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UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion

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COVID-19
In Depth Analysis of COVID 19 Impact on UAE Online Grocery Delivery Market

Shift in Business operations of Major Service Providers and Changing landscape of the Online Grocery Industry in UAE

INQUIRE FOR COVID-19 IMPACT INQUIRE FOR COVID-19 IMPACT

Details

The report titled “UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion" provides a comprehensive analysis of Online Grocery Delivery Market in UAE. The report covers various aspects including the current online grocery delivery scenario in UAE, need & opportunities describing the target addressable market, the addressable gap in the market, and possible solutions.

It also covers current supply and demand in the region, detailed working of the marketplace, Omnichannel and pureplay operating model, trends, developments, challenges, seasonality trends, current & upcoming technologies facilitating online grocery delivery industry, revenue streams and marketing strategies driving the industry. It gives a detailed explanation of competitive scenarios including cross-comparison between major players, SWOT, and detailed company profiles of major players and concluding with future scope and analyst recommendations.

Market Overview and Demand- Supply Scenario

Gaps in offline grocery shopping such as the inconvenience of commute, long payment queues, and cost of impulse buying led to the introduction of e-grocery delivery in UAE. Population aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit growth rate close to 38% between 2016 and 2019. High internet penetration, rising working population, and an increasing number of single families have led to the growth of e-grocery services in UAE.  The number of companies offering grocery delivery services in the UAE has increased over the years. Companies have expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.

Demand by Product Category (Food & Beverages, Household Supplies, Beauty and Health, Baby & Kids and Fresh Food)

Food & Beverages mapped as the most demanded product category. This was followed by household supplies, beauty & health, baby & kids, and fresh food. Carrefour, Lulu Hypermarket, Bawiq, El Grocer, Talabat specializes are major players in the food & beverage category. 

Demand by Region (Dubai, Abu Dhabi & Other Emirates)

Dubai and Abu Dhabi mapped as major cities based on demand and supply of online grocery services. This is mainly due to the concentration of the population in these regions. Working professionals, who are the major end-users of online grocery delivery services, are concentrated in Dubai and Abu Dhabi. 

Demand by Mode of Payment (Pre Delivery Online Payment, Card on Delivery and Cash on Delivery)

The demand is still dominated by pre-delivery online payment followed by card on delivery and cash on delivery. People who order online are usually not present to collect delivery and therefore pre-payment is preferred. In Dubai and Abu Dhabi, the majority of household chores are taken care of by house helps and they usually collect the order delivery therefore customer prefers online mode of payment.  

Competitive Landscape

The industry is fragmented with the presence of more than 25 players operating across the marketplace, pureplay, and omnichannel model. Delivery Cost, Delivery Time, App Interface, Discounts & Offers, Return Policy, Ease of Payment have been major factors influencing customer behavior. The major players include Carrefour, Instashop, Lulu Hypermarket, El Grocer, Kibsons, Bulkwhiz, and Bawiq. Companies with large product assortment, wide regional presence, and express delivery are identified as clear leaders in the industry.

Operating Models

Service providers have been following marketplace, Pureplay and Omnichannel model to deliver customer orders in UAE. Instashop, Bawiq, El Grocer has been following the marketplace model in UAE. Kibsons, Bawiq, Noon, Amazon follows the pureplay model. Whereas Carrefour, Lulu Hypermarket, Aswaaq, Choithrams follows the Omnichannel model.

Impact of COVID-19

Online grocery sales in the region have surged recently, as more people are avoiding crowded places and turning to online shopping owing to the corona pandemic.  The average basket size of online order has increased to 15-20 times during the corona pandemic. Average delivery time for Omnichannel companies during the pandemic increased to 8-10 days. On the other hand, pureplay and marketplace companies were offering grocery delivery within 2-4 days and one day respectively.

Future Outlook and Projection

The demand is expected to grow with a CAGR of 34% on the basis of GMV between 2019 and 2025. Companies are anticipated to focus on expanding tie ups with suppliers & grocery stores to fulfill customer orders. The demand is expected to be driven by upcoming technologies such as Drone Delivery, Warehouse Automation, Voice Ordering and others. Market consolidation is expected in future as players with heavy financial backing and better brand value will acquire small players.

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:-

Difference between Online & Offline Grocery Shopping. Why Online Grocery is the Way Forward?

