Bahrain E-commerce Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Bahrain E-commerce Market is segmented into B2B E-commerce and B2C Ecommerce. The Bahrain E-commerce Market is Segmented by B2C ecommerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B ecommerce. Further, the study assesses the impact of COVID-19 on the market.

Market Snapshot

Bahrain E Commerce Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 14.48 %

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Market Overview

The Bahrain e-commerce market is expected to register a CAGR of above 14.48% during the forecast period, 2022-2027. The e-commerce industry is growing exponentially as more e-commerce businesses step into the country. The digital economy is significantly developing with access to the internet made available across the globe. Various e-commerce market vendors are expanding their business in the Bahrain Market to meet the growing demand for online retailing.

  • E-commerce (electronic commerce) purchases and sells products and services over an electronic network, typically the internet. Business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer, and consumer-to-business transactions are all possible. E-commerce is witnessing rapid growth in the Bahrain market. The factors like internet penetration, rise in the tech-savvy youth population, and other factors are driving Bahrain's e-commerce market.
  • Widespread smartphone and tablet usage have made social media applications such as WhatsApp, YouTube, Facebook, and Instagram popular platforms for advertising, retail, delivery, and other commercial services.
  • Similarly, In October 2021, The Central Bank of Bahrain (CBB) introduced electronic cheques (e-Cheques). This initiative was taken to promote the ongoing efforts toward digital transformation. Furthermore, The CBB directed the BENEFIT Company (BENEFIT) to implement the Bahrain Electronic Cheque System (BECS), leveraging the latest technology, to provide e-Cheque services.
  • Moreover, brand acquisitions are taking place in the country to meet the growing demand for e-commerce. For instance, In February 2022, MySize, the provider of AI-driven measurement solutions, announced the acquisition of Orgad, an omnichannel e-commerce platform. The acquisition will help MySize accelerate its revenue growth and reduction costs for its business clients.
  • Due to the covid - 19 regulations and the shutdown of various industries, the Bahrain government took some measures for customer engagement by introducing online shopping and a virtual marketplace to support the growth and development of owner-operated micro-businesses engaged in online sales activities, such as trading, merchandising, and retail. For instance, In 2021, the Ministry of Industry, Commerce, and Tourism (MoICT) has permitted 100% foreign ownership of businesses that provide online retailing in Bahrain.

Scope of the Report

The Bahrain e-commerce market is segmented into B2B E-commerce and B2C E-commerce. By B2C E-commerce, the market studied is further subdivided into beauty and personal care, consumer electronics, fashion and apparel, food and beverage, and furniture and home. The report studies the impact of COVID-19 on the studied market. The market studied briefs about the ongoing trends and challenges of the e-commerce market in Bahrain.

By B2C ecommerce
Market size (GMV) for the period of 2017-2027
Market Segmentation - by Application
Beauty and Personal Care
Consumer Electronics
Fashion and Apparel
Food and Beverage
Furniture and Home
Others (Toys, DIY, Media, etc.)
By B2B ecommerce
Market size for the period of 2017-2027

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Key Market Trends

Significant Growth in E-Commerce is Expected due to Digital Transformation

  • During the COVID-19 pandemic, the Bahrain Government's priority was to ensure the continuity of services and ramp up its infrastructure and security to enable Work From Home, e-Learning, e-Banking, and e-Health initiatives. The use of digital workspace, healthcare, and other related platforms positively affects Bahrain's e-commerce market.
  • Bahrain's government is launching various initiatives to strengthen the country's digital economy. The Digital Government Strategy 2022 aims to develop the digital infrastructure strategically. This strategy will focus on Strengthening digital infrastructure, data, and artificial intelligence, Accelerating the transformation and collaboration efforts of various public sector entities, Strengthening accountability, transparency, and civic engagement through open data and e-Participation, and encouraging innovation and nurturing entrepreneurship.
  • Start-ups are accelerating the growth of Bahrain's e-commerce market. According to the World Trade Organisation, in July 2021, 24 accelerators and incubators have been authorized to incubate 761 start-up businesses in different fields such as IoT, technology, fintech, e-commerce, media, creative industry, and medical.
  • Many financial service vendors are entering the e-commerce market in Bahrain to ease the payment options for customers. For instance, In May 2022, Tabby, a provider of Book Now Pay Later(BNPL), announced its partnership with Visa, financial services corporation, and M2P FinTech, an API infrastructure company, to make in-store payments easier with the availability of Tabby Visa Card.
  • In February 2022, Mastercard announced its partnership with Payment International Enterprise to launch a digital program, Flooss, that will provide financial services in the Bahrain e-commerce market. This payment service will also offer an app through which the customers can make payments and add reminders for payments that are due.
Bahrain E Commerce Market Trends

