Saudi Arabia Online Food Delivery Market

04 2021

Saudi Arabia Online Food Delivery Market: Prospects, Trends Analysis, Market Size and Forecasts up to 2026

  • Published : April, 2021

  • Rep Id : SA00972

  • No. of Pages : 40

  • Country : Saudi Arabia

  • Status : Published

The country research report on Saudi Arabia's online food delivery market is a customer intelligence and competitive study of the Saudi Arabia market. Moreover, the report provides deep insights into demand forecasts, market trends, and, micro and macro indicators in the Saudi Arabia market. Also, factors that are driving and restraining the online food delivery market are highlighted in the study. This is an in-depth business intelligence report based on qualitative and quantitative parameters of the market. Additionally, this report provides readers with market insights and detailed analysis of market segments to possible micro levels. The companies and dealers/distributors profiled in the report include manufacturers & suppliers of the online food delivery market in Saudi Arabia.


Market Insight

In recent years, the popularity of online food delivery services has been growing trend tremendously. The online food delivery business is going through a paradigm shift. The huge potential of this market has resulted in the explosion of numerous online food ordering and delivery websites in Saudi Arabia. The market has matured in Saudi Arabia, with an overall compound annual growth rate of 8.56% over the forecast period of 2020-2026. The changing landscape of the food & beverage industry, rising internet, and smartphone penetration among millennial consumers are some factors intensifying the market expansion. Moreover, traditional as well as new food delivery players have attracted significant investment in recent years. These have stepped up their marketing efforts significantly to build recognition for their brands rapidly.


The initial stages of the covid-19 pandemic and the ensuing strict lockdown had an adverse impact on Saudi Arabia's online food delivery companies. But things picked up later on and the recovery has been faster in this market. Starting with the unlock phases slowly and steadily more and more restaurants opened their kitchens to satisfy the needs of millions of consumers who were placing orders online. The COVID-19 lockdown restrictions along with digitalizing efforts of the Government of Saudi Arabia have resulted in augmented online shopping activity. Since the onset of the COVID-19 outbreak, the KSA experienced double-digit growth in online food delivery. Additionally, substantial growth in orders placed online was noted in June 2020, compared to online orders in April 2019. After the COVID-19 outbreak, more consumers started ordering food online. On the other side, the food delivery business brings with it a certain set of challenges during the pandemic that must be navigated. Amidst the Coronavirus pandemic, Uber Eats has discontinued its delivery services in 7 countries, including Saudi Arabia.


The increasing sales of smartphones and rising internet penetration also drive the market growth. In terms of smartphone penetration, Saudi Arabia ranks third globally, and it is ahead of countries such as the United States, Britain, France, and Germany. Furthermore, the convenience associated with online food delivery increases the demand for the market in Saudi Arabia. The online food delivery services provide greater convenience to the users. The users can shuffle through numerous restaurants, food items, and different cuisines at a single touchpoint by sitting in their home, office, or any other place of convenience. Conversely, the high cost of supply chain and logistics is the key restraint for the market. The supply chain and logistics cost comprise the cost incurred for order fulfillment, delivery cost, adjusting business resources to dynamic market demand, and last-mile connectivity. Moreover, the emergence of digitization and advanced online services provides growth opportunities. The National Digital Transformation Unit is an important program to achieve the vision of Saudi Arabia 2030. Recent growth in information technology in Saudi Arabia has set the pace for an electronic revolution leading to the emergence of online services.


Segments Covered

The report on Saudi Arabia online food delivery market provides a detailed analysis of segments in the market based on service type, channel type, and mode of transaction.


Segmentation Based on Service Type

·        Restaurant-controlled

·        Independent

·        Food App Services

·        Others


Segmentation Based on Channel Type

·        Websites/Desktop

·        Mobile Applications


Segmentation Based on Mode of Transaction

·        Cash on Delivery

·        Online


Highlights of the Report

The report provides detailed insights into:

 1) Demand and supply conditions of online food delivery market

 2) Factor affecting the online food delivery market in the short run and the long run

 3) The dynamics including drivers, restraints, opportunities, political, socioeconomic factors, and technological factors

 4) Key trends and future prospects

 5) Leading companies operating in online food delivery market and their competitive position in Saudi Arabia

 6) The dealers/distributors profiles provide basic information of top 10 dealers & distributors operating in (Saudi Arabia) online food delivery market

 7) IGR Matrix: to position the product types

 8) Market estimates up to 2026

 The report answers questions such as:

 1) What is the market size of online food delivery market in Saudi Arabia?

 2) What are the factors that affect the growth in the online food delivery market over the forecast period?

 3) What is the competitive position in Saudi Arabia online food delivery market?

 4) What are the opportunities in Saudi Arabia online food delivery market?

 5) What are the modes of entering Saudi Arabia online food delivery market?

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