DUBLIN--(BUSINESS WIRE)--The "Saudi Arabia B2C Ecommerce Market Opportunities Databook - 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics - Q2 2022 Update" report has been added to ResearchAndMarkets.com's offering.
According to the Q2 2022 B2C Ecommerce Survey, the market in Saudi Arabia is expected to grow by 23.85% on annual basis to reach US$17.5 billion in 2022.
Companies Mentioned
- Amazon
- eXtra
- Jarir
- Namshi
- Noon
- Careem Now
- HungerStation
- Lugmety
- Mrsool
- Talabat
- Almosafer
- Careem
- Flyin
- Jeeny
- Kaiian
The medium to the long-term growth story of the B2C Ecommerce industry in Saudi Arabia promises to be attractive . The B2C Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 16.07% during 2022-2026. The country's B2C Ecommerce Gross Merchandise Value will increase from US$14.1 billion in 2021 to reach US$31.7 billion by 2026.
Over the last two decades, e-commerce has completely transformed the traditional retail industry. This process was further accelerated in 2020 due to the global pandemic, which led to movement restrictions and lockdowns, store closures, and reduced retail operations, particularly those deemed non-essential. As a result, consumers turned to a safer and more convenient shopping channel, including those who would have otherwise remained loyal to offline stores.
Globally, e-commerce shoppers are spending more and are doing it more frequently. Moreover, a new generation of previous non-adopters has also shifted to online shopping channels. This global trend is also visible across the Kingdom of Saudi Arabia.
From the economic viewpoint, growing retail spending across the Kingdom is primed to be among the most prominent, a trend which is a near-certainty as more products are becoming accessible to a large audience and foreign retail expenditure is being captured. All of these factors will result in several positive outcomes over the next three to four years for the e-commerce industry in Saudi Arabia. However, the high-growth potential of the e-commerce market is apparent despite its infancy.
Subscription-based healthy food delivery providers are raising funding rounds to accelerate business expansion, including geographical footprint
Amid the growing competition in the online food service segment, startups are increasingly raising investment from private equity and venture capital firms to accelerate their business expansion. For instance,
- In March 2022, DailyMealz, a healthy food delivery app based in Saudi Arabia, announced that the firm had raised US$5 million or SAR 20 million in its pre-series A funding round, which included participation from Hala Ventures, Saudi Airlines Catering, MLM investment company, and VEDA Holding, among others.
- The firm is planning to use the newly-acquired investment to further accelerate business expansion, which includes new products and geographical expansion. The subscription-based service allows users to order healthy meals suitable for their dietary requirements through weekly or monthly subscriptions. The startup works directly with cloud kitchens and restaurants to offer their food as part of its meal plans. Notably, this food is delivered by its network of freelancers. To ensure maximum utilization of drivers, the firm uses in-house technology, which allows drivers to deliver multiple orders on every trip.
Saudi Arabia-based agency becomes the largest online travel firm in the Middle East
To improve the business footprint across the region and drive operational efficiency and financial performance, a Saudi-based travel firm is adopting a unified approach, making it the largest travel firm in the region. For instance,
In December 2021, Seera Group, the Saudi Arabia-based travel firm, announced that the firm is unifying its business verticals under the name of Almosafer. The integration of services will allow the firm to address market fragmentation while expanding its reach across the GCC region.
- From the short to medium-term perspective, Almosafer is expected to increase its investment in omnichannel goods and services. These steps are part of its strategy to improve the customer experience in the Middle East's online travel and hospitality industry. Integrating different business verticals will also allow the firm to tap into different resources while accelerating its growth in the region and the global market over the next three to four years.
Online grocery delivery providers are raising a funding round to further increase their market share
The online grocery market has recorded strong growth over the last two years due to the global pandemic outbreak, which forced consumers to shop for groceries and food items from their homes. This resulted in many innovative startups entering the market to meet the growing demand. As the grocery delivery market continues to grow in Saudi Arabia, these startups are raising funding rounds to further increase their market share. For instance,
- In February 2022, Nana, which fulfills online grocery orders from its dark stores and delivers within 15 minutes, announced that the firm had raised US$50 million in a funding round led by FIM Partners and STV. Notably, the firm plans to use the funding round to further consolidate its position in the regional market.
- Nana is planning to have more than 150 dark stores by 2022. Of those, more will be located in Saudi Arabia, as the firm aims to cover more cities across the Kingdom. According to the firm, 90% of the daily grocery needs in Riyadh are covered through NanaExpress, the online delivery service offered by Nana.
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