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MENA Markets: Grocery Delivery Market & Average Annual Revenue per User
The grocery delivery market size in Saudi Arabia modestly exceeds that of the UAE, largely due to Saudi Arabia’s significantly larger (3.8X) population size, despite the UAE having a much higher grocery delivery penetration rate.
Moreover, the UAE’s average annual revenue per user surpasses that of Saudi Arabia by 1.9 times today, and is expected to maintain a strong benchmark.
Saudi Arabia’s average annual revenue per user (ARPU) is forecasted to reach just over US $209 per user in 2028, while the ARPU of a UAE consumer is expected to exceed US $677 by 2028.
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The Future of Food Delivery in Saudi Arabia
The KSA food delivery market, worth US $10 billion in 2023, is expected to hit $14.9 billion by 2028, with food-delivery startups playing a central role in driving that growth, capitalizing on shifting consumer needs. These emerging companies have captured 45% of the $600 million investment in the KSA Foodtech sector, signaling a significant transformation in dining experiences and underscoring their essential role in shaping the future of food delivery in Saudi Arabia.
