Latest news with #AndreyDvoychenkov
Al Etihad
24-06-2025
- Business
- Al Etihad
UAE consumer spending remains strong despite global challenges
25 June 2025 01:50 KHALED KHAWALDEH (ABU DHABI)The UAE's consumer retail sector is showing remarkable resilience in the face of global inflation, supply chain disruptions, and cost of living concerns, according to two new reports that offer a comprehensive view of evolving shopper behaviours across the region.A recent report by NielsenIQ, a global consumer intelligence company, found that despite economic headwinds, UAE consumers continued to spend robustly in Mid-Year Consumer Outlook: Guide to 2025 report found that from April 2024 to March 2025, consumer spending on technology and durables in the UAE reached $5.3 billion, a 2% year-on-year increase. Fast-moving consumer goods (FMCG) spending also surged by 7%, driven by demand for snacks, beverages, dairy, and frozen food. Personal care categories saw a 6% rise in spending, underscoring the continued appetite for both essential and lifestyle channels have been evolving, the report added. Traditional trade outlets outperformed organised retail in growth, registering a 10% increase compared to 3.2% for modern e-commerce expanded significantly, now accounting for 30% of tech and durables sales and 11% of FMCG sales, up from 9% the previous year. The report said the growing shift towards online platforms mirrors broader digital adoption trends and consumer preference for convenience.'The economic momentum we're witnessing across the Middle East, particularly in the UAE, is a testament to the region's strategic vision and adaptability,' said Andrey Dvoychenkov, General Manager of NielsenIQ APP.'Consumers today are more empowered, informed, and value-driven than ever before. We're seeing strong growth in both premium and value segments, and a rapid evolution in retail channels - especially online.' Changing Shopping HabitsBeneath this resilience, however, lies a layer of consumer caution, as shown in data from Blue Yonder's 2025 Global Consumer Sentiment on Grocery Inflation Survey. The survey, which included respondents from the Middle East among other global regions, found that 85% of consumers globally are concerned about inflation's impact on grocery prices with that figure sitting at 82% for the of the survey respondents identified global tariffs as the primary driver of higher food prices, followed by rising raw material costs and labour growing sensitivity to cost is reflected in changing shopping habits. Almost two-thirds of surveyed consumers globally said they would buy fewer grocery items across categories to manage their budgets, while 42% reported shifting their shopping to discount and wholesale the UAE, similar trends are emerging: consumers are balancing premium aspirations with more value-driven decisions, seeking competitive alternatives while still embracing innovation and quality. 'With most consumers willing to adjust shopping habits in response to grocery inflation and mounting financial pressures, retailers, not just grocers, need to recognise the importance of building trust with shoppers through transparency, targeted promotions, and affordability-first strategies,' said Ben Wynkoop, senior director at Blue Yonder. Source: Aletihad - Abu Dhabi
Arab News
24-06-2025
- Business
- Arab News
Petcare and snacking help Saudi consumer spending remain resilient: NielsenIQ
RIYADH: Consumer spending in Saudi Arabia remained resilient in the year to March, with outlays on low-cost goods rising 3.3 percent, according to a new report by NielsenIQ. The analysis by the consumer intelligence company showed that spending on tech and durables also rose by 0.2 percent. The findings are in line with data recently released by the Saudi Central Bank, which showed that Saudi consumer spending hit an all-time high in March, surging 17 percent to SR148 billion ($39.45 billion) — the highest monthly figure since May 2021 — before easing to SR113.9 billion in April. The trend is further supported by the increased use of digital point-of-sale transactions and rising e-commerce activity through Mada card payments. In NielsenIQ's report, Andrey Dvoychenkov, general manager at the firm, credited the strategic visions and initiatives across the region for helping to drive continued economic momentum. 