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Home Consumer products and Retail UAE Online Grocery Delivery Market Outlook to 2025: Ken Research

UAE Online Grocery Delivery Market Outlook to 2025: Ken Research

The report titled “UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion provides a comprehensive analysis of Online Grocery Delivery Market in UAE. The report covers various aspects including the current online grocery delivery scenario in UAE, need & opportunities describing the target addressable market, addressable gap in the market and possible solutions.

It also covers current supply and demand in the region, detailed working of marketplace, Onmichannel and pureplay operating model, trends, developments, challenges, seasonality trends, current & upcoming technologies facilitating online grocery delivery industry, revenue streams and marketing strategies driving the industry. It gives detailed explanation of competitive scenario including cross comparison between major players, SWOT, and detailed company profiles of major players and concluding with future scope and analyst recommendations.

Market Overview and Demand- Supply Scenario

Gaps in offline grocery shopping such as inconvenience of commute, long payment queues and cost of impulse buying led to the introduction of the e-grocery delivery in UAE. Population aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double digit growth rate close to 31% between 2016 and 2019. High internet penetration, rising working population and increasing number of single families has led to the growth of e-grocery services in UAE.  The number of companies offering grocery delivery services in UAE has increased over the years. Companies have expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat and other product categories.

Demand by Product Category (Food & Beverages, Household Supplies, Beauty and Health, Baby & Kids and Fresh Food)

Food & Beverages mapped as most demanded product category. This was followed by household supplies, beauty & health, baby & kids and fresh food. Carrefour, Lulu Hypermarket, Bawiq, El Grocer, Talabat specializes are major players in food & beverage category.

Demand by Region (Dubai, Abu Dhabi & Other Emirates)

Dubai and Abu Dhabi mapped as major cities based on demand and supply of online grocery services. This is mainly due to the concentration of population in these regions. Working professionals, who are the major end users of online grocery delivery services, are concentrated in Dubai and Abu Dhabi.

Demand by Mode of Payment (Pre Delivery Online Payment, Card on Delivery and Cash on Delivery)

The demand is still dominated by pre delivery online payment followed by card on delivery and cash on delivery. People who order online are usually not present to collect delivery and therefore pre-payment is preferred. In Dubai and Abu Dhabi majority of household chores are taken care by house helps and they usually collect the order delivery therefore customer prefers online mode of payment.

Competitive Landscape

The industry is fragmented with presence of more than 25 players operating across marketplace, pureplay and omnichannel model. Delivery Cost, Delivery Time, App Interface, Discounts & Offers, Return Policy, Ease of Payment have been major factors influencing customer behavior. The major players include Carrefour, Instashop, Lulu Hypermarket, El Grocer, Kibsons, Bulkwhiz and Bawiq. Companies with large product assortment, wide regional presence and express delivery are indentified as clear leaders in the industry.

Operating Models

Service providers have been following marketplace, Pureplay and Omnichannel model to deliver customer orders in UAE. Instashop, Bawiq, El Grocer has been following marketplace model in UAE. Kibsons, Bawiq, Noon, Amazon follows pureplay model. Whereas Carrefour, Lulu Hypermarket, Aswaaq, Choithrams follows Omnichannel model.

Impact of COVID-19

Online grocery sales in the region have surged recently, as more people are avoiding crowded places and turning to online shopping owing to corona pandemic.  Average basket size of online order has increased to 15-20 times during the corona pandemic. Average delivery time for Omnichannel companies during the pandemic increased to 8-10 days. On the other hand, pureplay and marketplace companies were offering grocery delivery within 2-4 days and one day respectively.

Future Outlook and Projection

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

Key Segments Covered: –

By Region


Abu Dhabi

Other Emirates

By Age Group

18-24 years

25-34 years

35-44 years

 45+ years

By Product Category

Food & Beverages

Household Supplies

Beauty and Health

Baby and Kids

Fresh Food

By Gender



By Mode of Payment

Pre-Delivery Online Payment

Card on Delivery

Cash on Delivery

Companies Covered


Lulu Hypermarket



El Grocer






Key Target Audience

Online Grocery Delivery Companies

Supermarkets & Hypermarkets

E-commerce Companies

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 Omni-channel)

Revenue Streams

Marketing Strategies

Addressable Gap in the Market and Possible Solutions

Emerging Business Strategies

Best Practices in Business

Seasonality Trends

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?)

Analyst Recommendations

For More Information on the Research Report, refer to below links: –

UAE Online Grocery Delivery Industry Future

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: –
Ken Research
Ankur Gupta, Head Marketing & Communications


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