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Q-Commerce Industry In UAE Market Size (2024 - 2029)

The Q-Commerce industry in the UAE is experiencing significant growth, with its market size expanding rapidly over the forecast period. This growth is driven by the increasing demand for on-demand delivery services, particularly for small order sizes in categories like food, medications, and personal care items. The shift from traditional large warehouses to smaller, strategically located facilities is a key trend, reflecting the industry's adaptation to consumer preferences. Additionally, the rise of foreign Q-commerce indicates a growing trend of UAE consumers purchasing from international vendors, further contributing to the market's expansion.

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Market Size of Q-Commerce Industry In UAE

Q-Commerce Industry In UAE Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 157.55 Million
Market Size (2029) USD 236.56 Million
CAGR (2024 - 2029) 8.47 %
Market Concentration Medium

Major Players

Q-Commerce Industry In UAE Major Players

*Disclaimer: Major Players sorted in no particular order

Q-Commerce Industry In UAE Market Analysis

The Q-Commerce Industry In UAE Market size is estimated at USD 157.55 million in 2024, and is expected to reach USD 236.56 million by 2029, at a CAGR of 8.47% during the forecast period (2024-2029).

  • The Q-commerce (quick commerce) landscape in the UAE is rapidly evolving. Initially a niche food delivery service, it has now transformed into a multifaceted ecosystem addressing a range of consumer demands. As consumer expectations for speed and convenience rise, platforms are broadening their services beyond just food delivery, paving the way for the future of on-demand services. By 2028, the Quick Commerce market is projected to reach 1.2 million users as per Industry Association.
  • In the United Arab Emirates, shoppers are prioritizing convenience and speed. Quick Commerce companies cater to this demand, frequently delivering orders within an hour. Moreover, the rising trend of online shopping in the UAE has significantly propelled the Quick Commerce market.
  • User penetration is forecasted at 9.2% in 2024, climbing to 11.6% by 2028 as reported by Industry Association. In the United Arab Emirates, the Quick Commerce market is witnessing heightened demand, driven by the nation's dense population and rapid lifestyle.
  • The expanding economy of the United Arab Emirates has given rise to a flourishing consumer market, creating enticing prospects for Quick Commerce companies. Moreover, the UAE government has been a staunch advocate for the Quick Commerce sector, nurturing a favorable regulatory environment. Technological advancements, including AI and IoT, have ushered in innovations like Hyper-Personalization, Adaptive Search and Navigation, and Data-Driven Decision Making.
  • For instance, as reported by Thomson Reuters in October 2024, Industry Association forecasts that AI's economic impact in the UAE could soar to an impressive USD 320 billion by 2031. The UAE National Strategy 2031 outlines a detailed transformation agenda, channeling investments and key initiatives into digitization and AI growth. This AI roadmap is strategically crafted to bolster both the Quick Commerce sector and the broader economy.
  • Moreover, the widespread use of smartphones in the UAE has simplified customer engagement for Quick Commerce firms. According to an Industry Association, the Digital Commerce market is projected to reach 5.65 million users by 2029. Furthermore, data indicates that AI could propel the region's growth rate between 20% and 34% annually.

Q-Commerce Industry In UAE Industry Segmentation

Q-commerce, short for quick commerce, is a specialized branch of e-commerce that emphasizes swift deliveries, typically within an hour. Originating primarily from the food delivery sector, Q-commerce still sees this domain as its dominant player. Central to the Q-commerce model is the rapid on-demand delivery of consumer orders. By harnessing the benefits of traditional e-commerce and innovations in last-mile delivery, Q-commerce stands out as a faster evolution of its predecessor.

The Q-commerce Industry is segmented by category (food, personal care, grocery products, household goods, pharmaceuticals, and other categories). The market size and forecasts are provided in terms of value (USD) for all the above segments.

By Category
Food
Personal Care
Groceries Products
Household Goods
Pharmaceuticals
Other Categories
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Q-Commerce Industry In UAE Size Summary

The Q-Commerce industry in the UAE is experiencing significant growth, driven by the increasing demand for on-demand delivery services and e-grocery solutions. This sector focuses on delivering small quantities of essential goods such as food, medications, and personal care items quickly and efficiently. The shift from traditional large-scale warehouses to smaller, strategically located facilities closer to urban centers is a testament to the industry's evolution. As consumers in the UAE become more work-oriented, the convenience of rapid commerce platforms, which allow for flexible delivery options outside of standard business hours, is becoming increasingly appealing. This transformation is further supported by the rise in digital channel usage, with a notable shift towards online purchasing preferences among consumers.

The market landscape is characterized by a few dominant players, but technological advancements and innovative product offerings are enabling mid-size and smaller companies to expand their market presence. Companies like Ounass.Ae, Amazon.Ae, and Quiqup are leading the charge, with the latter receiving significant funding to enhance its technological capabilities. The industry's growth is also reflected in the increasing participation of foreign Q-commerce and e-commerce, with a substantial portion of e-commerce sales originating from international purchases. Despite the challenges posed by the pandemic, such as labor shortages and return management, the Q-Commerce industry in the UAE is poised for continued expansion, with a focus on integrating digital services and improving financial inclusion.

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Q-Commerce Industry In UAE Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Current Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Tech-Savy Population

      2. 1.2.2 Urbanization and Busy Lifestyles

    3. 1.3 Market Restraints

      1. 1.3.1 Traffic Congestion and Delivery Challenges

      2. 1.3.2 Limited Product Range

    4. 1.4 Market Opportunities

      1. 1.4.1 Expansion into Niche Markets

      2. 1.4.2 Data Driven Insights and Personalization

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights on Consumer Behavior Analysis in the Market

    7. 1.7 Insights on Government Regulations in the Market

    8. 1.8 Impact of Geopolitics and Pandemic on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Category

      1. 2.1.1 Food

      2. 2.1.2 Personal Care

      3. 2.1.3 Groceries Products

      4. 2.1.4 Household Goods

      5. 2.1.5 Pharmaceuticals

      6. 2.1.6 Other Categories

Q-Commerce Industry In UAE Market Size FAQs

The Q-Commerce Industry In UAE Market size is expected to reach USD 157.55 million in 2024 and grow at a CAGR of 8.47% to reach USD 236.56 million by 2029.

In 2024, the Q-Commerce Industry In UAE Market size is expected to reach USD 157.55 million.

Q-Commerce Industry In UAE Report Snapshots

Q-Commerce Industry In UAE Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)