'We're seeing strong growth in both premium and value segments, and a rapid evolution in retail channels — especially online. For brands, success hinges on relevance, agility, and a deep understanding of consumer expectations,' Dvoychenkov added. The report also revealed that in the UAE spending on so-called fast-moving consumer goods climbed 7 percent, while tech and durables outlays reached $5.3 billion — up 2 percent year on year. Top product trends In Saudi Arabia, category performance pointed to changing consumption priorities. Petcare saw the strongest growth at 10 percent, followed by snacking at 9 percent, while paper products and home care posted declines. The UAE's fast-moving consumer goods growth was driven by higher spending on snacking, beverages, dairy, and frozen foods, with personal care up 6 percent. Growth in tech and durables was led by smartphones, media tablets, vacuum cleaners, and headsets. Retail formats are evolving, with traditional trade channels in the UAE posting 10 percent growth in fast-moving consumer goods — outpacing organized retail at 3.2 percent — while tech and durables growth remained evenly distributed across formats. E-commerce continues to expand, accounting for 30 percent of sales of tech and durables and 11 percent of fast-moving consumer goods in the UAE — up from 9 percent a year ago. In Saudi Arabia, tech and durables e-commerce sales rose 7.7 percent, and fast-moving consumer goods' online share increased by 1.4 percentage points. More choice for consumers NielsenIQ's latest report showed that Saudi Arabia is now home to over 10,500 active brands, up 5 percent year over year, and nearly 100,000 stock keeping units, or SKUs. In the UAE, brand count rose 6 percent to 13,000, with SKUs reaching 130,000. In tech and durables, brand activity expanded 18 percent in the UAE and 21 percent in Saudi Arabia, with both markets seeing SKU growth of more than 50 percent. Consumer spending is increasingly polarized between value and premium segments. Both Saudi Arabia and the UAE recorded double-digit growth in these areas within fast-moving consumer goods. In tech and durables, value-focused categories grew 6 percent in Saudi Arabia and 3 percent in the UAE, underscoring a heightened sensitivity to price and increased availability of cost-effective options. The NielsenIQ's findings backup a 2024 joint report by UAE-based gifting marketplace Flowwow and partner marketing platform Admitad which showed that online order volumes rose by 9 percent in Saudi Arabia and 7 percent in the UAE, highlighting the foundational strength of digital consumer activity in both markets. An analysis of over 6.8 million transactions across the Middle East and North Africa placed Saudi Arabia, the UAE, and Kuwait among the top contributors by gross merchandise value, reflecting high levels of consumer engagement and sustained investment in digital channels. Consumer confidence high Saudi Arabia's growth aligns with continued positive readings in consumer sentiment. The May 2025 Primary Consumer Sentiment Index, released by Ipsos, recorded a score of 72.2, marginally down from 72.4 in April. The Kingdom remains among the top-performing countries globally on key economic indicators, with 64 percent of respondents rating the current economy as strong. Additionally, 40 percent said their personal financial situation is strong, and 77 percent felt more confident about their ability to invest in the future compared to six months ago. Looking ahead, 84 percent expect their local economy to strengthen over the next six months, though confidence in job security has softened slightly, particularly among resident Arab and Asian expatriates. The region's growing economic appeal has intensified competition, particularly in the fast-moving consumer goods sector. As economic growth in the Gulf continues to outpace the global average — 3 percent for Saudi Arabia and 4 percent for the UAE in 2025, compared to 3.2 percent globally — brands face a growing need to adapt strategies to navigate a digitally connected, value-conscious, and increasingly competitive consumer environment.
