Saudi B2C e-commerce industry expected to grow 23.85% YoY to reach $31.7 billion by 2026 – ResearchAndMarkets.com

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 – The “2nd Quarter 2022 Update” report has been added to from ResearchAndMarkets.com offer.

According to the B2C e-commerce survey for the second quarter of 2022, the Saudi market is expected to grow by 23.85% on an annual basis to reach US$17.5 billion in 2022.

Companies cited

  • Amazon

  • in addition

  • Jarir

  • Namshi

  • Midday

  • careem now

  • HungerStation

  • Lugmety

  • Mrsool

  • Talabat

  • Almosafer

  • Careem

  • fly in

  • Jeany

  • Kaiian

The medium to long-term growth story of Saudi Arabia’s B2C e-commerce industry promises to be compelling. B2C e-commerce is expected to grow steadily over the forecast period, registering a CAGR of 16.07% during 2022-2026. The gross value of the country’s B2C e-commerce goods will grow from US$14.1 billion in 2021 to US$31.7 billion by 2026.

Over the past 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 closures, store closures and a reduction in retail operations, especially those deemed non-essential. As a result, consumers have shifted to a safer and more convenient shopping channel, including those who would otherwise stick with offline stores.

Globally, e-commerce shoppers are spending more and doing so more frequently. Additionally, a new generation of non-adopting alumni have also turned to online shopping channels. This global trend is also visible throughout the Kingdom of Saudi Arabia.

From an economic perspective, growth in retail spending across the Kingdom is expected to be among the largest, a trend that is a near certainty as more products become available to a wider audience and spending overseas retail are 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 evident despite its infancy.

Subscription healthy food delivery providers raise funding rounds to accelerate business expansion, including geographic footprint

Amid growing competition in the online restaurant services segment, startups are increasingly increasing investments from private equity and venture capital firms to accelerate their business expansion. For instance,

  • In March 2022, DailyMealz, a Saudi Arabia-based healthy food delivery app, announced that the company had raised US$5 million or SAR 20 million in its pre-Series A funding round, which included the participation of Hala Ventures, Saudi Airlines Catering, MLM investment company and VEDA Holding, among others.

  • The company plans to use the newly acquired investment to further accelerate its business expansion, which includes new products and geographic expansion. The subscription service allows users to order healthy meals tailored to their dietary needs 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 company uses in-house technology, which allows drivers to deliver multiple orders on each trip.

Saudi Arabia-based agency becomes largest online travel agency in the Middle East

To improve the business footprint in the region and boost operational efficiency and financial performance, a Saudi Arabia-based travel agency is taking a unified approach, making it the largest travel agency in the region. For instance,

In December 2021, Seera Group, the Saudi Arabia-based travel agency, announced that the company was unifying its business lines under the Almosafer name. The integration of services will allow the company to address market fragmentation while expanding its reach in the GCC region.

  • In the short and medium term, Almosafer should increase its investments in omnichannel goods and services. These steps are part of its strategy to improve customer experience in the online travel and hospitality industry in the Middle East. The integration of different business segments will also allow the company to leverage different resources while accelerating its growth in the region and in the global market over the next three to four years.

Online grocery delivery providers raise funding round to further increase market share

The online grocery market has witnessed strong growth over the past two years due to the global pandemic outbreak, which forced consumers to purchase groceries and groceries from home. This has 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 processes online grocery orders from its dark stores and delivers in 15 minutes, announced that the company had raised US$50 million in a funding round led by FIM Partners and STV. Notably, the company plans to use the funding round to further consolidate its position in the regional market.

  • Nana plans to have over 150 dark stores by 2022. Of these, more will be located in Saudi Arabia as the company aims to cover more cities across the Kingdom. According to the firm, 90% of daily grocery needs in Riyadh are covered by NanaExpress, the online delivery service offered by Nana.

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