UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion: Ken Research


Online grocery delivery obtained popularity over the past few years owing to its convenience and convenience through several apps. Whether you are a busy parents or a professional, online grocery delivery is an effective way to get the food you require without the hassle of going to the grocery store. With the online grocery delivery, you have the flexibility to order at any time of the day. Whether it is the early morning or midnight, you can browse the aisles when it is ease for you.

Although, gaps in offline grocery shopping such as the tiresomeness of commute, long payment queues, and cost of compulsion buying led to the introduction of e-grocery delivery around the UAE. Populace aged between 25 and 44, is measured an influential consumer base for online grocery shopping. The industry is presently positioned in a growth stage dominating a double-digit growth rate close to 31% amongst 2016 and 2019. High internet penetration, growing working population, and an augmenting number of single families have led to the growth of e-grocery services around the UAE.  The number of companies proposing the grocery delivery services around the UAE has augmented over the years. Entities have enlarged their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.

Based on the product category, the UAE Online Grocery Delivery Market is segmented into Food & Beverages, Household Supplies, Beauty and Health, Baby & Kids and Fresh Food. Whereas, Food & Beverages mapped as a most required product category. This was followed by household supplies, beauty & health, baby & kids, and fresh food. Carrefour, Lulu Hypermarket, Bawiq, El Grocer, Talabat specializes are foremost players in the food & beverage category.

With the effective growth in disposable income and busier lifestyles, individuals are progressively seeking out personalized and ease online platforms for the grocery shopping instead of walking down to the neighbourhood merchants. The preference for the online delivery of grocery products became more noticeable following the COVID-19 outbreak. With the social distancing standards, customers are turning their aim to online grocery shopping, which is not only ease but is a safer choice.

The UAE online grocery delivery market is predicted to observe the proficient growth during the years to come. Initiatives likewise no contact delivery and online payment have concerned customers toward purchasing their regular grocery from the countless online podiums. With the security concern encircling coronavirus and a great segment of the citizens functioning from home, the dependence of customers on the online platform has augmented proficiently. This, in turn, has delivered countless growth avenues to the UAE online grocery delivery market.

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Based on mode of payment, the UAE online grocery delivery market is segmented into pre delivery online payment, card on delivery and cash on delivery. The requirement is still registered by pre-delivery online payment followed by card on delivery and cash on delivery. Individuals who order online are primarily not present to collet the delivery and therefore pre-payment is favored. Around Dubai and Abu Dhabi majority of household chores are taken care of by house supports and they primarily collect the order delivery, therefore, the consumer prefers the online mode of payment.

Moreover, the requirement is projected to grow with a CAGR of 22% on the basis of GMV between 2019 and 2025. Companies are projected to focus on enlarging tie ups with suppliers & grocery stores to fulfill customer orders. The requirement is expected to be propelled by upcoming technologies such as Drone Delivery, Warehouse Automation, Voice Ordering and several others. Market consolidation is predicted in future as players with heavy financial backing and better brand value will obtain small players.

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UAE Online Grocery Delivery Market Research Report

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Ankur Gupta, Head Marketing & Communications