UAE Online Grocery Delivery Market to Surge at a CAGR of Around 12.60% During 2025-30

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UAE Online Grocery Delivery Market Overview, Trends, Size and Forecast: 2025-2030

The UAE Online Grocery Delivery Market size was valued at around USD3.3 billion in 2024 and is projected to reach USD6.73 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 12.60% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The market growth is driven by several growth factors, including the rapid shift towards digitalization, the widespread expansion of e-commerce, the active government support through significant investments and implementation of various policies, the adoption of technological advancements such as artificial intelligence and machine learning, and the growing strategic partnerships between the local producers and the online delivery platforms, etc.

One of the major growth factors is the high remittance and increasing expat population in the country, especially in cities like Abu Dhabi, Sharjah, and Dubai, which make up more than 90% of the total UAE population. These individuals have increased the demand for online shopping, including grocery shopping, due to busy work lives and tight schedules, thus contributing to the market growth & expansion. Additionally, the UAE government is actively supporting this market through heavy investment and implementing policies like the strategy for digitalization, e-commerce initiatives, etc., to increase the expansion of e-commerce in the country. These efforts are offering lucrative opportunities to the market players.

Moreover, the development of technological innovations, including artificial intelligence and machine learning, is transforming this market, as various delivery platforms are integrating with these technologies to increase their efficiency and improve their deliveries. These integrations enable customer satisfaction through the recognition of the customers' previous shopping patterns, allocation of delivery riders, etc. However, the increased number of cyberattacks in the country due to the exposure of personal details on these platforms is adversely affecting the market growth, further states the research report, “UAE Online Grocery Delivery Market Analysis, 2025.”

UAE Online Grocery Delivery Market Segmentation Insights:

Mobile Apps Are Preferred by Most Consumers as a Distribution Channel

Based on the distribution channel, the market is further segmented into Mobile Apps, Websites, Third-Party Aggregators, and Direct Retailer Platforms. Out of these, the mobile apps are dominating the distribution channels segment in this market and hold more than 90% of the market share. These are dominating due to the high acceptance of smartphones in the country. 99% of the UAE individuals who use smartphones with high accessibility to the internet are contributing to the market growth. Additionally, the convenience related to online shopping through mobile applications, due to their handy nature, is increasing their dominance in the market. For instance, approximately 90% of the total online orders being placed in the UAE are through mobile applications only.

Several platforms, such as Deliveroo, Careem Now, etc., are putting strategic efforts into improving their mobile-based shopping interfaces to reach a wider audience. These factors show the dominance of mobile apps among the distribution channels.

Fresh & Perishables Segment Holds the Largest Market Share

The fresh & perishable products are dominating the market with a significant market share of around 52%. These are leading due to high customer demand for fresh produce and perishable food items like vegetables, fruits, meat, eggs, and dairy products. It is because of the home-based cooking culture in the UAE, which increases the demand for fresh products in the country. As a result, the fresh food items are being ordered in the highest fraction through these delivery platforms. Additionally, the rising health consciousness among the local people is increasing their preference for healthy, organic, and fresh food items.

Moreover, the retailers of fresh products like indoor farms, such as Bustanica, are actively collaborating with the online delivery platforms to increase their reach to a wider audience in the country effectively, thus contributing to the dominance of fresh & perishables among all the product types.

Top Companies in the UAE Online Grocery Delivery Market

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading UAE Online Grocery Delivery Market companies, including Careem NOW, Deliveroo UAE, Talabat, Zomato UAE, Carriage, Amazon UAE, Quiqup, HungerStation, Instashop, Carrefour UAE, LuluHypermarket, Kibsons, El Grocer and others, are looking forward to increase their market size & share.

Key Questions Answered in the Research Report

1. What is the scope, size, value, and forecast of the UAE Online Grocery Delivery Market?
2. What is the volume and share of each segment in the UAE Online Grocery Delivery Market?
3. What are the key trends shaping the UAE Online Grocery Delivery Market from 2025 to 2030?
4. What growth factors and risks impact the UAE Online Grocery Delivery Market?
5. What are the main challenges faced by players in the UAE Online Grocery Delivery Market?
6. What are the top opportunities in the UAE Online Grocery Delivery Market?
7. What does competitive analysis reveal about the UAE Online Grocery Delivery Market landscape?
8. Who are the key players and companies leading the UAE Online Grocery Delivery Market?
9. What innovations are transforming the future dynamics of the UAE Online Grocery Delivery Market?
10. How are partnerships and collaborations driving the UAE Online Grocery Delivery Market growth?
11. How does the UAE Online Grocery Delivery Market differ based on geography and segments?