Mid East Info
23-06-2025
- Business
- Mid East Info
Strong consumer spending and evolving retail landscapes fuel economic resilience in the Gulf - Middle East Business News and Information
Robust consumer spending and diversified retail channels drive UAE and Saudi Arabia's economic momentum UAE market is fragmented between affordable and premium brands, while KSA market is skewed towards mainstream brands with the value players picking up UAE/KSA, June 2025: The Middle East continues to distinguish itself as a global economic outperformer, with the United Arab Emirates and Saudi Arabia leading the charge. While global GDP growth is projected at 3.2% in 2025, the UAE is expected to grow by 4.0% and Saudi Arabia by 3.0%, with further acceleration anticipated through 2027. Consumers across these regions continue to demonstrate strong resilience amid ongoing challenges. This robust performance is underpinned by strategic international partnerships, balancing ties with both BRICS and Western economies, alongside targeted investments in digital transformation and a young, digitally connected population. Consumer Markets Show Resilience Amid Economic Transition: Consumer spending remains strong across both markets, though increasingly value-driven. In the UAE, spending on Tech & Durables (T&D) from April 2024 to March 2025 reached $5.3 billion, marking a 2% year-over-year increase. Key growth categories include Smartphones, Media Tablets, Vacuum Cleaners, and Headsets. The Fast-Moving Consumer Goods (FMCG) sector in the UAE also saw a 7% increase, driven by rising demand for Snacking, Beverages, Dairy, and Frozen Foods, with Personal Care spending up 6%. In Saudi Arabia, growth was more moderate but steady: FMCG rose by 3.3%, and T&D by 0.2%. Notable category gains include Petcare (+10%) and Snacking (+9%), reflecting evolving lifestyle priorities, while Paper Products and Home Care saw declines. Retail Channels Evolve: Value and E-Commerce Gain Ground: Retail dynamics are shifting rapidly. In the UAE, Traditional Trade Channels outpaced Organised Retail, with FMCG growth of 10% versus 3.2%, while T&D saw balanced growth across both. E-commerce continues to expand its footprint. In the UAE, it now accounts for 30% of T&D and 11% of FMCG sales, up from 9% a year ago. In Saudi Arabia, online sales are also rising, with a 7.7% increase in T&D and a 1.4 percentage point gain in FMCG e-commerce share. 'The economic momentum we're witnessing across the Middle East, particularly in the UAE and Saudi Arabia, is a testament to the region's strategic vision and adaptability,' says Andrey Dvoychenkov, General Manager, NielsenIQ APP. 'Consumers today are more empowered, informed, and value-driven than ever before. We're seeing strong growth in both premium and value segments, and a rapid evolution in retail channels—especially online. For brands, success hinges on relevance, agility, and a deep understanding of consumer expectations.' Brand Competition Intensifies in a Crowded Marketplace: The region's economic promise is attracting a surge of global brands. In the FMCG sector, Saudi Arabia now hosts over 10.500 active brands (up 5% YoY), while the UAE features 13,000 brands (up 6%). SKU counts are also rising, with 130,000 SKUs in the UAE and nearly 100,000 in Saudi Arabia. The T&D sector is similarly competitive; the number of active brands has seen great increase with 18% and 21% respectively in UAE and KSA. SKUs have also seen more than 50% growth across both markets. This creates a vibrant but crowded landscape, requiring sharper brand strategies and deeper consumer insights. Premium vs. Value: The Rise of the Strategic Shopper: Middle Eastern consumers are increasingly discerning, balancing premium aspirations with value-driven choices. Both the UAE and Saudi Arabia recorded double-digit growth in premium and value FMCG segments, highlighting a bifurcated market. In T&D, value segments grew 6% in KSA and 3% in the UAE, despite the category's premium lean. This underscores two key trends: the rise of price-conscious decision-making and the growing availability of competitive alternatives. As the Middle East continues its upward trajectory, global brands are positioning themselves to seize the opportunity. But success will depend on a nuanced understanding of the region's evolving consumer landscape—from digital trust and pricing sensitivity to channel dynamics and assortment strategy. About NielsenIQ: NIQ is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together two industry leaders with unparalleled global reach. Our global reach spans over 90 countries covering approximately 85% of the world's population and more than $ 7.2 trillion in global consumer spend. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™.
