Middle East & Africa Quick Commerce Market Outlook, 2029

Quick commerce in the MEA region is much more than a trend; it is an absolute digital oasis quenching people's urge for instant gratification in a fast-moving world. Economic Diversification: In oil-dependent economies like Saudi Arabia, leadership is diversifying into e-commerce and logistics as part of its Vision 2030. It is investment and funding that will really help accelerate the growth of the quick commerce market in Middle East and Africa. There has been a surge in Venture Capital Investment in start-ups offering unique delivery solutions that are either innovative in nature or target niche markets.

Much of the investments are driven by the high return potential in this rapidly growing sector, specifically into companies demonstrating scalability and strong growth potentials. Private Equity firms are hugely interested, especially in the larger players with deep regional market penetration that afford them enough capital to build out their operations and better infrastructure. Another huge trend is Corporate Investment from larger global firms, wherein multinational firms take stakes in the local players through acquisitions, partnerships, or through direct funding to help them break into the MEA market. The quick commerce market in the MEA region is being driven by several major key players.

Talabat is the leading platform in the UAE and other Gulf countries, covering everything from grocery delivery services to restaurants. Zomato is another important player who is offering food delivery services in a number of MEA countries. Independent e-commerce giant in Africa, Jumia, will add more quick commerce services as demand for fast delivery increases. Mr D Food in South Africa comes next with rapid delivery services for food and grocery items.

Most governments within the MEA region enthusiastically encourage this quick commerce growth through different schemes and policies. Regulatory environments are currently being designed to allow for the growth of quick commerce services in a manner that ensures consumer protection and fair competition. For instance, UAE's Vision 2021 is directed toward the development of smart logistics and infrastructure to maintain rapid delivery services.

According to the research report "Middle-East & Africa Quick Commerce Market Outlook, 2029" the Middle-East & Africa Quick Commerce market is anticipated to grow at more than 24% CAGR from 2024 to 2029. Factors contributing to the rapid growth in the MEA quick commerce market include increasing urbanization, wherein more and more people have started moving to cities and adopted faster lifestyles that require quicker and more convenient ways of shopping. Digital transformation across the region is putting more consumers in a position to access online services and add to the growth of quick commerce.

Rising disposable incomes, particularly in the Gulf Cooperation Council countries, are pumping consumer expenditure into convenience-oriented services. The trend in this space is the expansion into new markets within the region, where firms target rising demand in secondary cities and relatively underserved rural areas. For instance, countries like Nigeria and Kenya are now rapidly adopting quick commerce, driven by growth in mobile internet and increasing smartphone penetration. Cultural sensitivity is a must because this region comprises many cultures, languages, and religious activities.

For example, selling Halal-certified products and not disturbing local customs during religious festivals like Ramadan can greatly improve customer loyalty. Events key to the industry, and initiatives within the MEA region, drive the quick commerce market. These key events include Middle East Retail Forum and Africa eCommerce Week, which is a platform that brings together industry leaders, innovators, and stakeholders to network and discuss trends in the sector, challenges, and opportunities. Quick commerce is influencing urbanization and changes in lifestyle, where people move into cities and lead busier lives with a focus on convenience and saving time.

Market Drivers

• Urbanization and Growing Middle-Class: In the Middle East and Africa (MEA), rapid urbanization and the growing middle class are key drivers of the quick commerce market. Cities like Dubai, Riyadh, and Lagos are experiencing significant population growth, leading to increased demand for convenience-oriented services. The expanding middle class in these regions has higher disposable incomes and a greater willingness to spend on time-saving solutions like quick commerce. Companies are tapping into this demographic by offering a wide range of products with fast delivery options, catering to the needs of busy urban consumers. This trend is particularly strong in Gulf Cooperation Council (GCC) countries, where consumers have a high preference for premium services.
• Rising Internet Penetration and Smartphone Usage: Rising internet penetration and smartphone usage are major drivers of the quick commerce market in the MEA region. As more consumers gain access to high-speed internet and affordable smartphones, online shopping is becoming increasingly popular. This is particularly true in markets like Egypt, South Africa, and Nigeria, where the youth population is driving the adoption of digital technologies. Companies are leveraging mobile apps and digital platforms to offer quick and convenient shopping experiences, with delivery times as short as 30 minutes in some areas. The growing use of digital payments and e-wallets is facilitating the growth of the quick commerce sector in the region.

