Saudi Arabia Online Grocery Market Overview

Market Size in 2024: USD 1,543.7 Million

Market Size in 2033: USD 5,925.7 Million

Market Growth Rate 2025-2033: 15.87%

According to IMARC Group's latest research publication, "Saudi Arabia Online Grocery Market Size, Share, Trends, and Forecast by Product Type, Business Model, Platform, Purchase Type, and Region, 2025-2033", The Saudi Arabia online grocery market size reached USD 1,543.7 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 5,925.7 Million by 2033, exhibiting a growth rate (CAGR) of 15.87% during 2025-2033.

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How AI is Reshaping the Future of Saudi Arabia Online Grocery Market

• AI-powered demand forecasting tools have helped Saudi online grocers reduce stockouts by 35%, improving customer satisfaction and operational efficiency across major cities.
• Intelligent delivery route planning has cut shipping times by 28%, enabling faster same-day deliveries and reducing logistics costs for leading grocery platforms.
• The government’s digital transformation initiatives support AI adoption, funding startups focused on smart supply chain and inventory solutions to modernize grocery retail.
• AI-driven personalized recommendation engines boost average order values by 22%, suggesting relevant products based on shoppers’ past purchases and preferences.
• Virtual assistants and chatbots now handle 60% of customer queries for grocery platforms, increasing engagement and providing 24/7 support with tailored offers.

Saudi Arabia Online Grocery Market Trends & Drivers:

Saudi Arabia’s online grocery market is growing fast thanks to widespread internet access and skyrocketing smartphone use. With nearly everyone online and mobile-savvy, shoppers enjoy the ease and speed of ordering groceries through mobile apps and websites. This shift is reflected in the market reaching around USD 1.5 billion with continued strong consumer demand for quick, contactless shopping experiences. Urban professionals and busy families especially value services that save time, driving more frequent and larger online grocery purchases. The convenience factor, combined with improvements in digital payment methods, is changing how Saudis shop for everyday essentials.​

Government support under Vision 2030 is a major factor behind this growth, promoting digital transformation and pushing a cashless economy. Programs like the national payment network Mada and the SADAD system streamline online payment, making transactions safer and more effortless. The government’s goal to reduce cash dependency boosts trust in e-commerce and encourages adoption across all demographic segments. Additionally, incentives and collaborations with fintech companies have made digital payments a staple in the retail experience, helping to modernize the grocery sector and improve service quality throughout the Kingdom.​

Investment and competition are heating up as both local and global players rush to capture market share. Big names like Amazon have partnered with established local chains such as Al-Othaim Markets to expand online grocery delivery with same-day service, while regional startups like Nana and Rabbit are investing heavily in logistics and AI. Quick commerce models promising delivery within 20-30 minutes are emerging to meet consumer expectations for speed. This influx of funds and innovation is pushing the market towards greater product variety, faster delivery, and more personalized shopping experiences, fueling rapid expansion across urban centers like Riyadh and Jeddah.

Saudi Arabia Online Grocery Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Product Type:

• Vegetables and Fruits
• Dairy Products
• Staples and Cooking Essentials
• Snacks
• Meat and Seafood
• Others

Analysis by Business Model:

• Pure Marketplace
• Hybrid Marketplace
• Others

Analysis by Platform:

• Web-Based
• App-Based

Analysis by Purchase Type:

• One-Time
• Subscription

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Online Grocery Market

• September 2025: Amazon Fresh expands rapid delivery services to cover 90% of Riyadh and Jeddah metropolitan areas, offering 2-hour delivery windows for premium customers.
• August 2025: Nana Direct announces partnership with local farms to offer organic produce direct-to-consumer, supporting Saudi Arabia's food security and sustainability goals.
• July 2025: Major hypermarket chains launch AI-powered mobile apps with personalized shopping lists and voice-activated ordering to enhance customer convenience.

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