Saudi Arabia - Retail Market by Type and Distribution Channel - Forecast and Analysis 2024-2028

Published: Jan 2024 Pages: 125 SKU: IRTNTR77341

Saudi Arabia - Retail Market 2024-2028

The Saudi Arabia - Retail Market size is forecast to increase by USD 54.46 billion, at a CAGR of 6.42% between 2023 and 2028. The growth of the market depends on several factors such as economic diversification under Vision 2030, rising consumer spending power, and the growth in the tourism sector in Saudi Arabia. 

The report includes a comprehensive outlook on the market offering forecasts for the industry segmented by Type, which comprises non-food retail and food retail. Additionally, it categorizes Distribution Channel into bakalas, super markets, hyper markets, and online. The market analysis and report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

What will be the Size of the Market During the Forecast Period?

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Market Key Drivers, Trends, and Challenges

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, market growth and trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Economic diversification under Vision 2030 is notably driving market growth. The initiative, spearheaded by the Saudi government, aims to reduce the country's reliance on oil revenues and promote a more diversified and dynamic economy. As part of this vision, strategic investments are being made in the retail sector to foster innovation, entrepreneurship, and job creation. Further, vision 2030 emphasizes the importance of enhancing the competitiveness of the retail sector through digital transformation and technological innovation. Retailers are increasingly adopting e-commerce platforms, digital payment solutions, and other technological advancements to cater to the evolving preferences of consumers.

However, the Saudi Arabian Monetary Authority's (SAMA) initiatives to facilitate digital payments and fintech innovation contribute to this transformative market trends and analysis in the retail landscape. By diversifying the economy, Vision 2030 is creating a more resilient and consumer-driven retail sector, attracting investments, and fostering a vibrant market that aligns with global trends. These developments are expected to drive sustained growth in the market during the forecast period

Key Market Trends

Integration of technology in the retail sector is an emerging trend shaping market development. Technology such as AI and data analytics, enables retailers to gain insights into consumer behavior. The integration of advanced technologies in e-commerce platforms facilitates seamless transactions, secure payment options, and efficient order fulfillment. Further, the adoption of digital payment solutions, including mobile wallets and contactless payments, streamlines transactions and contributes to a cashless retail environment. This not only enhances convenience for consumers but also aligns with global trends in digital finance. Technology-driven solutions such as blockchain and IoT applications, are optimizing supply chain processes. 

Additionally, instances such as the widespread adoption of the Buy Online, Pick Up In-Store model, the use of mobile payment apps, and the deployment of AI-driven chatbots for customer inquiries illustrate how technology integration is becoming a catalyst for growth in the retail market in Saudi Arabia. Retailers embracing these advancements are well-positioned to meet evolving consumer expectations and contribute to the growth of the market during the forecast period.

Major Market Challenge

Regulatory compliance associated with the retail industry in Saudi Arabia is a significant challenge hindering market growth. The evolving regulatory landscape, both domestically and internationally, introduces complexities that impact retailers' operations and strategies in Saudi Arabia. The retail market in Saudi Arabia heavily relies on imports, and changes in import regulations can affect the supply chain and increase costs. Furthermore, stringent consumer protection laws necessitate retailers to ensure product quality, safety, and fair pricing. Compliance with these regulations demands investments in quality control measures, transparent pricing strategies, and effective dispute resolution mechanisms. 

Moreover, retailers must navigate these regulations to secure online transactions, protect customer data, and ensure a seamless digital shopping experience. Addressing these regulatory challenges requires a proactive approach, investment in compliance management systems, and continuous adaptation to changing legal frameworks, which will negatively impact the growth trajectory of the market during the forecast period.

