Latest news with #consumerresilience
Zawya
10 hours ago
- Business
- Zawya
Strong spend, evolving retail landscapes fuel GCC economic resilience
The Middle East continues to distinguish itself as a global economic outperformer, with the UAE and Saudi Arabia leading the charge. While global GDP growth is projected at 3.2% this year, the UAE is expected to grow by 4% and Saudi Arabia by 3% with further acceleration anticipated through 2027, according to a report by NielsenIQ, a leading consumer intelligence company. Consumers across these regions continue to demonstrate strong resilience amid ongoing challenges, stated the report. This robust performance is underpinned by strategic international partnerships, balancing ties with both BRICS (Brazil, Russia, India, China and South Africa) and Western economies, alongside targeted investments in digital transformation and a young, digitally connected population, it added. Consumer markets show resilience Consumer spending remains strong across both markets, though increasingly value-driven, said NielsenIQ in its report. 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 evolving According to NielsenIQ, the Retail dynamics are shifting rapidly. In the UAE, the 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," remarked Andrey Dvoychenkov, the 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. For brands, success hinges on relevance, agility, and a deep understanding of consumer expectations," stated Dvoychenkov. Global brand competition intensifies 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. 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, said NielsenIQ in its report. In T&D, value segments grew 6% in KSA and 3% in 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, stated the report. 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, it added.- TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Bloomberg
23-05-2025
- Business
- Bloomberg
UK Retail Sales Soar Again as Brits Bask in Sunshine, ONS Says
UK retail sales soared in April, continuing a surprisingly strong start to the year in a further sign that consumers are proving resilient in the face of rising bills and Donald Trump's global trade war. The volume of goods sold online and in stores increased 1.2% on the month, the Office for National Statistics said Friday. It marked the fourth consecutive monthly rise and followed the best quarter that British retailers have had since 2021. Economists were expecting a 0.3% increase.
