Middle East Online Grocery Market: E-Commerce Expansion, Consumer Convenience & Growth Outlook

According to IMARC Group's latest research publication, Middle East online grocery market size was valued at USD 50.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 327.80 Billion by 2033, exhibiting a CAGR of 23.23% from 2025-2033.

How AI is Reshaping the Future of Middle East Online Grocery Market

• AI is transforming personalized shopping in Middle East online groceries, with Talabat's smart promotions lifting click-through rates by 30% for better user engagement.
• Companies like Yango Tech are using AI inventory tools to hit 98% order accuracy, slashing spoilage and speeding deliveries across the region.
• In Saudi Arabia, a massive $40 billion AI investment fund is sparking innovations in online grocery, from personalization to smoother operations overall.

Get In-Depth 2026 Industry Insights & Projections

Middle East Online Grocery Market Trends & Drivers:

The landscape of the Middle East online grocery market is rapidly changing with the emergence of quick commerce and instant delivery format, with convenience and speed being key priorities․ Meeting changing shopping habits of consumers who are increasingly looking for instant delivery options․ Dark stores and micro-fulfillment networks are being built by platforms across Gulf Cooperation Council cities․ In a few cases, deliveries can be made to users in minutes․ The trend has also been attributed to urbanization, fast-paced lifestyles, and the need by working individuals and families to save time․ The growth in the market is also driven by improvements in logistics infrastructure and strong competition from other regional players․ The quick-commerce market continues to gain a larger share in the retail landscape for hyper-local on-demand delivery of fresh and daily essentials․

Artificial intelligence and machine learning technology are being implemented to improve customer experience and improve efficiencies․ This technology allows for personalized shopping recommendations, dynamic pricing and inventory management capabilities to predict demand and reduce waste in the online grocery supply chain․ In the Middle East, where there is a tech-savvy younger population, AI caters to customer experiences by providing more personalized recommendations and faster ordering․ Retailers use AI for better supply chain visibility and predictive analytics, ensuring fresher products and faster order fulfillment․ This technology trend drives satisfaction and loyalty as it allows consumers to experience more relevant, efficient and customized shopping journeys, something that is especially important due to growing digital expectations․

The online grocery retail market is driven by the rising penetration of smartphones, increasing internet connectivity and growing adoption of digital payment solutions․ The high degree of internet penetration in the region allows online grocery retail vendors to reach customers through mobile applications, driven by the fintech ecosystem and payment modes․ Urbanization tends to exacerbate the trend, concentrating people within cities with busier schedules and lifestyles and providing access to online platforms which fulfill needs without requiring travel․ Government-promoted digital economies and infrastructure improvements also encourage adoption across the population․ These factors are making online grocery shopping a part of everyday life for many․

Middle East 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

Country Analysis:

• Saudi Arabia
• Turkey
• Israel
• United Arab Emirates
• Iran
• Iraq
• Qatar
• Kuwait
• Oman
• Jordan
• Bahrain
• Others

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 Middle East Online Grocery Market

• January 2026: Leading Saudi e-grocery platforms enhanced AI-driven route optimization and demand forecasting, reducing urban delivery times to under 60 minutes and achieving over 90% on-time fulfillment for essentials.
• October 2025: Major Saudi online grocery services integrated digital wallets like STC Pay and Apple Pay, boosting electronic payments to nearly 80% of transactions and lowering mobile cart abandonment rates.
• February 2025: Talabat acquired InstaShop for over USD 630 million in the UAE, integrating grocery sales to represent about one-third of total revenue through expanded on-demand services.

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