Target Addressable Audience

Supply Ecosystem and Competition Parameters

Demand Scenario, Target Customer and Factor Influencing Consumer Behavior

Technologies Facilitating Online Grocery Delivery Industry

Upcoming Technologies in Online Grocery Delivery Industry

Cross Comparison of Operating Models (Marketplace, Pureplay and Omni-channel)

Revenue Streams

Marketing Strategies

Addressable Gap in the Market and Possible Solutions

Emerging Business Strategies

Best Practices in Business

Seasonality Trends

Covid-19 Impact on UAE Online Grocery Delivery Market (Impact on KPIs, Monthly Orders, Impact on Consumer Behavior, What companies did to meet Excess Demand?)

Analyst Recommendations

READ MORE

Table Of Content

Scope

1. Executive Summary

UAE Online Grocery Delivery Market Structure 2019

UAE Online Grocery Delivery Market Structure 2025F

2. Need and Opportunity

How is Offline Grocery Shopping Different from Online Grocery Shopping?

Why Online Grocery is the Way Forward

Target Addressable Market

Addressable Gap in the Market and Possible Solutions

3. Supply Scenario

Supply Infrastructure: Ecosystem for Grocery Retailers

Industry Business Cycle 

Supply Side: Market Analysis & Growth Drivers

Supply Infrastructure: Regional Presence of Major Players

Challenges Faced by Online Grocery Delivery Companies

4. Demand Scenario

What My Customer Prefers?

Factors Influencing Customer Behavior

UAE Online Grocery Delivery Market Size on the basis of GMV, Annual Orders & Average Order Size, 2016-2019

Annual Grocery Demand By Product Type and Payment Mode

Where is the Online Grocery Delivery Market Concentrated in UAE?

Seasonality Trends

Impact of Covid-19 (Impact on Monthly Orders, Average Order Size, Delivery Time, Consumer Behavior and Steps taken by companies to meet Excess Demand)

5. Operating Models across UAE Online Grocery Market

Operating Model: Marketplace

Role & Responsibilities of Company and Partner Grocery Store

Operating Model: Pureplay

Operating Model: Onmichannel

Cross Comparison of Operating Models (Marketplace, Pureplay and Omnichannel) on the basis of Delivery Time, Inventory, Gross Margin, Product Assortment, Product Replenishment, Players, Advantages & Disadvantages

Revenue Streams of Companies Operating in Marketplace, Pureplay and Omnichannel Model

Gaps & Possible Solutions of Managing Logistics

6.  Industry Analysis

Technologies Facilitating Online Grocery Delivery Industry

Upcoming Technologies in Online Grocery Delivery Industry

Features of an Grocery Delivery App

SWOT Analysis

Where does UAE Stands in Comparison to Other Mature Markets (China, UK, India & US)?

7. Competitive Landscape in UAE Online Grocery Market

Competition Scenario and Industry Unit Matrix

Business Landscape of Major Players including Year of Establishment, Business Model, Warehousing Capability,  Most Demanded Product Category, Pick Up Service, Number of Partner Grocery Stores, Suppliers, Hypermarkets, Delivery Fleet, Product Listings, Delivery Charges, Delivery Time, Cancellation Rate & Employees

Performance Matrix of Service Providers

Financial Matrix of Major Players (Approximate Annual Orders, Market Share on the basis of Number of Orders, Market Share on the basis of GMV)

Strengths & Weakness of Service Providers

Investment Activities (Investors, Total Funding Amount, Funding Status and Latest Funding)

Company Profiles (Overview, Product Category, Business Model, Business Strategies, USP, Future Plans, Recent Developments)

  • Carrefour
  • Lulu Hypermarket
  • Instashop
  • Noon.com
  • Kibsons
  • El Grocer
  • Bulkwhiz
  • Amazon
  • Bawiq
  • Talabat
  • Farmbox


8. Future Landscape of UAE Online Grocery Delivery Market

UAE Online Grocery Delivery Market Future Outlook to 2025 on the basis of GMV, Annual Orders and Average Order Size (2019-2025)

Operators to Expand in Dubai & Abu Dhabi and Facilitate Online Payment

What are the Upcoming Product Categories?

9.  Case Study & Analyst Recommendations

How Can Companies Reduce Delivery Time and Delivery Cost?

