Grocery market in the UAE

The UAE Grocery eCommerce market is predicted to reach US$866.1 million by 2024 and accounts for 15.6% of the total eCommerce market in the United Arab Emirates. It is expected to increase over the next years. The expected compound annual growth rate for the next four years (CAGR 2024-2028) will be 20.0%, resulting in a projected market volume of US$1,798.6 million by 2028. Within the Grocery market ECDB considers the following two sub-markets: Food and Beverages.

Market development

eCommerce revenue development in the Teas & Other Hot Drinks market in the UAE

The UAE Teas & Other Hot Drinks eCommerce market is predicted to reach US$21.6 million by 2024 and accounts for 41.1% of the Hot Drinks eCommerce market in the United Arab Emirates. It is expected to increase over the next years. The expected compound annual growth rate for the next four years (CAGR 2024-2028) will be 18.4%, resulting in a projected market volume of US$42.4 million by 2028. The Teas & Other Hot Drinks eCommerce market is a sub-market of the Hot Drinks market. Further categories within the Hot Drinks market are: Coffee.

eCommerce revenue development in the Teas & Other Hot Drinks market in the UAE

in million US$

Note: Market revenue represents B2C sales of physical goods including VAT. It excludes B2B sales, C2C sales, returns, compensation for damaged or missing goods, any discounts granted and services. Data shown is using current exchange rates.

Source: ECDB analysis

eCommerce revenue growth in the Teas & Other Hot Drinks market in the UAE

in %

Note: Market revenue represents B2C sales of physical goods including VAT. It excludes B2B sales, C2C sales, returns, compensation for damaged or missing goods, any discounts granted and services. Data shown is using current exchange rates.

Source: ECDB analysis

Net eCommerce revenue split by sub-category

in %

Note: Data shown is using current exchange rates.

Source: ECDB analysis

20202021202220232024202520262027
Revenue (in mUS$)0.00.00.00.00.00.00.00.0
Growth (in %)46.913.245.969.773.984.54.213.2

Online share

eCommerce online share of the total Teas & Other Hot Drinks market in the UAE

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the UAE Teas & Other Hot Drinks retail market, the online share is 6.1% and will increase by an average of 35.0% to 20.2% by 2028.

eCommerce online share of the total Teas & Other Hot Drinks market in the UAE

in %

Note: Data shown is using current exchange rates.

Source: Statista Market Insights , ECDB analysis

20202021202220232024202520262027
Online share (in %)20.9%16.7%92.2%80.3%40.0%51.3%58.0%34.0%

Market definition

Definition of the Teas & Other Hot Drinks market within the Grocery market

Market definition: Grocery > Beverages > Non-Alcoholic Beverages > Hot Drinks > Teas & Other Hot Drinks The category Teas & Other Hot Drinks includes the online trade of tea (e.g. loose leaf tea, tea bags, instant tea) and cacao. This category does not cover health teas (e.g. bladder tea, kidney tea), tea accessories (e.g. tea infusers, teapots and kettles, tea cups and mugs) or tea sweeteners and additions (e.g. sugar, milk or cream). All monetary figures refer to the annual gross revenue and do not factor in shipping costs.

In-scope

  • Tea (e.g. loose leaf tea, tea bags, instant tea)
  • Cacao

Out-of-scope

  • Health Teas (e.g. bladder tea, kidney tea)
  • Tea accessories (e.g. tea infusers, teapots and kettles, tea cups and mugs)
  • Tea sweeteners and additions (e.g. sugar, milk or cream)

Market comparison

The UAE Teas & Other Hot Drinks market in a global comparison

Market comparison by growth, online share, and revenue in 2023

in %

Source: ECDB analysis