Top consumer trends in UAE
The United Arab Emirates (UAE) is a fast-growing and dynamic market with a diverse population and a thriving economy. As consumer behavior continues to evolve in the UAE, businesses and brands must stay up-to-date with the latest trends to stay relevant and successful.
The UAE has long been known for its vibrant consumer market, with a wide range of retail options that cater to a diverse population. As we head into 2023, several key trends are expected to shape the consumer landscape in the UAE, with businesses needing to adapt to stay ahead of the curve.
By understanding these consumer trends in the UAE, businesses and brands can adapt their strategies to meet the changing needs and preferences of their target audience.
Here are some of the top consumer trends in the UAE:
1. E-commerce
E-commerce has been on the rise for several years, but the COVID-19 pandemic has accelerated its growth, with more consumers than ever before turning to online shopping for convenience, safety, and a wider selection of products. As we move into 2022, several key e-commerce consumer behavior trends are expected to shape the industry, with businesses needing to adapt to stay ahead of the curve.
Mobile commerce, or m-commerce, has been steadily growing in popularity for several years, and this trend is expected to continue in 2022. According to a report by eMarketer, mobile commerce is projected to account for 53.9% of e-commerce sales in 2021, up from 39.6% in 2018.
The convenience of mobile shopping, combined with the increasing popularity of mobile payment options like Apple Pay and Google Pay, make it easier than ever for consumers to shop online using their smartphones. Businesses that optimize their websites and apps for mobile devices, and offer a seamless mobile shopping experience, are likely to see success in 2022.
Personalization
Consumers are increasingly looking for personalized shopping experiences, with retailers offering tailored product recommendations, personalized discounts, and customized messaging. According to a report by Accenture, 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations.
Businesses that use data analytics and artificial intelligence to offer personalized shopping experiences are likely to see an increase in customer loyalty and satisfaction. Personalization can also help retailers stand out in a crowded market, with consumers more likely to return to a retailer that offers a unique and personalized experience.
Social commerce
Social media has become an important channel for e-commerce, with platforms like Instagram and Facebook allowing businesses to sell products directly to their followers. Social commerce is expected to grow in popularity in 2022, with more businesses using social media to drive sales.
According to a report by eMarketer, social commerce sales in the US are projected to reach $36.09 billion in 2021, up from $22.89 billion in 2020. Social media platforms are also making it easier for businesses to sell products, with features like Instagram Checkout and Facebook Shops allowing consumers to buy products directly from their social media feeds.
2. Health and wellness
The trend of health and wellness is growing rapidly in Dubai, as consumers become more health-conscious and aware of the importance of a healthy lifestyle. This trend is driven by several factors, including rising levels of lifestyle diseases, the availability of health and wellness products and services, and the increasing focus on self-care and personal well-being.
One of the main factors driving the trend of health and wellness in Dubai is the high prevalence of lifestyle diseases such as diabetes, hypertension, and obesity. These diseases are often associated with unhealthy lifestyle choices, such as a diet high in processed and fast food, lack of physical activity, and high levels of stress. As a result, consumers are increasingly turning to health and wellness products and services to improve their overall health and well-being.
Another factor driving the trend of health and wellness in Dubai is the availability of health and wellness products and services. Dubai is home to a wide range of health and wellness businesses, including gyms, spas, yoga studios, and health food stores. These businesses offer a range of products and services designed to help consumers achieve their health and wellness goals. This includes everything from personal training and nutritional counseling to yoga classes and healthy meal delivery services. In addition, the trend of health and wellness in Dubai is driven by the increasing focus on self-care and personal well-being. With the hectic pace of life in Dubai, many consumers are recognizing the importance of taking time for themselves and investing in their own health and well-being. This has led to a surge in demand for products and services that promote relaxation, stress relief, and overall well-being. The government of Dubai has also played a role in promoting the trend of health and wellness. For example, the Dubai Fitness Challenge is an annual initiative that encourages residents to participate in fitness activities for 30 minutes a day for 30 days. This initiative has helped to raise awareness of the importance of physical activity and has encouraged many residents to adopt healthier lifestyles.
The trend of health and wellness is growing in Dubai, as consumers become more health-conscious and aware of the importance of a healthy lifestyle. This trend is driven by a range of factors, including rising levels of lifestyle diseases, the availability of health and wellness products and services, and the increasing focus on self-care and personal well-being. As consumers continue to prioritize their health and wellness, it is likely that this trend will continue to grow in Dubai and beyond.
3. Sustainability
Dubai, like many other cities around the world, has recognized the importance of sustainability and has taken steps to promote sustainable practices across various sectors. Here are some of the key sustainability trends in Dubai:
Sustainable Infrastructure
Dubai has committed to reducing its carbon footprint and has implemented several initiatives to promote sustainable infrastructure. The Dubai Electricity and Water Authority (DEWA) has launched several projects to promote renewable energy, such as the Mohammed bin Rashid Al Maktoum Solar Park, which is one of the largest solar energy projects in the world. Additionally, the city has launched the Dubai Green Building Regulations and Specifications, which requires all new buildings to meet specific sustainability criteria.
