UAE Online Grocery Delivery Market Report and Forecast 2032

The UAE Online Grocery Delivery Market Insights & Analysis

The UAE Online Grocery Delivery Market was valued at USD 3.1 Billion in 2023 and is anticipated to register a CAGR of around 22.6% during the forecast period, i.e., 2024-32. The major aspect propelling the industry expansion across the UAE is the growing consumer preference for online shopping or e-commerce platforms over physical stores, like hypermarkets or superstores. The online grocery delivery companies in UAE work with chains of grocery stores to offer delivery from several different locations. The online delivery platforms provide a large selection of products to satisfy the requirements of the customers. By adopting an online grocery delivery option, people could purchase any item in the comfort & convenience of their office, home, etc., avoiding the hassle of visiting the stores physically.

Ordering via an interactive website & online application with an intuitive user interface can satisfy household needs & draw in a large number of customers, thus contributing to enhancing the UAE Online Grocery Delivery Market size. To increase their awareness, major market players label products that are different or similar, and then from there, the consumer can easily shop for the specific product that they want. Also, with the adoption of online grocery delivery, individuals get the option to skip crowds, lengthy payment & parking queues, etc., thus making it one of the convenient options to shop with.

Moreover, some of the drivers anticipated to promote market growth across the regions of UAE are the surge in the working population, growing adoption of digitally advanced technologies, rising disposable income, and growing internet penetration. Furthermore, businesses are growing through partnerships with grocery shops, online payment processors, food delivery services, and supplies in order to reach a wider audience & boost productivity. Also, in order to support the Online Grocery Delivery Market across the UAE, numerous companies are focusing on attaining a high degree of operational efficiency, further growing their reach across the nation by implementing & improvising online delivery services.

Furthermore, it is estimated that the demand would upsurge owing to technologies such as voice recording, drone delivery, warehouse automation, and several others. Consumer preferences across the UAE are shifting in favor of more locally sourced, organic, and fresh food items. For example, In accordance with the Research Gate, there was a nearly 76% upgrade in awareness regarding the usage or consumption of organic food in 2023. This is in line with the growing awareness related to a healthier lifestyle or clean-label food products. Thus, to serve the customer needs, several online grocery delivery companies are attempting to expand their product offerings by including organic & fresh products. This, in turn, is aiding in elevating the UAE Online Grocery Delivery Industry growth in the projected years.

The UAE Online Grocery Delivery Market Dynamics

• Growing E-commerce Platform Across the UAE to Drive Industry Expansion

The e-commerce sector witnessed an upsurge across the UAE during 2023, primarily in the Food Delivery Market. Convenience-seeking customers who favor the comfort of online shopping are mostly the influencers of promoting market growth. Additionally, the availability of different grocery retailers on numerous internet platforms is aiding in driving the UAE Online Grocery Delivery Market. Further, to satisfy the rising demand from consumers for quick delivery, some online grocery delivery services, such as Deliveroo UAE & Careem, provide 15-minute delivery. These aspects aid in employing advanced logistical networks & technological advancements to augment their product offerings & develop their dominance in the UAE Online Grocery Delivery Industry.

Also, many individuals in the UAE are choosing to buy groceries online owing to the population’s hectic & demanding schedules, as well as the desire for convenience. This shift demonstrates how retail is evolving in the UAE, where e-commerce is gradually taking over with the shifting customer preferences. Moreover, with improved internet access, easier availability of smart devices, and evolving technology, online grocery shopping appears to witness a tremendous upsurge in the forecast years.

• High Delivery Rates & Inventory Expenses to Impede the Market Growth

The inventory expenses incurred by enterprises in the e-commerce sector are key challenges for the expansion of the UAE Online Grocery Delivery Market. In order to handle and store the groceries that must be delivered on time, the firms must incur significant costs. Furthermore, the limited shelf life of certain commodities, like fruits & vegetables or dairy goods, increases the risk of loss during storage during periods of low demand, hence creating a barrier for the market.

• Growing Dominance of Mobile Shopping to Infuse the Industry Expansion

In the online grocery business across the UAE, mobile shopping is witnessing an upward trend. Grocery businesses operating online must give priority to mobile-friendly interfaces & apps in order to adapt to changing consumer tastes, as more & more customers are turning to smartphones for convenience. Further, one of the primary aspects influencing customer behavior nowadays is how easy it is to browse & buy food using mobile phones. Thus, to stay competitive & satisfy the needs of the tech-savvy UAE customer base, online grocery sellers must guarantee a flawless & user-friendly mobile purchasing experience. This, in turn, would assist in enhancing the UAE Online Grocery Delivery Market share as well.

The UAE Online Grocery Delivery Market Segment-wise Analysis

By Product Type:

• Food Grains
• Bread, Bakery & Dairy Products
• Fruits & Vegetables
• Personal Care & Baby care
• Household Supplies & Snacks
• Beverages
• Others (Meat, Frozen food, Pet care, etc.)

Fruits & Vegetables sector accounts for the maximum share of the UAE Online Grocery Delivery Market. Fresh fruits & vegetables are highly valued by UAE consumers as essential components of their diets. Owing to the severe weather & low levels of agriculture output in the area, fresh vegetable imports are heavily relied upon, & online grocery buyers now prioritize them. Fruits & vegetables are delivered fresh & undamaged due to significant investments made by online grocery platforms, which makes it easier for customers to buy fruits & vegetables. Thus, with the surge in the purchase of fruits & vegetables via online platforms, the market share is anticipated to upscale.

By Mode of Payment:

• Cash on Delivery
• Online Payment

In the UAE Online Grocery Delivery Market, the Online Payment method continues to be high in demand. Online shoppers appreciate the pre-payment option, as they are typically not present at their homes or the place where they want the groceries to be delivered to make the payments physically. Also, in several regions of the country, such as Dubai & Abu Dhabi majority of the tasks are handled by housekeepers, and they are the ones who usually collect the deliveries, therefore the customers prefer online payment platforms. As a result, it is anticipated that the online payment option would gain a potential market share in the upcoming years.

What Does Our The UAE Online Grocery Delivery Market Research Study Entail?

• The UAE Online Grocery Delivery Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• The UAE Online Grocery Delivery Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.