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Retail Delivery - Saudi Arabia

Saudi Arabia

The Reail Delivery market in Saudi Arabia is expected to witness significant growth in the coming years.
According to projections, the market's revenue is projected to reach US$1.12bn in 2024.
This indicates a promising trajectory for the industry in the country.
Furthermore, the Reail Delivery market is expected to exhibit a Compound Annual Growth Rate (CAGR) of 15.28% between 2024 and 2029.
This growth rate is anticipated to contribute to a projected market volume of US$2.28bn by 2029.
These numbers demonstrate the potential for substantial expansion within the Saudi Arabian market.
In terms of user base, the Reail Delivery market in Saudi Arabia is predicted to reach 10.8m users users by 2029.
This indicates an increasing adoption of retail delivery services by consumers in the country.
The user penetration rate, which currently stands at 20.3% in 2024, is expected to rise to 26.9% by 2029.
This signifies a growing acceptance and reliance on retail delivery services among the Saudi Arabian population.
The average revenue per user (ARPU) in the Reail Delivery market is projected to amount to US$147.10.
This metric provides insights into the potential profitability and value generated by each user within the market.
When comparing the global landscape, it is worth noting that United States is expected to generate the highest revenue in the Reail Delivery market, amounting to US$195,400.00m in 2024.
This highlights the significant market size and potential within the Chinese market.
In terms of user penetration, United States is projected to have the highest rate at 30.4%.
This showcases the strong adoption and integration of retail delivery services within the American market.
Overall, the Reail Delivery market in Saudi Arabia is poised for growth, with increasing revenue, user base, and user penetration.
These trends demonstrate the country's evolving consumer behavior and the importance of retail delivery services within the market.
The retail delivery market in Saudi Arabia is experiencing a rapid transformation as e-commerce platforms gain popularity among consumers.

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Analyst Opinion

The Retail Delivery market in Saudi Arabia has seen significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in Saudi Arabia are increasingly looking for convenience and speed in their shopping experiences. This has led to a rise in demand for online shopping and home delivery services. Additionally, the COVID-19 pandemic has accelerated this trend as more people are choosing to stay at home and shop online.

Trends in the market: The Retail Delivery market in Saudi Arabia has seen a significant increase in the number of players offering delivery services. This is due to the growing demand for online shopping and home delivery services. Delivery services are now being offered by traditional retailers, as well as new players who are entering the market. Furthermore, there has been a rise in the use of technology to improve delivery services, including the use of drones and robots.

Local special circumstances: Saudi Arabia has a large population of young and tech-savvy consumers who are increasingly adopting new technologies. This has created a favorable environment for the growth of the Retail Delivery market. Additionally, the country has a high number of expatriates who are accustomed to online shopping and home delivery services, further driving demand.

Underlying macroeconomic factors: Saudi Arabia has a strong and growing economy, which has contributed to the growth of the Retail Delivery market. The government has also implemented initiatives to support the growth of the e-commerce sector, including the establishment of the Saudi E-commerce Council. Furthermore, the country has a favorable regulatory environment for e-commerce, with regulations that are designed to protect consumers and promote innovation in the sector.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.