Recent market research has revealed that approximately 31% of active consumers in the UAE take advantage of attractive offers during Ramadan, with 40% planning to purchase electronics. Additionally, 24% are actually browsing such products, resulting in an increase in e-commerce revenues by 30% to 50% compared to other months.
Vijay Vallisha, CEO of investment at Century Financial, noted that spending on food, clothing, and gifts sees an uptick during Ramadan. He anticipates that the Ramadan economy in the UAE will reach around $16.4 billion (60 billion dirhams) this year, up from $15 billion last year. Vallisha stated that promotional offers play a crucial role in driving demand and acknowledged that consumers have become more conscientious, planning to purchase larger quantities and taking advantage of digital deals and cashback programs.
Moreover, he adds that the increase in promotional offers this season is expected to be a key demand driver. Over the past few years, consumers’ purchasing habits for everyday essentials have shifted due to previous Ramadan promotions and bundled packages. Families are now more thoughtful about their purchasing decisions, with many waiting for discounts before making significant purchases instead of paying full price.
This year, however, stands out with a shift from merely focusing on discounts to emphasizing overall value. Retail brands have moved beyond short-term promotions, with several actually reducing their prices for essential goods.
Additionally, some stores have lowered prices on thousands of grocery items and introduced additional discounts of up to 65% in certain categories, assisting families in managing their increased spending during the season. Responding pragmatically, consumers are buying in larger quantities earlier, comparing prices online, and benefiting from digital offers and cashback programs.
Peak Shopping Period
A spokesperson from Al-Futtaim Retail stated that Ramadan sales have seen an average annual growth of nearly 10%, with performance exceeding 3% and reaching up to 20% in some categories. Notably, there has been a marked increase in demand within the clothing, toys, and home essentials sectors since the beginning of the month, with both men’s and women’s clothing experiencing double-digit growth during the first week.
Ramadan remains the peak shopping period of the year, marked by heightened intent to purchase and increased pre-planning for shopping, with stronger activity during evening hours and through e-commerce. Overall, the performance at the start of the month has been robust, reflecting positive consumer confidence and a clear alignment between our offerings and customer needs during this holy month.
As for the key products witnessing the highest demand during Ramadan, the focus is on preparations for hosting, gifting, and family gatherings. Within our portfolio, the top-performing categories include home supplies and kitchen tools, such as cookware, tableware, and household appliances, along with toys and gifts for children in anticipation of Eid al-Fitr.
Watches and jewelry remain popular seasonal gifts, along with staple food items and daily necessities that support the iftar and suhoor routines. A common trend is purposeful purchasing, with customers emphasizing products that enhance the home environment and family experience during the holy month.
Fashion and Electronics
A representative from Al-Futtaim Properties noted that alongside food and beverages, there’s growth in the fashion, electronics, and fast-moving consumer goods sectors, driven by Ramadan promotions and product availability across online channels. This has significantly influenced consumer behavior by accelerating the pace of online shopping, increasing demand, and elevating the average shopping basket value due to time-limited offers.
Consumer trends have shifted towards online shopping, while the retail sector is enhancing the appeal of in-store shopping by offering additional benefits, discounts, and value-added promotions.
Affordability and Added Value
Abdullah Abdulatif, Vice President of Commercial Affairs at GMG’s consumer products division, stated that with the rise in promotional campaigns during Ramadan, their sales experience a notable increase compared to other times of the year. However, this surge does not equate to overspending; 44% of consumers in the UAE indicated that generosity is a key characteristic of this period, motivating them to choose products that offer comfort at reasonable prices and provide added value.
As family gatherings, gift-giving, and charitable donations increase, consumers are looking for products that are more beneficial to the community. This leads to a heightened interest in bulk purchase offers and discounts, allowing them to distribute larger quantities of products within their circle.
To cater to these needs, diverse offers ranging from 20% to 75% discounts on various products from different brands, including Ramadan gift cards, are being provided, ensuring a fulfilling Ramadan experience. By reducing their overall spending, consumers can purchase more items to share with loved ones without straining their financial situation.
Regarding shopping trends since the beginning of Ramadan, Abdulatif remarked that this month represents one of the most significant seasons for the retail sector in the region, with a noticeable shift in consumer behavior compared to the rest of the year. With an increase in home cooking and family gatherings, there’s a marked rise in demand for daily essentials and staple products.
Shoppers typically begin preparing for this well ahead of the holy month by stocking up on essential food items, such as oils, spices, and beverages. This early planning contributes to strong performance in major retailers, such as Carrefour and LuLu Hypermarket, as consumers prepare iftar and suhoor meals throughout the month.
There is also an increased demand for homeware and hospitality items as the number of social gatherings rises, with customers preparing their homes to match the Ramadan atmosphere. Additionally, there is a growth in demand for health and personal care products, emphasizing the key aspects of reflection, balance, and well-being during the month.
Overall, shopping behavior during Ramadan becomes more conscious and deliberate, as consumers tend to avoid impulsive purchases, making more practical decisions based on value, while prioritizing necessities and products that focus on hospitality and personal well-being rather than mere convenience or luxury consumption.
Regarding the products that see the highest demand during Ramadan, Abdulatif observed a surge in demand for essential items catering to the needs of those fasting, along with a significant increase in sales of dates for breaking the fast, as well as flavored juices and beverages that are popular among those breaking their fast after long hours of abstaining. Essential products such as dairy, meat, rice, poultry, bread, and oils also witness substantial increases in sales at our major stores due to consumers preparing iftar and suhoor meals.