1. The Growing Market
MENA e-Grocery GMV had been growing in double digits YoY until 2019, and was expected to grow at ~60%. However, Covid-19 has more than doubled the eGrocery markets in UAE & KSA. Since the last quarter, a multitude of factors such as extended lockdown, enhanced delivery experience and new players have made the market grow further.The industry is on an upward spiral with acquisitions, rise of dark stores and Q-commerce models.
Our report covers the new market sizes broken down by monthly projections, growth rates and eGrocery penetration in online retail.
2. The Competitive Landscape
Suppliers, on the other hand, are capacity constrained and striving to expand capacity through partnerships and improve on the customer experience. New players are entering the market as big players are being merged or acquired. Hyperlocal players have stepped up the game and as a result increased their mind share at the cost of omnichannel players.
Our report also covers market shares by player types and comparisons of their online value proposition.
3. The Consumer
Consumers displayed enhanced stickiness to ordering groceries online due to the added convenience, availability of better deals and the limited exposure to crowded supermarkets. As consumers shell out a bit more in delivery fees compared to physical purchasing, their expectations around the ordering experience as well as delivery experience also increased.
Satisfaction Levels of Current Service Provider
(% of Respondents rating an attribute 7 or higher out of 10)
Consumers will be the biggest beneficiaries of the market growth as eGrocery players eye their share of wallet. As the industry becomes crowded, each physical & eGrocery player will need to take a hard look at their business model to stay ahead of competition whilst being profitable.