Market Trends of Egypt E-commerce Industry
Increase in Internet Penetration and Smartphone Usage Expected to Drive the Market Growth
- The country has witnessed significant growth in internet and smartphone penetration over the past few years, resulting in a widespread proliferation of the e-commerce market. Egyptian e-commerce enterprises are flourishing, and the local market is expanding, particularly in specialist areas. The Egyptian e-commerce business has exhibited activity recently, with a rising number of new e-commerce start-ups. Many start-ups' survival rate or rapid, continuous growth is sometimes precarious and prone to high turnover.
- Mobile commerce has the potential to change consumers' shopping habits and establish itself as a significant commerce channel. With a high number of smartphones and access to the internet in the country, the e-commerce market is witnessing significant growth. Consumers rely on digital devices such as smartphones more than ever before, and the growth in mobile commerce predicts that mobile will become the preferred channel for online shopping in the country.
- The Egyptian market boasts the region's highest population of internet users. As of January 2024, Egypt boasted nearly 82 million internet users, as reported by Meltwater, an online media monitoring company. This marked a rise from the approximately 81 million users in the preceding year, showcasing a steady growth trajectory. Notably, the surge is even more pronounced when compared to a decade earlier, when the nation counted a mere 27 million internet users.
- Additionally, with the high internet and smartphone penetration, consumer shopping behavior is rapidly changing, thus forcing the e-commerce market vendors to offer innovative shopping apps coupled with various digital payment transaction modes. Such factors are further expected to drive the market in the country as consumers continue to look at easy and convenient ways to shop online using their smartphones.
- Over the forecast period, high internet and smartphone penetration are expected to drive the e-commerce market in Egypt at a rapid pace, owing to the changing consumer behavior, increasing use of smartphones for online shopping, and fast-speed internet. Moreover, the high internet penetration in the country is expected to enable retailers to connect with potential customers and express their brand in entirely new ways, driving the e-commerce market in Egypt over the forecast period.
Understand The Key Trends Shaping This Market
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The B2C E-commerce Segment is Expected to Hold Significant Market Share
- Egypt is one of the promising countries for the development of e-commerce, as it ranks top in the number of internet users in the Middle East and North Africa. It has more than 80 million users, which enhances the growth of the e-commerce industry locally and contributes to growing efforts in digital transformation and financial inclusion in Egypt.
- The growth in initiatives by the government of the country to support the B2C e-commerce industry is analyzed to drive the e-commerce market in the country. The government is launching initiatives to ensure the quality of services provided by the e-commerce industry and boost consumer confidence and satisfaction.
- According to SurfShark, in the Digital Quality of Life ranking for 2023, Egypt scored 0.38. As a result, the nation was ranked sixth among the 25 reporting African nations and 87th overall out of 121 nations. With 0.57 and 0.56 points, e-government and e-infrastructure scored the highest ratings. The country's internet quality scored 0.32 points and 83rd in the global ranking.
- The current situation in Egypt aligns with the world’s adoption of a new strategy commensurate with the rapid developments in the information technology industry. Further, Egypt is implementing several programs and initiatives to stimulate the e-commerce industry and activities.
- The Egyptian government planned to introduce a series of "TIBA Sat" for high-speed broadband internet and telecommunications in partnership with Airbus Defence and Space and Euro Star for a government organization. It would be a key component in achieving Egypt Vision 2030 for SDGs and shifting to a secure digital economy. Such initiatives may drive the growth of B2C e-commerce in the country.
