Online Sales and Local Brands Are Transforming Retail in MENA — NielsenIQ
Source: DairyNews.today
At the 2025 Dairy Olympics, NielsenIQ presented fresh data on the transformation of retail in the MENA region (Middle East and North Africa). According to Andrey Dvoychenkov, Managing Director for the Arabian Peninsula and Pakistan (UAE), online sales of FMCG products grew by 38% year-over-year, while mini-markets and convenience stores are expanding twice as fast as traditional hypermarkets.
Key Behavioral Shifts:
70% of shoppers still prefer hypermarkets and supermarkets,
49% visit at least two offline stores per month,
Yet half of consumers in the region use digital tools to compare prices, and 56% rely on recommendations from AI assistants.
In the dairy segment, the expert noted a clear trend toward natural and premium products:
70% of consumers in KSA and the UAE prefer products with natural ingredients and are willing to pay more for them,
Local brands now hold a 23% market share and continue to grow (+10% year-over-year),
The share of consumers likely to switch brands has dropped by 3%.
At the same time, 65% of promotional campaigns in the region are considered ineffective. Brands that succeed are those offering personalized experiences, sustainable value, and emotional engagement — both in digital and physical spaces.
“The future lies in phygital models and integration with social and AI platforms. But most importantly, it's about understanding what the consumer wants, here and now,” emphasized Andrey Dvoychenkov.
70% of shoppers still prefer hypermarkets and supermarkets,
49% visit at least two offline stores per month,
Yet half of consumers in the region use digital tools to compare prices, and 56% rely on recommendations from AI assistants.
In the dairy segment, the expert noted a clear trend toward natural and premium products:
70% of consumers in KSA and the UAE prefer products with natural ingredients and are willing to pay more for them,
Local brands now hold a 23% market share and continue to grow (+10% year-over-year),
The share of consumers likely to switch brands has dropped by 3%.
At the same time, 65% of promotional campaigns in the region are considered ineffective. Brands that succeed are those offering personalized experiences, sustainable value, and emotional engagement — both in digital and physical spaces.
“The future lies in phygital models and integration with social and AI platforms. But most importantly, it's about understanding what the consumer wants, here and now,” emphasized Andrey Dvoychenkov.
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