GCC Online Grocery Industry Analysis and Research Report

Market Overview:

The GCC online grocery market size reached USD 7,423.6 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 53,640.5 Million by 2033, exhibiting a growth rate (CAGR) of 23.35% during 2025-2033. The growing investments in logistics and supply chain infrastructure by online grocery providers, the rising efforts to improve the overall infrastructure of warehousing, cold storage, and last-mile delivery, and technological advancements are among the key factors driving the market growth.

Online grocery shopping is a digital form of traditional grocery shopping that allows consumers to purchase food and household items from the convenience of their homes. Customers may browse through a wide variety of items categorized under various departments such as fruits, vegetables, dairy products, meats, and packaged meals by visiting the websites or utilizing mobile applications of supermarkets or specialized e-commerce platforms. Once they select the items they need, they can place them in a virtual cart and proceed to checkout, where they can choose their preferred method of payment and delivery time. Various online grocery services also offer features, including saved shopping lists and personalized recommendations, which further enhance the convenience and personalization of the shopping experience.

The rise in investments in logistics and supply chain infrastructure by online grocery providers majorly drives the market in the GCC region. Streamlining deliveries and reducing turnaround time is essential for customer satisfaction, and numerous e-grocers are investing heavily in warehousing, cold storage, and last-mile delivery to ensure product freshness and prompt delivery. Technology-driven logistics also allow e-grocers to service a larger geographic area, broadening their customer base. As the economy grows and the purchasing power of the average consumer increases, the demand for services that offer both convenience and time-saving is also growing. In addition, government initiatives encouraging digital payments and promoting digital literacy are making consumers more comfortable with online transactions, driving the growth of e-commerce and online grocery. Moreover, the widespread adoption of advanced technologies, such as AI and machine learning by online grocery platforms to analyze consumer shopping behavior and provide personalized recommendations is creating a positive market outlook.

GCC Online Grocery Market Trends/Drivers:

Internet and Smartphone Penetration

The proliferation of internet services and the widespread adoption of smartphones in the GCC region have been major drivers for the growth of the market. Along with this, the continuous decline in data prices has enabled internet access more affordable for a broader segment of the population. Additionally, the penetration of smartphones and better network connectivity has propelled consumers to move away from traditional brick-and-mortar grocery stores and adopt digital platforms. In addition, easy access to the internet and smartphones, coupled with the developments in the digital infrastructure has enabled consumers in both urban and rural areas to order groceries at their convenience, without time constraints, from a wider selection of products and with home delivery services, thereby propelling the growth of online grocery market.

Growth of the Fintech Industry

The flourishing fintech industry across the GCC is another crucial factor impelling the growth of the online grocery market. The advent of digital payment methods, such as unified payments interface (UPI), paytm, google pay, and other mobile wallet services has simplified transactions and enhanced the trust of consumers in online shopping. Additionally, the government's push for digitization and the growing financial literacy among the population have promoted the usage of these digital payment methods. Moreover, the introduction of buy now, pay later schemes and easy EMI options have enabled online shopping more appealing, providing a boost to the online grocery industry.

GCC Online Grocery Industry Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the GCC online grocery market report, along with forecasts at the regional and country levels from 2025-2033. Our report has categorized the market based on product type, business model, platform and purchase type.

Breakup by Product Type:

• Vegetables and Fruits
• Dairy Products
• Staples and Cooking Essentials
• Snacks
• Meat and Seafood
• Others

Meat and seafood represents the most widely used product type

The report has provided a detailed breakup and analysis of the market based on the product type. This includes vegetables and fruits, dairy products, staples and cooking essentials, snacks, meat and seafood, and others. According to the report, meat and seafood represented the largest segment.

The online grocery industry in the GCC region is experiencing significant growth due to the growing population and increasing urbanization in the GCC countries. As more consumers reside in cities, there is a rising preference for the convenience of online grocery shopping, including the purchase of meat and seafood. Additionally, the GCC region has a strong cultural affinity for meat and seafood, making these products an integral part of local cuisine and dietary habits.

On the contrary, dairy products, such as milk, yogurt, cheese, and butter are staple ingredients in traditional Arabian cuisine and are widely used in various dishes. The convenience offered by online grocery platforms allows consumers to easily access a wide range of dairy products, including specialty items and international brands. In addition, the growing health consciousness among consumers has led to an increased demand for organic and healthier options in the dairy segment.

Breakup by Business Model:

• Pure Marketplace
• Hybrid Marketplace
• Others

Pure marketplace account for the majority of the market share

A detailed breakup and analysis of the market based on the business model have also been provided in the report. This includes pure marketplace, hybrid marketplace, and others. According to the report, the pure marketplace segment accounted for the largest market share.

