- The online grocery delivery penetration in the total grocery market is expected to increase to ~25% by the end of 2025.
- Average Order Size & Basket Size increased to AED 180-200 and 15-20 items respectively in 2020 owing to the corona pandemic.
- Technological development such as drone deliveries, warehouse automation, and voice ordering is anticipated to be adopted by service providers to enable quicker deliveries.
Impact of Covid-19: Companies witnessed double-digit growth across all essential product categories namely water, fresh fruits, vegetables, health & nutrition, cleaning, dishwashing & laundry products during the corona pandemic. Companies experienced a surge in average order size as customers were shopping in bulk. The average delivery time also increased to four to seven days. In order to fulfill the increased demand, companies expanded their delivery fleet by partnering with third-party delivery companies to manage last-mile logistics. In addition to this, in Abu Dhabi and Dubai, companies partnered with taxi fleets to take care of door-to-door delivery.
Expanding Partnerships: It is anticipated that companies would be expanding tie-ups with suppliers & grocery stores, food delivery companies, e-wallet companies to leverage their capabilities to fulfill customer orders. Introduction of express delivery, regional expansion, diversification of product portfolio, focus on achieving operational efficiency, and establishment of the dark store are the future strategies adopted by the companies.
Application of AI: Drone Technology, Voice Ordering, Artificial Intelligence, Warehouse Automation is anticipated to drive the online grocery delivery market in the future. Incorporating AI in the front end would enable the company to create a personalized shopping experience for the customer. Demand prediction and consumer behavior analysis is crucial to ensure sufficient availability of products and to maintain minimum wastage.
According to the report by Ken Research titled “UAE Online Grocery Market Outlook to 2025- Market Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion” the Online Grocery Delivery Market will be valued at AED 3.8 Billion by the end of 2025. The market will witness growth owing to introduction of subscription models & innovative strategies adopted by service provides.
Key Segments Covered: –
By Age Group
By Product Category
Food & Beverages
Beauty and Health
Baby and Kids
By Mode of Payment
Pre-Delivery Online Payment
Card on Delivery
Cash on Delivery
Key Target Audience
Online Grocery Delivery Companies
Supermarkets & Hypermarkets
Food Delivery Companies
Time Period Captured in the Report: –
Historical Period: 2016–2019
Forecast Period: 2020-2025
Key Topics Covered in the Report: –
Difference between Online & Offline Grocery Shopping. Why Online Grocery is the Way Forward?
Target Addressable Audience
Supply Ecosystem and Competition Parameters
Demand Scenario, Target Customer and Factor Influencing Consumer Behavior
Technologies Facilitating Online Grocery Delivery Industry
Upcoming Technologies in Online Grocery Delivery Industry
Cross Comparison of Operating Models (Marketplace, Pureplay and Omnichannel)
Addressable Gap in the Market and Possible Solutions
Emerging Business Strategies
Best Practices in Business
Covid-19 Impact on UAE Online Grocery Delivery Market (Impact on KPIs, Monthly Orders, Impact on Consumer Behavior, what companies did to meet Excess Demand?)
For More Information on the Research Report, refer to below links: –
Related Reports by Ken Research: –
UK Online Retail Market Outlook to 2025 – By Product Categories (Apparel and Footwear, Food and Drink, Media Products, Consumer Electronics and Others), By Desktop and Mobile Mode, By Gender (Male and Female) and By Mode of Payment (Debit Credit Card, Net Banking and Cash on Delivery)
Taiwan E-Commerce Market Outlook to 2023 – Online Retail (By Product Categories, By Desktop and Mobile, By Gender); Online Travel (By Intermediary and Direct Online Sale and By Desktop and Mobile); Online Payment Gateway Market
UAE Logistics and Warehousing Market Outlook to 2025 – By Road , Sea and Air Freight Forwarding; Domestic and International Freight, Major Flow Corridors, Integrated and Contract Freight Forwarding; By Warehousing (Industrial / Retail, CFS / Inland Container Depot & Cold Storage, Agriculture), End Users (Manufacturing, Retail, Food and Beverage, Automotive, Oil and Gas, Healthcare), Type of Warehouses; By Courier Express & Parcel Market , and, E-commerce Logistics
Contact Us: –
Ankur Gupta, Head Marketing & Communications