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Online Grocery Market Updates | Middle-East

Sandeep Ganediwalla
Sandeep Ganediwalla

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Share of organized grocery retail in UAE+KSA is expected to increase to 80% by 2022, from current 60%; Unorganized grocery retail to shrink

Published on: Jan 2019
RedSeer estimates grocery retail to grow at CAGR of ~5% to reach size of USD 73 Bn by 2022, from current USD 60 Bn for combined market of UAE+KSA. This growth will be driven by strengthening of supply factors and improving macroeconomic situation. Saudization is leading to closing down of Baqalas in KSA which are fast getting replaced by organized players in the Kingdom.

Online grocery penetration in UAE+KSA is expected to reach to 2.25% by 2022 from current 0.4%, growing at CAGR of 65%

Published on: Jan 2019

RedSeer estimate the online grocery market to grow at CAGR of 65%+ to reach size of USD 1.8+ Bn by 2022, from current USD 240 Mn for the combined market of UAE+KSA. This growth will be driven by improved supply in the form of investments, partnership among the players and emergence of innovative business model like omnichannel play. Increased adoption of online grocery by locals from Tier 1&2 cities will generate the volume for this channel.

Story

Online grocery has seen a lot of traction in the last three years in the region involving emergence and expansion of new players, investments, partnerships and traditional players going omnichannel

Published on: Jan 2019

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Sandeep Ganediwalla

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Sandeep Ganediwalla

Partner

Sandeep is the Partner with 20+ years of experience in consulting and technology. He has expertise in multiple sectors including ecommerce, technology, telecom and private equity.

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