Middle East & Africa Recommerce Market Research Report: Forecast (2024-2030)

Market Definition

Recommerce, sometimes referred to as reverse commerce, is the process of revitalizing old items! It's the expanding practice of purchasing and selling previously used goods such as furniture, electronics, or clothing through web marketplaces, traditional retailers, or even trade-in schemes. In addition to saving money over buying new, this increases the product's lifespan and helps the environment by lowering waste and production requirements.

Market Insights & Analysis: The Middle East & Africa Recommerce Market (2024-30):

The Middle East & Africa Recommerce Market size is estimated to grow at a CAGR of around 10.50% during the forecast period, i.e., (2024-30). The recommerce industry in the Middle East & Africa is experiencing notable growth, driven by current industry trends and strategic development activities. One prominent trend is the increasing consumer awareness of sustainability, prompting a surge in the demand for refurbished and pre-owned goods. Companies like Cashify and SellAnyCar.com in the UAE are capitalizing on this trend by providing platforms for individuals to sell and buy used electronics as well as automobiles, respectively.

 Additionally, the smartphone recommerce sector is witnessing significant traction, with companies like JUMIA and Phonebot expanding their operations and offering affordable refurbished smartphones to tech-savvy consumers. Such strategic developments are fueling the recommerce market's expansion across the Middle East & Africa region. For instance,

• In 2021, Phonebot expanded its operations in the MEA region to reach a wider audience. The company is engaged in offering refurbished smartphones and accessories.

As sustainability and cost-consciousness continue to drive consumer preferences, the recommerce industry in the MEA region is poised for sustained growth. The emergence of e-commerce platforms and the adoption of digital payment solutions have made it easier for consumers to participate in the recommerce ecosystem. As a result, the recommerce market is evolving into a dynamic and competitive landscape, offering consumers affordable and sustainable alternatives while contributing to the region's economic growth, ultimately driving the growth of the recommerce industry in the region.

The Middle East & Africa Recommerce Market Driver:

The popularity of Digital Media & E-commerce and Increasing R&D –   Rising popularity and usage of digital media & e-commerce is one of the primary factors driving the growth of the Middle East & Africa Recommerce Market. Further, the notable increase in research & development activities for refurbished products within the region is supporting the market’s progress. Refurbished products, particularly pre-owned electronics and goods, are witnessing a strong demand owing to the growth of consumers’ interest in digital media and online shopping. This ongoing trend is prompting companies like reBuy to expand their presence in the MEA region to capitalize on the surge in demand for refurbished electronics and tech gadgets.

Additionally, e-commerce giants like Souq.com (now part of Amazon) have ventured into the recommerce space, offering consumers in the MEA region easy access to a wide range of refurbished products. Furthermore, the MEA recommerce market is benefiting from a notable uptick in R&D efforts aimed at improving the quality and reliability of refurbished goods. Major recommerce companies are investing in R&D activities to ensure that pre-owned electronics meet the highest industry standards. These business development activities are fostering trust among consumers, stimulating market growth, and positioning the MEA Recommerce Market for further expansion.

The Middle East & Africa Recommerce Market Opportunity:

Increasing Government Initiatives for Environmental Sustainability to Create New Opportunities – The recommerce industry in the Middle East & Africa is undergoing a transformation spurred by increasing legislation focused on green initiatives and e-waste management. As current trends highlight, governments and regulatory bodies across the MEA region are placing a greater emphasis on environmental sustainability and responsible disposal of electronic waste, in turn promoting the usage of refurbished or pre-owned products. For example, South Africa enacted the Waste Electronic and Electrical Equipment Regulations in 2020, which mandate the proper disposal and recycling of electronic equipment.

This regulatory push is creating new opportunities for recommerce companies such as Cash Crusaders, which is aligning its operations with environmentally conscious practices. By refurbishing and reselling electronics, these companies not only extend the lifecycle of products but also contribute to a more sustainable approach to consumer technology. As a result, the recommerce market in the MEA region is poised for growth, driven by the convergence of legislative support for green initiatives and consumer demand for sustainable and affordable electronic products.

The Middle East & Africa Recommerce Market Challenge:

Underdeveloped Logistics and Infrastructure to Hamper Market Growth – The recommerce industry in the Middle East & Africa is facing notable challenges stemming from underdeveloped logistics and infrastructure in the region. Current industry trends underscore the critical role of logistics and efficient supply chains in the success of recommerce operations. Companies in this space are grappling with inadequate transportation networks and limited warehousing facilities, which results in extended delivery times and higher operational costs.

