ABU DHABI: UAE consumers maintained robust spending patterns during the third quarter of FY2024, collectively investing $3.7 billion (AED13.57 billion) in Fast-Moving Consumer Goods (FMCG), Technology, and durable goods, marking a 4.8 per cent increase compared to the same period last year.
According to the latest insights from the NielsenIQ Retail Spend Barometer, UAE shoppers spent $2.1 billion on FMCG products in third quarter of FY2024, achieving a 6.4 per cent increase compared with the same period last year.
Tech & durables
Tech & durables followed suit, with sales reaching $1.5 billion, marking a 2.5 per cent year-on-year growth, demonstrating the market’s continued resilience and adaptation to evolving consumer needs.
NielsenIQ (NIQ) is the world’s leading consumer intelligence company, and in 2023, the company combined with GfK, to bring together the two industry leaders.
The NIQ Retail Spend Barometer by GfK intelligence provides a complete overview of UAE spending for the FMCG sector (beverages, fresh food, healthcare, personal care, baby care) and the T&D sector (technical consumer goods, household appliances and DIY).
This cross-category and cross-channel overview is based on real sales data and is published every quarter to illustrate household spending priorities.
The FMCG sector showed a significant boost in growth, climbing from 3.2 per cent in Q3 2023 to 6.4 per cent in Q3 2024. This positive trend was also observed in Q2 2024, although Q1 saw a decline, with growth dropping from 9.4 per cent in 2023 to 3.5 per cent in 2024.
Similarly, Tech & durables faced a slower growth trajectory, with the rate decreasing from 7.7 per cent in Q3 2023 to 2.5 per cent in Q3 2024, reflecting a shift in consumer dynamics within the sector.
Consumer spending trendsÂ
The growth of new communities across the UAE has catalysed the rise of convenience retail, with consumers making more frequent, smaller shopping trips. This shift in shopping behavior has been accompanied by an increasing preference for healthier and sustainable products, as well as the rapid adoption of online and QuickCommerce grocery shopping platforms, particularly among younger, tech-savvy consumers and busy professionals.
