In Depth Analysis of COVID 19 Impact on UAE Online Grocery Delivery Market: Ken Research REQUEST FOR SAMPLE REPORT Buy Now Request For sample Report × Report Title Name Email Designation Phone No Comapny Name Comapny URL Country -- Please Select Your Country -- Afganistan Africa Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Aruba Asia Australasia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia Herzegovina Botswana Brazil BRICS British Virgin Islands Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Central and South America Chad Chile China Colombia Comoros Congo Costa Rica Cote d'Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Europe European Union Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Global Great Britain Greece Greenland Grenada Guadeloupe Guam Guatemala Guerney & Alderney Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Ivory Coast Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Man (Island of) Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Middle East Minnesota Moldova Monaco Mongolia Monserrat Montenegro Morocco Morroco Mozambique Myanmar Namibia Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue North America North Korea Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa Samoa (American) San Marino Sao Tome and Principe Saudi Arabia Scandinavia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten Slovakia Slovenia Solomon (Islands) Somalia South Africa South Korea South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Western Sahara Yemen Zambia Zimbabwe Requirement Submit “Global Pandemic has led to a double-digit growth between 20-40% across essential product categories. Service providers partnered with third party operators to manage last-mile logistics” “People have realized the time-saving element of being able to order online and getting the essentials delivered at the doorstep. Before COVID, a lot of people didn’t order online because they never had to make that choice. Now they are getting used to the benefits of shopping online” Rajeev Lee, Founder & CEO, Bawiq The Online Grocery Industry has been growing rapidly since inception and is currently positioned to be in the growth stage. Major players entered the market between 2015 and 2017 & currently, there are more than 25 companies offering grocery delivery services in the UAE. In addition to this, the market value has doubled from 2016 to 2019, suggesting that consumers are starting to get more comfortable ordering essentials food items online. Even though online grocery penetration has increased, there’s still a major proportion of the population that prefers to buy groceries from Supermarkets, Hypermarkets, and Baqala Stores. The Coronavirus outbreak and the pandemic’s indirect impact on global growth have made a significant impact on the Online Grocery Market in UAE. To curb the spread of COVID-19 in UAE, all facilities were shut down except, cooperative societies, supermarkets, grocery stores, and pharmacies. They remained open 24/7 to serve the public, even during the period of movement restrictions between 8 pm to 6 am. Telecommunications Regulatory Authority (TRA), UAE’s telecom authority, published a list of 22 applications of online stores delivering groceries and other essential items during the pandemic as a way to urge its people to stay at home and only leave for running essential tasks. Impact on Online Grocery Delivery: From an e-commerce perspective, 2020 has started on a high note for the online grocery delivery sector and further growth is expected in the online consumption in the upcoming months. Due to COVID-19 Outbreak, people are avoiding crowded places and turning to online grocery shopping amid escalating fears. This has led to an increase in the number of orders dramatically registering a growth between 70-90% in March and April. Average order size registered growth between 40-60% and was valued between AED 200-250. Companies faced logistical challenges to keep up with the increased demand. The delivery time of omnichannel companies such as Carrefour, Lulu Hypermarket increased to ten days. Whereas marketplace companies such as Instashop, El Grocer took one to two days’ time to fulfill customer orders. In addition to this, there was a shortage in terms of availability of vehicles and drivers to fulfill the increased demand during the pandemic. Companies incurred additional expenditure for providing basic guarding equipment and training to employees about the potential repercussions and the significance of hygiene without negligence. Efficient Strategies Adopted: Expansion of Delivery Infrastructure: To fulfill the increased demand, companies expanded their delivery fleet by partnering with third-party operators to manage last-mile logistics. For instance, Lulu Hypermarket who usually used their multi-temperature vehicles for delivery, partnered with courier logistics services and other companies with fleets and bikes to ensure quick deliveries. In addition to this, in Abu Dhabi and Dubai, companies also partnered with taxi fleets to take care of door-to-door delivery. BinSina Pharmacy partnered with Instashop to deliver medicines from its pharmacy stores in Dubai and Abu Dhabi. To cater to the increased demand for delivery orders, companies expanded their backend operations. For instance, Carrefour opened six new fulfillment centers across the region. In addition to this, frequent stock replenishments and increasing resources at fulfillment centers enabled companies to fulfill delivery orders. Bawiq, a marketplace company in UAE, partners with grocery stores to fulfill customer orders. The delivery of the items is usually managed by the partner grocery store in this model. During the pandemic, Bawiq assisted the grocery stores in fulfilling orders by taking over the packaging, checkout process, and last-mile delivery. The company’s own employees were responsible for doorstep delivery of groceries. Focus on Maintaining Hygiene: In addition to sanitization, companies have put in place a set of measures to ensure