UAE Online Grocery Market Overview

Market Size in 2024: USD 3,426.4 Million

Market Size in 2033: USD 18,353.4 Million

Market Growth Rate 2025-2033: 20.50%

According to IMARC Group’s latest research publication, “UAE Online Grocery Market Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033," the UAE online grocery market size reached USD 3,426.4 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 18,353.4 Million by 2033, exhibiting a growth rate (CAGR) of 20.50% during 2025-2033.

How AI is Reshaping the Future of UAE Online Grocery Market 

• AI-Powered Personalization: AI algorithms on platforms like Noon Grocery in Dubai analyze shopping habits to recommend tailored products, boosting basket sizes by 25% amid UAE's $2.97 billion online grocery market.
• Predictive Inventory Management: Machine learning forecasts demand for fresh produce at Carrefour UAE, reducing waste by 20% and ensuring 95% stock availability during peak Expo 2030 tourism surges.
• Chatbot-Enhanced Customer Service: AI chatbots handle 60% of queries on Talabat Mart, cutting response times by 40% and improving satisfaction for 65% of UAE's mobile shoppers.
• Dynamic Pricing Optimization: AI tools adjust prices in real-time based on supply and demand, increasing margins by 15% for organic items in Abu Dhabi's health-focused retail segment.
• Supply Chain Automation: AI-driven logistics at Instashop streamline deliveries, shortening times by 30% across the Emirates, aligning with the 29.18% CAGR growth to $6.87 billion by 2032.

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UAE Online Grocery Market Trends & Drivers:

Digital platforms propel 40% of UAE online grocery growth, with apps like Noon Grocery driving $2.97 billion in sales through AI-powered recommendations. Dubai and Abu Dhabi lead, as Expo 2030 boosts demand by 30% among expatriates. This trend enhances accessibility, cutting delivery costs by 20% for 70% of retailers, aligning with 98% mobile penetration and positioning the UAE as a hub for tech-driven grocery retail amid rising urban consumer needs.

Health-conscious and sustainable shopping fuels 35% market expansion, with UAE’s Green Agenda promoting organic and locally sourced products, reducing import reliance by 15%. Retailers like Carrefour offer eco-friendly packaging, appealing to 60% of millennials prioritizing clean labels. Government incentives, including $500 million for agri-tech, support vertical farming, fostering innovation and aligning with global wellness standards in the UAE’s $6.87 billion projected market by 2032.

Urbanization and tourism drive 30% demand surge, with the online grocery market backed by 15 million annual visitors. Dubai’s infrastructure projects and $2.8 trillion GCC wealth fuel instant delivery needs, with 65% of orders for fresh produce and ready meals, supported by 29.18% annual growth. Unified logistics policies enhance last-mile efficiency, positioning the UAE as a leader in seamless online grocery experiences for diverse populations.

UAE Online Grocery Industry Segmentation:

The report has segmented the market into the following categories:

Product Type Insights:

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

Business Model Insights:

• Pure Marketplace
• Hybrid Marketplace
• Others

Platform Insights:

• Web-based
• App-based

Purchase Type Insights:

• One-Time
• Subscription

Regional Insights:

• 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 News and Developments in UAE Online Grocery Market

• September 2025: YouGov survey reveals 40% of UAE shoppers prioritizing wellness products online weekly, boosting platforms like Noon Grocery amid health-focused e-commerce trends.
• June 2025: IMARC Group projects UAE online grocery market to grow at 20.5% CAGR through 2033, driven by convenience demands and digital adoption among 8.2 million urban consumers.
• April 2025: Deliveroo UAE reports 25% surge in on-demand grocery orders, expanding partnerships with local suppliers to meet rising demand for fresh produce in Dubai and Abu Dhabi.
• January 2025: Capillary Tech highlights online grocery sales reaching 30% of e-commerce revenue, fueled by AI personalization and hybrid shopping models in UAE's competitive retail landscape.

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