UAE Online Grocery Delivery Market Analysis, Report 2023-2030

in uae •  6 months ago 

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the UAE Online Grocery Delivery Market size at USD 5.18 billion in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the UAE Online Grocery Delivery Market size to expand at a CAGR of 6.38% reaching a value of USD 7.22 billion by 2030. An increasing number of grocery delivery apps being released in the UAE as well as the growing ease of using online payment methods are significant growth drivers for the country’s Online Grocery Delivery Market. The COVID-19 pandemic compelled industry participants to introduce contactless delivery, which expanded the UAE Online Grocery Delivery Market.

Opportunity - Growing working population and lifestyle changes

The increasing working population, particularly the female workforce, is emerging as a major driving factor for the UAE Online Grocery Delivery Market. The time crunch among this demographic and the growing need for convenience are directly influencing the growing demand for online grocery delivery services in the country. Growing health awareness is also influencing the market growth with the rising demand for health foods through online platforms. According to a survey by Talabat, a local online delivery platform, in 2023, more than 12 million tons of fruits and vegetables were sold, accounting for the majority of orders placed.

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UAE Online Grocery Delivery Market

Segmental Coverage

UAE Online Grocery Delivery Market – By Mode of Payment

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 pre-delivery online payment segment dominates the UAE Online Grocery Delivery Market. The convenience of online payments in real-time while shopping majorly contributes to the segment’s growth. Furthermore, COVID-19 pandemic prompted the shift of consumers from cash on delivery to pre-delivery online payment, as it allows contactless delivery and may prevent virus spread.

Competitive Landscape

Major players operating in the UAE Online Grocery Delivery Market include Carrefour, Lulu Hypermarket, Instashop, Kibsons, El Grocer, Amazon, Noon, Farmbox, Spinneys, and Choithrams.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

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