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Bahrain E-commerce Market Size (2024 - 2029)

The e-commerce market in Bahrain is experiencing significant growth, driven by increasing internet penetration and a tech-savvy youth population. The expansion of e-commerce businesses in the country is contributing to the market's size, as vendors respond to the rising demand for online retailing. The introduction of digital initiatives, such as electronic cheques by the Central Bank of Bahrain, further supports the digital transformation and expansion of the market. Additionally, the government's measures to promote online shopping and foreign investment in online retailing are enhancing the market's scale.

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Market Size of Bahrain E-commerce Industry

Bahrain E Commerce Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 14.48 %
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

Bahrain E-commerce Market Analysis

The Bahrain e-commerce market is expected to register a CAGR of above 14.48% 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 the Bahrain Market to meet the growing demand for online retailing.

  • E-commerce (electronic commerce) purchases and sells products and services over an electronic network, typically the internet. Business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer, and consumer-to-business transactions are all possible. E-commerce is witnessing rapid growth in the Bahrain market. The factors like internet penetration, rise in the tech-savvy youth population, and other factors are driving Bahrain's e-commerce market.
  • Widespread smartphone and tablet usage have made social media applications such as WhatsApp, YouTube, Facebook, and Instagram popular platforms for advertising, retail, delivery, and other commercial services.
  • Similarly, In October 2021, The Central Bank of Bahrain (CBB) introduced electronic cheques (e-Cheques). This initiative was taken to promote the ongoing efforts toward digital transformation. Furthermore, The CBB directed the BENEFIT Company (BENEFIT) to implement the Bahrain Electronic Cheque System (BECS), leveraging the latest technology, to provide e-Cheque services.
  • Moreover, brand acquisitions are taking place in the country to meet the growing demand for e-commerce. For instance, In February 2022, MySize, the provider of AI-driven measurement solutions, announced the acquisition of Orgad, an omnichannel e-commerce platform. The acquisition will help MySize accelerate its revenue growth and reduction costs for its business clients.
  • Due to the covid - 19 regulations and the shutdown of various industries, the Bahrain government took some measures for customer engagement by introducing online shopping and a virtual marketplace to support the growth and development of owner-operated micro-businesses engaged in online sales activities, such as trading, merchandising, and retail. For instance, In 2021, the Ministry of Industry, Commerce, and Tourism (MoICT) has permitted 100% foreign ownership of businesses that provide online retailing in Bahrain.

Bahrain E-commerce Industry Segmentation

The Bahrain 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 studies the impact of COVID-19 on the studied market. The market studied briefs about the ongoing trends and challenges of the e-commerce market in Bahrain.

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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Bahrain E-commerce Market Size Summary

The e-commerce market in Bahrain is experiencing significant growth, driven by the increasing penetration of the internet and a tech-savvy youth population. The industry is expanding rapidly as more businesses enter the market to cater to the rising demand for online retailing. The digital economy is evolving, with widespread smartphone and tablet usage facilitating the popularity of social media platforms for advertising and commercial services. Initiatives like the introduction of electronic cheques by the Central Bank of Bahrain and the implementation of the Bahrain Electronic Cheque System are part of the broader digital transformation efforts. The government's support for online shopping and virtual marketplaces, especially during the COVID-19 pandemic, has further bolstered the sector, allowing micro-businesses to thrive in the digital space.

Bahrain's e-commerce landscape is becoming increasingly competitive, with major global players like Alibaba, Amazon, and eBay dominating the market. However, the rise of startups and new ventures is enhancing market dynamics, as companies secure contracts and explore new markets. The government's Digital Government Strategy 2022 aims to strengthen digital infrastructure and encourage innovation, further supporting the sector's growth. Financial service providers are also entering the market to simplify payment options, with partnerships like those between Tabby, Visa, and M2P FinTech enhancing payment solutions. The fashion industry, in particular, has seen a shift towards online shopping, prompting e-commerce vendors to launch platforms to meet consumer demands.

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Bahrain 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

Bahrain E-commerce Market Size FAQs

The Bahrain E-commerce Market is projected to register a CAGR of 14.48% during the forecast period (2024-2029)

Amazon.com, Inc., H & M Hennes & Mauritz AB , AliExpress, Talabat and Namshi General Trading L.L.C are the major companies operating in the Bahrain E-commerce Market.

Bahrain E-commerce Market Report Snapshots

E-Commerce Market in Bahrain Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)