Middle East and Africa Online Grocery Delivery Market

The MEA online grocery delivery market, valued at USD 1.8 billion, is growing due to rising urbanization, smartphone penetration, and consumer shifts to convenient digital shopping.

Region:Global

Author(s):Shubham

Product Code:KRAD0787

Pages:85

Published On:August 2025

About the Report

Base Year 2024

Middle East and Africa Online Grocery Delivery Market Overview

  • The Middle East and Africa Online Grocery Delivery Market is valued at USD 1.8 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of smartphones, the rise of e-commerce, and changing consumer preferences towards convenience and time-saving solutions. The market has seen a significant uptick in demand for online grocery services, particularly during the pandemic, which has accelerated the shift towards digital shopping .
  • Key players in this market include the UAE, Saudi Arabia, and South Africa, which dominate due to their advanced logistics infrastructure, high internet penetration rates, and a growing urban population. The presence of major retail chains and local startups in these regions has further fueled market growth, making them attractive hubs for online grocery delivery services .
  • In 2023, the UAE government implemented the Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data, issued by the UAE Cabinet, which governs consumer data privacy and protection in digital transactions, including online grocery delivery. This regulation mandates online platforms to comply with strict standards regarding data handling, food safety, and quality, thereby boosting consumer confidence in online grocery shopping .
Middle East and Africa Online Grocery Delivery Market Size

Middle East and Africa Online Grocery Delivery Market Segmentation

By Type:The market is segmented into various types of products available for online grocery delivery. The subsegments include Fresh Produce, Packaged Groceries, Dairy Products, Frozen Foods, Beverages, Personal Care Items, Bakery & Confectionery, Ready-to-Eat Foods, and Others. Among these, Fresh Produce and Packaged Groceries are the most popular due to their essential nature and high demand among consumers .

Middle East and Africa Online Grocery Delivery Market segmentation by Type.

By End-User:The online grocery delivery market serves various end-users, including Households, Restaurants & Foodservice, Corporate Offices, and Educational Institutions. Households represent the largest segment, driven by the convenience of online shopping, the increasing number of dual-income families, and the expansion of digital payment solutions .

Middle East and Africa Online Grocery Delivery Market segmentation by End-User.

Middle East and Africa Online Grocery Delivery Market Competitive Landscape

The Middle East and Africa Online Grocery Delivery Market is characterized by a dynamic mix of regional and international players. Leading participants such as InstaShop, Trolley Trading, elGrocer, Kibsons International LLC, NRTC Fresh, Carrefour, Lulu Hypermarket, Spinneys, Monoprix, Jumia, Getir, Glovo, Instashop, Farmbox, FreshToHome contribute to innovation, geographic expansion, and service delivery in this space .

InstaShop

2015

Dubai, UAE

Trolley Trading

2018

Abu Dhabi, UAE

elGrocer

2015

Dubai, UAE

Kibsons International LLC

1980

Dubai, UAE

NRTC Fresh

2000

Dubai, UAE

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Customer Acquisition Cost (CAC)

Average Order Value (AOV)

Customer Retention Rate

Delivery Time Efficiency (Average Delivery Time, % On-Time Delivery)

Market Penetration Rate (Active Users/Population)

Middle East and Africa Online Grocery Delivery Market Industry Analysis

Growth Drivers

  • Increasing Urbanization:Urbanization in the Middle East and Africa is accelerating, with the urban population projected to reach approximately 58% in future, up from about 55% in recent years. This shift is driving demand for online grocery delivery services, as urban dwellers seek convenience and time-saving solutions. The World Bank estimates that urban areas contribute over 80% of GDP in these regions, highlighting the economic potential of urban-centric services like online grocery delivery.
  • Rising Smartphone Penetration:Smartphone penetration in the Middle East and Africa is expected to approach 62% in future, up from about 50% in recent years. This increase facilitates access to online grocery platforms, enabling consumers to shop conveniently from their mobile devices. According to GSMA, mobile internet users in the region are projected to reach over 475 million in future, further enhancing the market's growth potential as more consumers engage with digital grocery services.
  • Shift in Consumer Preferences Towards Convenience:A significant shift towards convenience is evident, but the claim that 65% of consumers in the region prefer online grocery shopping over traditional methods cannot be confirmed from authoritative sources. The International Monetary Fund (IMF) reports that consumer spending in the region is expected to grow steadily, indicating a robust market for services that cater to convenience-oriented consumers.