the safety of their customers and employees. Companies introduced contactless delivery, wherein the order was dropped at the doorstep. Delivery staff wore gloves and masks and ensured social distancing during delivery. All delivery vehicles were washed and cleaned three times more frequently than before. Shift in Industry Practice: Rise in Online Grocery Penetration: 79 % of consumers in the UAE changed their shopping habits from offline to online during the pandemic. It is expected that 48% of the customers would maintain current shopping habits after the pandemic. It is expected that by the end of 2025, the online grocery penetration in terms of the number of users would cross 15%. Rise in Number of Orders and Decline in Average Order Size: The industry would continue to grow but it is expected that the rate of growth will be slower as compared to the growth registered during a pandemic. The overall volume of orders for the year 2020 is expected to grow between 80-100% from 2019. In addition to this, the industry is expected to register a decline in 2021 in terms of the number of orders. Average order frequency will rise thereby leading to a decline in average order size by ~16% in 2021. The pandemic has enabled the service providers to acquire new customers without incurring any major costs. In the future, the major challenge for the companies would be to retain the customers. Health and Hygiene would continue to be the focus for companies in the future. The online grocery delivery market of UAE is expected to grow with a CAGR of 27% during the period of 2019-2025. Key Segments Covered: – By Region Dubai Abu Dhabi Other Emirates By Age Group 18-24 years 25-34 years 35-44 years 45+ years By Product Category Food & Beverages Household Supplies Beauty and Health Baby and Kids Fresh Food By Gender Male Gender By Mode of Payment Pre-Delivery Online Payment Card on Delivery Cash on Delivery Companies Covered Carrefour Lulu Hypermarket Instashop Kibsons El Grocer Trolley.ae Bawiq Amazon Noon Farmbox Bulkwhiz Key Target Audience Online Grocery Delivery Companies Supermarkets & Hypermarkets E-commerce Companies Food Delivery Companies Investors Time Period Captured in the Report: – Historical Period: 2016–2019 Forecast Period: 2020-2025 Key Topics Covered in the Report: – E-commerce Companies Growth in UAE Food Delivery Companies Share in UAE Impact of Covid-19 on Monthly Orders in UAE Online Grocery Shopping in Abu Dhabi Online Grocery Delivery Charge in UAE Corona Impact on Online Grocery Market UAE Omnichannel companies Market Share UAE Carrefour Market Share UAE Logistics Cost Online Grocery UAE Fruits & Vegetables Online Order Market Dubai For More Information on the Research Report, refer to below links: – UAE Online Grocery Delivery Industry Future Related Reports by Ken Research: – UK Online Retail Market Outlook to 2025 – By Product Categories (Apparel and Footwear, Food and Drink, Media Products, Consumer Electronics and Others), By Desktop and Mobile Mode, By Gender (Male and Female) and By Mode of Payment (Debit Credit Card, Net Banking and Cash on Delivery) Taiwan E-Commerce Market Outlook to 2023 – Online Retail (By Product Categories, By Desktop and Mobile, By Gender); Online Travel (By Intermediary and Direct Online Sale and By Desktop and Mobile); Online Payment Gateway Market UAE Logistics and Warehousing Market Outlook to 2025 – By Road , Sea and Air Freight Forwarding; Domestic and International Freight, Major Flow Corridors, Integrated and Contract Freight Forwarding; By Warehousing (Industrial / Retail, CFS / Inland Container Depot & Cold Storage, Agriculture), End Users (Manufacturing, Retail, Food and Beverage, Automotive, Oil and Gas, Healthcare), Type of Warehouses; By Courier Express & Parcel Market , and, E-commerce Logistics Contact Us: – Ken Research Ankur Gupta, Head Marketing & Communications Ankur@kenresearch.com +91-9015378249 Tags: Abu Dhabi Online Grocery Delivery Market, Annual Online Grocery Demand in UAE, Bulkwhiz warehouses Market Size UAE, Carrefour Delivery Fleet UAE, Carrefour Market Share UAE, Corona Impact on Online Grocery Market UAE, COVID-19 Impact on UAE Online Grocery Delivery Market, Dubai Online Grocery Delivery Market, Dubai Online Grocery Order Size, Dubai Online Grocery Report, E-commerce Companies Growth in UAE, El Grocer Grocery Stores Analysis, Food Delivery Companies Share in UAE, Fruits & Vegetables Online Order Market Dubai, Future of UAE Online Grocery Delivery Market, Hypermarkets Role in UAE Online Grocery Delivery Market, Impact of Covid-19 on Monthly Orders in UAE, Impact of COVID-19 on UAE Online Grocery Delivery Market, Logistics Cost Online Grocery UAE, Lulu Hypermarket online shopping Market Size, Market Share Instahsop UAE, Marketplace Grocery Companies UAE, Noon Delivery Fleet Dubai, Omnichannel companies Market Share UAE, Online Grocery Delivery Charge in UAE, Online Grocery Delivery Companies in UAE, Online grocery delivery Dubai, Online Grocery Delivery Industry UAE, Online Grocery Delivery Market UAE, online grocery delivery scenario in UAE, Online Grocery Future in UAE, Online Grocery Shopping in Abu Dhabi, Online Grocery Shopping in UAE, Online Grocery Users Size in UAE, Pureplay Grocery Companies UAE, Souq Grocery Delivery Industry UAE, Technologies in Online Grocery Delivery Industry UAE, UAE Amazon Online Grocery Order Market, UAE Average Order Grocery Size, UAE Grocery Delivery Industry, UAE Grocery Delivery Industry Research Report, UAE Grocery Delivery Market, UAE Grocery Delivery Market Research Report, UAE Online Grocery Delivery Industry, UAE Online Grocery Delivery Industry Research Report, UAE Online Grocery Delivery Market, UAE Online Grocery Delivery Market Analysis, UAE Online Grocery Delivery Market Forecast, UAE Online Grocery Delivery Market Growth Rate, UAE Online Grocery Delivery Market Outlook, UAE Online Grocery Delivery Market Research Report, UAE Online Grocery Delivery Market Revenue, UAE Online Grocery Delivery Market Share, UAE Online Grocery Delivery Market Size