Saudi Arabia Online Food Ordering and Delivery Market to Grow with a CAGR of 22.07% through 2028

Saudi Arabia Online Food Ordering and Delivery Market continues to thrive due to factors such as technological advancements and a convenience-driven consumer base, particularly prominent in urban centers like Riyadh, Jeddah, and Dammam.

 

According to TechSci Research report, “Saudi Arabia Online Food Ordering and Delivery Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Saudi Arabia Online Food Ordering and Delivery Market stood at USD 2029.23 million in 2022 and is anticipated to grow with a CAGR of 22.07% in the forecast period, 2024-2028. The Saudi Arabia online food ordering and delivery market has witnessed a remarkable surge in recent years, driven by various factors such as technological advancements, changing consumer preferences, and a growing inclination toward convenience-driven services. The market has experienced substantial growth, reshaping the dining habits of Saudis and expatriates alike.

Several key trends have fueled the expansion of online food ordering and delivery services in Saudi Arabia. The widespread adoption of smartphones and high-speed internet, coupled with a burgeoning young population embracing technology, has been pivotal in driving the demand for online food delivery platforms. Consumers seek convenience, a wide variety of dining options, and seamless ordering experiences, contributing to the market's rapid growth.

 

Browse over 26 market data Figures spread through 90 Pages and an in-depth TOC on "Saudi Arabia Online Food Ordering and Delivery Market”

 

The market's dynamics vary across regions within Saudi Arabia. The major urban centers, including Riyadh, Jeddah, Dammam, and Khobar, exhibit the highest adoption rates of online food delivery services. These regions boast a dense population and high economic activity, making them lucrative hubs for online food delivery platforms aiming to capture a significant market share.

The market is characterized by intense competition among key players striving to establish dominance. Companies such as HungerStation, Talabat, Careem NOW, and Deliveroo have emerged as leading players, offering a plethora of dining options from local eateries to international chains. These platforms employ innovative strategies, partnerships, and promotional campaigns to attract and retain customers in this fiercely competitive landscape.

Consumer preferences in Saudi Arabia lean heavily toward convenience, quality, and variety. The younger demographic, with a propensity for digital experiences, drives the demand for online food ordering. Additionally, the expatriate community values the diverse culinary choices offered by these platforms, contributing significantly to the market's growth.

Despite the rapid growth, the Saudi Arabia online food ordering and delivery market faces challenges such as regulatory frameworks, logistics, and maintaining service quality amidst increasing competition. However, opportunities for market expansion lie in technological innovations, diversification of services, and catering to evolving consumer needs for healthier options, faster delivery, and seamless user experiences.

Saudi Arabia online food ordering and delivery market is segmented into operation type, source, payment, regional, and company.

Based on the operation type, the food aggregators segment emerged as the dominant player in the Saudi Arabia online food ordering and delivery market. Food aggregators offer a vast array of dining options, aggregating numerous restaurants and culinary choices onto a single platform. This extensive network provides consumers with unparalleled variety, allowing them to explore diverse cuisines, from local favorites to international delights, all accessible through a single online portal or mobile app. The dominance of food aggregators is rooted in the unparalleled convenience they offer to consumers. These platforms streamline the ordering process, providing intuitive interfaces, user-friendly navigation, and multiple payment options, ensuring a seamless and hassle-free experience for customers seeking convenience in their dining choices.

The continuous technological innovation and investment in user-centric features contribute significantly to the dominance of food aggregators. Integration of GPS tracking for orders, personalized recommendations, loyalty programs, and real-time updates on order status have enhanced the overall user experience, driving customer loyalty and market dominance.

Based on region, Northern & Central Region has a significant share of the Saudi Arabia online food ordering and delivery market. The Northern and Central regions encompass major cities such as Riyadh, the capital, and key urban centers like Jeddah and Dammam. These areas exhibit dense populations and high urbanization rates, creating a fertile ground for the proliferation of online food delivery services. The concentration of residents seeking convenience and a variety of dining options fuels the demand for online food ordering platforms. Saudi Arabia, as a whole, has experienced rapid technological advancements and widespread internet penetration, facilitating the adoption of online food delivery services. The Northern and Central regions, being at the forefront of technological integration, showcase a high level of digital literacy and smartphone usage, making online food ordering platforms accessible and widely used.

The fast-paced lifestyles prevalent in these regions contribute to the popularity of online food delivery. Consumers, including young professionals, families, and expatriates, value the convenience, time efficiency, and diverse culinary choices offered by online platforms. These regions exhibit a consumer preference for hassle-free dining experiences, fostering the adoption of online food delivery as a convenient solution.

Leading online food delivery platforms have strategically penetrated the Northern and Central regions, offering a wide array of restaurants and cuisines to cater to diverse tastes. Companies like HungerStation, Talabat, and Careem NOW have established a strong presence, employing aggressive marketing strategies and partnerships to capture a significant market share.

 

Major companies operating in Saudi Arabia Online Food Ordering and Delivery Market are:

• HungerStation
• Jahez
• Talabat
• Careem
• Mrsool
• The Chefz
• ToYou
• Lugmety
• Wssel
• Shgardi

 

Download Free Sample Report

Customers can also request for 10% free customization on this report.

 

“The future outlook for the Saudi Arabia online food ordering and delivery market remains optimistic. Continued technological advancements, expansion into suburban areas, focus on customer loyalty programs, and collaborations with restaurants to offer exclusive deals are expected to fuel market growth. As the market matures, it will witness further innovations, improved services, and increased market penetration, solidifying its position as an integral part of the country's dining landscape. In conclusion, the Saudi Arabia online food ordering and delivery market is experiencing rapid growth driven by technological advancements, changing consumer preferences, and a competitive landscape. Regional dynamics, key players, market trends, challenges, and future prospects will continue to shape the trajectory of this market, offering ample opportunities for growth and catering to the evolving needs of consumers across the country.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

“Saudi Arabia Online Food Ordering and Delivery Market –Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Operation Type (Food Aggregators, Restaurant-Based), By Source (Mobile App, Website), By Payment (Cash on Delivery, Card Payment, Others), By Region, By Competition, 2018-2028, has evaluated the future growth potential of Saudi Arabia online food ordering and delivery market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Saudi Arabia online food ordering and delivery market.

Contact Us-

TechSci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States- 10170

M: +13322586602

Email: [email protected]

Website: www.techsciresearch.com