DUBAI, August 27 — For communities across the UAE, a new wave of digital change is reshaping the way families shop for everything from weekly groceries to high-tech gadgets. This comes as per NielsenIQ’s latest Q2 2026 consumer market report which found e-commerce to be one of the fastest-growing retail channels, a testament to residents’ shift towards digital shopping for reasons of convenience, wider choice, and competitive pricing. The UAE’s online Fast-Moving Consumer Goods (FMCG) market experienced a significant growth of 26.4 per cent in the second quarter.
Reflective of this broader trend, e-commerce’s share of sales increased from 11.9 per cent to 14.1 per cent. Surpassing this, online sales of technology and durable goods in the region saw growth by more than 19 per cent.
Such changes mean consumers are increasingly making their purchases online, spanning the range of goods from food staples and beverages to home appliances and tablets. NielsenIQ reported that the growth in online shopping is being driven by wider product assortments, price transparency, consumer reviews, and easier access to new products, which are making the process mainstream. While supermarket trips and physical stores maintain their significance — particularly for immediate purchases — digital channels are increasingly taking over roles in discovery, comparison, and repeat purchases.
Looking more closely at the data, demand seems to be concentrating in specific product categories. In the UAE, ambient food and beverages were the strongest-performing FMCG categories, with value growth registering 8 per cent and 7 per cent respectively, as well as strong volume gains.
Snacking, dairy, frozen foods, and paper products also reflected positive growth trajectories. Technology products tied to connectivity, productivity, and convenience were strong performers among the various categories, with consumer electronics, media tablets, office equipment, headsets, and vacuum cleaners exhibiting notable growth. The report from NielsenIQ also highlighted a growing trend of a split in spending habits among UAE consumers.
On one end of the spectrum, there are consumers looking for bargains and affordable alternatives, while on the other hand, some are more than willing to pay for products that promise better quality, innovation, or performance. Premium brands accounted for a hefty 62 per cent of the technology and durables market in the UAE.
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.”
