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It’s quality over bargains for UAE consumers in 3Q: UAE consumers displayed a preference for high quality products over cheap ones, with 72% of shoppers in 3Q 2024 stating that they are willing to pay more for quality products and actively seeking promotions for their preferred brands, according to a report from consumer intelligence company NielsenIQ. The preferences are consistent with data from 1H 2024 which signaled a preference among consumers in the country for superior products and convenience over pricing.
FMCG market shows polarization: The fast-moving consumer goods market recorded a 4.1% growth in value and 2.8% growth in volume in the 3Q moving annual total, with frozen food and dairy standing out as growth leaders. The country’s market showed polarization between affordable brands, which grew by 15%, and premium brands, which achieved 20% growth in this quarter. Traditional trade in the UAE surpassed modern trade with a 6.4% growth rate during this period. Meanwhile, e-commerce continued its robust double-digit growth, particularly in non-food categories.
The tech and durables sector achieved 2.8% growth in 3Q 2024 due to solid performance in media tablets, smartwatches, and home appliances. This market produces 45k active products and 19k new product launches annually, with the telecom sector leading growth and contributing significantly to total revenues. Premium products dominate sales, though value players are increasingly gaining market share.
Price reductions and promotions are rising: The country experienced a four percentage point increase in temporary price reductions in this quarter compared to last year, along with slightly improved promotion efficiency rates.
