Recent market research shows that UAE consumers are opting for smaller food packages and increasing their shopping frequency. This trend extends to beverages and dairy, with a strong preference for discounted items.
“The primary change we’re observing is the rising cost of living, which is making shoppers more volume-conscious,” stated Imtiaz Hashem, Consumer Insights Director at Worldpanel by Numerator. “While purchases per trip have decreased, shopping frequency has significantly increased compared to 2023.”
Speaking at the recent Future Food Forum in the UAE, he urged businesses to rethink packaging sizes, bundling strategies, and product placement to cater to changing consumer preferences.
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“Understanding bundling, packaging, and shopping locations is critical,” he elaborated.
Gen Z Shopping Habits
Mohamed Al Hashemi, CEO of Union Coop, noted similar trends, particularly among Gen Z shoppers. “Millennials typically shopped once a week,” he noted. “However, Gen Z is shopping two to three times weekly, combining physical visits with online refills, resulting in smaller, more frequent purchases.”
He mentioned the use of AI to personalize shopping experiences. “Our AI-enabled loyalty program, launched in April, tailors offers to consumer behavior. The new generation prefers personalized deals over generic, lengthy brochures.”
Focus on Health
According to Milana Boskovic, Director of Marketing and R&D at Al Ain Farms, consumers are increasingly health-conscious. “We’re innovating in health-focused products, like our sugar-free Greek yogurt,” she shared. “Our goal is to meet consumer demand for healthier options, a trend accelerated by Covid.”
Al Ain Farms is also reducing packaging sizes, enhancing their online presence, and expanding healthier product lines to meet Gen Z’s demands. “E-commerce and convenience apps are booming,” she observed. “Consumers seek quick information, transparency, and local sourcing.”
Growth of Online Shopping
Imtiaz remarked on the UAE’s strong e-commerce standing in the FMCG sector. “While South Korea leads in online shopping, the UAE ranks around fifth or sixth globally,” he noted.
Online FMCG sales now account for nearly 7% of total volume, with 43% of UAE households shopping online more frequently, increasing from 12 to 16.3 times annually.
He highlighted that UAE consumers are willing to pay more online for convenience. “On average, online prices are higher, but consumers prioritize convenience due to time constraints.”
