Pre Delivery Online Payment segment to dominate the UAE Online Grocery Delivery Market
Rise in acceptance for
online payments and introduction of express delivery is expected to drive the demand
for UAE online grocery delivery market for the forecast period.
According to TechSci Research report, “UAE
Online Grocery Delivery Market By Product Category (Fresh Foods, Household
Products, Packaged Foods & Beverages, Personal Care, Baby Care, Beauty
& Health) By Platform (Mobile Application & Desktop Website) By Mode of
Payment (Pre Delivery Online Payment, Card on Delivery and Cash on Delivery),
By Region, Company Forecast & Opportunities, 2026”, The UAE online
grocery delivery market is expected to witness significant growth for the next
five years. Availability of less time for traditional shopping method and the
need to visit the stores physically is attracting a large number of consumers
to shop through the help of online channels. Online grocery delivery is an easy
and convenient way to buy household-related products. The rise in awareness in
consumers about online payment methods and their safety standards is expected
to influence more consumers to shop online. The presence of attractive
facilities such as easy return, quick delivery along exchange facilities is
expected to boost the market demand. The online distribution channel is
offering discounts and promotions such as white Friday where consumers wait to
buy retail products in the most economical way to surge the market growth. The
increase in the single population and working population use the online grocery
delivery facility for ease and convenience and shop in the comfort of their
homes.
The COVID-19 outbreak across the world which has been
declared as a pandemic by World Health Organization has affected several
countries adversely. Leading authorities present in UAE imposed lockdown
restrictions and released a set of precautionary measures to contain the spread
of novel coronavirus. Due to the pandemic, the demand for online grocery
delivery is expected to increase at a rapid rate. Significant increases in the
number of orders, average order size, and grocery delivery time are the other
major changes. Major market players are partnering with third-party delivery
companies to manage last-mile delivery logistics. Companies are providing
door-to-door delivery with the help of taxi fleets. Therefore, online grocery
delivery is expected to accelerate in the covid period.
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UAE
online grocery delivery market is segmented into product category, platform,
mode of payment, regional distribution, and company. Based on product category,
the market can be divided into fresh foods, household products, packaged foods
& beverages, personal care, baby care, and beauty & health. The
Packaged foods & beverages segment is expected to be the major shareholder
and the fresh food segment is anticipated to witness the fastest incremental
growth in the online grocery delivery market as they can be kept for a longer
duration due to the presence of preservatives. Lulu Hypermarket, Bawiq,
Talabat, Carrefour are some of the major players in the food and beverage
category. On the basis of regional analysis, Dubai and Abu Dhabi are one of the
two most significant cities that hold a larger share of the market and contain
highly efficient transportation, warehousing facilities, procurement of grocery
and carrying out other processes to ensure the right workflow for seamless
online delivery. The presence of the majority of the working population in
these cities is the driving factor for this segment as they hold the majority
of the end-user segment.
Carrefour,
Lulu Hypermarket, Instashop, Kibsons, The Grocer, Trolley.ae, Bawiq, Amazon,
Noon, Farmbox, Bulkwhiz are the leading players operating in UAE online grocery
delivery market. Service providers are increasingly focusing on research and
development process to fuel higher growth in the market. To meet evolving
customer demand with respect to better efficiency and durability, several online
grocery delivery service providers are coming up with their technologically
advanced offerings.
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“Market
players are adopting attractive marketing strategies and campaigns to enhance
tier brand image and widen the brand reach in order to surge the sales of their
respective products. High-end investments by the major players to adopt
technological advancements such as drone delivery, warehouse automation, and
the facility to order through the help of voice are expected to enhance the
consumer experience and provide seamless service to boost the online grocery
delivery market. Adoption of artificial intelligence to create a customized
experience for consumers which is further expected to propel the online grocery
delivery market growth till 2026” said Mr. Karan Chechi, Research Director with
TechSci Research, a research based global management consulting firm.
“UAE Online Grocery
Delivery Market By Product Category (Fresh Foods, Household Products, Packaged
Foods & Beverages, Personal Care, Baby Care, Beauty & Health) By
Platform (Mobile Application & Desktop Website) By Mode of Payment (Pre
Delivery Online Payment, Card on Delivery and Cash on Delivery), By Region,
Company Forecast & Opportunities, 2026” has
evaluated the future growth potential of UAE online grocery delivery market and
provided statistics & information on market size, shares, structure and
future market growth. The report intends to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the of UAE online grocery
delivery market.
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