Market Customer Landscape

The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

 Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Abdullah Al Othaim Markets Co. - The company offers retail solutions for grocery, fresh and bakery products, frozen foods, beverages, health and beauty products, and home care products.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

  • AL SADHAN
  • Ali Hassan Al Dahan and Partner Co. Ltd.
  • Arabian Stores Co. Ltd.
  • Azadea Group
  • Balsharaf Group
  • Bindawood Holding
  • Cenomi Retail
  • CHALHOUB GROUP
  • Jarir Marketing Co.
  • Lulu Group International
  • M. H. Alshaya Co. WLL
  • Majid Al Futtaim Holding LLC
  • Manuel Supermarket
  • Nahdi Medical Co.
  • SACO
  • Saudi Marketing Co.
  • Savola Group
  • Tamimi Markets
  • Virgin Red Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Largest-Growing Segment in the Market?

The non-food retail segment is estimated to witness significant growth during the forecast period. A growing population with increasing disposable income, coupled with changing consumer lifestyles, has fueled demand for a diverse range of non-food products. The government's Vision 2030 initiative, aimed at diversifying the economy and promoting the private sector, has also contributed to the expansion of the retail landscape

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The non-food retail segment was the largest and was valued at USD 61.09 billion in 2018. The surge in e-commerce platforms such as Souq.com (now Amazon. sa) and Noon, has further accelerated the growth of the non-food retail segment. These platforms offer a convenient and diverse shopping experience, contributing to the overall expansion of the retail market in Saudi Arabia. The retail sector's response to the COVID-19 pandemic has also driven the adoption of online channels and digital platforms for non-food products, fostering the growth of the non-food retail segment. As consumer preferences continue to evolve, major vendors in the Saudi Arabia - retail market are likely to focus on innovation, omnichannel strategies, and product diversification to sustain and enhance the growth of the non-food retail segment during the forecast period.

Segment Overview

The market report forecasts market growth analysis by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

  • Type Outlook 
    • Non-food retail
    • Food retail
  •  Distribution Channel Outlook 
    • Bakalas
    • Super markets
    • Hyper markets
    • Online

Saudi Arabia Retail Market Scope

Report Coverage

Details

Page number

125

Base year

2023

Historic period

 2018-2022

Market forecasting period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 6.42%

Market Growth 2024-2028

USD 54.46 billion

Market structure

Fragmented

YoY growth 2023-2024(%)

6.22

Competitive landscape

Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

Key companies profiled

Abdullah Al Othaim Markets Co., AL SADHAN, Ali Hassan Al Dahan and Partner Co. Ltd., Arabian Stores Co. Ltd., Azadea Group, Balsharaf Group, Bindawood Holding, Cenomi Retail, CHALHOUB GROUP, Jarir Marketing Co., Lulu Group International, M. H. Alshaya Co. WLL, Majid Al Futtaim Holding LLC, Manuel Supermarket, Nahdi Medical Co., SACO, Saudi Marketing Co., Savola Group, Tamimi Markets, and Virgin Red Ltd.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. 

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Saudi Arabia Retail Market Research Report?

  • CAGR of the market during the forecast period
  • Detailed information on factors that will drive the growth of the market between 2024 and 2028
  • Precise estimation of the market  size and its contribution of the market in focus to the parent market
  • Accurate predictions about upcoming trends and changes in consumer behavior
  • Growth of the market industry across Saudi Arabia
  • Thorough analysis of the market’s competitive landscape and detailed information about companies
  • Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. 

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1 Executive Summary

  • 1.1 Market overview
    • Exhibit 01: Executive Summary – Chart on Market Overview
    • Exhibit 02: Executive Summary – Data Table on Market Overview
    • Exhibit 03: Executive Summary – Chart on Country Market Characteristics
    • Exhibit 04: Executive Summary – Chart on Market Segmentation by Type
    • Exhibit 05: Executive Summary – Chart on Market Segmentation by Distribution Channel
    • Exhibit 06: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

  • 2.1 Market ecosystem
    • Exhibit 07: Parent market
    • Exhibit 08: Market Characteristics

