Saudi Arabia Online Grocery Market Set to Surge to USD 6,409.27 Million by 2034, Growing at 15.24% CAGR

Saudi Arabia Online Grocery Market Overview
Market Size in 2025: USD 1,788.72 Million
Market Forecast in 2034: USD 6,409.27 Million
Market Growth Rate 2026-2034: 15.24%

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, 2026-2034", the Saudi Arabia online grocery market size was valued at USD 1,788.72 Million in 2025 and is projected to reach USD 6,409.27 Million by 2034, growing at a compound annual growth rate of 15.24% from 2026-2034.

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

● AI is quietly becoming the engine behind Saudi online grocery, with AI shopping assistants alone estimated at around USD 1.1 billion in value, heavily used by e-commerce and grocery platforms to deliver faster, more tailored shopping journeys that keep customers coming back.

● Behind the scenes, platforms are using machine learning to forecast demand around peak occasions like Ramadan, fine-tune inventory, and cut waste, while smart route-optimization systems help fleets cover wide urban areas more efficiently and keep delivery promises tight.

● Government support is a big accelerator, with Vision 2030 pushing digital payments so strongly that only about 22% of consumer transactions remain cash-based, giving online grocers a solid base of card and wallet users who are comfortable ordering everything from fresh produce to bulk staples online.

● Quick-commerce players such as Rabbit are leaning heavily on proprietary AI and machine-learning tools to localize assortments for cities like Riyadh and Jeddah, which together account for roughly 70% of online grocery orders, while also solving tricky last-mile navigation using advanced GPS and address-matching technology.

● Established and emerging grocery apps are doubling down on AI-driven personalization, using purchase histories and behavior signals to push relevant recommendations, build smart subscriptions, and trigger auto-replenishment, which reduces stockouts and nudges shoppers to add higher-margin or healthier items with minimal extra effort.

Saudi Arabia Online Grocery Market Trends & Drivers:

One of the biggest pushes behind the booming online grocery market in Saudi Arabia right now is the massive embrace of digital tech, fueled by sky-high smartphone and internet access that makes shopping from your couch a no-brainer. With nearly 99% internet penetration and over 36 million folks glued to their phones, it's easier than ever to tap an app and get your groceries delivered. The government's Vision 2030 is supercharging this by pouring money into better digital setups and encouraging cashless payments, which now make up about 79% of all retail transactions according to the Saudi Central Bank. Companies like Jahez are jumping on this with cool features like electric delivery vehicles to cut costs and go green, while apps offer personalized deals that keep users coming back. In real life, this means busy parents or professionals can skip the store lines, saving time and hassle, and it's opening doors for more innovative services that blend tech with everyday needs. Overall, this digital wave is turning occasional online buyers into loyal fans, expanding the market organically as more people discover how seamless it can be.

Quick commerce is emerging as a game-changer, where super-fast deliveries under 30 minutes are becoming the new standard and really accelerating growth in Saudi Arabia's online grocery scene. Platforms are leaning on AI for smarter inventory and route planning, plus things like drone trials and automated warehouses to make it all happen efficiently. For example, Matternet just got the green light for drone operations, and Jahez is aiming to electrify a big chunk of its fleet, which helps handle the surge in orders without breaking a sweat. Stats show that about 33% of Saudis are already opting for online groceries for that quick convenience, especially in buzzing cities like Riyadh. In practice, this trend is perfect for urban dwellers who need fresh veggies or snacks ASAP during a hectic day, and it's boosting repeat business as companies partner with logistics pros to scale up. Vision 2030 backs this by improving e-commerce infrastructure, making sure these speedy services aren't just a fad but a staple that keeps the market thriving.

The young, digitally native crowd-making up a huge portion of the population under 30-is a key driver, craving convenience that fits their fast-paced, urban lives and pushing the online grocery market forward in Saudi Arabia. With urbanization hitting around 84.7% and about 7.5 million households in cities, more dual-income families are ditching traditional shopping for apps that deliver right to their door. Government schemes under Vision 2030 are nurturing this by boosting digital skills and e-commerce, while stats reveal 60% of consumers now prefer online options for groceries. Apps like HungerStation and Nana are nailing it with user-friendly designs, loyalty perks, and tailored suggestions, like meal kits for working pros. In the real world, this means easier access to a variety of products without the crowds, and it's drawing in even more users as lifestyles get busier. Companies are responding with expansions into smaller towns, ensuring this trend keeps the momentum going strong.

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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

● January 2026: Leading Saudi e-grocery platforms ramp up AI-driven route optimization and demand forecasting, cutting average urban delivery windows to under 60 minutes in key cities and boosting on-time fulfillment rates to well above 90% for fast-moving essentials.

● October 2025: Major Saudi online grocery players deepen integration with digital wallets like STC Pay, Apple Pay, and Mada-backed solutions, helping push electronic payments to nearly 80% of all retail transactions and sharply reducing cart abandonment for mobile grocery orders.

● May 2025: Retailers expand quick-commerce "dark store" and micro-fulfilment networks across Riyadh and Jeddah, using IoT sensors and real-time inventory tracking to minimize stockouts and support rapid top-up missions for fresh, chilled, and ready-to-eat grocery categories.

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