Saudi Arabia Online Grocery Delivery Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: Saudi Arabia Online Grocery Delivery Market (2025-30):

The Saudi Arabia Online Grocery Delivery Market size was valued at around USD 1.52 billion in 2024 and is projected to reach USD 3.65 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 15.70% during the forecast period, i.e., 2025-30. The market observed notable growth in the past few years, backed by high internet & smartphone penetration, high urbanization & mobile-first lifestyle, surge in young, tech-savvy consumers, rise in dual-income & working households, widespread access to digital payments, and expanding Q-commerce services, etc.

The expanding access to digital payment platforms like STC Pay, Mada, Apple Pay, and BNPL options is working as one of the major drivers in the Saudi Arabia Online Grocery Delivery Market, due to their offerings of secure, fast, and convenient transactions. These methods enhance consumer trust, reduce cart abandonment, and encourage frequent purchases, especially for everyday grocery needs.

Moreover, the increasing partnerships among local retailers and SMEs show a growth potential for the online grocery delivery industry. Many small grocery chains lack digital presence due to limited technical expertise, and by collaborating with them via white-label or co-branded solutions, tech platforms can expand their reach into underserved and rural areas. Such partnerships strengthen the logistics network and enhance customer satisfaction.

Further, the innovation in delivery logistics, including drone deliveries, autonomous vehicles, warehouse automation, and AI-driven route optimization, has been contributing as a key trend in the online grocery delivery market of Saudi Arabia, by enabling faster, smarter, and more scalable operations. These technological advancements help in reducing delivery times and enhancing the efficiency of online grocery delivery ecosystems. Additionally, price sensitivity and limited infrastructure barriers pose a challenge, restraining the overall growth of the online grocery delivery industry in Saudi Arabia.

Saudi Arabia Online Grocery Delivery Market Scope:

Saudi Arabia Online Grocery Delivery Market Driver:

Expanding Q-Commerce Driving Market Growth – Rising Q-commerce is emerging as a key driver in the Saudi Arabia Online Grocery Delivery Market. This is primarily driven by the growing consumer expectation for rapid fulfillment of grocery needs, typically within 10–30 minutes, fueled by hectic, busy schedules and a rising young, digital-native population accounting for more than 60%, particularly in densely populated urban centers such as Riyadh, Jeddah, and Dammam. In response to speed and convenience, many companies, such as Rabbit Mobility, Mrsool, Jahez, and Qareeb etc., are heavily investing in dark stores and micro-fulfillment centers to enable faster order processing, reduced delivery times, and higher service reliability.

Along with the active government support for digital transformation, regulatory frameworks are further contributing to enhancing the online retail ecosystem. For instance, in 2023, ZATCA, the Zakat, Tax and Customs Authority of Saudi Arabia, implemented an e-invoicing mandate to enhance transaction transparency and automation, supporting tax compliance and operational efficiency across Saudi Arabia’s growing online grocery sectors.

Saudi Arabia Online Grocery Delivery Market Challenge:

Price Sensitivity & Limited Infrastructure Hampering Market Growth – High price sensitivity among consumers, due to several factors such as economic behavior, traditional purchasing habits, and additional platform charges for online convenience, particularly when the same products are available at lower prices offline, deters the rate of online delivery adoption. As a result, many consumers show unwillingness to pay above market pricing, creating a challenge for the Saudi’s online grocery delivery industry to achieve desired profitability goals.

Moreover, inadequate infrastructure in tier 2 and tier 3 cities, such as poor transportation networks, a lack of dark stores and cold-chain facilities, further intensifies the issue of price sensitivity, as the high costs of serving in these regions often lead to increased delivery charges for consumers, limiting the adoption of online grocery platforms among cost-conscious users. Thus, all these factors are collectively hindering the overall growth of the online grocery delivery industry in Saudi Arabia.

Saudi Arabia Online Grocery Delivery Market Trend:

Innovation in Delivery Logistics Changing Market Dynamics – The surge in advanced delivery logistics, including drone deliveries, autonomous vehicles, warehouse automation, and AI-driven route optimization, is emerging as a key trend in the online grocery delivery market of Saudi Arabia. Unlike traditional models, technological advancements in delivery logistics are proving to be more effective by enabling faster, smarter, and more scalable operations.

Moreover, many companies such as Jahez, Matternet, Teksbotics, Wahyd Logistics, Nuro, BARQ Fleet, and Yango Tech etc., are actively innovating in drone delivery, autonomous vehicles, warehouse automation, and AI logistics. For instance, in January 2025, Matternet became the first company approved by Saudi Arabia’s GACA to operate its M2 drone within the Kingdom. Similarly, in 2024, Jahez launched Saudi Arabia’s first electric delivery vehicle, and plans to electrify 25% of its fleet by 2026, thereby boosting the growth of the online grocery delivery market in Saudi Arabia for the forecasted period.

Saudi Arabia Online Grocery Delivery Market (2025-30): Segmentation Analysis

The Saudi Arabia Online Grocery Delivery Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Product Type:

• Fresh Produce
• Dairy & Bakery
• Meat & Seafood
• Packaged Food
• Snacks & Beverages
• Baby & Personal Care Products
• Household Essentials
• Others

Among all these, the packaged food segment holds the largest market share in the Saudi Arabia Online Grocery Delivery Market. This dominance is largely influenced by the high consumer demand for convenience, longer shelf life, and ease of storage. Packaged food items such as ready-to-eat meals, snacks, and canned goods are highly popular among working professionals and busy households who prefer convenience and reliability in the delivery of everyday essentials. With minimal or no preparation time for such products, making packaged food a reliable and quick meal option, especially among fast-paced households & professionals.

Moreover, major platforms like Nana Direct, Danube Online, and others are widely featuring these products as they are easy to stock in dark stores, having minimal spoilage compared to fresh or perishable items. Therefore, the growing demand for packaged food is fueling the overall growth of the Saudi Arabia online grocery delivery industry.

Based on Platform Type:

• App-Based Platform
• Web-Based Platform

App-based platforms hold the largest market share in the Saudi Arabia Online Grocery Delivery Market. This is attributed to the strong smartphone penetration rate of the country & mobile-first behavior of the young, digital-native population. With the faster, more convenient, and personalized offerings, app-based platforms are the preferred choice as compared to web-based platforms, which lack in providing real-time monitoring, engagement capabilities, and personalization. Moreover, many online grocery delivery leading players such as Jahez, Nana Direct, Mrsool, and Rabbit Mobility have adopted app-first strategies, with some platforms running entirely on mobile apps. These platforms provide special app features like push notifications, loyalty programs, and integrated logistics, which help in enhancing user engagement. Therefore, the app-based platform type is the most prominent one contributing to the growth of the online grocery delivery industry in Saudi Arabia.

Saudi Arabia Online Grocery Delivery Industry Recent Development:

• 2024: Mrsool collaborated with Suwani/PIF to list camel milk (Nuq) products, and with the National Housing Company to integrate Baladi Maps navigation into its logistics operations.
• 2024: Tamimi Market expanded its online offerings by launching a Home Delivery service across Khobar, Dammam, Riyadh, Jeddah, Medina, and Buraydah.

Gain a Competitive Edge with Our Saudi Arabia Online Grocery Delivery Market Report

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

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