Market Challenges

• Infrastructure Gaps and Logistics Challenges: Infrastructure gaps and logistics challenges are significant obstacles to the quick commerce market in the MEA region. Many countries in the region lack the necessary infrastructure for efficient last-mile delivery, including reliable transportation networks and advanced warehousing facilities. This is particularly problematic in rural and remote areas, where poor road conditions and a lack of delivery infrastructure can lead to delays and increased costs. The region's diverse geography, including deserts, mountains, and densely populated urban areas, presents logistical challenges that companies must navigate. These challenges require companies to invest in localized logistics solutions and partner with local delivery providers to ensure timely and reliable service.
• Regulatory and Cultural Barriers: Regulatory and cultural barriers pose challenges for the quick commerce market in the MEA region. The regulatory environment in many countries is complex and can vary significantly from one market to another. Companies must navigate differing regulations related to e-commerce, data privacy, and labor laws, which can increase operational complexity and costs. Cultural differences across the region can impact consumer behavior and preferences. For example, consumers in conservative markets prefer cash-on-delivery options, while those in more liberal markets be more open to digital payments. Companies must carefully adapt their business models and marketing strategies to align with local cultural norms and regulatory requirements.

Market Trends

• Adoption of Advanced Technologies: The adoption of advanced technologies is a growing trend in the quick commerce market in the MEA region. Companies are increasingly using technologies like AI, machine learning, and data analytics to optimize their operations and enhance the customer experience. These technologies enable companies to predict consumer demand, personalize product recommendations, and optimize delivery routes. The use of mobile apps and digital platforms is becoming more prevalent, allowing companies to offer seamless and convenient shopping experiences. This trend is particularly strong in the GCC countries, where consumers are tech-savvy and have high expectations for digital services.
• Expansion into New Markets: Expansion into new markets is a key trend in the quick commerce sector in the MEA region. Companies are increasingly looking to expand their operations into underserved markets, particularly in Africa, where there is significant potential for growth. The region's large and young population, coupled with rising internet penetration and smartphone usage, presents opportunities for quick commerce companies to tap into new customer bases. Companies are adopting localization strategies to cater to the specific needs and preferences of consumers in these markets, including offering local products and payment options. This trend is expected to continue as companies seek to capitalize on the region's growing consumer base and expanding digital infrastructure.

High growth in urbanization and an increasing adoption of digital technologies are the main drivers for consumers seeking convenient and efficient shopping solutions for fast-paced lifestyles, which is making Food & Groceries the biggest sector in the MEA quick commerce market.

Quick commerce is most applicable for Food & Groceries in the MEA region. This is because other than this being a staple product, it carries convenience through the values of consumer behavioral patterns. Shopping for groceries the traditional way is very time-consuming and inconvenient; it involves travelling, crowds, and heavy bags, especially in the hot climates and busy cities in the region. All these are being addressed by quick commerce platforms, with the offer of a broad spread of products, from fresh produce to daily groceries, right at the doorstep of consumers within minutes. The ease of convenience appeals hugely to the busy urban population, young professionals, and the rising middle class in this region.

Added to this is the fact that the population in the MEA region is fairly young and connected to technology, and the rising penetration of the internet and smartphones is making it forceful for more consumers to shop online. The trend of buying groceries online has been supported in this ongoing COVID-19 pandemic as the consumers resort to safer and more convenient ways of shopping in a bid to reduce possible exposure to health risks in grocery stores. It has fostered the rise of quick commerce, and many startups and established retailers are investing in quick infrastructure for delivery. Since the region is urban, populations are dense with high-rise living; hence, swift and efficient delivery services are ably covered in the region.

The MEA market, grapples with the growth weighed against infrastructure development, characterized by varied regulatory environments, and logistical complexities. Notwithstanding this, it is the convenience, comfort with digital technologies, and the ever-increasing consumer spending power that place Food & Groceries as the leading category in the MEA Quick Commerce Market. The potential for tremendous growth in this market is based on the fact that consumers are seeking immediacy and ease in their shopping experience. The diversified cultures and cuisines in MEA create demand for a wide range of food and grocery items.

Food & Grocery remains an indispensable product on Quick Commerce platforms because of the diversified products, including local and internatinal products. Its location has further made a strategic advantage and prompt in sourcing and delivering diversified products for the growth and dominance in the overall Food & Groceries in the MEA Quick Commerce Market.

Online platforms are at the helm of quick commerce within the MEA region is due to their powerful use of advanced technology and data analytics that makes for better customer experiences and operational efficiency.

