Market Trends of Middle East and Africa Online Grocery Delivery Industry
Mobile apps segment is anticipated to grow at a noticeable pace during the forecast period.
- The retail delivery segment was the leading segment of the industry during the past few years. The segment accounted for a substantial market share in the region. Restaurants and customers prefer retail delivery via mobile apps as they take care of all aspects, such as delivering groceries, showing customers the extensive menu, and coming up with new ideas and offers to attract more customers, such as loyalty benefits and subscription programs.
- The growth of this segment is also likely to be helped by the fact that more companies are investing in this retail delivery mobile app.People use these kinds of apps a lot in the region's big cities, but mobile app delivery service providers are also working to grow in smaller towns.The fact that there are more smartphone users in these cities is good news for these players.
- Quick commerce is also growing at a noteworthy pace in the region. The pandemic fueled the growth of quick commerce in the Middle East and Africa. Various market players developed multiple ideas to attract customers during and after the COVID-19 pandemic.
- The companies compete for the quickest delivery in the least amount of time, as Talabat is known to deliver in under 20 minutes. Similarly, RabbitMart, or Rabbit, a delivery service from Egypt, and Deliveroo from the UAE deliver groceries to the doorstep within 15 to 20 minutes of ordering. These factors have created multiple growth opportunities for the segment in this region.
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Saudi Arabia is projected to dominate the market over the course of forecast period.
- The Saudi Arabian government is helping its economy grow by encouraging investment in grocery stores and food delivery services.As a result, the grocery and food delivery service industries are flourishing in the country. Additionally, the surge in the acquisition of local food delivery companies by global players to expand their presence in the country has also helped the market grow.
- In 2021, the Communications and Information Technology Commission (CITC) and the Social Development Bank (SDB) collaborated over a three-year partnership in Saudi Arabia to help self-employed individuals financially. This allowed people to use a vehicle to work for grocery and food delivery applications.
- Quick commerce companies are shaping the Saudi Arabian online grocery delivery market. These companies are attracting a high number of orders as they offer a broad variety of options at reasonable prices and enhance the customer grocery shopping experience by way of delivery.
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