Rise in acceptance for online payments and introduction of express delivery is expected to drive the demand for UAE online grocery delivery market for the forecast period.
According to TechSci Research report, “UAE Online Grocery Delivery Market By Product Category (Fresh Foods, Household Products, Packaged Foods & Beverages, Personal Care, Baby Care, Beauty & Health) By Platform (Mobile Application & Desktop Website) By Mode of Payment (Pre Delivery Online Payment, Card on Delivery and Cash on Delivery), By Region, Company Forecast & Opportunities, 2026”, The UAE online grocery delivery market is expected to witness significant growth for the next five years. Availability of less time for traditional shopping method and the need to visit the stores physically is attracting a large number of consumers to shop through the help of online channels. Online grocery delivery is an easy and convenient way to buy household-related products. The rise in awareness in consumers about online payment methods and their safety standards is expected to influence more consumers to shop online. The presence of attractive facilities such as easy return, quick delivery along exchange facilities is expected to boost the market demand. The online distribution channel is offering discounts and promotions such as white Friday where consumers wait to buy retail products in the most economical way to surge the market growth. The increase in the single population and working population use the online grocery delivery facility for ease and convenience and shop in the comfort of their homes.
The COVID-19 outbreak across the world which has been declared as a pandemic by World Health Organization has affected several countries adversely. Leading authorities present in UAE imposed lockdown restrictions and released a set of precautionary measures to contain the spread of novel coronavirus. Due to the pandemic, the demand for online grocery delivery is expected to increase at a rapid rate. Significant increases in the number of orders, average order size, and grocery delivery time are the other major changes. Major market players are partnering with third-party delivery companies to manage last-mile delivery logistics. Companies are providing door-to-door delivery with the help of taxi fleets. Therefore, online grocery delivery is expected to accelerate in the covid period.
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UAE online grocery delivery market is segmented into product category, platform, mode of payment, regional distribution, and company. Based on product category, the market can be divided into fresh foods, household products, packaged foods & beverages, personal care, baby care, and beauty & health. The Packaged foods & beverages segment is expected to be the major shareholder and the fresh food segment is anticipated to witness the fastest incremental growth in the online grocery delivery market as they can be kept for a longer duration due to the presence of preservatives. Lulu Hypermarket, Bawiq, Talabat, Carrefour are some of the major players in the food and beverage category. On the basis of regional analysis, Dubai and Abu Dhabi are one of the two most significant cities that hold a larger share of the market and contain highly efficient transportation, warehousing facilities, procurement of grocery and carrying out other processes to ensure the right workflow for seamless online delivery. The presence of the majority of the working population in these cities is the driving factor for this segment as they hold the majority of the end-user segment.
Carrefour, Lulu Hypermarket, Instashop, Kibsons, The Grocer, Trolley.ae, Bawiq, Amazon, Noon, Farmbox, Bulkwhiz are the leading players operating in UAE online grocery delivery market. Service providers are increasingly focusing on research and development process to fuel higher growth in the market. To meet evolving customer demand with respect to better efficiency and durability, several online grocery delivery service providers are coming up with their technologically advanced offerings.
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“Market players are adopting attractive marketing strategies and campaigns to enhance tier brand image and widen the brand reach in order to surge the sales of their respective products. High-end investments by the major players to adopt technological advancements such as drone delivery, warehouse automation, and the facility to order through the help of voice are expected to enhance the consumer experience and provide seamless service to boost the online grocery delivery market. Adoption of artificial intelligence to create a customized experience for consumers which is further expected to propel the online grocery delivery market growth till 2026” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“UAE Online Grocery Delivery Market By Product Category (Fresh Foods, Household Products, Packaged Foods & Beverages, Personal Care, Baby Care, Beauty & Health) By Platform (Mobile Application & Desktop Website) By Mode of Payment (Pre Delivery Online Payment, Card on Delivery and Cash on Delivery), By Region, Company Forecast & Opportunities, 2026” has evaluated the future growth potential of UAE online grocery delivery market and provided statistics & information on market size, shares, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the of UAE online grocery delivery market.
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