Global News and Digital
Insights for the Food and Grocery Industry

February 14, 2021

Grocery is now the best performing category in UAE’s online shopping universe

In 2019, online grocery was worth just $300M out of total online sales of $3.5B in UAE. In 2020, online grocery sales were forecast to cross $1B mark, which would be approx. 20% of the country’s total online sales of $5B. The key drivers for this shift include the impact of Covid-19, streamlined delivery times by online grocers and increased choice with new entrants in the market.

Covid-19 will increase dependence on localised supply chain

During the pandemic, worldwide searches for ‘food delivery’ and ‘local food’ reached all time high last year on Google. However, in Britain, for example, just 17% of fruit and half of vegetables are grown locally. Rest comes from international trade. The average storage capacity of a supermarket is only one day’s worth of fresh products. Post-Covid, this supply chain will need a buffer – access to local fresh produce when international supply is disrupted. Local systems with fewer steps between grower and consumer can also support more organic and sustainable farming.

Grocery is now the best performing category in UAE’s online shopping universe

In 2019, online grocery was worth just $300M out of total online sales of $3.5B in UAE. In 2020, online grocery sales were forecast to cross $1B mark, which would be approx. 20% of the country’s total online sales of $5B. The key drivers for this shift include the impact of Covid-19, streamlined delivery times by online grocers and increased choice with new entrants in the market.

Covid-19 will increase dependence on localised supply chain

During the pandemic, worldwide searches for ‘food delivery’ and ‘local food’ reached all time high last year on Google. However, in Britain, for example, just 17% of fruit and half of vegetables are grown locally. Rest comes from international trade. The average storage capacity of a supermarket is only one day’s worth of fresh products. Post-Covid, this supply chain will need a buffer – access to local fresh produce when international supply is disrupted. Local systems with fewer steps between grower and consumer can also support more organic and sustainable farming.