Kuwait E-commerce Market Size (2024 - 2029)

The e-commerce market in Kuwait is experiencing significant growth, driven by the expansion of digital infrastructure and increasing internet penetration. The market size is expanding as more businesses enter the sector, fueled by the convenience and safety of online shopping, which was accelerated by the COVID-19 pandemic. Despite the current limitations in online transactions for many Kuwaiti companies, the government's support for digital initiatives and the entry of various e-commerce startups are contributing to the market's development.

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Market Size of Kuwait E-commerce Industry

Kuwait E Commerce Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 14.28 %
Market Concentration Low

Major Players

Kuwait E-commerce Market Major Players

*Disclaimer: Major Players sorted in no particular order

Kuwait Ecommerce Market Analysis

The Kuwait E-commerce Market is expected to grow at a CAGR of above 14.28% during the forecast period, 2022-2027. The e-commerce industry is growing exponentially as more e-commerce businesses step into the country. The digital economy is significantly developing with access to the internet made available across the globe. Various e-commerce market vendors are expanding their business in Kuwait to meet the growing demand for online retailing.

  • The COVID-19 crisis accelerated an expansion of e-commerce towards new firms, customers, and types of products. It has provided customers with access to a significant variety of products from the convenience and safety of their homes. It has enabled firms to continue operating despite contact restrictions and other confinement measures.
  • Several factors are compelling the growth of the e-commerce market in Kuwait, such as high internet penetration, growing usage of 5G networks, increase online shopping, various e-commerce startups entering the country's e-commerce market, and other such factors.
  • According to International Trade Administration, Kuwait has over four million Internet users. However, e-commerce remains predominately limited to online banking and financial brokerage services. As it stands today, most Kuwaiti companies do not conduct online business-to-business or business-to-consumer transactions.
  • The Kuwait Government's e-Government website offers services for both enterprises and individuals. Based on the United Nations Commission on International Trade Law (UNCITRAL) regulations on electronic commerce, an electronic signature law has been authorized. Moreover, e-signatures are being used by some government organizations.
  • Many organizations in e-commerce are entering Kuwait's market. For instance, in April 2022, Raha, an e-grocery platform, officially announced its launch in Kuwait's market. It is a fully automated e-grocery platform, offering a wide range of groceries, household essentials, and fresh produce. It also features Kuwait's first fully-automated robotics-fulfillment center and one of the first centers of its kind globally, with a chilled warehouse capability.

Kuwait Ecommerce Industry Segmentation

The Kuwait e-commerce market is segmented into B2B E-commerce and B2C E-commerce. By B2C E-commerce, the market studied is further subdivided into beauty and personal care, consumer electronics, fashion and apparel, food and beverage, and furniture and home. The report analyzes the impact of COVID-19 on the studied market.

The study also tracks important market metrics, underlying growth influencers, and significant industry vendors, providing support for Kuwait's market estimates and growth rates throughout the anticipated period. The study assesses COVID-19's overall influence on the market.

By B2C ecommerce
Market size (GMV) for the period of 2017-2027
Market Segmentation - by Application
Beauty and Personal Care
Consumer Electronics
Fashion and Apparel
Food and Beverage
Furniture and Home
Others (Toys, DIY, Media, etc.)
By B2B ecommerce
Market size for the period of 2017-2027
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Kuwait E-commerce Market Size Summary

The e-commerce market in Kuwait is experiencing significant growth, driven by the increasing penetration of the internet and the adoption of advanced telecommunications technologies like 5G. The digital economy is expanding rapidly as more e-commerce businesses enter the market, catering to the rising demand for online retailing. The COVID-19 pandemic has further accelerated this growth by encouraging new firms and customers to engage in e-commerce, providing them with access to a wide variety of products from the comfort of their homes. Despite the predominance of e-commerce in sectors like online banking and financial services, there is a growing trend towards business-to-business and business-to-consumer transactions. The Kuwaiti government's initiatives, such as the implementation of electronic signature laws and the development of digital infrastructure under the 'New Kuwait' Vision 2035, are also contributing to the market's expansion.

The competitive landscape of Kuwait's e-commerce market is becoming increasingly dynamic, with major players like 6th Street, Ubuy, and H&M leading the charge. The market is witnessing a surge in digital promotions and partnerships, as companies seek to enhance their market presence and tap into new customer segments. The fashion segment, in particular, is seeing a rise in household consumption and the entry of luxury brands, driven by the high demand for premium products. Social media platforms are playing a crucial role in attracting customers, with informative and promotional content driving traffic to e-commerce websites. The launch of various e-retail stores and innovative platforms, such as Raha's fully automated e-grocery service, highlights the ongoing digital transformation and the increasing competitiveness among e-commerce companies in Kuwait.

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Kuwait E-commerce Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Key market trends and share of e-commerce of total Retail sector

    4. 1.4 Impact of COVID-19 on the e-commerce sales

  2. 2. Market Segmentation

    1. 2.1 By B2C ecommerce

      1. 2.1.1 Market size (GMV) for the period of 2017-2027

      2. 2.1.2 Market Segmentation - by Application

        1. 2.1.2.1 Beauty and Personal Care

        2. 2.1.2.2 Consumer Electronics

        3. 2.1.2.3 Fashion and Apparel

        4. 2.1.2.4 Food and Beverage

        5. 2.1.2.5 Furniture and Home

        6. 2.1.2.6 Others (Toys, DIY, Media, etc.)

    2. 2.2 By B2B ecommerce

      1. 2.2.1 Market size for the period of 2017-2027

Kuwait E-commerce Market Size FAQs

The Kuwait E-commerce Market is projected to register a CAGR of 14.28% during the forecast period (2024-2029)

6th Street, Namshi General Trading L.L.C, H & M Hennes & Mauritz AB, Ubuy Inc and Sprii DMCC are the major companies operating in the Kuwait E-commerce Market.

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Ecommerce Market in Kuwait Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)