{"id":88262,"date":"2024-07-30T00:00:00","date_gmt":"2024-07-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/07\/30\/a-usd-15-bn-food-delivery-market-by-2028\/"},"modified":"2024-07-30T00:00:00","modified_gmt":"2024-07-30T00:00:00","slug":"a-usd-15-bn-food-delivery-market-by-2028","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/07\/30\/a-usd-15-bn-food-delivery-market-by-2028\/","title":{"rendered":"A USD 15 bn food delivery market by 2028?"},"content":{"rendered":"

The Kingdom\u2019s food delivery market is projected to be worth as much as USD 14.9 bn by <\/strong>2028<\/strong>, up from USD 10 bn in 2023, as the number of food delivery startups in the country continues to grow, according to a report by Entrepreneur Middle East<\/a>. Despite the market being dominated by meal deliveries, grocery deliveries services are gaining ground due to new options and changing consumer tastes, the report shows. <\/p>\n

How the market is looking right now:<\/strong> Meal deliveries currently account for some 88% of the local market, the report shows. The segment is projected to reach USD 12.1 bn by 2028, at a compound annual growth rate (CAGR) of 6.4%, with the relatively slow rate attributed to market maturity following a pandemic-era boom. On the flip side, although currently smaller, the grocery segment is expected to grow at a sharper 18.2% CAGR, growing to USD 2.8 bn in value by 2028.<\/p>\n

Who is leading the market?<\/strong> HungerStation<\/a> has been in the market since 2012 and held the largest market share in 2023. The app has upwards of 40 mn downloads and exclusive partnerships with a number of food outlets. Jahez<\/a>, meanwhile, is is looking to make the move to Tadawul\u2019s main market<\/a> (it\u2019s currently listed on Nomu, the parallel market). Jahez recorded gross order value of c. SAR 7 bn last year and generated gross revenues of SAR 1.9 bn with 3.5 mn active users serving 38k merchant branches, according to its 2023 results presentation (pdf)<\/a>. <\/p>\n

The Kingdom\u2019s food delivery market is the region\u2019s largest, surpassing the UAE <\/strong>on the back of a population that is 3.8x larger. Despite this, the UAE has a much higher grocery delivery penetration rate. Saudi Arabia also leads the region in terms of average revenue per user (ARPU) on meal deliveries, which is forecasted at USD 627 for 2024 \u2014 around 68% higher than in the UAE and more than 2,100% higher than in Egypt. Meanwhile, the Kingdom\u2019s forecasted ARPU for grocery deliveries in 2024 stands at USD 162.50, less than half the UAE\u2019s USD 335.3.<\/p>\n

Local food delivery startups raised a total of USD 266.2 mn in the five years up to 2023<\/strong>, through venture capital, IPOs, and acquisitions, the report said. Delivery startups raked in a combined USD 56.6 mn in funding in 2020, accounting for some 94% of all foodtech funding. This proportion see-sawed over the following years, dropping to 5% in 2021 (USD 2.9 mn), before scaling back up to 85% by 2023 (USD 134.8 mn).<\/p>\n","protected":false},"excerpt":{"rendered":"

The meal delivery segment currently accounts for 88% of the market<\/p>\n","protected":false},"author":1,"featured_media":88263,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2662],"tags":[349,10,2951,2952,1563],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-88262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce","tag-e-commerce","tag-enterpriseam-ksa","tag-foodtech","tag-hungerstation","tag-jahez","wpautop","entry"],"acf":{"mongo_id":"6f6e248c-5841-4303-a415-ca1f70221a0f","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/7\/2398.jpg","photo_position":"above","homepage_title":"","full_issue_title":"The Kingdom\u2019s food delivery market is forecast to be worth nearly USD 15 bn by 2028","related_issue":[88255],"teaser":"The meal delivery segment currently accounts for 88% of the market","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/7\/.5db8f9d4-32da-4352-b847-969c50ee1f1e.mp3"},"yoast_head":"\nA USD 15 bn food delivery market by 2028? 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