Mid East Info
22-05-2025
- Business
- Mid East Info
NIQ Unveils Consumer Tech Industry Trends 2025 Report for UAE and KSA region - Middle East Business News and Information
The report explains the driving growth in home entertainment, smartphones, health tech, and workspace tech In the UAE, premium purchases are being boosted overall by higher-income expatriates returning from Russia and foreign tourists to the UAE buying portable tech to take home with them Saudi Arabia's growth in gaming PCs and accessories will continue, driven by the social adoption of e-sports in the country Saudia Arabia (KSA) and the United Arab Emirates (UAE) are priority markets for premium smartphones, TVs, and laptops UAE/KSA, 22 May 2025: NielsenIQ (NIQ), a leading consumer intelligence company, released a Consumer Tech Industry Trends 2025 report, forecasting global Consumer Tech & Durables sales to reach $1.29 trillion – driven by emerging markets, replacement cycles, and premium innovation – in the year ahead. Emerging markets such as the Middle East are leading to global growth. Top 2025 Tech Trends: Strong economic sentiment in specific countries within the Middle East & Africa (MEA) in 2025 will continue to drive the region's overall demand for consumer technology. In 2025, brands selling into the Middle East & Africa must navigate fragmented consumer profiles and a crowded retail landscape. Success will depend on clear brand differentiation and tailored product ranges that balance price and functionality across diverse markets. Staying informed on global consumer trends is also essential, as MEA consumers rapidly close the gap in trend adoption. The 2025 forecast for regional sales of total Consumer Tech & Durables in MEA is USD 68B with 2% growth rate. The Revenue share of phones equipped with an AI processor, by region in MEA, is 32% of total sales In smartphones, foldables are a small segment, but volume demand is growing fast within Egypt and Saudi Arabia. 'Manufacturers and retailers should focus on creating solutions that address real-world challenges and elevate the consumer experience. This involves leveraging cutting-edge technologies to offer products that are not only high-quality but also user-friendly and impactful' , says Andrey Dvoychenkov, NielsenIQ General Manager APP. 'By doing so, they can build stronger connections with consumers who are increasingly seeking products that align with their values and enhance their daily lives.' On another note, we know that the tech demand is increasing across generations, but it is much more vocal in Gen Z (source: Consumer Outlook report 2024). To understand the differences between Gen Z (age 18-27) and Gen X (age 44-59), let's review a few numbers: 48% of Gen Z regularly uses a wearable device that autonomously tracks and learns their behavior. This number is only 31% for Gen X. In another point, 46% of Gen Z leverages AI in their mobile devices to automate and speed up their everyday decisions whereas it is only 34% for Gen X. As we see significant adoption of new technologies for younger generation, the demand and early adoption of any new technology or trend will be driven by Gen Z. Why These Trends Matter for 2025 NIQ's Consumer Tech Industry Trends 2025 report equips businesses with a forward-looking roadmap to unlock category growth, target evolving personas, and drive revenue through data-backed innovation. Download the full report to explore consumer tech's most promising sectors and strategic imperatives.
Campaign ME
20-03-2025
- Business
- Campaign ME
Consumers in UAE, KSA consider value for money over mainstream brands, report reveals
NielsenIQ, a consumer intelligence company, has announced a recap of the FMCG and Tech and Durable (T&D) sector under State of the Nation 2024 revealing insights on GCC shoppers, with key insights into consumer behaviour in the UAE and KSA. The report reveals that 2024 proved that the Middle East continues to be a hub for growth, populated by a resilient people with the willingness to push on amid global tensions and economic uncertain. In 2024, 72 per cent of UAE shoppers claimed they would pay more for quality products as they care about quality. Whereas, KSA consumers were skewed towards mainstream brands, and they looked for promotion of their brand choice. The report also revealed that in both markets, consumers prefer to complete their purchases through the established organised retail channel; however, they are becoming more trusting of alternative channels in their search for better deals. Andrey Dvoychenkov, NielsenIQ APP Cluster Leader, said: ''Our recent State of the Nation highlights how the FMCG and T&D sectors in the Middle East evolved throughout 2024, with consumers spending their money with purpose as investments.' The report finds that traditional retail channels, consisting of small, independent outlets, contributes a quarter of revenues generated in KSA and has grown by 1.7 per cent. The same channel has grown by almost 10 per cent in the UAE. E-commerce growth for FMCG is at 46 per cent for KSA and 29 per cent for UAE. This gives consumers more choices in terms of shopping destinations and allows suppliers to improve the distribution of their products. In the T&D space, a similar dynamic is emerging, where the online channel consistently contributes more than 25 per cent of total revenues across the UAE and KSA, achieving growth figures that surpass those of the brick-and-mortar stores. Regarding the T&D sector, the report claims that premium brands generated more than 40 per cent of revenue in Saudi Arabia and more than 55 per cent in the UAE, fastest growing across 3 segments. However, value brands in this space have a new-found focus on entry-level brands from both suppliers and consumers, who have realised more than 10 per cent gains year on year across both markets, the report reveals. 'They [consumers] are willing to pay more for quality while they don't give up choosing value for money on certain essential needs. Looking ahead to 2025, a breakout product could emerge, but success will demand bold innovation, strategic agility, and a deep understanding of shifting consumer behaviors,' said Dvoychenkov. This indicates that while consumers of T&D products are parting ways with their hard-earned incomes for premium goods, they are constantly considering finding similar value from a more economical offering.