Key Adoption Points(Personalized Consumer Experience, Introduce Private Labels to Increase Margins, Wallet Based Automated System, Achieving Operational Efficiency, Adopting  Artificial Intelligence , Partner with Food Delivery Companies

How can Companies Promote themselves?

Why and How Subscription & Micro-Delivery Model can be Implemented?

10. Industry Speak

Interview with Amira Rashad, Co-Founder & CEO at Bulkwhiz

11. Appendix

Research Methodology

Disclaimer

Contact Us

Licence Rights

License Type Excel Only Single User Single User + Excel Hard Copy Corporate User License
User Sharing Restricted to one authorized user; Open on 1 PC/ mobile / Tablet only. Restricted to one authorized user; Open on 1 PC/ mobile / Tablet only. Restricted to one authorized user; Open on 1 PC/ mobile / Tablet only. Access to Printed Report; No Soft Copy Multiple Users within the Company/ Enterprise
Print Option
Copy Option :Yes :No
Citation Yes (Not Publically; but to Private Parties within the company/ affiliate)
Deliverable Format :via Email :via Email ; :via Email Printed Publication/ Book by Post ; :via Email
Customization 20%
Analyst Time (Post Purchase Queries on Call/ Email)
Disclaimer : In no circumstance, the complete / part of the publication may be resold for monetary terms by the client or any other party related to the client or can be made available on third party website or on Google for general public view.

Section Purchase

To know more information on Purchase by Section, please send a mail to support@kenresearch.com

Covid 19 Inquiry

In Depth Analysis of COVID 19 Impact on UAE Online Grocery Delivery Market

Respecting industry experts that are helping companies to survive and to sustain in this economic pandemic. We are working day and night to aid companies in taking rapid-decisions by finding

  • COVID-19 Impact on Online Grocery Delivery, Increase in Number of Orders, Average Order Size, Delay in Delivery, Additional Expenditure incurred by companies on Logistics

  • Strategies adopted by Service Providers during COVID 19

  • Future Impact of COVID-19 on Online Grocery Industry

INQUIRE FOR COVID-19 IMPACT ANALYSIS

Products and Companies

Products

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

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


Companies

Companies Covered

Carrefour

Lulu Hypermarket

Instashop

Kibsons

El Grocer

Trolley.ae

Bawiq

Amazon

Noon

Farmbox

Bulkwhiz

Company Profile

Company Profile Title

The report titled “UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion" provides a comprehensive analysis of Online Grocery Delivery Market in UAE. The report covers various aspects including the current online grocery delivery scenario in UAE, need & opportunities describing the target addressable market, the addressable gap in the market, and possible solutions.

It also covers current supply and demand in the region, detailed working of the marketplace, Omnichannel and pureplay operating model, trends, developments, challenges, seasonality trends, current & upcoming technologies facilitating online grocery delivery industry, revenue streams and marketing strategies driving the industry. It gives a detailed explanation of competitive scenarios including cross-comparison between major players, SWOT, and detailed company profiles of major players and concluding with future scope and analyst recommendations.

Market Overview and Demand- Supply Scenario

Gaps in offline grocery shopping such as the inconvenience of commute, long payment queues, and cost of impulse buying led to the introduction of e-grocery delivery in UAE. Population aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit growth rate close to 38% between 2016 and 2019. High internet penetration, rising working population, and an increasing number of single families have led to the growth of e-grocery services in UAE.  The number of companies offering grocery delivery services in the UAE has increased over the years. Companies have expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.

Demand by Product Category (Food & Beverages, Household Supplies, Beauty and Health, Baby & Kids and Fresh Food)

Food & Beverages mapped as the most demanded product category. This was followed by household supplies, beauty & health, baby & kids, and fresh food. Carrefour, Lulu Hypermarket, Bawiq, El Grocer, Talabat specializes are major players in the food & beverage category. 

Demand by Region (Dubai, Abu Dhabi & Other Emirates)

Dubai and Abu Dhabi mapped as major cities based on demand and supply of online grocery services. This is mainly due to the concentration of the population in these regions. Working professionals, who are the major end-users of online grocery delivery services, are concentrated in Dubai and Abu Dhabi. 

