The demand for online grocery delivery has been on the rise in the United Arab Emirates (UAE) in recent years.
Customer preferences: The convenience of online grocery shopping and home delivery has become increasingly popular among UAE consumers. With busy work schedules, long commutes, and hot weather conditions, many consumers are opting for the ease and convenience of online grocery shopping. Additionally, the COVID-19 pandemic has further accelerated the adoption of online grocery delivery services, as consumers seek to minimize their exposure to crowded public spaces.
Trends in the market: One of the key trends in the UAE grocery delivery market is the increasing competition among players. Several large international players have entered the market in recent years, including Amazon, which acquired the popular UAE-based online retailer Souq.com in 2017. Local players have also emerged, such as InstaShop and elGrocer, which have gained popularity among UAE consumers.Another trend in the market is the increasing availability of premium and specialized products for online purchase. As consumers become more comfortable with online grocery shopping, they are increasingly seeking out high-quality and niche products that may not be available in traditional brick-and-mortar stores.
Local special circumstances: The UAE has a large expatriate population, which has contributed to the growth of the online grocery delivery market. Many expats are accustomed to online grocery shopping in their home countries and have continued this behavior in the UAE. Additionally, the high proportion of working women in the UAE has also contributed to the popularity of online grocery delivery services, as it allows them to save time and avoid the hassle of grocery shopping.
Underlying macroeconomic factors: The UAE has a high internet penetration rate and a large population of tech-savvy consumers, which has helped to drive the growth of the online grocery delivery market. Additionally, the country has a high per capita income and a large expatriate population, which has created a favorable environment for the development of premium and specialized online grocery delivery services. Finally, the COVID-19 pandemic has accelerated the adoption of online grocery delivery services, as consumers seek to minimize their exposure to crowded public spaces.
Data coverage:
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.
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