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Dec, 2021     

Quick Commerce: MENA’s Hidden Gems

Q-commerce with sectors that already have the necessary digital infrastructure and consumer awareness in the MENA region expands the market potential for quick commerce to encompass a $100 Bn opportunity .


1. MENA Quick Commerce to become a ~$47 bn market by 2030; Grocery, and other categories to witness largest growth

Q-commerce Sector Split, In USD Bn, 2018-2030 (F)

Note(s): Current Q-commerce model includes Food delivery, Grocery, Dark Kitchens & Stores, and other Categories (Gifts, flowers, retail sectors…)

As it currently stands, the MENA Q-commerce model is set to reach $47 Bn by 2030, growing at an impressive 17% CAGR. While the market is still predominantly (80%+) driven by Food delivery and Grocery, the market split is drastically evolving. Nascent retail categories such as Fashion and beauty are witnessing the fastest growth and are slowly catching up.

2. However, the Quick Commerce opportunity in MENA extends far beyond usual Culprits; A ~$100 Bn Opportunity including adjacent sectors

Quick Commerce Market including adjacent sectors, In USD Bn, 2030 (F)

Note(s): The list of additional sectors mentioned here is not exhaustive.

The $ 47 Bn market can easily grow multi-fold when accounting for adjacent sectors to Q-commerce that already have great synergy with this model. Sectors such as Last-mile delivery, Mobility, & Social commerce are front runners in terms of the expected market size and could be exploited for their synergies with the Quick Commerce market.

Combining Q-commerce with sectors that already have the necessary digital infrastructure and consumer awareness in the MENA region expands the market potential for quick commerce to encompass a $100 Bn opportunity .

3. The potential of these adjacent sectors needs to be evaluated based on opportunity size, growth and ease of implementation

Relative Growth vs Ease of Implementation for each sectors, CAGR (2021-2030 (F), Ease of Implementation Score

The adjacent sectors alluded to earlier have varying degrees of market potential across the Quick commerce spectrum. Sectors such as Home Services and Social Commerce in quadrant 2 represent the ideal candidates to benefit from Q-com.

The above sector names are for illustrative purposes and not exhaustive in nature. There are a long list of products and services and enablers that stand to benefit from the upsurge in Q-commerce. The region benefits from strong logistics and digital infrastructure combined with high value associated by consumers towards convenience, leading to a willingness to pay for it as well.

Q-commerce is definitely one of the most lucrative opportunities out there and not looking into the adjacent sectors to it, will prove to be an opportunity missed in the medium to long term.