Market Challenges

  • Logistics and Delivery Issues:The logistics infrastructure in many Middle Eastern and African countries remains underdeveloped, leading to delivery inefficiencies. According to the World Bank, logistics costs can account for up to 13% of GDP in these regions, significantly impacting the profitability of online grocery services. Additionally, challenges such as traffic congestion and inadequate transportation networks hinder timely deliveries, affecting customer satisfaction and retention.
  • Regulatory Hurdles:Regulatory challenges pose significant barriers to the growth of online grocery delivery in the Middle East and Africa. Complex food safety regulations and varying e-commerce laws across countries can create compliance difficulties for businesses. The World Bank highlights that navigating these regulations can increase operational costs by up to 20%, making it essential for companies to invest in legal expertise to ensure compliance and avoid penalties.

Middle East and Africa Online Grocery Delivery Market Future Outlook

The future of the online grocery delivery market in the Middle East and Africa appears promising, driven by technological advancements and evolving consumer behaviors. As urbanization continues, companies are likely to enhance their logistics capabilities and invest in innovative delivery solutions. Furthermore, the integration of AI and machine learning technologies will streamline operations, improve customer experiences, and foster loyalty. The market is expected to adapt to changing consumer preferences, emphasizing convenience and sustainability in service offerings.

Market Opportunities

  • Growth of Subscription Services:Subscription models are gaining traction, but the estimate that 30% of consumers are likely to opt for subscription-based grocery services in future cannot be confirmed from authoritative sources. This trend offers companies a stable revenue stream and fosters customer loyalty. By providing personalized delivery options and exclusive discounts, businesses can enhance customer retention and capitalize on the growing demand for convenience.
  • Partnerships with Local Farmers and Producers:Collaborating with local farmers can enhance supply chain efficiency and promote fresh produce delivery. This strategy not only supports local economies but also appeals to the increasing consumer demand for organic and locally sourced products. The projection that 40% of consumers will prioritize local sourcing in future cannot be confirmed from authoritative sources. This presents a significant opportunity for online grocery platforms to differentiate themselves.

Scope of the Report

SegmentSub-Segments
By Type

Fresh Produce

Packaged Groceries

Dairy Products

Frozen Foods

Beverages

Personal Care Items

Bakery & Confectionery

Ready-to-Eat Foods

Others

By End-User

Households

Restaurants & Foodservice

Corporate Offices

Educational Institutions

By Sales Channel

Mobile Applications

Websites

Social Media Platforms

Third-Party Aggregators

By Distribution Mode

Home Delivery

Click and Collect

Subscription Services

By Price Range

Budget

Mid-Range

Premium

By Region

GCC Countries

North Africa

Sub-Saharan Africa

By Consumer Demographics

Age Group

Income Level

Family Size

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Commerce and Industry, Food and Drug Administration)

Manufacturers and Producers

Distributors and Retailers

Logistics and Supply Chain Companies

Technology Providers

Industry Associations (e.g., Middle East Grocery Association)

Financial Institutions

Players Mentioned in the Report:

InstaShop

Trolley Trading

elGrocer

Kibsons International LLC

NRTC Fresh

Carrefour

Lulu Hypermarket

Spinneys

Monoprix

Jumia

Getir

Glovo

Instashop

Farmbox

FreshToHome

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Middle East and Africa Online Grocery Delivery Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Middle East and Africa Online Grocery Delivery Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Middle East and Africa Online Grocery Delivery Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Urbanization
3.1.2 Rising Smartphone Penetration
3.1.3 Shift in Consumer Preferences Towards Convenience
3.1.4 Expansion of E-commerce Infrastructure

3.2 Market Challenges

3.2.1 Logistics and Delivery Issues
3.2.2 Regulatory Hurdles
3.2.3 High Competition Among Players
3.2.4 Consumer Trust and Security Concerns

3.3 Market Opportunities

3.3.1 Growth of Subscription Services
3.3.2 Partnerships with Local Farmers and Producers
3.3.3 Expansion into Underserved Regions
3.3.4 Adoption of Advanced Technologies (AI, ML)

3.4 Market Trends

3.4.1 Increased Focus on Sustainability
3.4.2 Rise of Dark Stores for Faster Delivery
3.4.3 Integration of Social Media for Marketing
3.4.4 Personalization of Shopping Experience

3.5 Government Regulation

3.5.1 Food Safety Standards
3.5.2 E-commerce Taxation Policies
3.5.3 Consumer Protection Laws
3.5.4 Data Privacy Regulations

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Middle East and Africa Online Grocery Delivery Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Middle East and Africa Online Grocery Delivery Market Segmentation

8.1 By Type

8.1.1 Fresh Produce
8.1.2 Packaged Groceries
8.1.3 Dairy Products
8.1.4 Frozen Foods
8.1.5 Beverages
8.1.6 Personal Care Items
8.1.7 Bakery & Confectionery
8.1.8 Ready-to-Eat Foods
8.1.9 Others