3 Market Sizing

  • 3.1 Market definition
    • Exhibit 09: Offerings of vendors included in the market definition
  • 3.2 Market segment analysis
    • Exhibit 10: Market segments
  • 3.3 Market size 2023
    • 3.4 Market outlook: Forecast for 2023-2028
      • Exhibit 11: Chart on Saudi Arabia - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 12: Data Table on Saudi Arabia - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 13: Chart on Saudi Arabia: Year-over-year growth 2023-2028 (%)
      • Exhibit 14: Data Table on Saudi Arabia: Year-over-year growth 2023-2028 (%)

    4 Historic Market Size

    • 4.1 Retail market in Saudi Arabia 2018 - 2022
      • Exhibit 15: Historic Market Size – Data Table on retail market in saudi Arabia 2018 - 2022 ($ billion)
    • 4.2 Type Segment Analysis 2018 - 2022
      • Exhibit 16: Historic Market Size – Type Segment 2018 - 2022 ($ billion)
    • 4.3 Distribution Channel Segment Analysis 2018 - 2022
      • Exhibit 17: Historic Market Size – Distribution Channel Segment 2018 - 2022 ($ billion)

    5 Five Forces Analysis

    • 5.1 Five forces summary
      • Exhibit 18: Five forces analysis - Comparison between 2023 and 2028
    • 5.2 Bargaining power of buyers
      • Exhibit 19: Chart on Bargaining power of buyers – Impact of key factors 2023 and 2028
    • 5.3 Bargaining power of suppliers
      • Exhibit 20: Bargaining power of suppliers – Impact of key factors in 2023 and 2028
    • 5.4 Threat of new entrants
      • Exhibit 21: Threat of new entrants – Impact of key factors in 2023 and 2028
    • 5.5 Threat of substitutes
      • Exhibit 22: Threat of substitutes – Impact of key factors in 2023 and 2028
    • 5.6 Threat of rivalry
      • Exhibit 23: Threat of rivalry – Impact of key factors in 2023 and 2028
    • 5.7 Market condition
      • Exhibit 24: Chart on Market condition - Five forces 2023 and 2028

    6 Market Segmentation by Type

    • 6.1 Market segments
      • Exhibit 25: Chart on Type - Market share 2023-2028 (%)
      • Exhibit 26: Data Table on Type - Market share 2023-2028 (%)
    • 6.2 Comparison by Type
      • Exhibit 27: Chart on Comparison by Type
      • Exhibit 28: Data Table on Comparison by Type
    • 6.3 Non-food retail - Market size and forecast 2023-2028
      • Exhibit 29: Chart on Non-food retail - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 30: Data Table on Non-food retail - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 31: Chart on Non-food retail - Year-over-year growth 2023-2028 (%)
      • Exhibit 32: Data Table on Non-food retail - Year-over-year growth 2023-2028 (%)
    • 6.4 Food retail - Market size and forecast 2023-2028
      • Exhibit 33: Chart on Food retail - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 34: Data Table on Food retail - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 35: Chart on Food retail - Year-over-year growth 2023-2028 (%)
      • Exhibit 36: Data Table on Food retail - Year-over-year growth 2023-2028 (%)
    • 6.5 Market opportunity by Type
      • Exhibit 37: Market opportunity by Type ($ billion)
      • Exhibit 38: Data Table on Market opportunity by Type ($ billion)