The pure marketplace business model is gaining traction in the GCC online grocery industry due to easy access to a diverse selection of grocery items, including niche and specialty products. Along with this, the pure marketplace model promotes competition among sellers, which can lead to competitive pricing, discounts, and promotional offers. This benefits consumers by providing them with greater choices and potentially lower prices. Moreover, the marketplace model fosters convenience, as customers can order groceries from multiple sellers in a single transaction, reducing the need for multiple deliveries.

On the other hand, the hybrid marketplace model combines the benefits of a pure marketplace model, where multiple sellers offer a wide range of products, with the inclusion of a dedicated inventory managed by the marketplace itself. This enables the marketplace to ensure the availability of essential grocery items, particularly perishable goods like fruits, vegetables, and dairy products, which may require stricter quality control and handling. Moreover, the hybrid model allows for greater control over delivery logistics, ensuring timely and efficient delivery of orders.

Breakup by Platform:

• Web-Based
• App-Based

Web-based represents the most widely used platform

The report has provided a detailed breakup and analysis of the market based on the platform. This includes web-based and app-based. According to the report, web-based represented the largest segment.

The online grocery industry in the GCC region is currently experiencing a rise in growth, driven by a demographic shift towards a more tech-savvy, younger population who prefer digital solutions for their daily needs. Additionally, the ongoing urbanization, along with high Internet penetration and smartphone usage across the region, are facilitating access to these online services. In addition, recent improvements in logistics and supply chain infrastructure are ensuring timely and efficient delivery, encouraging more consumers to shop for groceries online. Moreover, the lingering effects of the COVID-19 pandemic have instilled a long-term behavior change in consumers, with an increased preference for contactless shopping and home delivery, thereby fostering the growth of the online grocery market.

On the contrary, app-based platforms in the GCC online grocery industry is propelled by an emerging, tech-literate demographic with growing spending power. Additionally, high smartphone penetration rates in the region, alongside widespread, reliable internet access are creating a positive market outlook.

Breakup by Purchase Type:

• One-Time
• Subscription

One-time account for the majority of the market share

A detailed breakup and analysis of the market based on the purchase type have also been provided in the report. This includes one-time and subscription. According to the report, the one-time segment accounted for the largest market share.

The one-time purchase type allows to make spontaneous purchases based on their immediate needs and wants, without any recurring charges or commitments. Additionally, it serves as an entry point for many first-time online shoppers who may be hesitant to commit to subscriptions but are willing to experiment with one-off purchases. Moreover, the introduction of discount offers and deals on online platforms often incentivize one-time, bulk purchases, particularly during festive seasons or special occasions.

On the contrary, the subscription purchase type offers a form of predictability, both in terms of expenditure and product availability, which is valuable in a fast-paced lifestyle. The model is also favorable in times of product scarcity or increased demand, ensuring that subscribers receive their necessities without any inconvenience. Furthermore, most subscription services offer added perks like discounted rates, premium products, or priority delivery, further enticing customers to opt for this model.

Breakup by Country:

• Saudi Arabia
• UAE
• Qatar
• Oman
• Kuwait
• Bahrain

Saudi Arabia exhibits a clear dominance, accounting for the largest the GCC online grocery market share

The report has also provided a comprehensive analysis of all the major regional markets, which include Saudi Arabia, UAE, Qatar, Oman, Kuwait, and Bahrain.

A strong push for digital transformation from the Saudi government is fostering an environment conducive to digital commerce. In addition, the country enhances high Internet penetration and smartphone usage rates, facilitating the accessibility and use of online grocery platforms. Improvements in logistics and supply chain networks ensure prompt delivery, further enhancing customer satisfaction and trust in online grocery platforms. Moreover, the increasing participation of women in the workforce necessitates time-saving solutions for household tasks, boosting the demand for online grocery services. Furthermore, Saudi Arabia has witnessed the entry and expansion of various local and international players in the online grocery sector. This competition has spurred innovation, improved service offerings, and contributed to the overall growth. Additionally, the population has shown an increasing inclination towards digital adoption and online shopping. The convenience and flexibility offered by online grocery platforms align with evolving consumer preferences for easy access to products and services.

Competitive Landscape:

The GCC online grocery market is experiencing significant growth due to escalating investments in technology to improve online platforms, create user-friendly interfaces, and optimize mobile apps to enhance user experiences. Some are employing AI and machine learning to provide personalized shopping experiences and recommendations. Along with this, top companies are working on improving their supply chain and logistics to ensure the freshness and quality of products. This includes investing in cold storage and advanced logistics systems. Online grocery firms are partnering with local stores and farms to increase their product range and ensure the supply of fresh produce, which is acting as another growth-inducing factor. In response to growing consumer concern for the environment, companies are taking steps to reduce their environmental footprint, including reducing plastic packaging and investing in electric delivery vehicles. Apart from this, subscription-based models are also gaining popularity, with companies offering discounts and added perks to subscribers to ensure regular customer engagement.

GCC Online Grocery Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC online grocery market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC online grocery market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC online grocery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.