA faces many challenges such as inventory and logistics management, low profit margins, high customer retention & acquisition cost and inefficient backend system. Even though the internet and smartphone penetration in the region is high, the online grocery penetration is low, signifying slow adoption rate in the industry. Families in KSA are accustomed to visiting hypermarkets and supermarkets with their families for weekly grocery shopping, thereby posing a challenge for online grocery service providers to replicate this experience for the customers.
Technologies Facilitating Business Operations: Service providers in KSA are constantly upgrading themselves to adapt to the needs of the customers. Fleet management software, real time inventory monitoring & business analytics have driven the day to day operations in the industry. Artificial Intelligence has helped the companies to offer personalise experience to customer.
According to the report by Ken Research titled “KSA Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion” the online grocery delivery demand on the basis of GMV was valued at SAR 185 Million in 2019. The industry is at the growth stage and the demand will continue to grow owing to rising internet penetration, regional expansion of local and international players and adoption of AI, region expansion and product portfolio diversification.
Key Segments Covered: –
By Product Category
Food & Beverages
Beauty and Health
By Mode of Payment
Cash on Delivery
Pre-Delivery Online Payment
Card on Delivery
In a Specific Time Period (Same Day or Next Day)
Express Delivery (30 minutes-2 hours)
Other (2-3 Days or More)
By Age Group
Key Target Audience
Online Grocery Delivery Companies
Supermarkets & Hypermarkets
Food Delivery Companies
Investors and Venture Capitalists
Government Organization catering to the FMCG Industry
Time Period Captured in the Report: –
Historical Period: 2017–2019
Forecast Period: 2020-2025
Key Topics Covered in the Report: –
Difference between Online & Offline Grocery Shopping. Why Online Grocery is the Way Forward?
Target Addressable Audience
Supply Ecosystem and Competition Parameters
Demand Scenario, Target Customer and Factor Influencing Consumer Behavior
Process of On Boarding a Grocery Store
Role & Responsibilities of Company and Partner Grocery Store
Gaps & Possible Solutions of Managing Logistics
Factors Influencing Customer Behavior
Features of a Grocery Delivery Application
Technologies Facilitating Online Grocery Delivery Industry
Upcoming Technologies in Online Grocery Delivery Industry
Future Market Trends and Way Forward
Industry Best Practices
Covid-19 Impact on KSA Online Grocery Delivery Market
For More Information on the Research Report, refer to below links: –
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Taiwan E-Commerce Market Outlook to 2023 – Online Retail (By Product Categories, By Desktop and Mobile, By Gender); Online Travel (By Intermediary and Direct Online Sale and By Desktop and Mobile); Online Payment Gateway Market
Contact Us: –
Ankur Gupta, Head Marketing & Communications