Demand by Mode of Payment (Pre Delivery Online Payment, Card on Delivery and Cash on Delivery)

The demand is still dominated by pre-delivery online payment followed by card on delivery and cash on delivery. People who order online are usually not present to collect delivery and therefore pre-payment is preferred. In Dubai and Abu Dhabi, the majority of household chores are taken care of by house helps and they usually collect the order delivery therefore customer prefers online mode of payment.  

Competitive Landscape

The industry is fragmented with the presence of more than 25 players operating across the marketplace, pureplay, and omnichannel model. Delivery Cost, Delivery Time, App Interface, Discounts & Offers, Return Policy, Ease of Payment have been major factors influencing customer behavior. The major players include Carrefour, Instashop, Lulu Hypermarket, El Grocer, Kibsons, Bulkwhiz, and Bawiq. Companies with large product assortment, wide regional presence, and express delivery are identified as clear leaders in the industry.

Operating Models

Service providers have been following marketplace, Pureplay and Omnichannel model to deliver customer orders in UAE. Instashop, Bawiq, El Grocer has been following the marketplace model in UAE. Kibsons, Bawiq, Noon, Amazon follows the pureplay model. Whereas Carrefour, Lulu Hypermarket, Aswaaq, Choithrams follows the Omnichannel model.

Impact of COVID-19

Online grocery sales in the region have surged recently, as more people are avoiding crowded places and turning to online shopping owing to the corona pandemic.  The average basket size of online order has increased to 15-20 times during the corona pandemic. Average delivery time for Omnichannel companies during the pandemic increased to 8-10 days. On the other hand, pureplay and marketplace companies were offering grocery delivery within 2-4 days and one day respectively.

Future Outlook and Projection

The demand is expected to grow with a CAGR of 34% on the basis of GMV between 2019 and 2025. Companies are anticipated to focus on expanding tie ups with suppliers & grocery stores to fulfill customer orders. The demand is expected to be driven by upcoming technologies such as Drone Delivery, Warehouse Automation, Voice Ordering and others. Market consolidation is expected in future as players with heavy financial backing and better brand value will acquire small players.

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:-

Difference between Online & Offline Grocery Shopping. Why Online Grocery is the Way Forward?

Target Addressable Audience

Supply Ecosystem and Competition Parameters

Demand Scenario, Target Customer and Factor Influencing Consumer Behavior

Technologies Facilitating Online Grocery Delivery Industry

Upcoming Technologies in Online Grocery Delivery Industry

Cross Comparison of Operating Models (Marketplace, Pureplay and Omni-channel)

Revenue Streams

Marketing Strategies

Addressable Gap in the Market and Possible Solutions

Emerging Business Strategies

Best Practices in Business

Seasonality Trends

Covid-19 Impact on UAE Online Grocery Delivery Market (Impact on KPIs, Monthly Orders, Impact on Consumer Behavior, What companies did to meet Excess Demand?)

Analyst Recommendations

READ MORE

Scope

1. Executive Summary

UAE Online Grocery Delivery Market Structure 2019

UAE Online Grocery Delivery Market Structure 2025F

2. Need and Opportunity

How is Offline Grocery Shopping Different from Online Grocery Shopping?

Why Online Grocery is the Way Forward

Target Addressable Market

Addressable Gap in the Market and Possible Solutions

3. Supply Scenario

Supply Infrastructure: Ecosystem for Grocery Retailers

Industry Business Cycle 

Supply Side: Market Analysis & Growth Drivers

Supply Infrastructure: Regional Presence of Major Players

Challenges Faced by Online Grocery Delivery Companies

4. Demand Scenario

What My Customer Prefers?

Factors Influencing Customer Behavior

UAE Online Grocery Delivery Market Size on the basis of GMV, Annual Orders & Average Order Size, 2016-2019

Annual Grocery Demand By Product Type and Payment Mode

Where is the Online Grocery Delivery Market Concentrated in UAE?

