Encouraging signs for the UAE?s vibrant FMCG sector
Despite a reduction in oil output leading to slower GDP growth in the United Arab Emirates (UAE), performance in non-oil sectors – including FMCG – remains strong. The economy is expected to grow 2.4% in 2023, which is lower than previously projected but still a positive sign.
Inflation in Dubai dropped in Q1 of 2023 to an average of 4.6%, down from 6.2% in Q3 of 2022. However, the easing in Dubai and UAE was slower than in other parts of the world, including the US and the Eurozone.
Price increases are becoming more restrained in most FMCG segments, except for beverages. This makes monitoring pricing trends across different product categories crucial for creating brand-specific strategies.
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UAE FMCG Landscape Q1 2023UAE FMCG Landscape Q1 2023
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