E-commerce is a rapidly growing industry in Kuwait, with more and more consumers turning to online platforms to shop for goods and services. Domestic retailers appear reluctant to fully embrace online stores and e-commerce citing local culture and lack of customer interest. However, given the growing shift in the cultural mindset of customers, the future potential for e-commerce and digital transactions looks bright.
The Kuwait E-commerce Market is expected to grow at a compound annual growth rate (CAGR) of above 14.28% during the forecast period, 2022-2027, according to market research company Mordor Intelligence.
According to EcommerceDB, Kuwait is the 71st largest market for eCommerce with a predicted revenue of $1,673.9 million by 2023, placing it ahead of Panama. Revenue is expected to show a CAGR 2023-2027 of 9.3%, resulting in a projected market volume of $2,387.0 million by 2027.
Read more: Digital banks in Kuwait make their presence felt
Main drivers
One of the main drivers of e-commerce growth in Kuwait is the increasing adoption of smartphones and mobile devices by consumers – the country features high rate of internet penetration, estimated at over 87%. As more people use mobile devices to access the internet, they are also more likely to shop online, leading to a surge in demand for e-commerce platforms and services. In fact, more than half of the population is active online, with over two-thirds in the 25- to 35-age group.
In response to this growing demand, several Kuwaiti companies have launched e-commerce platforms and marketplaces in recent years. These platforms offer a wide range of products and services, including clothing, electronics, food, and home goods, among others.
For more on e-commerce, click here.