8.2 By End-User

8.2.1 Households
8.2.2 Restaurants & Foodservice
8.2.3 Corporate Offices
8.2.4 Educational Institutions

8.3 By Sales Channel

8.3.1 Mobile Applications
8.3.2 Websites
8.3.3 Social Media Platforms
8.3.4 Third-Party Aggregators

8.4 By Distribution Mode

8.4.1 Home Delivery
8.4.2 Click and Collect
8.4.3 Subscription Services

8.5 By Price Range

8.5.1 Budget
8.5.2 Mid-Range
8.5.3 Premium

8.6 By Region

8.6.1 GCC Countries
8.6.2 North Africa
8.6.3 Sub-Saharan Africa

8.7 By Consumer Demographics

8.7.1 Age Group
8.7.2 Income Level
8.7.3 Family Size

9. Middle East and Africa Online Grocery Delivery Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Customer Acquisition Cost (CAC)
9.2.4 Average Order Value (AOV)
9.2.5 Customer Retention Rate
9.2.6 Delivery Time Efficiency (Average Delivery Time, % On-Time Delivery)
9.2.7 Market Penetration Rate (Active Users/Population)
9.2.8 Pricing Strategy (Discounts, Subscription Models, Dynamic Pricing)
9.2.9 Revenue Growth Rate (YoY %)
9.2.10 Customer Satisfaction Score (NPS, CSAT)
9.2.11 Order Fulfillment Rate
9.2.12 Geographic Coverage (Number of Cities/Countries Served)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 InstaShop
9.5.2 Trolley Trading
9.5.3 elGrocer
9.5.4 Kibsons International LLC
9.5.5 NRTC Fresh
9.5.6 Carrefour
9.5.7 Lulu Hypermarket
9.5.8 Spinneys
9.5.9 Monoprix
9.5.10 Jumia
9.5.11 Getir
9.5.12 Glovo
9.5.13 Instashop
9.5.14 Farmbox
9.5.15 FreshToHome

10. Middle East and Africa Online Grocery Delivery Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Health
10.1.2 Ministry of Agriculture
10.1.3 Ministry of Commerce

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Logistics
10.2.2 Technology Upgrades
10.2.3 Sustainability Initiatives

10.3 Pain Point Analysis by End-User Category

10.3.1 Households
10.3.2 Restaurants
10.3.3 Corporates

10.4 User Readiness for Adoption

10.4.1 Awareness Levels
10.4.2 Technology Accessibility
10.4.3 Trust in Online Transactions

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Cost Savings
10.5.2 Increased Efficiency
10.5.3 Customer Feedback Integration

11. Middle East and Africa Online Grocery Delivery Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Framework


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV

10.2 Greenfield

10.3 M&A

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Timeline
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of market reports from regional trade associations and government publications
  • Review of online grocery delivery trends through industry journals and white papers
  • Examination of demographic and economic data from national statistics offices

Primary Research

  • Interviews with key stakeholders in the online grocery sector, including executives from leading delivery platforms
  • Surveys targeting consumers to understand preferences and purchasing behaviors in the online grocery space
  • Focus groups with local grocery store owners to gauge their perspectives on online competition

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including sales data and consumer feedback
  • Triangulation of insights from primary interviews with secondary data trends
  • Sanity checks conducted through expert panel reviews and industry roundtables

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total market size based on national e-commerce growth rates and grocery sector performance
  • Segmentation of the market by region, product category, and delivery model
  • Incorporation of macroeconomic indicators such as GDP growth and urbanization rates

Bottom-up Modeling

  • Collection of data on average order values and frequency of purchases from leading online grocery platforms
  • Estimation of market penetration rates based on consumer adoption trends
  • Analysis of operational costs and pricing strategies of key players in the market

Forecasting & Scenario Analysis

  • Development of forecasting models using historical growth data and market drivers
  • Scenario analysis based on potential regulatory changes and shifts in consumer behavior
  • Creation of baseline, optimistic, and pessimistic forecasts through 2028

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Urban Consumer Preferences150Frequent Online Shoppers, Young Professionals
Delivery Service Providers100Operations Managers, Logistics Coordinators
Local Grocery Store Insights80Store Owners, Managers
Market Trends Analysis120Industry Analysts, Market Researchers
Consumer Behavior Studies150Household Decision Makers, Family Shoppers

Frequently Asked Questions

What is the current value of the Middle East and Africa Online Grocery Delivery Market?

The Middle East and Africa Online Grocery Delivery Market is valued at approximately USD 1.8 billion, reflecting significant growth driven by increased smartphone adoption, e-commerce expansion, and changing consumer preferences towards convenience, especially during the pandemic.

Which countries dominate the Middle East and Africa Online Grocery Delivery Market?

What are the main product types offered in the online grocery delivery market?

Who are the primary end-users of online grocery delivery services?

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