Fashion is Expected to Hold a Major Share

  • The fashion industry has recorded growth during the COVID-19 outbreak because customer preferences shifted towards online shopping with easy access to different websites, eliminating the need to visit physical stores. Several factors have boosted the demand for online shopping and retailing, such as the rise in users of social media and smartphones.
  • Many e-commerce vendors are launching their online sites in order to meet the online shopping demands of buyers. For instance, In February 2022 - Youapp, a last-mile company, will be launching its multi-vertical delivery platform in Bahrain. This app will provide Fashion, Health & Beauty, Food & beverages, Lifestyle, Grocery, and Flowers.
  • Similarly, In July 2021, Boohoo, a British online fashion retailer, announced its partnership with Kuwait-based Alshaya Group for building its Debenhams brand in the Middle-East region, including the Bahrain market.
  • The rise in online shopping and work from home has driven the use of the internet for meeting home delivery across the customers. For instance, in May 2021, Sitecore, a software company, stated in their report that 86% of customers in Bahrain have switched to digital since the pandemic and want to continue purchasing everything online.
Bahrain E Commerce Market Analysis

Competitive Landscape

Bahrain's e-commerce market is witnessing a rise in competitiveness among companies. The market consists of various major players, such as Alibaba, Amazon, eBay, and others. In terms of market share, these significant players are presently dominating the e-commerce market in Bahrain. However, with increasing innovations in e-commerce, many companies and startups are increasing their market presence by securing new contracts and tapping new markets.

  • In March 2022 - LuLu Group announced the launch of its LuLu Express Fresh Market in Bahrain. The Express fresh market is completely run by women. The market has bakery products, fruits, vegetables, and other food products. The market offers branded, imported products and regional offerings.
  • January 2022 - Batelco, a telecom services provider based in Bahrain, recently debuted Batelco eSuite, its eCommerce platform, to help sellers create an online store easily. It will also provide a completely customizable solution with localized payment methods.

Recent Developments

  • In March 2022 - Fermob, a French outdoor furniture manufacturer, launched its showroom in Bahrain. The showroom will offer a series of outdoor furniture that is environmentally friendly and sustainable.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Key market trends and share of e-commerce of total Retail sector

    4. 4.4 Impact of COVID-19 on the e-commerce sales

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand from Fashion Industry

      2. 5.1.2 increasing Smartphone Usage

    2. 5.2 Market Challenges

      1. 5.2.1 Low Internet Penetration

    3. 5.3 Analysis of key demographic trends and patterns related to ecommerce industry in Bahrain (Coverage to include Population, Internet Penetration, ecommerce Penetration, Age & Income etc.)

    4. 5.4 Analysis of the key modes of transaction in the ecommerce industry in Bahrain (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)

    5. 5.5 Analysis of cross-border ecommerce industry in Bahrain (Current market value of cross-border & key trends)

    6. 5.6 Current positioning of country Bahrain in the ecommerce industry in region Europe

  6. 6. Market Segmentation

    1. 6.1 By B2C ecommerce

      1. 6.1.1 Market size (GMV) for the period of 2017-2027

      2. 6.1.2 Market Segmentation - by Application

        1. 6.1.2.1 Beauty and Personal Care

        2. 6.1.2.2 Consumer Electronics

        3. 6.1.2.3 Fashion and Apparel

        4. 6.1.2.4 Food and Beverage

        5. 6.1.2.5 Furniture and Home

        6. 6.1.2.6 Others (Toys, DIY, Media, etc.)

    2. 6.2 By B2B ecommerce

      1. 6.2.1 Market size for the period of 2017-2027

  7. 7. Competitive Landscape

    1. 7.1 Company Profiles

      1. 7.1.1 Amazon.com Inc.

      2. 7.1.2 H & M Hennes & Mauritz AB

      3. 7.1.3 Aliexpress

      4. 7.1.4 Talabat

      5. 7.1.5 Namshi General Trading LLC

      6. 7.1.6 Apple Inc.

      7. 7.1.7 LuLu Group International

      8. 7.1.8 Noon AD Holdings Ltd

      9. 7.1.9 Sharaf DG LLC

      10. 7.1.10 Zalando SE

    2. *List Not Exhaustive
  8. 8. Investment Analysis

  9. 9. Future Outlook of the Market

**Subject to Availability

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Frequently Asked Questions

The Bahrain E-commerce Market market is studied from 2020 - 2027.

The Bahrain E-commerce Market is growing at a CAGR of 14.48% over the next 5 years.

Amazon.com, Inc., H & M Hennes & Mauritz AB , AliExpress, Talabat, Namshi General Trading L.L.C are the major companies operating in Bahrain E-commerce Market .

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