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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
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.
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 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.
Gaps in offline grocery shopping such as the inconvenience of commute, long payment queues, and cost of impulse buying led to the introduction of e-grocery delivery in the UAE. Population aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit growth rate close to 31% between 2016 and 2019. High internet penetration, rising working population, and an increasing number of single families have led to the growth of e-grocery services in the UAE. The number of companies offering grocery delivery services in the UAE has increased over the years. Companies have expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.
Increased disposable income per capita, long working hours and increase in dual income and nuclear families have given rise to demand for online food delivery in India . The Online Food Delivery Market of India is currently in its growth stage. The Gross Merchandise Value of the market has been growing over a Positive CAGR of 120% during the review period of 2014-2019. The trend in the market indicates likelihood towards healthy alternatives and diet food. The decrease in the average order value over the years has further given rise to demand in the market.
While the retail segment of the mattress industry was experiencing slow growth over the period, the hotel segment of the industry experienced strong growth, backed by a vibrant hotel development pipeline. Strong growth was also supplemented by a slew of new mattress material technologies such as memory foam, latex, gel infused foam, gel infused memory foam and hybrid materials. Moreover, the frequency within which hotels change their mattresses has been declining as they are paying more attention to guest comfort and are looking to change their bedding on a quicker basis, to stay in touch with the industry bedding trends as well.
Ken Research
Ankur Gupta , Head Marketing & Communications
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