    7 Market Segmentation by Distribution Channel

    • 7.1 Market segments
      • Exhibit 39: Chart on Distribution Channel - Market share 2023-2028 (%)
      • Exhibit 40: Data Table on Distribution Channel - Market share 2023-2028 (%)
    • 7.2 Comparison by Distribution Channel
      • Exhibit 41: Chart on Comparison by Distribution Channel
      • Exhibit 42: Data Table on Comparison by Distribution Channel
    • 7.3 Bakalas - Market size and forecast 2023-2028
      • Exhibit 43: Chart on Bakalas - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 44: Data Table on Bakalas - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 45: Chart on Bakalas - Year-over-year growth 2023-2028 (%)
      • Exhibit 46: Data Table on Bakalas - Year-over-year growth 2023-2028 (%)
    • 7.4 Super markets - Market size and forecast 2023-2028
      • Exhibit 47: Chart on Super markets - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 48: Data Table on Super markets - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 49: Chart on Super markets - Year-over-year growth 2023-2028 (%)
      • Exhibit 50: Data Table on Super markets - Year-over-year growth 2023-2028 (%)
    • 7.5 Hyper markets - Market size and forecast 2023-2028
      • Exhibit 51: Chart on Hyper markets - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 52: Data Table on Hyper markets - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 53: Chart on Hyper markets - Year-over-year growth 2023-2028 (%)
      • Exhibit 54: Data Table on Hyper markets - Year-over-year growth 2023-2028 (%)
    • 7.6 Online - Market size and forecast 2023-2028
      • Exhibit 55: Chart on Online - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 56: Data Table on Online - Market size and forecast 2023-2028 ($ billion)
      • Exhibit 57: Chart on Online - Year-over-year growth 2023-2028 (%)
      • Exhibit 58: Data Table on Online - Year-over-year growth 2023-2028 (%)
    • 7.7 Market opportunity by Distribution Channel
      • Exhibit 59: Market opportunity by Distribution Channel ($ billion)
      • Exhibit 60: Data Table on Market opportunity by Distribution Channel ($ billion)

    8 Customer Landscape

    • 8.1 Customer landscape overview
      • Exhibit 61: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

    9 Drivers, Challenges, and Trends

    • 9.1 Market drivers
      • 9.2 Market challenges
        • 9.3 Impact of drivers and challenges
          • Exhibit 62: Impact of drivers and challenges in 2023 and 2028
        • 9.4 Market trends

          10 Vendor Landscape

          • 10.1 Overview
            • 10.2 Vendor landscape
              • Exhibit 63: Overview on Criticality of inputs and Factors of differentiation
            • 10.3 Landscape disruption
              • Exhibit 64: Overview on factors of disruption
            • 10.4 Industry risks
              • Exhibit 65: Impact of key risks on business

