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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

UAE Q-Commerce Market 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) > 10.50 %
Market Concentration Medium

Major Players

UAE Q-Commerce Market Major Players

*Disclaimer: Major Players sorted in no particular order

UAE Q-Commerce 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, growing at a CAGR of greater than 10.5% during the forecast period (2024-2029).

The coronavirus pandemic significantly impacted worldwide order management, fulfillment, and distribution operations. A 2020 study found that 40.2% of respondents cited general labor issues or a lack of workers as the pandemic's main labor-related challenge. More than 10% of them also noted one of the difficulties the pandemic brought about was managing a rising volume of returns.

The primary focus of q-commerce is on micro to lower quantities of a select few commodities, such as food, medications, personal care items, and stationery. Q-commerce refers to "on-demand delivery" and "e-grocery" interchangeably while focusing on customers' small order sizes. Due to the rising popularity of Q-commerce, online vendors are progressively moving their inventory from traditional, massive warehouses on the outskirts of cities to smaller, closer-to-the-delivery facilities in the UAE. Overall, it can be argued that Q-commerce represents the future of business and online vendors, who will switch from old business models to Q-commerce ones in the coming years. Foreign Q-commerce and E-Commerce, which refers to UAE consumers making purchases outside of the nation, is also growing and is predicted to account for 32% of all e-commerce sales in 2025, up from 23% in 2019 and 26% in 2018. According to statista.com, a global provider of market research, the corresponding amount for q-commerce in the region is predicted to increase from USD 9 billion in 2020 to USD 20 billion by 2024. In 13 nations, including the UAE, Algeria, Egypt, Iran, Israel, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, and Tunisia, the report polled an unspecified number of respondents.

UAE Q-Commerce Industry Segmentation

Fast on-demand delivery of consumer orders is a key component of the Q-commerce, or quick commerce, economic business model. It is a more recent version of the business model and delivers desired things within an hour of the order being placed. With the advantages of both conventional e-commerce and advancements in last-mile delivery, it can be referred to as e-commerce in a new and faster form. 

The Q-commerce industry is segmented by category (food, personal care, grocery products, household goods, pharmaceuticals, and other categories) and by Emirates (Abu Dhabi, Dubai, Sharjah, rest of UAE). 

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
By Emirates
Abu Dhabi
Dubai
Sharjah
Rest of UAE
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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 DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Market Opportunities

    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 COVID-19 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

    2. 2.2 By Emirates

      1. 2.2.1 Abu Dhabi

      2. 2.2.2 Dubai

      3. 2.2.3 Sharjah

      4. 2.2.4 Rest of UAE

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 greater than 10.5% 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)