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Rising Investment in Marketplace Companies and Focus on Delivering Personalised Experience to the Customer facilitated the 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 Region

Central

Western

Eastern

Southern

Northern

By Product Category

Food & Beverages

Fresh Food

Household Supplies

Beauty and Health

Others

By Mode of Payment

Cash on Delivery

Pre-Delivery Online Payment

Card on Delivery

By 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

18-24 years

25-34 years

35-44 years

 45+ years

By Gender

Male

Gender

Companies Covered

Nana Direct

Zadfresh

Carrefour

Danube

Qareeb.com

Key Target Audience

Online Grocery Delivery Companies

Supermarkets & Hypermarkets

E-commerce Companies

Food Delivery Companies

Investors and Venture Capitalists

Logistics Companies

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

Seasonality Trends

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

Marketing Strategies

Industry Best Practices

Covid-19 Impact on KSA Online Grocery Delivery Market

Analyst Recommendations

For More Information on the Research Report, refer to below links: –

Future of KSA Online Grocery Delivery Market

Related Reports by Ken Research: –

UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion

UK Online Retail Market Outlook to 2025 – By Product Categories (Apparel and Footwear, Food and Drink, Media Products, Consumer Electronics and Others), By Desktop and Mobile Mode, By Gender (Male and Female) and By Mode of Payment (Debit+Credit Card, Net Banking and Cash on Delivery)

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: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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