FMCG online sales growing by 68% in UAE and 58% in KSA

December 19, 2022 | By RetailME Bureau

FMCG online sales growing by 68% in UAE and 58% in KSA

Online share in FMCG sales has been growing all over the world, reinforced during COVID times in 2020 and 2021 and increasing even in mature countries. E-commerce appears to have become the foundation for future growth in the UAE and Kingdom of Saudi Arabia (KSA).

NielsenIQ data indicate that the e-commerce channel in the UAE has grown by 68% over the last 12 months, and by 58% in Saudi Arabia. With this strong double-digit growth across both markets FMCG online sales have reached SAR1.8 billion in KSA, representing 2-4% of overall FMCG space. In the UAE e-commerce has an even higher share at 4-6% of a market size of AED1.5 billion.

Whilst hypermarkets and supermarkets are facing a drop in visit frequency this year, the online channel is clearly one not-to-be-missed. If in the past one could have wondered if shoppers will ever use the online channel, now the critical question is how frequently they shop, how much do they spend etc.

“Online shopping penetration and sales are still rising strongly in the region even in the post-pandemic sequence. With this appetite from consumers and retailers’ initiatives we are seeing big opportunities and obvious signs for further growth,” said Andrey Dvoychenkov, General Manager Arabian Peninsula & Pakistan at NielsenIQ.

Every FMCG department has shown double-digit growth in e-commerce this year going from +39% for personal care to +89% for laundry products in Saudi Arabia. In the UAE, frozen food grew the fastest (+112%) while homecare showed the weakest growth still at +50% vs 2021. Drain cleaners appear to be number one in KSA growing by 127% online despite a drop of –4% overall in the country. In the UAE, juice milk drinks are the number one growing online (+176% vs last year) but also growing across the country with a strong +29%.

Previous Article Next Article



In a move set to redefine the landscape of the Fast Moving 

Continue Reading

May 16, 2024 | By RetailME Bureau
Sunil Kumar and Ali Saeed Juma Albwardy, Spinneys

One of UAE’s leading fresh food retailers, Spinneys has announced its intention 

Continue Reading

April 19, 2024 | By RetailME Bureau
Laura Manning, Managing Director & Founder, BRW Society

Launched in 2019 by Laura Manning, UAE-based homegrown brand BRW Society completes 

Continue Reading

April 5, 2024 | By Rupkatha B
Rajiv Warrier, Chief Executive Officer, Choithrams

Since the launch of its first store in the UAE five decades 

Continue Reading

March 20, 2024 | By RetailME Bureau
Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B
Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail

In 1995 regional retail conglomerate Majid Al Futtaim introduced Carrefour to the 

Continue Reading

February 26, 2024 | By RetailME Bureau
Prashant Parameswaran, Managing Director and Chief Executive Officer of Tata Consumer Soulfull

Tata Soulfull, a leading name in the ‘good-for-you’ snacks and breakfast cereals 

Continue Reading

February 22, 2024 | By Rupkatha B
Jean-Luc Graziato, Chief Commercial Officer of Majid Al Futtaim – Retail and Alia Al Harmoodi, Acting CEO of the Environment, Health and Safety Agency

Majid Al Futtaim – Retail, which holds the exclusive franchise to operate 

Continue Reading

February 20, 2024 | By RetailME Bureau
Krishna Dhanak, Managing Director, Alpen Capital

In an exclusive interview Krishna Dhanak, Managing Director, Alpen Capital shared insights 

Continue Reading

February 19, 2024 | By Rupkatha B
Majed M. Al-Tahan, Co-founder & Managing Director, Danube Online

As digital transformation across the retail industry continues to accelerate, the expectations 

Continue Reading

December 19, 2023 | By RetailME Bureau
Frederic Levy-Perrault, CEO, Al Raya Supermarket

Saudi Arabia-based grocery retail chain Al Raya Supermarket serves over 100,000 customers 

Continue Reading

December 15, 2023 | By RetailME Bureau
Ahmad AR. BinDawood, Chief Executive Officer, BinDawood Holding

BinDawood Holding has a rich Saudi heritage, spanning over 50 years, 38 

Continue Reading

December 13, 2023 | By RetailME Bureau

Download Images RetailME Magazine