e-Grocery – Rising Maturity in Kuwait
e-Grocery players that address the pain areas will grow faster than the market
1. Kuwait e-Grocery shows a high penetration rate
Overall, Kuwait grocery market is smaller when compared to the UAE and KSA, yet the penetration rate of e-Grocery in Kuwait is higher than KSA’s and closer to that of UAE. This highlights the relatively high maturity that Kuwait e-Grocery sector has achieved in a fairly short time.
2. The e-Grocery market in Kuwait has seen a rapid rise in 2020
The pandemic propelled e-Grocery due to lockdowns and work from home initiatives. However, we are seeing high consumer demand for e-grocery even after the lockdown which indicates a more permanent shift in consumer preferences. In addition, the introduction of new players gave e-Grocery a big thrust as established names bring a higher level of trust to the sector. We expect the market to continue to grow at a rapid pace in 2021.
3. The online market has seen multiple new players enter in the recent past
As mentioned in the previous section, new players brought a higher level of trust in the sector. These new players were the catalyst for rapid growth, as they brought variety, better delivery experiences, and improved their last mile logistics capabilities. We anticipate that this growth will continue as consumers have shown an increased level of stickiness that will last beyond pandemic related factors.
4. e-Grocery players that address the pain areas will grow faster than the market
While the customers are expected to increase adoption of e-Grocery, e-tailers will need to address the pain points of consumers to continue to gain market share. Some areas of concern are around delivery times and availability of products.