To address these challenges, businesses like Jumia have invested in their logistics infrastructure, striving to build a more robust and reliable supply chain to serve customers efficiently. To overcome these challenges, industry players are also actively seeking collaborations with local and regional logistics firms coupled with the adoption of innovative delivery options, such as drone and autonomous vehicle deliveries. However, the underdeveloped logistics and infrastructure landscape in MEA remains a substantial hurdle for the recommerce market, in turn hampering the growth of the market.

The Middle East & Africa Recommerce Market Trend:

Certified Refurbished Programs Gaining Traction in the MEA Recommerce Industry:

Certified Refurbished Programs have emerged as a prominent and ongoing trend in the Middle East & Africa Recommerce Market. These programs offer consumers a reliable way to access high-quality refurbished products while ensuring stringent quality standards. Companies like Amazon Renewed have expanded their presence in the MEA region, offering a range of certified refurbished electronics, including smartphones and laptops. By certifying their refurbished products, these companies build trust among consumers, assuring them of the product's quality and performance. This trend aligns with the growing demand for sustainable and affordable consumer electronics in the MEA region.

Companies are also collaborating with original equipment manufacturers (OEMs) to access genuine components and ensure the authenticity of their certified refurbished products. Rigorous quality testing and inspection procedures are also being implemented to guarantee that refurbished items meet or exceed industry standards. This commitment to quality is not only driving consumer confidence but also stimulating market growth by attracting a wider customer base.

The Middle East & Africa Recommerce Market (2024-30): Segmentation Analysis

The Middle East & Africa Recommerce Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the regional level. According to the analysis, the market has been further classified as:

Based on Type:

• Peer-to-Peer Marketplaces
• Resale Marketplaces
• Refurbished Goods Marketplaces

‘Peer-to-Peer Marketplaces’ emerged as dominant segments in the Middle East & Africa Recommerce Market owing to the shift in consumer behavior toward more sustainable and cost-effective shopping options. These platforms not only promote a circular economy but also offer consumers an opportunity to declutter and earn from their unwanted possessions. Companies like Melltoo have pioneered peer-to-peer recommerce platforms in the UAE, enabling individuals to buy and sell used items directly to one another. Investments are also made in user-friendly mobile apps to streamline peer-to-peer recommerce transactions. The rise of peer-to-peer recommerce exemplifies increasing consumer trust as well as a fundamental shift in the way people perceive and participate in recommerce activities in the region, ultimately driving the growth of the recommerce industry in the Middle East & Africa.

Based on Product Category:

• Non-Luxury
• Luxury

The non-luxury product category is emerging as the leading segment in the Middle East & Africa Recommerce Market, reflecting the practical and value-conscious preferences of consumers in the region. The higher demand for affordable, high-quality non-luxury items in categories like electronics, fashion, and home goods has been witnessed by the region’s recommerce industry. This shift toward non-luxury recommerce not only aligns with consumer demands for cost-effective choices but also promotes a circular economy and eco-conscious consumption in MEA, thus driving the recommerce industry in the region.

The Middle East & Africa Recommerce Market (2024-30): Regional Projections

Geographically, the Middle East & Africa Recommerce Market expands across:

• The UAE
• Saudi Arabia
• South Africa
• Egypt
• Qatar
• Kuwait
• Bahrain
• Rest of the Middle East & Africa

Among them, the UAE has emerged as the leading recommerce market within the Middle East & Africa region, attributed to growing consumer awareness about sustainability and responsible consumption. As individuals seek eco-friendlier and budget-conscious alternatives to traditional retail, the recommerce industry in the country is expected to register a dynamic expansion during the projected timeframe.

Further, the presence of well-established companies such as SellAnyCar.com and Cashify is increasing the attractiveness of the recommerce industry in the UAE. These companies offer platforms for individuals to sell their used vehicles and electronics, thus contributing toward sustainable environmental goals and, in turn, supporting the growth of the recommerce industry.

The Middle East & Africa Recommerce Industry Recent Development:

• 2023: Revibe has secured growth funding of 2.3 million dollars for the UAE market. The company is dedicated to and engaged in the refurbished electronics industry, with product offerings including cell phones and computers.
• 2023: Reflaunt and Chalhoub Group have entered into a partnership for the resale of luxury goods. Chalhoub Group will allow customers to explore the diverse product portfolio of refurbished luxury goods through Reflaut’s website.

Gain a Competitive Edge with the Middle East & Africa Recommerce Market Report

1. The Middle East & Africa Recommerce Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations gain a holistic understanding of market dynamics & make vital decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. The Middle East & Africa Recommerce Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.