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PUBLISHER: Mordor Intelligence | PRODUCT CODE: 2117316

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PUBLISHER: Mordor Intelligence | PRODUCT CODE: 2117316

Middle East And Africa Online Grocery Delivery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

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According to Mordor Intelligence, the Middle East and Africa online grocery delivery market size is expected to increase from USD 18.98 billion in 2025 to USD 20.13 billion in 2026 and reach USD 34.59 billion by 2031, growing at a CAGR of 11.43% over 2026-2031.

Middle East And Africa Online Grocery Delivery - Market - IMG1

This report is Segmented by Product Type (Retail Delivery, Quick Commerce, Meal-Kit Delivery, Specialty and Ethnic Grocery, and More), Delivery Speed (Standard, Same-Day, and Instant), Platform Type (Mobile App, Web Portal, and More), Customer Type (Household Consumers, and Corporate and Institutional), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Middle East And Africa Online Grocery Delivery Market Trends and Insights

Expansion of Quick-Commerce Dark-Store Networks

Dark stores in Gulf cities have shortened typical delivery windows to under 30 minutes, redefining consumer expectations for fresh groceries. Careem's April 2025 tie-up with Tamimi Markets in Riyadh showcases premium, curated assortments delivered in 20 minutes. Carrefour's 24-hour express service in Dubai fulfills orders within 60 minutes from a 10,000-SKU catalog. Deliveroo HOP and talabat Mart are scaling similar models, signaling a region-wide shift toward instant fulfillment. Well-capitalized operators enjoy first-mover advantages, though automation and real-time inventory systems raise capital barriers for smaller rivals.

Rising Smartphone and Internet Penetration

Smartphones are now a daily fixture for 96% of users in the United Arab Emirates and Saudi Arabia. PwC found that 57% of regional shoppers make purchases primarily via mobile, double the global average. High social-commerce engagement, with 73% of consumers buying through social media, encourages grocery apps to embed shoppable content. Growing use of generative artificial intelligence opens the door to chat-based ordering, though 25% of users remain privacy-conscious under new Gulf data-protection laws. Platforms that balance personalization and compliance are likely to capture incremental share.

High Last-Mile Costs and Low Profit Margins

Delivery expenses consume 15-25% of order value in Gulf cities and exceed 30% in sprawling African metros, eroding profitability. Jumia's withdrawal from food delivery across seven African countries underlines the challenge. Rising fuel prices and local hiring mandates further inflate costs. Subscription models and minimum-basket thresholds help offset these pressures but favor scale players able to drive higher order density.

Other drivers and restraints analyzed in the detailed report include:

  1. AI-Driven Hyperlocal Inventory Optimization
  2. Rapid Urbanization and Time-Pressed Lifestyles
  3. Limited Cold-Chain Capacity in Africa

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Retail Delivery commanded 70.73% of 2025 revenue, confirming its role as the low-cost backbone of the online grocery delivery market. However, Quick Commerce is on track for a 14.01% CAGR, buoyed by platforms such as Careem and talabat that routinely meet 20-minute service levels. Meal-kit providers like Calo and JustCook are layering culinary expertise and portion-controlled packaging onto this ecosystem, appealing to health-conscious professionals. Specialty and ethnic grocery offerings meet the needs of expatriate communities, while pharmacy items further blur category lines. Operators must balance the capital intensity of dark stores with the culinary and packaging know-how required for meal kits, ensuring high inventory turnover to sustain margins.

Quick Commerce drives higher purchase frequency by converting top-up trips into digital orders. Meanwhile, Retail Delivery retains price-sensitive bulk baskets, underlining a bifurcated demand curve. Meal kits, although small in value, create brand stickiness and upselling opportunities. Platforms able to leverage private-label assortments and data-driven personalization are poised to capture incremental wallet share, even as category boundaries converge.

Standard delivery held 56.91% of 2025 sales, favored by value-oriented households planning weekly stock-ups. Instant delivery is growing at 13.23% as affluent consumers pay for speed, supported by Carrefour's 24-hour express and Tamimi-Careem's 20-minute premium service. Same-day fulfillment fills a middle ground for planned yet time-sensitive baskets. Subsidies and dynamic pricing help absorb high logistics costs, but densifying dark-store grids remain critical.

Ultra-fast entrants such as Keeta amplify competitive stakes by offering drone delivery and aggressive promotions. Operators that leverage artificial intelligence-based demand forecasting and automated micro-fulfillment center technology can improve pick-and-pack efficiency, making sub-two-hour windows profitable in dense urban corridors. Standard delivery will remain viable for large, non-urgent purchases, especially in peripheral African markets where infrastructure lags.

