Middle East and Africa Online Grocery Delivery Market

MEA Online Grocery Delivery Market Analysis

The Middle East and Africa Online Grocery Delivery Market is expected to register a CAGR of 26.4% during the forecast period.

• The outbreak of COVID-19 had a positive impact on the market. The preference for online grocery delivery apps improved rapidly as people stayed at home to contain the spread of the ongoing health crisis at that time. Grocery delivery applications became the savior of people in trying times.
• In the last few years, grocery delivery apps have seen a sudden increase in the number of online grocery orders and a sudden increase in revenue.Large and small retailers alike were using grocery delivery platforms to reach out to people stuck at home.
• The online grocery delivery market has grown because more people in the area have smartphones and more people have access to the internet.Changes in the region's population, like the growing number of young people and the large number of immigrants in big cities like Dubai, Abu Dhabi, and Johannesburg, have also led to a rise in the number of people who want online grocery delivery services.
• Online grocery shopping has many advantages over going to a store in person, like not having to spend time or money getting there or waiting in long lines to pay. It also offers the additional benefit of instinctive buying from home comfort. A population aged between 25 and 44 is considered the most influential consumer base in the Middle East and Africa, opting for online grocery delivery over conventional ones.

MEA Online Grocery Delivery Market Trends

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.

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.

MEA Online Grocery Delivery Industry Overview

The online grocery delivery industry in the Middle East and Africa has been rapidly changing and upgrading over the past few years. Market players are frequently launching new strategies. These players are investing more in R&D to understand the needs of the people in the region and make changes to their services. Additionally, these players are targeting tier-two cities in the region, as the market in big cities is getting saturated with many online food delivery services. The major strategy followed by these services is either collaborating with famous restaurants or acquiring small grocery delivery services in the region. A few of the prominent players in the region are InstaShop, Trolley Trading, El Grocer, Kibsons International LLC, and NRTC Fresh.

In January 2023, Deliveroo UAE introduced a brand new in-app round-up feature. The feature is designed to help its customers donate to communities in need throughout the UAE sub-region. The feature has been introduced in collaboration with licensed, local non-profit organizations. The first partner to benefit from these donations is said to be the Emirates Red Crescent. The program is a portion of Deliveroo's Full Life campaign, working to tackle the global food crisis.

MEA Online Grocery Delivery Market Leaders

MEA Online Grocery Delivery Market News

• July 2022: Considering the high level of competition in the market, the UAE's grocery delivery and quick commerce application 'Veppy.com' is allowing retailers to register their products on its website before its commercial launch at the end of August 2022. This was done in anticipation that the site could be in business right after its launch. Veppy.com makes shopping very personalized by recommending products based on what customers have bought on the site before and what the app has learned from that.
• July 2022: Deliveroo UAE launched 'Hop,' a new rapid delivery service that only applies to grocery delivery. Deliveroo launched "Hop" in partnership with Choithrams in the UAE. The app is anticipated to help customers get groceries delivered in 15 minutes within a defined radius. The latest addition to Deliveroo's offerings is anticipated to help the company's growth during the forecast period.