The term "grocery delivery" describes the service that merchants and specialty businesses offer, allowing clients to order groceries online and have them delivered right to their door. With this option available, clients may shop without having to physically visit a store. Customers often peruse an online catalogue, choose the products they want to buy, and provide their address and preferred delivery time. Typically, secure online payment channels are used to settle payments for the groceries and delivery costs. Due to their ease of use, grocery delivery services have grown in popularity, particularly among families, working people, and people with mobility issues. They make it simpler to get necessities without having to leave the house.
According to SPER market research, ‘UAE Online Grocery Delivery Market Size - By Product Category, By Platform, By Mode of Payment, By Age Group, By Gender - Regional Outlook, Competitive Strategies and Segment Forecast to 2032’ state that the UAE Online Grocery Delivery Market is predicted to reach USD 6.87 billion by 2032 with a CAGR of 29.18%.
Online grocery shopping is a desirable alternative for many expats - who make up a big percentage of residents - because they frequently have hectic schedules and little time for shopping. Moreover, online grocery stores frequently provide loyalty programs, discounts, and promotions to draw clients and entice them to make additional purchases. Furthermore, the way that people shop is evolving quickly, with an increasing number of individuals choosing to shop online. It is anticipated that younger generations, who are more tech-savvy, would continue to drive the rise of the online grocery business. Additionally, the UAE has a high per capita income, which encourages people to spend money on upscale groceries and other luxury goods and online grocery shops are capitalizing on this trend by providing high-end brands and items.
Initially, delivery operations were hindered by logistical challenges such as intricate urban environments and traffic congestion. Furthermore, maintaining product freshness and quality while in transit is a major challenge. Adoption is further hampered by cultural preferences for in-person purchasing experiences and worries about the security of internet payments. In addition, the fierce rivalry among grocery delivery services demands high marketing and customer acquisition costs and changes in consumer purchasing habits and unpredictability in the economy might affect market demand. Finally, licensing processes and regulatory requirements can be onerous, which makes running a firm more difficult.
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The global market suffered as a result of the COVID-19 pandemic's abrupt outbreak. Strict lockdowns and other government measures implemented in the wake of the crisis caused industry closures and interfered with supply chain activities in multiple end-use verticals. Sales of perishable commodities were significantly impacted, which had a negative effect on market revenues, due to the increasing panic purchasing and stockpiling. To stop the spread of COVID-19, all establishments in the United Arab Emirates were closed, with the exception of pharmacies, supermarkets, cooperative societies, and grocery stores. They continued to be available to assist the public around-the-clock even during the time of movement limitations. Overall, the pandemic has had a positive impact, fuelling the market as demand surged due to stay-at-home protocols.
The cities of Dubai and Sharjah drive the market due to a high population of working professionals. Additionally, some of the key market players are Bawiq, Bulkwhiz, Carrefour, Lulu Hypermarket, Noor, Spinney’s and others.
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UAE Online Grocery Delivery Market Outlook
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