Seasonality Trends

Impact of Covid-19 (Impact on Monthly Orders, Average Order Size, Delivery Time, Consumer Behavior and Steps taken by companies to meet Excess Demand)

5. Operating Models across UAE Online Grocery Market

Operating Model: Marketplace

Role & Responsibilities of Company and Partner Grocery Store

Operating Model: Pureplay

Operating Model: Onmichannel

Cross Comparison of Operating Models (Marketplace, Pureplay and Omnichannel) on the basis of Delivery Time, Inventory, Gross Margin, Product Assortment, Product Replenishment, Players, Advantages & Disadvantages

Revenue Streams of Companies Operating in Marketplace, Pureplay and Omnichannel Model

Gaps & Possible Solutions of Managing Logistics

6.  Industry Analysis

Technologies Facilitating Online Grocery Delivery Industry

Upcoming Technologies in Online Grocery Delivery Industry

Features of an Grocery Delivery App

SWOT Analysis

Where does UAE Stands in Comparison to Other Mature Markets (China, UK, India & US)?

7. Competitive Landscape in UAE Online Grocery Market

Competition Scenario and Industry Unit Matrix

Business Landscape of Major Players including Year of Establishment, Business Model, Warehousing Capability,  Most Demanded Product Category, Pick Up Service, Number of Partner Grocery Stores, Suppliers, Hypermarkets, Delivery Fleet, Product Listings, Delivery Charges, Delivery Time, Cancellation Rate & Employees

Performance Matrix of Service Providers

Financial Matrix of Major Players (Approximate Annual Orders, Market Share on the basis of Number of Orders, Market Share on the basis of GMV)

Strengths & Weakness of Service Providers

Investment Activities (Investors, Total Funding Amount, Funding Status and Latest Funding)

Company Profiles (Overview, Product Category, Business Model, Business Strategies, USP, Future Plans, Recent Developments)

  • Carrefour
  • Lulu Hypermarket
  • Instashop
  • Noon.com
  • Kibsons
  • El Grocer
  • Bulkwhiz
  • Amazon
  • Bawiq
  • Talabat
  • Farmbox


8. Future Landscape of UAE Online Grocery Delivery Market

UAE Online Grocery Delivery Market Future Outlook to 2025 on the basis of GMV, Annual Orders and Average Order Size (2019-2025)

Operators to Expand in Dubai & Abu Dhabi and Facilitate Online Payment

What are the Upcoming Product Categories?

9.  Case Study & Analyst Recommendations

How Can Companies Reduce Delivery Time and Delivery Cost?

Key Adoption Points(Personalized Consumer Experience, Introduce Private Labels to Increase Margins, Wallet Based Automated System, Achieving Operational Efficiency, Adopting  Artificial Intelligence , Partner with Food Delivery Companies

How can Companies Promote themselves?

Why and How Subscription & Micro-Delivery Model can be Implemented?

10. Industry Speak

Interview with Amira Rashad, Co-Founder & CEO at Bulkwhiz

11. Appendix

Research Methodology

Disclaimer

Contact Us

License Type Excel Only Single User Single User + Excel Hard Copy Corporate User License
User Sharing Restricted to one authorized user; Open on 1 PC/ mobile / Tablet only. Restricted to one authorized user; Open on 1 PC/ mobile / Tablet only. Restricted to one authorized user; Open on 1 PC/ mobile / Tablet only. Access to Printed Report; No Soft Copy Multiple Users within the Company/ Enterprise
Print Option
Copy Option :Yes :No
Citation Yes (Not Publically; but to Private Parties within the company/ affiliate)
Deliverable Format :via Email :via Email ; :via Email Printed Publication/ Book by Post ; :via Email
Customization 20%
Analyst Time (Post Purchase Queries on Call/ Email)
Disclaimer : In no circumstance, the complete / part of the publication may be resold for monetary terms by the client or any other party related to the client or can be made available on third party website or on Google for general public view.
To know more information on Purchase by Section, please send a mail to support@kenresearch.com

In Depth Analysis of COVID 19 Impact on UAE Online Grocery Delivery Market

Respecting industry experts that are helping companies to survive and to sustain in this economic pandemic. We are working day and night to aid companies in taking rapid-decisions by finding

  • COVID-19 Impact on Online Grocery Delivery, Increase in Number of Orders, Average Order Size, Delay in Delivery, Additional Expenditure incurred by companies on Logistics

  • Strategies adopted by Service Providers during COVID 19

  • Future Impact of COVID-19 on Online Grocery Industry

INQUIRE FOR COVID-19 IMPACT ANALYSIS

Products

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

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


Companies

Companies Covered

Carrefour

Lulu Hypermarket

Instashop

Kibsons

El Grocer

Trolley.ae

Bawiq

Amazon

Noon

Farmbox

Bulkwhiz