UAE and KSA consumers have become more price sensitive

UAE and KSA consumers have become more price sensitive

Consumers have become more price sensitive and there’s been a shift in consumer preferences, according to NielsenIQ Retail Spend Barometer report.

The report found that a decrease or increase in prices of goods affected the consumption rate among consumers.

In the last quarter of 2023, the prices for E-Commerce Fast-Moving Consumer Goods (FMCG) went down by 3 per cent in the UAE and 5 per cent in Saudi Arabia.

After the price drop, the consumer’s consumption of this category in the e-commerce channel went up by 28 per cent in the UAE and 16 per cent in the KSA.

Price increase also led to the variation in consumption trends,primarily within the Baby Care category in KSA and the Personal Care category in the UAE.

The e-commerce sector has shown remarkable resilience and dynamism, points out Andrey Dvoychenkov, NielsenIQ APP General Manager and explains that this phenomenon underscores a robust consumer demand within the digital marketplace, which appears undeterred by the financial challenges presented by rising costs.

“The continued expansion of e-commerce under these conditions suggests a significant shift in consumer purchasing behavior, with a growing preference for the convenience, variety, and often competitive pricing that online shopping platforms offer.

“This trend may also reflect the increasing confidence of