The Online B2B grocery is witnessing a huge surge in online shopping due to a Shortage of supply chain financing and COVID that led Bakalas in KSA to adopt various B2B platforms to refill stocks amid the lockdown.
Currently, KSA digital B2B grocery market is growing with a double-digit CAGR owing increase in smartphone and internet penetration in the country. But the market is looking for other factors as well to drive more growth in the industry. Is it technology development? Let’s find out!
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Average Daily Time Spent on Internet3
7 Hours 45 Minutes
Average Daily Time Spent on Social Media3
3 Hours 06 Minutes
27.0 Mn
Active Social Media Users3
31.4 Mn
Youtube Users (Most popular Platform)3
28.2%
Active WhatsApp Users(Most Popular Messenger App)3
6.9%
Year-on-year increase in mobile telecom subscriptions4
Entrance of major players introducing online grocery services in the Kingdom
Surge in B2B Orders due to credit facility offered from B2B Online Grocery Players
Nature of Competition
Sary; helps digitize the entire supply chain and unlocks retailers’ potential to find the best deals, do inventory forecasting. Currently offering services in Riyadh, Jeddah, and Dammam and expanded to Pakistan with investment in B2B e-commerce Jugnu, offering same-day delivery in all three cities.
Max AB; B2B e-commerce platform that connects food and grocery retailers to suppliers in the most under-served geographies, also expanding its physical footprint across the Middle East and North Africa services more than 55,000 merchants and delivers over 2,000 unique products.
Fatura; leverages the underutilized assets already owned by wholesalers and uses technology to resolve existing supply chain inefficiencies for retailers and wholesalers etc. It is also working to expand into lending solutions to offer working capital loans to retailers.
Retailo; the fastest growing startup in MENA and Pakistan, which is digitizing the region’s retail supply chains. A businesses can find a wide catalogue of 5k+ SKUs, which are delivered to their doorstep within 24 hours. They can also avail buy-now-pay-later services, which give them flexible payment options and credit lines.
Sum total of the amount paid by the retailer to the relevant entities (Super stockists/Sub Distributors) to be sold further to the customers
Commission collected by the online platforms from the sales of grocery through manufacturers/Super stockist to the retailers
GMV paid by the consumer for their final consumption through online and offline platforms both.
Availability of numerous choices in terms of brands, discount offers, reduced delivery time, personalization, cash on delivery, digital payment infrastructure and easy returns have been major factors for development of the online B2B grocery market in KSA.
Saudi customers are turning to online channels for grocery shopping and this behavior has remained sticky till now with more than 80% of online shoppers making repeated grocery purchases1
The growing availability of various high-quality products on the online platforms where consumers can even compare quantity, prices, and quality of offered items are driving the growth of Saudi Arabia online grocery market.
The number of online shoppers amounted to 9.8 Mn with an smartphone users reached at 39.5 Mn in 2021 which is driving the b2B online grocery market among KSA Bakalas, Hypermarket and Supermarkets.3
BNPL payment in KSA is expected to grow by 81.2% on annual basis to reach SAR 2,387.6 Bn in 2022, B2B online grocery players are providing one stop solution with BNPL and financing service sand resolving working capital requirements which is also fueling the market in KSA.2
Overview of technology maturity
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