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Jul, 2021     

eGrocery: Pureplay Etailers drive growth

In a span of one year, we have seen the KSA eGrocery market grow from negligible share in 2019 to 1% in 2020. However KSA’s eGrocery maturity still lags compared to other economies.


1. eGrocery takes the zero to one journey in KSA…

In a span of one year, we have seen the KSA eGrocery market grow from negligible share in 2019 to 1% in 2020. However KSA’s eGrocery maturity still lags compared to other economies.

KSA eGrocery Penetration, % of Grocery Retail, 2020

2. …driven by high consumer adoption for eGrocery

Compared to Pre-Covid times, KSA customers are turning to online channels for grocery shopping and this behavior has remained sticky till now with more than 80% of online shoppers making grocery purchases.

3. eGrocery is expected to be the fastest growing sector in KSA

eGrocery struggled against other online sectors prior to 2020. But the recent growth of more than 250% in 2020 shows that eGrocery is here to stay. As consumers shopped online even after COVID-19, eGrocery growth will outpace the rest of the e-tail sectors.

4. Quick commerce players such as Nana and Hungerstation have captured majority of growth

Pureplay etailer are driving the eGrocery sector because of the value proposition of quick delivery and convenience. Omnichannel players already have consumer trust because of the longer relationship with consumers. Within pureplay etailers, quick commerce players such as Nana and Hungerstation have captured majority of the growth.

Top Channels by Market Share – Grocery, % of Online Grocery Sales, 2020