UAE Online Shopping Boom to Hit $17 Billion by 2025

The UAE's e-commerce market is on track for explosive growth, reaching a staggering $17 billion by 2025, according to a new report by leading quick-commerce (QC) platform YallaHub.

This boom is fueled by rising internet penetration, smartphone adoption, and a growing preference for convenient and fast online shopping experiences.

The market is expected to surge significantly in the coming years, with revenue projected to reach $9 billion by 2024, boasting a market penetration of 66.1% and a Compound Annual Growth Rate (CAGR) of 6.54% from 2024 to 2028.

Quick commerce, a rapidly emerging segment, is anticipated to reach $162 million by 2024, further accelerating the overall market growth.

"Buy now, pay later" options are expected to become increasingly popular, with nearly 90% of sellers offering this payment method by 2024. Additionally, the "metaverse e-commerce" segment is poised for significant expansion, with a projected growth of 37% from 2024 to 2030.

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Toys, DIY, hobbies (29%), fashion (27%), electronics and media (18%), food and personal care (13%), and furniture and appliances (12%) were the leading e-commerce segments by market share in 2023.

Notably, the online home and laundry care products market has witnessed a remarkable surge in demand, with consumers readily purchasing these items on e-commerce platforms.

"The online home and laundry care goods market has seen significant demand among UAE residents. Our data suggests that consumers readily purchase these products on e-shops and online platforms, without needing to visit physical stores," shared Leo Dovbenko, CEO and co-founder at YallaHub.

Home and laundry care revenue is projected to reach $75.66 million by 2024, with market penetration increasing to 7.3% in 2024 and 8.2% by the end of 2028. The user base is expected to reach 0.8 million by the end of 2028.

Similar growth is anticipated for the e-commerce market for tissue and hygiene care products, which is expected to reach $19.41 million by the end of 2024. The user base is forecasted to grow to 1.6 million people by the end of 2028, with a CAGR of 11.41% through 2024-2028.

The e-commerce hair care market is also showing promising growth, with a projected revenue of $50.47 million, 1.1 million user penetration, and $47.1 APRU by the end of 2024.

The MENA region's e-commerce market mirrors this growth, expected to reach $57 billion by 2026. YallaHub, with its cutting-edge technology and regional expertise, is well-positioned to capitalize on this opportunity.

Leo Dovbenko, CEO at YallaHub said: "We empower brands to navigate the exciting and ever-evolving e-commerce landscape. In particular, we help brands reach new customers, deliver faster, and stay ahead of the curve with our advanced technologies and deep understanding of the region.”

The report underscores the immense potential of the UAE's e-commerce market. Brands that adapt to evolving consumer preferences and embrace innovative solutions like quick commerce are poised to thrive in this dynamic and rapidly growing sector.

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