KSA Online Grocery Delivery Market is expected to cross SAR 650 Billion by 2025 owing to surge in order frequency and Technological Innovation: Ken Research

Impact of Covid-19:  Due to COVID-19 Outbreak, people avoided crowded places and turned to online grocery shopping amid escalating fears. Major product categories witnessed growth between 20-40% during the pandemic such as water, personal hygiene, home cleaning, fruits & vegetables. March and April was marked by a huge gap between demand and supply as no one was prepared for this situation in advance therefore companies faced logistical challenges. Average delivery time also increased from one to three days to one to two weeks. In order to fulfil the increased demand, companies expanded their delivery fleet by partnering with third party delivery companies to manage last-mile logistics.

Impact of Covid-19:  Due to COVID-19 Outbreak, people avoided crowded places and turned to online grocery shopping amid escalating fears. Major product categories witnessed growth between 20-40% during the pandemic such as water, personal hygiene, home cleaning, fruits & vegetables. March and April was marked by a huge gap between demand and supply as no one was prepared for this situation in advance therefore companies faced logistical challenges. Average delivery time also increased from one to three days to one to two weeks. In order to fulfil the increased demand, companies expanded their delivery fleet by partnering with third party delivery companies to manage last-mile logistics.

Expanding Partnerships with Third Party Operators: It is anticipated that companies would be expanding tie ups with suppliers & grocery stores, food delivery companies, e-wallet companies to leverage their capabilities to fulfil customer orders. Companies are also expected to establish dark stores across the Kingdom to ensure quicker and efficient logistics management.

According to the report by Ken Research titled "KSA Online Grocery Delivery Market Outlook to 2025- Driven by Regional Changing Shopping Habits of Consumers and  Expansion of Local and International Players in the Kingdom" the Online Grocery Delivery Market will be valued at SAR 650 Billion by the end of 2025, registering a CAGR of 23.4% between 2019 and 2025. The market will witness growth owing to rise in investment in marketplace companies & innovative strategies adopted by service provides.

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KSA Online Grocery Delivery Market

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