UAE consumers are increasingly turning to online channels for everything from weekly grocery purchases to electronics and household gadgets, reshaping how brands and retailers engage with shoppers across the country.
According to NielsenIQ’s latest Q2 2026 consumer market report, e-commerce remains one of the fastest-growing retail channels in the UAE, reflecting a broader shift towards digital shopping as consumers seek convenience, wider choice and competitive pricing.
The UAE’s online FMCG market grew 26.4 per cent in the second quarter, with e-commerce’s share of sales rising from 11.9 per cent to 14.1 per cent. The trend extends beyond groceries, with online sales of technology and durable goods across the UAE and Saudi Arabia growing by more than 19 per cent.
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For consumers, the change means purchasing habits are becoming increasingly digital, whether buying food staples, beverages, tablets or home appliances. NielsenIQ said wider product assortments, price transparency, consumer reviews and easier access to new products are making online shopping more mainstream.
While supermarkets and physical stores remain a key part of the retail landscape, particularly for immediate purchases and product experiences, digital channels are playing a growing role in discovery, comparison and repeat purchases.
The report also found that demand is increasingly concentrated in specific product categories rather than being spread evenly across the market. In the UAE, ambient food and beverages were the strongest-performing FMCG categories, recording value growth of 8 per cent and 7 per cent respectively, alongside strong volume gains. Snacking, dairy, frozen food and paper products also posted positive growth.
Among technology products, categories linked to connectivity, productivity and convenience are performing strongly, including consumer electronics, media tablets, office equipment, headsets and vacuum cleaners.
The UAE FMCG market recorded overall growth of 5.4 per cent during the quarter, supported by volume expansion and contributions from both traditional retail and e-commerce channels.
Split in spending habits
Another notable trend is the growing split in spending habits. While many consumers continue to seek bargains and affordable alternatives, others are willing to pay more for products they perceive as offering better quality, innovation or performance. Premium brands accounted for 62 per cent of the technology and durables market in the UAE, while the value segment also expanded slightly. Premium products were also the fastest-growing segment in FMCG.
Andrey Dvoychenkov, General Manager Arabian Peninsula and Pakistan at NielsenIQ, said: “The UAE and Saudi Arabia consumer markets are entering a more nuanced phase of growth, where winning is no longer simply about being present in a growing market. Consumers are becoming more digital, more selective and increasingly polarised in how they spend.”
He added: “We are seeing strong opportunities in e-commerce and high-growth categories, while premium and value propositions gain ground simultaneously. For brands, the priority is to understand where demand is moving, tailor strategies to the realities of each market, and create an omnichannel experience that delivers both relevance and value.”
Source: Khaleej Times