Market Overview

The UAE online grocery market size reached USD 3,426.4 Million in 2024 and is expected to grow to USD 18,353.4 Million by 2033. The market exhibits a robust growth rate of 20.50% during the forecast period 2025-2033. Growth is propelled by convenience, busy lifestyles, expanding e-commerce infrastructure, rapid urbanization, and heightened smartphone penetration. COVID-19 induced changes in shopping behavior further accelerated the transition to online grocery retail. The market is characterized by tech-savvy consumers favoring mobile shopping, with smartphones playing a central role in purchasing.

How AI is Reshaping the Future of UAE Online Grocery Market:

  • AI-driven personalization enhances customer experience by tailoring product recommendations based on individual preferences, improving engagement and sales.
  • Automated inventory management systems utilizing AI reduce stockouts and overstock, optimizing supply chains amid rapid market growth.
  • AI-powered chatbots and virtual assistants improve customer service efficiency, handling queries and orders seamlessly on app- and web-based platforms.
  • Machine learning algorithms analyze consumer behavior trends, enabling retailers to adjust strategies swiftly in response to evolving demand.
  • Integration of AI with mobile shopping apps leverages the dominance of smartphones, facilitating seamless and intuitive grocery shopping.
  • Smart delivery logistics powered by AI optimize routes and delivery schedules, improving express delivery options evidenced by companies like Almaya Group.

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Market Growth Factors

The rising penetration of e-commerce is fueling the UAE online grocery market. Reports from the UAE National Bureau of Statistics highlight that citizens and residents increased e-commerce spending by 46% in 2020, indicating a shift towards digital retail convenience. The surge in demand is supported by the availability of numerous grocery stores on online platforms, catering to consumers with busy lifestyles. Enhanced internet connectivity and widespread smartphone adoption have made online shopping easily accessible, marking a transformative shift in consumer behavior favoring digital grocery shopping.

Mobile shopping remains a dominant growth driver in the UAE online grocery sector. According to VISA MIDDLE EAST, 65% of UAE consumers used smartphones during their most recent retail journeys, underscoring mobile devices' critical role in online grocery experiences. Retailers prioritize mobile-friendly interfaces and apps to cater effectively to this preference, recognizing that easy browsing and purchasing on smartphones significantly drives consumer transactions. This mobile dominance compels market players to innovate and optimize their digital platforms for seamless usability.

There is an escalating demand for fresh, organic, and locally sourced food products online. A Research Gate survey found a 76% increase in awareness about organic food consumption, reflecting growing health and environmental consciousness among consumers. Online outlets expanding their offerings to include fresh and organic products distinguish themselves in the competitive landscape. This trend leverages consumer preferences towards healthier choices, providing retailers with advantages in attracting and retaining health-aware customers in the UAE’s fast-evolving grocery market.

Market Segmentation

Product Type:

  • Vegetables and Fruits
  • Dairy Products
  • Staples and Cooking Essentials
  • Snacks
  • Meat and Seafood
  • Others

Business Model:

  • Pure Marketplace
  • Hybrid Marketplace
  • Others

Platform:

  • Web-based
  • App-based

Purchase Type:

  • One-Time
  • Subscription

Regions:

  • Dubai
  • Abu Dhabi
  • Sharjah
  • Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent Developement & News

  • February 2025: Deliveroo UAE announced robust growth in its on-demand grocery sector, with a significant increase in grocery order volumes across the UAE, reflecting rising consumer demand for fast and convenient grocery delivery solutions.
  • March 2025: Government and education bodies collaborated on digital literacy initiatives promoting e-commerce adoption, supporting online grocery market expansion through enhanced consumer confidence and broader internet accessibility.
  • July 2025: Almaya Group launched express delivery options across Abu Dhabi and Dubai, addressing busy lifestyle demands by ensuring essential items reach customers’ doorsteps faster, boosting the online grocery market’s service efficiency.

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