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UAE FMCG growth accelerates in 2025 as premiumisation and e‑commerce reshape retail
The UAE FMCG market grew 6.8 per cent in value in 2025, driven mainly by a 4.9 per cent increase in consumption volumes, complemented by 2 per cent unit value growth
- PUBLISHED: Thu 12 Feb 2026, 8:01 AM
The UAE’s fast-moving consumer goods (FMCG) and Tech & Durables (T&D) sectors recorded resilient growth in 2025, powered by rising consumption, expanding product assortments and a strong shift toward both value and premium segments, a report showed.
NielsenIQ’s State of the Nation FY 2025 highlights a rapidly evolving retail landscape in the Emirates, with consumers simultaneously seeking affordability and higher-quality products — while accelerating their migration toward online channels.
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The UAE FMCG market grew 6.8 per cent in value in 2025, driven mainly by a 4.9 per cent increase in consumption volumes, complemented by 2 per cent unit value growth. This marks a solid consumption-led rebound, underscoring the country’s post-pandemic demand resilience. While Modern Trade remains the largest and most influential retail channel, e‑commerce was the fastest-growing platform in the fourth quarter, gaining market share as UAE shoppers increasingly turned to online grocery services for convenience and competitive pricing.
Among FMCG categories, Snacking emerged as the UAE’s fastest-growing segment, reflecting rising demand for convenience foods and impulse products. At the same time, the market showed strong premiumisation trends: premium brands became the fastest-growing price tier, outpacing both value and mid-tier competitors. This aligns with shifting shopper sentiment — 70 per cent of UAE consumers said they are willing to pay more for higher-quality products, highlighting a preference for premium offerings despite inflationary pressure.
The Tech & Durables sector further outperformed FMCG in the UAE, posting 6.3 per cent value growth in 2025. Demand remained strong for telecom products, large home appliances and consumer electronics, boosted by heavy online traffic during major shopping moments such as Singles Day, Cyber Monday and the UAE’s seasonal discount festivals. E‑commerce has now become a fully established, preferred purchasing route in the T&D sector, reinforcing digital retail’s structural rise.
Promotional activity in the UAE remained broadly stable throughout 2025, supported primarily by the Dubai Shopping Festival. Temporary Price Reductions (TPRs) continued to dominate the promotional landscape, although their overall efficiency softened compared with the previous year — a sign of intensifying competitiveness across retail channels.
Product assortments also expanded significantly. The UAE FMCG market recorded 134,271 active SKUs, marking a notable increase as brands broadened their lines and new entrants — particularly digital-first and emerging brands — tapped into the country’s increasingly sophisticated consumer base. The T&D category likewise experienced over 20 per cent year-on-year growth in the number of available brands, driven by the influx of affordable innovators and the expanding role of online marketplaces.
While the UAE led regional growth, Saudi Arabia’s 2025 retail environment painted a more complex picture. The Kingdom’s FMCG market contracted 1 per cent in value, weighed down by flat volumes (+0.1 per cent) and a 1.1 per cent decline in unit values, pointing to ongoing pricing pressure and sustained consumer sensitivity. Yet the broader sector remained resilient, and like the UAE, Saudi shoppers accelerated their shift to e‑commerce, making it the fastest-growing channel in Q4.
Category performance in the Kingdom diverged from the Emirates: Petcare was the fastest-growing FMCG category in Saudi Arabia, with Snacking ranking second — an indicator of evolving household consumption priorities.
Saudi Arabia posted far stronger momentum in Tech & Durables, recording 13.7 per cent value growth in 2025 — more than double the UAE’s growth rate. Seasonal promotions and digital marketplaces played a central role in drawing consumers toward big-ticket purchases and new technology upgrades.
Promotional activity increased in Saudi Arabia toward the end of 2025, but as in the UAE, overall promotion efficiency dipped slightly. The Kingdom’s FMCG market recorded 99,211 active SKUs, further illustrating consumer appetite for broader choices even in a price-sensitive environment.
Reflecting on the regional landscape, Andrey Dvoychenkov, NielsenIQ General Manager for the Arabian Peninsula and Pakistan, said the data shows “strong resilience, even amid evolving consumer and pricing dynamics. While Modern Trade remains dominant, it is e‑commerce that is reshaping growth across FMCG and Tech & Durables.” He added: “We’re seeing increasingly polarized consumer behavior — shoppers are actively seeking value, yet premium segments are outperforming, particularly in the UAE.”
Overall, NielsenIQ’s 2025 findings point to a retail environment defined by digital acceleration, deeper value–premium polarisation and heightened promotional intensity. For brands and retailers, the year ahead promises both challenges and significant opportunities — especially for those that can balance affordability, quality and strong digital execution across the UAE and Saudi Arabia.
Somshankar Bandyopadhyay is a News Editor with more than three decades of experience. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.
