UAE Online Grocery Delivery Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: UAE Online Grocery Delivery Market (2025-30):

The UAE Online Grocery Delivery Market size was valued at around USD 3.3 billion in 2024 and is projected to reach USD 6.73 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. The UAE Online Grocery Delivery Market is significantly growing due to several growth factors, including the rapid inclination towards digitalization, the expansion of e-commerce, the government support through heavy investments, the adoption of latest technologies like AI, and the rising partnerships of local farms with online delivery platforms etc. One of the most prominent growth factors is the growing expat population in the country, which is increasing the online grocery delivery due to their busy lifestyles and long working hours. For instance, more than 90% of the total population is outsiders, residing mostly in cities like Dubai, Sharjah, and Abu Dhabi.

Additionally, the rising governmental efforts to support the e-commerce expansion in the country through various policies, such as the UAE e-commerce Strategy (2021), which aims to make the UAE a regional e-commerce hub by the end of 2030 in the MENA region. These strategies are offering lucrative growth opportunities to the market players in the Online Grocery Delivery Industry.

Moreover, the widespread adoption of the latest technological innovations, such as artificial intelligence, and their integration with various delivery platforms to increase their efficiency for customer satisfaction through the recognition of the customers' previous shopping patterns, allocation of delivery riders, etc. These factors are positively transforming the market. 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 & expansion.

UAE Online Grocery Delivery Market Scope:

UAE Online Grocery Delivery Market Driver:

Growing Shift Towards Digitalization – The market growth is driven by the rapid shift towards digitalization in the country for smooth remote operations. This has increased the online grocery delivery in the UAE due to related convenience of online deliveries. It is due to the high adoption of smartphones and internet penetration in the country. For instance, about 99% of the UAE population has smartphones and uses the internet regularly. Consequently, the e-commerce penetration has increased in the country. As per the Dubai Chamber of Commerce & Industry (2025), the e-commerce penetration in the UAE is projected to generate about USD8 billion in revenue by the end of 2025, supporting the market growth & development. This has increased the demand for online grocery delivery in the country, thus contributing to the market growth. Additionally, the rising adoption of cashless digital payments is further driving market demand.

UAE Online Grocery Delivery Market Opportunity:

Rising Government Support for E-commerce Expansion – The increasing support of the UAE’s government for the expansion of e-commerce is providing ample growth opportunities in the UAE Online Grocery Delivery Market. For instance, the government has launched the Digital Economy Strategy 2031, which aims to encourage digital economic diversification in the country and to avoid the oil & gas dependence of the country. Similarly, the government has launched a new e-commerce law (2023), which enables the smooth business operations of the online grocery delivery companies by setting easier rules.

Additionally, the government has launched free zones, such as the Dubai CommerCity (2021), DUQE (2022), etc., in the country, which offer 0% corporate tax, full foreign ownership, and access to advanced logistics & digital systems, making it suitable and accessible for online grocery business operators, thus generating a positive business environment for the market players of Online Grocery Delivery Industry.

UAE Online Grocery Delivery Market Challenge:

Online Frauds & Cyberattacks Hindering Market Expansion – The market is facing challenges of cyberattacks due to digitalization and the sharing of personal data by customers on delivery applications. This results in ransomware attacks, and companies experience significant losses due to these attacks. For instance, as per the Cyber Security Council (2024), the ransomware attacks in the UAE have increased by almost 31% as compared to the previous year, which is highly concerning.

Additionally, the formation of fake websites and fake message alerts is increasing on these online grocery delivery platforms, which are adversely hindering the market growth & expansion. Moreover, this resulted in lowering the customers’ trust and damaging the brand value and reputation. Furthermore, to solve these problems, the business operators have to make their security stronger, which further increases their investments, thus discouraging small organizations from entering the market, ultimately hampering the market growth & expansion.

