Online Food Delivery - United Arab Emirates

  • United Arab Emirates
  • The Online Food Delivery market in the United Arab Emirates is forecasted to reach a revenue of US$1,122.00m by 2024.
  • It is anticipated that the market will experience an annual growth rate (CAGR 2024-2029) of 3.78%, leading to a projected market volume of US$1,351.00m by 2029.
  • In the Grocery Delivery market, a revenue growth of 7.6% is expected in 2025.
  • The projected market volume for Grocery Delivery in the United Arab Emirates is estimated to be US$1,086.00m in 2024.
  • In comparison to other countries, China is expected to generate the highest revenue, with US$450.50bn in 2024.
  • The average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$373.00 in 2024.
  • In the Grocery Delivery market, the number of users is expected to reach 3.5m users by 2029.
  • The user penetration in the Grocery Delivery market is estimated to be 30.4% in 2024.
  • The online food delivery market in the United Arab Emirates is experiencing a surge in demand due to the convenience and safety it offers to consumers.
 
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Analyst Opinion

The Online Food Delivery market in United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences:
Customers in the UAE are increasingly turning to online food delivery services due to their convenience and time-saving benefits. With a busy lifestyle, many consumers are looking for quick and easy meal options that can be delivered directly to their doorstep. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as consumers are hesitant to dine out and are looking for safe alternatives.

Trends in the market:
One of the major trends in the online food delivery market in the UAE is the rise of cloud kitchens. These are delivery-only restaurants that operate without a physical storefront, allowing them to save on overhead costs and offer more affordable prices to customers. Another trend is the growing popularity of healthy food options, with many online food delivery platforms offering a wide range of healthy meal choices.

Local special circumstances:
The UAE has a large expat population, which has resulted in a diverse culinary landscape. Online food delivery platforms have capitalized on this by offering a wide range of international cuisine options to cater to the diverse tastes and preferences of consumers. Additionally, due to the hot climate in the UAE, there is a high demand for cold and refreshing drinks, which has led to the popularity of smoothie and juice delivery services.

Underlying macroeconomic factors:
The UAE has a strong economy and a high per capita income, which has led to a growing middle class with disposable income to spend on food delivery services. Additionally, the government has been supportive of the online food delivery industry, with initiatives to streamline the licensing process for food delivery businesses and promote entrepreneurship in the sector. The country's high smartphone penetration rate has also contributed to the growth of the online food delivery market, with many consumers using mobile apps to order food.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

Overview

  • Revenue
  • Analyst Opinion
  • Users
  • Global Comparison
  • Methodology
  • Key Market Indicators
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