The Egypt e‑commerce market reached USD 9.1 billion in 2024 and is projected to grow at a robust 10.2 % CAGR, reaching USD 19.6 billionby 2032. Key drivers behind this surge include rising internet and smartphone penetration—nearly 70 million online shoppers—as well as a growing middle class and increased disposable incomes. Major cities like Cairo and Alexandria remain e‑commerce hotspots, but expanding smartphone access and improved logistics are bridging the gap to less-served regions. Government initiatives under Egypt Vision 2030, particularly focused on ICT infrastructure and digital payments, are accelerating the country’s online retail transformation. Technological advancements—including enhanced cybersecurity frameworks and widespread adoption of digital payment systems—are strengthening consumer trust and fuelling further transition from traditional retail to online channels.
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Key Insights
- Electronics
dominate the market, accounting for 30 % of total e‑commerce revenue in
2024, driven by strong demand for computers and phones; nearly 29 % of
consumers purchased electronics online.
- Grocery
and essentials represent the fastest-growing segment, with a projected CAGR
of 10.6 %, as 34 % of consumers now purchase these items online for
convenience.
- Apparel
& footwear, home appliances & furniture, health & beauty,
books, toys, automotive parts, and baby products round out the remaining
product categories, underscoring the breadth of online retail offerings.
- In
terms of platform formats, B2C channels dominate, capturing 85 % share in
2024, and this segment is expected to sustain the highest growth rate,
driven by ease of access for consumers using smart devices.
- Payment
preferences are shifting: Cash-on‑Delivery (CoD) leads with 45 % market
share in 2024—attributed to limited banking access and consumer
hesitancy—while 55–70 % of shoppers favor CoD.
- Meanwhile,
Buy Now, Pay Later (BNPL) is emerging as the fastest-growing payment
method, filling the demand for flexible, interest-free installment
options, especially for high-value purchases.
- Market
models reflect this trend: Marketplaces dominate, with 70 % share in 2024,
offering consumers a wide variety of products and competitive pricing, and
are expected to grow fastest under this model.
- Inventory-led
and hybrid business models complement the marketplace model, supporting
supply chain diversification.
- Delivery
methods are evolving: Standard delivery (via Egypt Post’s 4,300+ offices)
accounts for 60 % share in 2024, but same-day/next-day delivery is the
fastest-growing segment, increasing 10.8 % CAGR, driven by technology
investments and consumer demand for speed.
- The rise
of social commerce through platforms like Instagram, Facebook, and TikTok
is a major trend. With 48.7 %, 16.8 %, and 46.7 % of the population on
these platforms respectively, live streams, DMs, and direct content
engagement are transforming how businesses sell.
- Improved
cybersecurity and data protection are also key, boosting consumer
confidence in online transactions. Under the National Cybersecurity
Strategy, approximately 50.1 % of internet users now shop
online—highlighting the importance of fraud prevention and compliance
efforts.
- Regionally,
Cairo and Alexandria lead share, but smartphone expansion and logistics
improvements are enabling penetration into suburban and rural areas.
- Regulatory
initiatives under Egypt Vision 2030—especially ICT strategy and digital
payment promotion—are creating a favorable environment for sustained
digital commerce growth.
- The
market’s competitive landscape remains fragmented, with Amazon Egypt,
Jumia, Elaraby, Carrefour, and numerous SMEs active across various
segments. Fragmentation fosters competition and creates openings for new
entrants.
- Strategic
partnerships—such as Elaraby–Sharp’s joint refrigerator plant and Fawry–LA
Market’s collaboration to empower women and digitize SMEs—underscore
investment and collaboration opportunities within the sector.