UAE Online Grocery Delivery Market Overview
Gaps in offline grocery shopping such as the tiresomeness of commute, long payment queues, and cost of instinct buying led to the introduction of e-grocery delivery around the UAE. Population aged between 25 and 44, is measured an influential consumer base for online grocery shopping. The industry is presently positioned in a growth stage dominating a double-digit growth rate close to 31% between 2016 and 2019.
UAE Pre-delivery online payment Market Analysis
According to the report analysis, ‘UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion’ states that high internet penetration, growing working population, and an augmenting the number of single families have led to the growth of e-grocery services around the UAE. The number of companies proposing grocery delivery services in the UAE has augmented over the years. Companies have enflamed their product portfolios from food & beverages to household supplies, fresh food, baby food, fish & meat, and numerous other product categories.
Demand by Region (Dubai, Abu Dhabi & Other Emirates)
Dubai and Abu Dhabi mapped as foremost cities based on demand and supply of online grocery services. This is mainly owing to the concentration of population in these areas. Working professionals, who are the foremost end-users of online grocery delivery services, are concentrated across Dubai and Abu Dhabi.
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Demand by Mode of Payment (Pre Delivery Online Payment, Card on Delivery and Cash on Delivery)
The demand is still registered by pre-delivery online payment followed by card on delivery and cash on delivery. Individuals who order online are primarily not present to gather the delivery and therefore pre-payment is favored. In Dubai and Abu Dhabi majority of household chores are taken care of by house assistances and they frequently collect the order delivery, therefore, the customer favors the online mode of payment.
The industry is fragmented with the existence of more than 25 players functioning across the marketplace, pureplay and omnichannel models. Delivery Cost, Delivery Time, App Interface, Discounts & Offers, Return Policy, Ease of Payment have been foremost factors influencing customer behavior. The foremost players involve Carrefour, Instashop, Lulu Hypermarket, El Grocer, Kibsons, Bulkwhiz and Bawiq. Companies with great product assortment, wide regional existence and express delivery are recognised as clear leaders in the industry.
UAE Grocery Shopping Delivery Market Future Outlook
The demand is projected to rise with a CAGR of 22% on the basis of GMV between 2019 and 2025. Companies are predicted to focus on enlarging tie ups with suppliers & grocery stores to fulfill consumer orders. The requirement is projected to be propelled by upcoming technologies such as Drone Delivery, Warehouse Automation, Voice Ordering and others. Market consolidation is predicted in future as players with heavy financial backing and improved brand value will attain the small players. Therefore, it is predicted that during the near future the market of UAE online grocery delivery will augment more proficiently around the region over the review period.
Ankur Gupta, Head Marketing & Communications