• KSA consumers were skewed towards mainstream brands, and they looked for promotion of their brand choice

Dubai, UAE, and Riyadh, KSA – NielsenIQ, the world’s leading 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 as 2024 was a year that 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.

2024 was marked by significant challenges in the Middle East. Global tensions, economic uncertainty, and extreme weather all contributed to this year's events. Economic growth in both regions remained robust, and the inflation rate in KSA is still controlled. At the same time, the UAE is broad-based and driven by intense activity in the tourism, construction, and financial services sectors.

The KSA market is exhibiting flat performance in the first half of the year, following a high base from last year, while the UAE is experiencing consumption-led growth. Consumers and suppliers alike did not let that get in the way of driving businesses and economies forward. 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.

The traditional retail channel, consisting of small, independent outlets, contributes a quarter of revenues generated in KSA and has grown by 1.7%. The same channel has grown by almost 10% in the UAE. This highlights once again that one size does not fit all!

E-Com growth for FMCG is at 46% for KSA and 29% 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% of total revenues across the UAE and KSA, achieving growth figures that surpass those of the brick-and-mortar stores.

A breakdown of the FMCG and T&D sectors

In 2024, the FMCG market saw significant changes in the number of products hitting the shelves. This is particularly true for the UAE, where an additional 1090 SKUs were launched. That is, 90 different SKUs were launched every month for a year. The T&D industry saw suppliers launching 493 new brands in Saudi Arabia and 457 new brands in the UAE. The constant desire to launch new brands leads to new product offerings, and the T&D space is bursting with all sorts of products to meet the consumer’s every demand.

The FMCG industry realised gains of 2.4% in Saudi Arabia (KSA), while the United Arab Emirates (UAE) observed the market gaining 5.5% in revenues compared to 2023. The growth realised is driven through snacking (+6% KSA / +6% UAE), Beverages (+5% KSA / +7% UAE) and Dairy Products (+3% KSA / +6% UAE).

The T&D sector reflects a more modest appetite for spending as revenue growth in KSA remains relatively flat at 0.7%, driven by the performance of Smartphones (+2%), PTV (-3%), and Mobile Computing (+5%). In contrast, the UAE enjoyed a relatively stronger performance in 2024, adding 3.4% to annual revenues. This is driven by a flagship-led smartphone market (+5%) and a dynamic mobile computing market (+5%), while

PTV revenues contracted by 3% as less-established brands flood the market with entry-level offerings.

Consumers in the Middle East continue to seek out value for money when making a purchase, which extends far beyond just the product but instead to where you are purchasing the product.

Brand preference

Regarding the T&D sector, Premium Brands generated more than 40% of revenue in Saudi Arabia and more than 55% in the UAE, fastest growing across 3 segments. However, it is important to also pay close attention to the subtle nuances of value brands. This is evident as we observe a new-found focus on entry-level brands from both suppliers and consumers, who have realised more than 10% gains year on year across both markets.  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.

Andrey Dvoychenkov, NielsenIQ APP Cluster Leader, comments: “"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. They 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.”

About NIQ  

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™.  For more information, please visit www.niq.com