Sustainable Transportation
Dubai has made significant strides in promoting sustainable transportation options, such as the Dubai Metro, which is the world’s longest driverless metro network. The city has also introduced electric buses and taxis, which have helped to reduce the city’s carbon emissions. Furthermore, Dubai is set to launch the Hyperloop, a high-speed transportation system that promises to revolutionize transportation and reduce carbon emissions.
Sustainable Tourism
Tourism is a vital sector for Dubai’s economy, and the city has recognized the importance of promoting sustainable tourism practices. Dubai has launched the Dubai Sustainable Tourism Initiative, which aims to promote sustainable tourism practices and reduce the environmental impact of tourism. This initiative includes measures such as reducing waste, promoting sustainable transportation, and promoting eco-friendly hotels.
Sustainable Agriculture
Dubai is not typically associated with agriculture, but the city has taken steps to promote sustainable agriculture practices. The Dubai Municipality has launched several initiatives to promote urban agriculture, such as the Dubai Farmers Market, which promotes locally grown produce. Additionally, the city has launched the Dubai Food Park, a state-of-the-art facility that promotes sustainable food production and distribution.
Dubai has recognized the importance of sustainability and has implemented several initiatives to promote sustainable practices across various sectors. These sustainability trends are likely to continue in the coming years as the city strives to reduce its environmental impact and become a more sustainable and livable city.
4. Local and organic products
The trend of consuming local and organic products is gaining popularity in Dubai, as people become more health-conscious and environmentally aware. Consumers are more interested in where their food comes from, and are looking for ways to reduce their carbon footprint. Dubai’s climate and landscape make it difficult to grow certain crops, so many consumers are turning to local organic produce to ensure the food they are eating is fresh and healthy.
Organic products are becoming increasingly popular in Dubai as they are produced without the use of harmful pesticides, chemicals, and genetic modification. The demand for organic products is also driven by the increasing number of health problems caused by the consumption of processed foods. Consumers in Dubai are also supporting local farmers and businesses by purchasing locally produced products. By choosing to buy locally, consumers are helping to reduce the carbon footprint caused by transportation and supporting the local economy. Dubai’s government is also promoting the consumption of local products by organizing farmers’ markets and supporting local farms. The trend of consuming local and organic products in Dubai is gaining momentum due to health and environmental awareness. Consumers are becoming more conscious of the impact of their choices, and are actively seeking ways to reduce their carbon footprint while supporting local businesses. The growth of this trend in Dubai is a positive step towards a healthier and more sustainable future.
5. Contactless payments
The trend of contactless payments is rapidly gaining popularity in Dubai, as consumers look for convenient and safe ways to make transactions. Contactless payments allow customers to make transactions without physically touching a payment terminal, which is particularly important during the ongoing COVID-19 pandemic. Contactless payments are widely accepted in Dubai, and can be used at most retail outlets, supermarkets, restaurants, and other places of business. This has led to a surge in the number of people using this technology, as it is seen as a safer and more efficient way to make transactions.
One of the main advantages of contactless payments is the speed and convenience it offers. With just a tap of their card or smartphone, customers can quickly make payments without the need for cash or pin codes. This makes the checkout process faster, and reduces queues at busy outlets. In a city like Dubai where the pace of life is fast and time is of the essence, the speed and convenience of contactless payments are highly appealing. Another advantage is the security that contactless payments offer. With secure encryption technology and multiple layers of authentication, these transactions are more secure than traditional payment methods. This has made contactless payments an attractive option for consumers looking to protect their personal and financial information. Contactless payments also reduce the risk of physical contact with payment terminals and cash, which can carry germs and bacteria.
In addition to these advantages, contactless payments are also highly accessible. With the widespread adoption of smartphones and digital wallets, consumers can make payments from almost anywhere at any time. In a city like Dubai where people are always on the move, this level of accessibility is highly valued.
Furthermore, the government of Dubai has been a strong advocate for contactless payments, promoting their use through various initiatives and campaigns. For example, the Dubai government launched the “Smart Dubai” initiative, which aims to make Dubai a “smart city” by adopting cutting-edge technologies to improve the lives of residents and visitors. Contactless payments are a key part of this initiative, with the government working closely with businesses to encourage the adoption of this technology. The trend of contactless payments is growing in Dubai, as consumers look for safer and more convenient ways to make transactions. With the convenience, accessibility, and security that this technology offers, it is likely that contactless payments will continue to gain popularity and become a preferred payment option for many consumers in Dubai. As the world moves towards a more digital and cashless economy, contactless payments are likely to become a standard feature in the way we pay for goods and services.
