FMCG Trends in UAE

Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also called consumer packaged goods.

FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and confections) or because they are perishable (e.g., meat, dairy products, and baked goods).

The United Arab Emirates is one of the world's top 20 economies, in terms of nominal GDP. The FMCG industry accounts for the majority of all the goods imported in Jebel Ali, Dubai. The UAE's FMCG industry is worth $1 billion.

Although, FMCG Volumes are dipping down YOY by 3.2 % in UAE since last 2 years, which caused aggressive promotional campaigns by manufacturers and retailers to compensate for their sales losses and maintaining market share. The total sales of goods sold through discounts and special offers have reached 47% of total volume sales in the UAE, levying of the excise tax to reduce consumption of unhealthy/ harmful commodities such as energy drinks and carbonated drinks, cigarettes, etc.

It has been a challenge for manufacturers and retailers to adapt quickly to this new competitive intensity.