Complete Report Scope:

  • By Product Type
    • Retail Delivery
    • Quick Commerce (Less than 30-min)
    • Meal-Kit Delivery
    • Specialty and Ethnic Grocery
    • Pharmacy and Health Items
  • By Delivery Speed
    • Standard (Next-Day +)
    • Same-Day (2-12 h)
    • Instant (Less than 2 h)
  • By Platform Type
    • Mobile App
    • Web Portal
    • Voice and Smart-Device
  • By Customer Type
    • Household Consumers
    • Corporate and Institutional
  • By Geography
    • Middle East
      • United Arab Emirates
      • Saudi Arabia
      • Qatar
      • Kuwait
      • Bahrain
      • Oman
      • Turkey
      • Rest of Middle East
    • Africa
      • South Africa
      • Egypt
      • Nigeria
      • Kenya
      • Morocco
      • Rest of Africa

List of Companies Covered in this Report:

  1. Talabat Holding plc
  2. Noon AD Holdings One Person Company LLC
  3. InstaShop Ltd.
  4. HungerStation Company LLC
  5. Kibsons International LLC
  6. elGrocer DMCC
  7. Breadfast, Inc.
  8. NRTC Fresh LLC
  9. Shoprite Checkers (Pty) Ltd.
  10. Etisalat Digital Lifestyle LLC
  11. FreshToHome Foods Private Limited
  12. Deliveroo UAE LLC
  13. Jahez International Company for Information Systems Technology
  14. Mrsool Company for Information Technology LLC
  15. Meituan
  16. Majid Al Futtaim Retail LLC
  17. LuLu Group International LLC
  18. Spinneys Dubai LLC
  19. Abdullah Al Othaim Markets Company
  20. ADNOC Distribution PJSC

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 93718

TABLE OF CONTENTS

1 INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising Smartphone and Internet Penetration
    • 4.2.2 Rapid Urbanization and Time-Pressed Lifestyles in GCC
    • 4.2.3 Expansion of Quick-Commerce Dark-Store Networks
    • 4.2.4 Increasing Digital Payment Adoption and BNPL
    • 4.2.5 AI-Driven Hyperlocal Inventory Optimization
    • 4.2.6 Petro-Retail Fulfilment Hubs (Fuel-Station Partnerships)
  • 4.3 Market Restraints
    • 4.3.1 High Last-Mile Costs and Low Profit Margins
    • 4.3.2 Price Sensitivity and Perceived Online Premiums
    • 4.3.3 Data-Localization and Cross-Border Compliance Risks
    • 4.3.4 Limited Cold-Chain Capacity in Peripheral African Markets
  • 4.4 Industry Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitute Products
    • 4.7.5 Degree of Competition

5 MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Product Type
    • 5.1.1 Retail Delivery
    • 5.1.2 Quick Commerce (Less than 30-min)
    • 5.1.3 Meal-Kit Delivery
    • 5.1.4 Specialty and Ethnic Grocery
    • 5.1.5 Pharmacy and Health Items
  • 5.2 By Delivery Speed
    • 5.2.1 Standard (Next-Day +)
    • 5.2.2 Same-Day (2-12 h)
    • 5.2.3 Instant (Less than 2 h)
  • 5.3 By Platform Type
    • 5.3.1 Mobile App
    • 5.3.2 Web Portal
    • 5.3.3 Voice and Smart-Device
  • 5.4 By Customer Type
    • 5.4.1 Household Consumers
    • 5.4.2 Corporate and Institutional
  • 5.5 By Geography
    • 5.5.1 Middle East
      • 5.5.1.1 United Arab Emirates
      • 5.5.1.2 Saudi Arabia
      • 5.5.1.3 Qatar
      • 5.5.1.4 Kuwait
      • 5.5.1.5 Bahrain
      • 5.5.1.6 Oman
      • 5.5.1.7 Turkey
      • 5.5.1.8 Rest of Middle East
    • 5.5.2 Africa
      • 5.5.2.1 South Africa
      • 5.5.2.2 Egypt
      • 5.5.2.3 Nigeria
      • 5.5.2.4 Kenya
      • 5.5.2.5 Morocco
      • 5.5.2.6 Rest of Africa

6 COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 Talabat Holding plc
    • 6.4.2 Noon AD Holdings One Person Company LLC
    • 6.4.3 InstaShop Ltd.
    • 6.4.4 HungerStation Company LLC
    • 6.4.5 Kibsons International LLC
    • 6.4.6 elGrocer DMCC
    • 6.4.7 Breadfast, Inc.
    • 6.4.8 NRTC Fresh LLC
    • 6.4.9 Shoprite Checkers (Pty) Ltd.
    • 6.4.10 Etisalat Digital Lifestyle LLC
    • 6.4.11 FreshToHome Foods Private Limited
    • 6.4.12 Deliveroo UAE LLC
    • 6.4.13 Jahez International Company for Information Systems Technology
    • 6.4.14 Mrsool Company for Information Technology LLC
    • 6.4.15 Meituan
    • 6.4.16 Majid Al Futtaim Retail LLC
    • 6.4.17 LuLu Group International LLC
    • 6.4.18 Spinneys Dubai LLC
    • 6.4.19 Abdullah Al Othaim Markets Company
    • 6.4.20 ADNOC Distribution PJSC

7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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