1. MENA Q-commerce is expected to reach $20 Bn by 2024; ~20% of overall Digital Economy

MENA Q-commerce market is expected to grow by 24% to reach $20bn as consumers continue looking for convenience and immediate gratification. MENA is fast emerging as a global leader in Quick commerce contributing 20% to MENA digital economy.

MENA Q-commerce2 Market Size, USD Bn, 2018 – 2024 (F)

Note(s): 1. Digital Economy includes Food delivery, E-tailing, Travel and Mobility
2. Q-commerce defined as delivery of goods withing short period of time usually around 1-2 hrs.

2. Food delivery kickstarted Q-Commerce, eGrocery is driving it

Food delivery started the Q-commerce business model as consumers wanted to get food quickly. Going forward, Q-commerce market will be driven by emerging categories such as grocery, pharmacy and gifts which are expected to grow at least 2 times faster than the food delivery segment.

MENA Q-commerce2 Sector Split, USD Bn, 2018 – 2024 (F)

Note(s): 1. Digital Economy includes Food delivery, E-tailing, Travel and Mobility
2. Q-commerce defined as delivery of goods withing short period of time usually around 1-2 hrs.

3. Food delivery players expanded their offering to eGrocery; however, eGrocery Q-commerce leaders such as Nana and Instashop have emerged

Many food-tech players have jumped into eGrocery as they already have the logistics capability to become a leader in this emerging segment. eGrocery specialists such as Nana and Instashop have also emerged leaders in the categories they operate in. Most players focused on providing a shop-in-shop experience to physical etailers; however dark store is emerging as a strong focus area. These leaders will need to manage the trinity of etailer leadership (trust, value proposition and experience) to continue to lead the segment.