A growing number of online grocery channels are providing consumers with the option of speedier delivery, which is influencing their shopping behavior to resort to eCommerce channels for meeting their home needs. Grocers' introduction of a plethora of online payment choices and new business models such as scheduled or expedited delivery, on-demand, or subscription delivery is further pushing consumers to prefer online grocery shopping over offline mediums.
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%.
The UAE's high internet penetration rate, growing working population, and rising number of single-parent families have all aided the growth of e-grocery businesses. More firms in the UAE have started offering grocery delivery services throughout time. In addition to food and beverages, companies have expanded their product lines to include household items, fresh food, baby food, fish, and meat. The demand is expected to rise. Businesses are urged to focus on building their relationships with suppliers and grocery stores in order to fulfill customer orders.
The UAE Online Grocery Delivery Market has a number of significant problems. First, despite the region's rapid e-commerce adoption, online grocery purchasing is still evolving, and consumer behaviors are shifting. Many UAE consumers have traditionally preferred in-store grocery shopping, and online grocery delivery services must convince a considerable section of the population to embrace this alternative.
Furthermore, the short-term availability of grocery items creates logistical issues in assuring timely and efficient delivery, particularly in the UAE's hot and arid climate.
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The indirect impacts of the pandemic and the coronavirus outbreak on the world economy have had a significant impact on the UAE's online grocery sector. To prevent the spread of COVID-19, all facilities in the UAE were closed, with the exception of cooperative societies, supermarkets, food stores, and pharmacies. Even during the period of movement restrictions, they stayed open 24 hours a day, seven days a week to serve the people. The UAE's telecom regulator, the Telecommunications Regulatory Authority (TRA), published a list of many applications of online shops supplying food and other essentials during the pandemic to encourage its inhabitants to stay at home and only go out for necessary chores.
Furthermore, The UAE Online Grocery Delivery Market is characterized by a distinct regional landscape formed by the country's fast changing consumer tastes and digital development. Due to variables such as strong internet and smartphone penetration, a multicultural population, and expanding urbanization, the market has acquired significant traction. Online grocery delivery is becoming increasingly popular in big cities such as Dubai and Abu Dhabi, where expatriates and tech-savvy citizens abound. Additionally, some of the market key players are Amazon, Bawiq, Bulkwhiz, Carrefour, Farmbox, Instashop, Kibsons, Lulu Hypermarket, Noon, The Grocer, Trolley.ae.
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UAE Online Grocery Delivery Market Future Outlook
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