This Report Provides In-Depth Analysis of the Kuwait E-Commerce Market Report Prepared by P&S Intelligence, Segmented by Product (Electronics, Apparel and Footwear, Home Appliances and Furniture, Grocery and Essentials, Health and Beauty Products, Books and Stationery, Toys and Baby Products, Automotive Parts and Accessories), Platform (Business-to-Consumer, Business-to-Business, Consumer-to-Consumer), Payment Method (Digital Wallets, Credit/Debit Cards, Net Banking, Cash on Delivery, BNPL), Business Model (Marketplace, Inventory-led, Hybrid), Delivery Time (Standard Delivery, Same-Day/Next-Day Delivery, Click and Collect (BOPIS), Drop Shipping, Cross-border/International Shipping), and Geographical Outlook for the Period of 2019 to 2032
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Kuwait E-Commerce Market Future Outlook
The Kuwaiti e-commerce market size was USD 2150 million in 2024, and it will grow by 12.5% during 2025-2032, to reach USD 5457.3 million by 2032.
The market is driven by of the easy access to the internet, rising number of mobile shoppers, and numerous conveniences of online shopping, such as click-and-collect and virtual try-ons. Net banking, online wallets, and other internet-based payments make shipping consumer-centric and safer. Influencers and social media play vital roles in helping consumers find new products. As per reports, over 60% of the retail sales in Kuwait were conducted online in 2023.
This market is supported by several laws on electronic signatures, which help verify the online transaction and prevent fraud. The localization of e-commerce platforms in terms of languages, ethnic considerations, and personalized recommendations attracts regular and first-time customers. The rising sale of premium and expensive items via e-commerce platforms is another trend.
Kuwait E-Commerce Market Growth Factors
Rise of Artificial Intelligence and Personalization Is Key Trend
The deployment of AI for several purposes, such as chatbots, makes the overall experience for customers smoother.
AI also improve inventory efficiency based on consumer preferences and provide suggestions based on instant feedback, supply chain management, and robotics, to speed up packaging, processing, and delivery.
AI-driven analytics help understand customers’ behavior to personalize marketing strategies, which increase sales.
The National AI Strategy, part of the broader Vision 2035 economic program, focuses on transforming the nation into an advanced knowledge-based economy by promoting AI in sectors such as logistics and e-commerce and enhancing the data cybersecurity.
In March 2025, the Government of Kuwait and Microsoft Corporation began collaborating to open an AI-powered Azure region.
Growing Preference for Digital Payment Systems Is Key Driver
The rise of fast and secure payment systems, such as contactless cards, e-wallets, and mobile banking apps, is driving the market growth.
As per the reports, around 70% of the merchants in Kuwait say that their customers pay for goods via digital methods.
Many companies are creating smart solutions for online transactions, such as QR code payments, especially for young consumers.
The Kuwaiti government is also expanding its digital payment options for traffic fines, to reduce the use of cash.
Kuwait E-Commerce Market Segmentation and Category Analysis
Product Analysis
The grocery & essentials category held the largest market share of 30% in 2024 due to the rise in the number of online grocery apps offering doorstep deliveries, a high rate of repeat customers, and a shift to online shopping during the pandemic. As per reports, around 30% of the Kuwaiti consumers buy grocery and personal care products through e-shopping platforms.
The health & beauty products category will have the highest CAGR due to the high social media influence, home delivery convenience, and rising shift toward health and wellness products. According to a survey, around 50% of the women aged between 25 and 30 years buy beauty products online.
The products analyzed in this report are:
Electronics
Apparel & Footwear
Home Appliances & Furniture
Grocery & Essentials (Largest Category)
Health & Beauty Products (Fastest-Growing Category)
Books & Stationery
Toys & Baby Products
Automotive Parts & Accessories
Others
Platform Analysis
The business-to-consumer category held the largest market share of 80% in 2024. The rise in the influence of C2C e-commerce selling platforms, increasing trust in web-based transactions, and increasing preference for shopping via social networking sites, such as Instagram. These platforms attract tech-oriented population as they are affordable and offer easy access to a whole lot of products. As per reports, around 77% of the consumers prefer online shopping through social media apps, which offer more flexibility compared to the standard online methods.
The platforms analyzed in this report are:
Business-to-Consumer (Largest Category)
Business-to-Business
Consumer-to-Consumer (Fastest-Growing Category)
Payment Method Analysis
The credit/debit cards category held the largest market share, of 45% in 2024, due to their widespread usage by consumers, stability, and major role of KNET the national payment network facilitating a broad range of online card payments.
The BNPL category will have the highest CAGR because of the strong demand from young consumers, the expansion of the fintech sector, and the flexibility offered by e-commerce platforms.
The payment methods analyzed in this report are:
Digital Wallets
Credit/Debit Cards (Largest Category)
Net Banking
Cash on Delivery
BNPL (Fastest-Growing Category)
Business Model Analysis
The marketplace category held the largest market share, of 65% in 2024, due to the large product variety, seller flexibility, low operational expenses, and easy scalability. Platforms such as Carriage, Souq, and Talabat follow this business model, where third-party sellers list their products, while the platform handles transactions and logistics.
The hybrid category will have the highest CAGR due to its better product offering, high control over customer experience, and stronger trust in shipping and product quality. Best AI-Yousifi and Xcite companies use these models for inventory and allow third-party sellers to offer their products on their platforms.
The business models analyzed in this report are:
Marketplace (Largest Category)
Inventory-led
Hybrid (Fastest-Growing Category)
Delivery Time Analysis
The standard category held the largest market share, of 60% in 2024, due to its suitability for non-urgent purchases, high volume of orders from the marketplace, and rising volume of cross-city deliveries. This method is cost-effective, widely available, and takes 1–3 business days, depending on the retailer. As per reports, around 10% of the consumers prefer cash on delivery for their online purchases.
The same-day/next-day category will have the highest CAGR because of the high demand of consumers for faster deliveries, high density of online shoppers in urban regions, and improvements in logistics by various companies, such as Xcite and Amazon.
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Kuwait E-Commerce Market Share
The market is fragmented due to the high smartphone use, the rise in internet access, and the increasing demand for digital experiences. Several local and international players compete across a wide range of categories, with no single company holding a large share of market. Local grocery chains and electronic retailers have a strong online presence, while some niche fashion and beauty brands contribute to the market diversity. This competition encourages creativity and provides consumers with better options for price, delivery, and quality preferences. This drives companies to enhance their products, services, and logistics across both emerging and well-defined categories.
Kuwait E-Commerce Companies:
Ubuy
Taw9eel.com
The Sultan Center
Boutiqaat
Floward
Pharmazone
Petzone
AlNasser
Yahaal
Raha
JustClean
Shababek
Kuwait E-Commerce Market News & Updates
In May 2024, Floward and Sadeer Farms partnered to launch an environmental strategy to support local agriculture in Kuwait. This collaboration promotes sustainability and helps to strengthen Floward’s commitment to the local community.
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