UAE Online Grocery Delivery Market Trend:

Integration of AI in Delivery Platforms – The integration of the latest technologies, like artificial intelligence, in online grocery delivery platforms is gaining momentum in the market. This integration is advantageous due to the recognition of shopping patterns, suggesting the latest trends, optimizing delivery routes, and improving customer satisfaction. Additionally, AI lowers operational costs for companies, thus increasing market size & volume.

Several online grocery delivery companies, such as Talabat, Careem Now, Deliveroo UAE, etc., are using AI features in their platforms to provide online grocery delivery services effectively. For instance, Talabat introduced AI in 2023 for the easy online delivery of groceries in the country. Similarly, the internal AI system of Deliveroo, called Frank, is used for order batching, real-time optimization, and rider allocation. These launches are upgrading this market and showing a bright prospect for the market players.

UAE Online Grocery Delivery Market (2025-30): Segmentation Analysis

The UAE Online Grocery Delivery Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Product Type:

• Fresh & Perishables
  • Fruits & Vegetables
  • Dairy & Eggs
  • Meat & Sea Food
• Snacks & Beverages
• Ready-to-Eat
• Personal Care

Out of these, the fresh & perishables hold the largest market share of about 52%. The dominance is due to the high customer preference for fresh and perishable food items, due to the home-based cooking culture in the UAE, which has increased the demand for faster online deliveries within one hour. Additionally, the UAE citizens are inclining towards healthy fresh products, such as organic fruits, lean meat, and vegetables, thus increasing the size & volume of this segment in the Online Grocery Delivery Industry.

Many retailers are making strategies to increase the online supply of fresh food items through partnerships with online delivery platforms. For instance, in 2025, a delivery platform, Careem Now, collaborated with an indoor vertical farm in the UAE called Bustanica to deliver online the organic and locally grown leafy herbs and greens through the Careem Now app. Similarly, a B2B agritech local delivery platform in the UAE partnered with almost 200 farms to deliver fresh food items to the customers, thus contributing to the dominance of fresh & perishables in this market.

Based on Distribution Channel:

• Mobile Apps
• Websites
• Third-Party Aggregators
• Direct Retailer Platforms

Among these, the mobile apps are the leading distribution channel in this market, accounting for more than 90% of the market share. The mobile apps are dominating due to the high smartphone penetration in the UAE, which is about 99%. Mobile apps are more convenient for faster order placing at any time and place in the country. On average, almost 90% of all the orders placed in the country are through mobile applications, thus showing their dominance in the Online Grocery Delivery System.

Platforms like Deliveroo, Talabat, etc. are improving their services to ensure mobile-friendly behavior. For instance, the Deliveroo app launched its hop service in 2022, which has increased the mobile ordering experience by integrating micro-fulfilment visibility into the application. These factors show the dominance of mobile apps among the distribution channels.

Top Online Grocery Delivery Companies in the UAE Market: Players, Analysis & Future Outlook

The leading Online Grocery Delivery Companies in the UAE, including Careem NOW, Deliveroo UAE, Talabat, Zomato UAE, Carriage, Amazon UAE, Quiqup, HungerStation, and others are looking forward to increasing their market size & share.

UAE Online Grocery Delivery Industry Recent Development:

• 2025:  Deliveroo UAE expanded its fast grocery delivery service, *Hop*, to Abu Dhabi after launching it in Dubai. They also added a new feature in the app that lets users add grocery items to their regular food orders. This makes shopping more convenient. Deliveroo partnered with well-known stores like Choithrams to offer a wider range of groceries, helping customers get both meals and daily essentials delivered quickly in one order.
• 2025: Talabat fully bought InstaShop, adding over USD630 million to its grocery sales. Now, groceries make up about one-third of Talabat’s total sales. This move helped the company grow in the online grocery market.

Gain a Competitive Edge with Our UAE Online Grocery Delivery Market Report

1. UAE Online Grocery Delivery Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. UAE Online Grocery Delivery Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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