            11 Vendor Analysis

            • 11.1 Vendors covered
              • Exhibit 66: Vendors covered
            • 11.2 Market positioning of vendors
              • Exhibit 67: Matrix on vendor position and classification
            • 11.3 Abdullah Al Othaim Markets Co.
              • Exhibit 68: Abdullah Al Othaim Markets Co. - Overview
              • Exhibit 69: Abdullah Al Othaim Markets Co. - Business segments
              • Exhibit 70: Abdullah Al Othaim Markets Co. - Key offerings
              • Exhibit 71: Abdullah Al Othaim Markets Co. - Segment focus
            • 11.4 AL SADHAN
              • Exhibit 72: AL SADHAN - Overview
              • Exhibit 73: AL SADHAN - Product / Service
              • Exhibit 74: AL SADHAN - Key offerings
            • 11.5 Ali Hassan Al Dahan and Partner Co. Ltd.
              • Exhibit 75: Ali Hassan Al Dahan and Partner Co. Ltd. - Overview
              • Exhibit 76: Ali Hassan Al Dahan and Partner Co. Ltd. - Product / Service
              • Exhibit 77: Ali Hassan Al Dahan and Partner Co. Ltd. - Key offerings
            • 11.6 Azadea Group
              • Exhibit 78: Azadea Group - Overview
              • Exhibit 79: Azadea Group - Product / Service
              • Exhibit 80: Azadea Group - Key offerings
            • 11.7 Balsharaf Group
              • Exhibit 81: Balsharaf Group - Overview
              • Exhibit 82: Balsharaf Group - Product / Service
              • Exhibit 83: Balsharaf Group - Key offerings
            • 11.8 Bindawood Holding
              • Exhibit 84: Bindawood Holding - Overview
              • Exhibit 85: Bindawood Holding - Product / Service
              • Exhibit 86: Bindawood Holding - Key offerings
            • 11.9 Cenomi Retail
              • Exhibit 87: Cenomi Retail - Overview
              • Exhibit 88: Cenomi Retail - Business segments
              • Exhibit 89: Cenomi Retail - Key offerings
              • Exhibit 90: Cenomi Retail - Segment focus
            • 11.10 CHALHOUB GROUP
              • Exhibit 91: CHALHOUB GROUP - Overview
              • Exhibit 92: CHALHOUB GROUP - Product / Service
              • Exhibit 93: CHALHOUB GROUP - Key offerings
            • 11.11 Jarir Marketing Co.
              • Exhibit 94: Jarir Marketing Co. - Overview
              • Exhibit 95: Jarir Marketing Co. - Product / Service
              • Exhibit 96: Jarir Marketing Co. - Key offerings
            • 11.12 Lulu Group International
              • Exhibit 97: Lulu Group International - Overview
              • Exhibit 98: Lulu Group International - Product / Service
              • Exhibit 99: Lulu Group International - Key offerings
            • 11.13 M. H. Alshaya Co. WLL
              • Exhibit 100: M. H. Alshaya Co. WLL - Overview
              • Exhibit 101: M. H. Alshaya Co. WLL - Product / Service
              • Exhibit 102: M. H. Alshaya Co. WLL - Key offerings
            • 11.14 Majid Al Futtaim Holding LLC
              • Exhibit 103: Majid Al Futtaim Holding LLC - Overview
              • Exhibit 104: Majid Al Futtaim Holding LLC - Business segments
              • Exhibit 105: Majid Al Futtaim Holding LLC - Key offerings
              • Exhibit 106: Majid Al Futtaim Holding LLC - Segment focus
            • 11.15 Nahdi Medical Co.
              • Exhibit 107: Nahdi Medical Co. - Overview
              • Exhibit 108: Nahdi Medical Co. - Business segments
              • Exhibit 109: Nahdi Medical Co. - Key offerings
              • Exhibit 110: Nahdi Medical Co. - Segment focus
            • 11.16 Savola Group
              • Exhibit 111: Savola Group - Overview
              • Exhibit 112: Savola Group - Product / Service
              • Exhibit 113: Savola Group - Key offerings
            • 11.17 Tamimi Markets
              • Exhibit 114: Tamimi Markets - Overview
              • Exhibit 115: Tamimi Markets - Product / Service
              • Exhibit 116: Tamimi Markets - Key offerings

            12 Appendix

            • 12.1 Scope of the report
              • 12.2 Inclusions and exclusions checklist
                • Exhibit 117: Inclusions checklist
                • Exhibit 118: Exclusions checklist
              • 12.3 Currency conversion rates for US$
                • Exhibit 119: Currency conversion rates for US$
              • 12.4 Research methodology
                • Exhibit 120: Research methodology
                • Exhibit 121: Validation techniques employed for market sizing
                • Exhibit 122: Information sources
              • 12.5 List of abbreviations
                • Exhibit 123: List of abbreviations

              Research Framework

              Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

              INFORMATION SOURCES

              Primary sources

              • Manufacturers and suppliers
              • Channel partners
              • Industry experts
              • Strategic decision makers

              Secondary sources

              • Industry journals and periodicals
              • Government data
              • Financial reports of key industry players
              • Historical data
              • Press releases

              DATA ANALYSIS

              Data Synthesis

              • Collation of data
              • Estimation of key figures
              • Analysis of derived insights

              Data Validation

              • Triangulation with data models
              • Reference against proprietary databases
              • Corroboration with industry experts

              REPORT WRITING

              Qualitative

              • Market drivers
              • Market challenges
              • Market trends
              • Five forces analysis

              Quantitative

              • Market size and forecast
              • Market segmentation
              • Geographical insights
              • Competitive landscape

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              Key Questions Answered

              • What are the key global market and the regional market share?
              • What are the revenue-generating key market segments?
              • What are the key factors driving and challenging this market’s growth?
              • Who are the key market vendors and their growth strategies?
              • What are the latest trends influencing the growth of this market?
              • What are the variables influencing the market growth in the primary regions?
              • What are the factors influencing the growth of the parent market?

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