May 03, 2021 / By / in Essentials
Online grocery shopping in UAE is set for a tremendous growth by 2025 after registering a growth rate of 38% between 2016 and 2019. A high internet penetration and an increase in the size of working population have led to an impressive growth in e- grocery services in UAE. The online grocery shopping demand is expected to grow with a CAGR of 34% between 2019 and 2025. Reports of Ministry of Economy say that online consumption is expected to increase to more than $19.77 million in 2020.
Though online shopping registered a never before growth in the pandemic days as more people are avoiding crowded places, the trend is likely to stay for a longer time. The average basket size of online orders has increased by 15-20 times during the pandemic. Stay-at-home orders have affected millions of people and changed their retail habits forever. Even traditional retail giants invested heavily to boost their online presence and to ensure their pie in the lucrative online shopping market. This robust uptake of online grocery shopping among consumers is not a passing phase; industry experts believe this could be permanent change in consumer behavior.
Online grocery shopping is one of the fastest growing sectors in most parts of the world including UAE. The dominant millennial community in UAE has made it a highly lucrative market for online grocery. From personalized and smart packaging to subscription based online shopping and more, a lot of innovation is likely to happen in online grocery shopping in UAE.
Online grocers got new customer archetypes including geriatric and sub-urban consumers and to cater to the diverse needs, they expanded the portfolio of products and inventories apart from employing high-tech logistics to expand its network.
Retailers are striving to enhance tie-ups with suppliers and enhance the shopping experience to cater to the customer orders. In the days ahead online grocery shopping will be driven by various technologies like drone delivery, voice ordering and warehouse automation. The customers are all set to get the best selection of products at the most competitive rates as bigger stores may try to consolidate their market presence and reach by partnering with small and medium service providers to enhance door-step delivery to consumers.
E- shopping has ensured the luxury of convenient and easy shopping anytime anywhere for everyone. Shoppers find online grocery shopping a boon, as it will relieve them of the hassles of commute, payment queues and lesser choices. Online grocery shopping in UAE is popular across all age groups especially among the teens and also those in the 25 to 44 age group, considered an influential customer base in e-shopping.
Better deals, quicker delivery, easy return policy and ease of payment have been the major factors influencing customer behavior in online grocery shopping . With an impressive product line that includes food and beverages, cosmetics, baby products, fresh vegetables, fish and meat, dairy products, chocolates and more, the customers can literally shop for everything in house hold grocery needs online.
Online shopping scenario has been unveiling various interesting trends like omnichannel and pureplay operating models and seasonality trends among others. Most shopping apps and online retailers have been incorporating the latest technology to enhance the shopping experience and ensure the most relevant choices that the customer may be looking for.
Online apps provide several grocery services to customers, where they can select their favorite stores and create and manage their own shopping list. UAE’s Telecommunications Regulatory Authority, TRA, has launched a list of apps featuring 22 online grocery stores in the country to cater to the needs of the shoppers during the pandemic.
Food and beverages are the products in most demand followed by household supplies, beauty & health, baby & kids, and fresh food. Online grocery shopping industry has more than 25 players operating across the marketplace, pureplay and omnichannel model.
Online platforms allow consumers to access products details, read reviews and choose from countless items available from different merchants and retailers. Customers get a lot of benefits while shopping online including express delivery, discount deals and shopping points- to list a few. So, if they don’t find a product in a store, they can browse other sites and buy, which may be difficult in conventional retail shopping. Consumers can order from local supermarkets near them or their favorite stores and the grocery delivery service app will deliver their order to their homes.
Consumers can also browse products in multiple outlets, compare prices and choose the best, without even stepping out of their home or office! Online shopping is all set to become part of the life style post pandemic. While it is has made lives of consumers easier, the retailers can save operational costs and overheads like salary, rent, electricity and more. So, it has been a win-win for both the retailers and the shoppers.
The most popular mode of payment has been pre-delivery online payment considering the fact that the customer may not be available at home at the time of delivery and the grocery collection is mostly taken care by the domestic helps. The next popular mode of payment has been card on delivery and cash on delivery.
With several innovations and technological developments on the anvil, online grocery shopping is poised to surge exponentially in the near future. The pandemic might have ushered a new era for online shopping and drastic changes in consumer behavior. But it is all set to be a permanent change in the shopping world. If there is a spending shift that will remain even after coronavirus passes that will indeed be buying grocery online!