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Increase in Awareness Coupled with Customized Shopping Trends to Drive UAE Online Grocery Market over the forecast period – Ken Research

The online grocery refers to purchase of fresh and packaged food, essential items, and other commodities through online portals. Though, online grocery covers a wide spectrum of products such as bakery & dairy products, cereals, vegetables, and fruits. New ways for buying up the groceries have now been evolved due to easy availability of products through stores and online platforms. People are opting for the online grocery based shopping due to the convenience, thereby providing new offers over the variety of products which can be delivered to different customers at their doorstep within a stipulated time. The preference over online grocery market is becoming increasingly supported by people in UAE due to crowded streets and long queues in stores all over. Many of retailers owning a grocery store in country have established now been trying to provide convenience by telephonic orders or the home based deliver techniques, however the online grocery provides more supportive features smartphone enabled convenient shopping platforms.

The Online groceries purchase also offers advantages to users based on services, and customers can further enjoy services enabling them to purchase monthly top-up of groceries, fruit and vegetables while with the comfort of being in homes. This further eases customers from hassle of carrying bags, preventing them from traffic problems, as well as being queues in local markets or the supermarkets.

Rise in use of online retail sales channels has further led to providing of new business opportunities and use of data analytics and targeting of customers based on interest and preferences over the mobile phone apps. Online grocery opportunities also include aiming deals and discounts at customers that are positively being inclined by such promotions, efficient targeting of advertisements to customers by certain digital channels, and finding out customers not purchasing. The UAE online grocery businesses also provides potential opportunities to expand by providing delivery and logistic based solutions which could generate more profits for grocery business.

According to study, “UAE Online Grocery Market” Some of the key companies operating in the market are Carrefour, Lulu Hypermarket, Instashop, Noon.com, Kibsons, El Grocer, Bulkwhiz, Amazon, Bawiq, Talabat, Farmbox

Increase in work pressure and hectic schedules, followed by rise in working population, and tedious commuting provides added to interest among entrepreneurs to set up online grocery stores. Moreover, the evolving technology and increasing penetration of internet services, have increased awareness among consumers about the different shopping trends prevailing in the region. However, concerns related to freshness of fruits and vegetables, and delivery charges may impact the market. In the coming few years, the reduced number of people over the offline stores and the improved delivery systems such as use of drones and robust logistics may further lead to substantial growth in the online grocery shopping in the UAE.

COVID 19 Impact

The recent Covid-19 outbreak has impacted the people around the globe, it has also impacted the behavioral patterns over the daily routines and preference globally, and this further caused ripple effects have boosted purchasing groceries online and stocking up for the emergencies. The every online grocery delivery platforms have now been trying to ensure a smooth, fast and great shopping experience for their customers on the websites or the apps. The UAE residents during the COVID-19 have increasingly turning to home based delivery options to fulfill their groceries needs amid following the social distancing and movement restrictions which were designed to minimize the impact of COVID-19 in the country.

For More Information or queries, reach out at ankur@kenresearch.com

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Ankur Gupta, Head Marketing & Communications

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