Saudi Arabia Food Delivery Market Witnessing Spells of Growth: Projected to Grow at a CAGR of 9.3% in the Forecast Period

Published | 09 September 2021

Because of the changing working scenario and increasing workload, as well as the emergence of various online food delivery platforms, the Saudi Arabia food delivery market is growing at an accelerated rate...

 

A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the Saudi Arabia food delivery market is estimated to grow at a CAGR of 9.3% during the forecast period. Food delivery services are gaining popularity in Saudi Arabia because of the country’s growing young and working population and the changing working environment and busy schedules. Food delivery services also offer several benefits to restaurants and food outlets, such as increased exposure and customer reach and greater online visibility, which favors business growth. The convenience of online food ordering and delivery is a major factor for the growing popularity of the Saudi Arabia. Food delivery market.

Food delivery service apps provide convenient merchant tools and interfaces, making it easy to receive orders and manage business operations. However, restaurant owners’ lack of technical knowledge may be a significant restraint for the market growth. Food delivery service apps provide convenient merchant tools and interfaces, making it easy to receive orders and manage business operations. However, restaurant owners’ lack of technical knowledge may be a significant restraint for the market growth. Moreover, as restaurant owners have to bear a high level of overhead costs, which decreases profits, many experts are speculative about the financial viability of food delivery services. These are the primary factors hindering the market growth.

Increasing Internet and Smartphone Penetration Is Expected to Boost the Saudi Arabia Food Delivery Market Growth

Saudi Arabia is the third-largest smartphone market globally, with 72.8% of its population owning a smartphone. Such high penetration of smartphones and internet usage is expected to be one of the primary growth factors for the growth of the Saudi Arabia food delivery market. Young and working adults are also driving the market because of their increasing purchasing power. Moreover, their high dependence and trust in online payment methods also favor market growth. As a result, Saudi Arabia is likely to witness lucrative growth opportunities for the food delivery market in the forecast period.

Growing Prominence of Food Delivery Services Among Full-Service Restaurants Is Projected to Drive the Saudi Arabia Food Delivery Market Growth

The dependence of restaurants and food joints on food delivery apps for expanding and managing their business operations is increasing at a high rate across Saudi Arabia. This dependence is very prominent among the full-services restaurants. Restaurant owners can gain exposure and offer better services to their customers through food delivery applications. Many full-service restaurants in Saudi Arabia can have their dedicated website or mobile applications to provide home deliveries and cut down the commission of third-party aggregators. As a result, the food delivery market is flourishing at a high rate in Saudi Arabia.

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Mobile Wallet Segment is Catching up in the Saudi Arabia Food Delivery Market

Based on payment modes, the Saudi Arabia food delivery market is segmented into a mobile wallet, card payment, cash-on-delivery, and net banking. Among these segments, the cash-on-delivery option accounts for the largest market share. Nevertheless, this method is seeing negative growth over the years due to the rise of the mobile wallet segment. Payment applications such as PayFort, CashU, PayTab, are gaining immense popularity, especially among young users, because of the faster payment options. As a result, the mobile wallet segment is projected to witness the highest growth rate in the Saudi Arabia food delivery market.

Impact of COVID-19 on the Saudi Arabia Food Delivery Market

The Saudi Arabia food delivery market witnessed tremendous growth during the sudden outbreak of the COVID-19 and the global pandemic. The food delivery services emerged as the only option for the restaurant owners and the food outlets to keep the business operations running during the lockdown period. Furthermore, the customer’s inclination towards food delivery apps because of the convenience of home delivery of restaurant-made food and the online payment options for safe and contactless payments also proves to favor the Saudi Arabia Food Delivery market growth. Furthermore, frequent outbreaks and the chances of different waves of COVID-19 virus leave little chances of onsite-dining options. Therefore, more and more restaurant owners are registering themselves on food delivery apps to sustain themselves in the COVID-19 crisis. This is expected to offer more options to the customers propelling the market growth.

Saudi Arabia Food Delivery Market: Competitive Landscape

The leading players in the Saudi Arabia food delivery market are Talabat, Hunger Station, Careem, Jahez, Mrsool Inc, Lugmety, Toyou, Mathaqi, The Chefz, Wssel, Walem, Shadda, Ngwah, and other prominent players.

Food delivery in Saudi Arabia is fragmented with the presence of several dedicated apps and websites for restaurants and third-party food delivery services. These platforms offer attractive deals and discounts to appeal to the masses. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, collaborations, etc., is also very prominent in this market.

Don’t miss the business opportunity of the Saudi Arabia food delivery market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Saudi Arabia food delivery market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the Saudi Arabia food delivery market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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