In the fast pace of quick commerce, online platforms lead the way through strategic use of technology and data. This would help them provide a seamless and efficient shopping experience to consumers. After all, in a market characterized by high expectations, consumers want everything fast and hassle-free. The platforms are, therefore, able to tailor effective offerings and marketing strategies through sophisticated algorithms and machine learning that analyze consumer behavior, preferences, and purchasing patterns. All of these developments offer a very high degree of personalization, leading to increased customer satisfaction and brand loyalty, for consumers are likely to return to platforms that understand and satisfy their needs.

The real-time inventory management systems that are integrated with advanced logistic solutions have significantly improved the delivery time a critical factor in the quick commerce sector. In this regard, through the optimal supply chain, online platforms in the MEA region should ensure the availability of products and simultaneous delivery to customers within a very short period. Besides, this operational efficiency is supported by local delivery service partners and innovative technologies such as drones and autonomous vehicles that are in the process of experimentation to further bring down delivery times. The MEA region reported an increase in mobile commerce, thus bolstering the success of online platforms.

Considering a fact that most of the population accesses the internet through smartphones, these platforms started building mobile-friendly applications that aided one to navigate, order, and even pay with ease. This made them accessible to a bigger scope, hence increasing their customer base to comprise those who were in love with mobile surfing. The COVID-19 pandemic finally accelerated changes to consumer behavior online toward the safe and convenient way of shopping. This prompted traditional retailers to build up their online presence and ultimately increased the competition in quick commerce.

The leading position of application-based platforms in the Middle East and Africa (MEA) quick commerce market is primarily due to their ability to provide a seamless and user-friendly shopping experience that caters to the evolving consumer preferences for convenience and speed.

In the MEA region, the quick commerce market has witnessed rapid growth, driven by changing consumer behavior and technological advancements. Application-based platforms have emerged as the frontrunners in this space, primarily because they offer a highly efficient and convenient shopping experience. These applications are designed with user-centric interfaces, making it easy for consumers to navigate and place orders quickly. This ease of use is crucial in a market where consumers increasingly prioritize speed and convenience in their shopping experiences.

These platforms leverage advanced technologies like artificial intelligence and machine learning to personalize the shopping experience, recommending products based on previous purchases and preferences. This not only enhances user satisfaction but increases the likelihood of repeat purchases. The application-based platforms often integrate various payment options, ensuring a smooth transaction process. The ability to offer multiple payment methods, including digital wallets and cash on delivery, caters to the diverse preferences of consumers in the MEA region, further solidifying their market position. The logistical capabilities of these applications play a significant role.

Many platforms have established robust delivery networks that enable them to fulfill orders rapidly, often within hours. This capability is particularly important in urban areas, where consumers expect quick delivery times. Furthermore, the rise of mobile internet usage in the MEA region has made it easier for consumers to access these applications, further driving their popularity.

South Africa is leading in the MEA (Middle East and Africa) quick commerce market due to its strategic geographical location, which enables it to serve as a hub for trade and commerce in the region.

South Africa's dominance in the MEA quick commerce market can be attributed to its strategic geographical location, which provides it with a unique advantage in terms of trade and commerce. The country's location at the southern tip of Africa makes it an ideal hub for trade between the East and West, as well as between Africa and Europe. This has enabled South Africa to establish itself as a key player in the region's commerce, with many international companies setting up operations in the country to take advantage of its strategic location. South Africa's well-developed infrastructure, including its ports, roads, and telecommunications networks, has contributed to its success in the quick commerce market.

The country's infrastructure is among the most developed in Africa, making it an attractive location for companies looking to establish a presence in the region. South Africa's business-friendly environment, which includes a stable democracy, a well-regulated financial system, and a highly developed legal system, has helped to attract investment and drive growth in the quick commerce market.

The country's large and growing middle class, which is increasingly tech-savvy and demanding of quick and convenient commerce options, has driven the growth of the quick commerce market in South Africa. The rise of e-commerce and mobile commerce in the country has been rapid, with many consumers turning to online platforms to purchase goods and services. This has created opportunities for companies to establish themselves in the quick commerce market, offering fast and convenient delivery options to meet the growing demand from consumers.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Quick Commerce market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type

• Food & Groceries
• Stationary
• Personal Care Items
• Small Electronics & Accessories
• Others (Pets, alcohol, gifts & flowers, Medicines)

By Payment Mode

• Cash on Delivery
• Online

By Technology

• Application Based Operation
• Hybrid Operation
• Website Based Operation

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Quick Commerce industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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