Saudi Arabia Food Delivery Market to Reach USD 3,842 Million by 2028

Saudi Arabia Food Delivery Market

A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the Saudi Arabia Food Delivery Market was worth USD 762.8 million in 2021 and is projected to reach USD 3.842.6 million by the year 2028, growing at a CAGR of 24.4% over the analysis period of 2022-2028. Some of the key factors driving the growth of the Saudi Arabia Food Delivery market are government efforts into accelerating the food delivery sector, the emergence of cloud kitchens amidst the region, and the growing prominence of food delivery services among full-service restaurants.

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

Food delivery apps are becoming increasingly important to restaurants and food outlets in Saudi Arabia as a means of developing and managing their businesses. The full-service restaurants are particularly prone to this dependency. Food delivery apps can help restaurant operators get awareness and provide better service to their consumers. Many full-service restaurants in Saudi Arabia can have their own dedicated website or mobile application to make home delivery, reducing third-party aggregator commissions. As a result, the food delivery sector in Saudi Arabia is growing rapidly.

Emergence of Cloud Kitchen Amidst the Region

The cloud kitchen concept has already made an impact in countries like India and Singapore, where the desire for food delivery to one’s doorstep is on the rise. According to a recent study, food delivery is rapidly gaining traction in Saudi Arabia. Due to the large market for online food ordering services, numerous firms have established delivery applications that connect restaurants, fast-food chains, cafes, and catering services to end customers and enable quick doorstep food delivery. One or more delivery platforms are currently connected to a growing number of Saudi restaurants. This is also a excellent opportunity for them to penetrate into the food delivery market and explore the revolutionary cloud kitchen concept in Saudi Arabia.

Request for Sample Report @

Cash on Delivery and Net Banking Payment Segment Dominated the Saudi Arabia Food Delivery Market

The Saudi Arabia food delivery market is segmented into a mobile wallet, card payment, cash on delivery and net banking based on payment procedures. The cash on delivery and net banking payment method holds the largest share in 2021. The growing usage of online payment methods such as card payment, mobile wallet, net banking, and other is due to growing consumer awareness of digital money and a growing number of partnerships between banks and online food delivery service providers. The growth of this sector can be attributed to the fact that some customers choose to pay in cash as they are concerned about the security of online payment transactions. Banks, on the other hand, are focusing on improving security and providing more services to customers, which is expected to transform the situation in the coming years.

However, as the mobile wallet segment takes its place, this method has seen negative development over the years. Due to the faster payment options, payment apps like PayFort, CashU, and PayTab are gaining a lot of traction, especially among young users. As a result, the mobile wallet segment in the Saudi Arabia food delivery industry is expected to grow at the fastest rate.

Impact Of COVID-19 On Saudi Arabia Food Delivery Market

The global economy has been pushed into a catastrophe owing to the COVID-19 pandemic. Due to the great infection rate and antagonistic impact on public health systems, Saudi Arabian government enforced nationwide lockdown that had significant impacts on the manufacturing supply chains, trade, and related services. Covid acted like a catalyst as it aided good uptake in new users with little CAC (customer acquisition cost) & henceforth likely to stick for a longer time. The augmenting demand for food delivery companies coupled with changing food consumption practices boosted the sales of the regional food delivery service providers along with a drop in the delivery costs, which in turn resulted in a gradual improvement in their profitability

Competitive Landscape

The key players operating in the Saudi Arabia Food Delivery market are Mrsool Inc., Delivery Hero, Careem, Jahez, Lugmety, ToYou, Mathaqi, The Chefz, and Wssel. Mrsool Inc., Delivery Hero, and Careem are the leading players in 2021. With the brands Talabat, Yemeksepeti, and HungerStation, Delivery Hero provides both marketplace as well as in delivery services in Saudi Arabia.

On Dec 2021: Delivery Hero SE, expanding its Logistics-as-a-Service offering into more than 25 markets worldwide. Leveraging its existing logistics capabilities, Delivery Hero has ambitious plans to connect the entire ecosystem and deliver anything that customers need, in record time. This includes on-demand delivery via e-commerce platforms, as well as courier-to-customer services, where customers can send any parcel from point A to point B at the click of a button.

Contact Us:

BlueWeave Research Blog

Phone No: +1 866 658 6826