2022-12-20-Kantar-快速消费品季度回顾_营销人员导航指南-KSA和阿联酋快速消费品行业（英）_20页_3mb

KANTAR FMCG Quarterly Review Summary: KSA & UAE Q3 2022

Core Content Overview

This report provides a detailed analysis of the FMCG (Fast-Moving Consumer Goods) market dynamics in Saudi Arabia (KSA) and the United Arab Emirates (UAE) during Q3 2022. It highlights key economic factors, inflation impacts, and consumer behavior trends that influence in-home purchase patterns and brand strategies.

Key Economic Factors

• Saudi Arabia:

  • Petroleum prices and crude production have placed the economy in a strong position.
  • Government budget balance is expected to improve, with a projected 7.3% GDP surplus in 2022.
  • Vision 2030 initiatives include investments of SAR40bn in local infrastructure across 11 cities.
  • A new green bond mandate by PIF is aimed at funding clean energy projects.
  • Women's labor force participation reached 33.4%, indicating a growing consumer base.

• UAE:

  • The economy remains strong and resilient despite global recession concerns.
  • Higher borrowing costs and a slower increase in oil output may affect GDP growth.
  • The non-oil sector showed strong performance, with the PMI index at 56.7 in August.
  • Tourism contributes about 16% to GDP, showing vibrant growth.
  • Property prices increased by 8.8% y/y, and residential rents by 24.8% y/y.

Inflation Impact

• Both KSA and UAE have experienced rising inflation:

  • In KSA, inflation reached a 15-month high in September, affecting real family incomes.
  • In UAE, quarterly price inflation was 7.3%, which has incremental pressure on consumer wallets.

• Shopper behavior has been significantly impacted:

  • Reduced volume per trip and lower basket size.
  • Lower shopping frequency compared to pre-COVID levels.
  • Higher spend per trip, indicating more prudent and selective purchasing.

FMCG Market Trends

• KSA:

  • In-home purchase behavior showed restrained shopping due to inflation.
  • Promo-driven shopping reached one of the highest levels since 2019, with 38.2% of total trade under promotions.
  • Modern Trade saw 69.8% of spends under promotions, showing a strong reliance on promotions.
  • Volume per buyer declined, especially in larger cities, which is a challenge for brands.
  • Strategic consistency is key to brand growth, emphasizing the importance of understanding shopper behavior, brand building, and communication.

• UAE:

  • FMCG growth in Q3 was supported by an increase in expat population, offsetting the volume drop due to inflation.
  • Promo-driven volume growth was not prominent, highlighting the need for smart promo strategies that leverage brand equity.
  • Emirati and upper SEC shoppers showed reduced volume per buyer, particularly in dairy and beverages.
  • Online shopping is gaining traction, with volumes increasing from 4.1% to 7.5% over two years.
  • Brands should target online shoppers by ensuring large pack availability and personalized marketing.

Performance Drivers

• KSA:

  • Price inflation is a major driver of FMCG performance.
  • Promotions and brand equity are crucial for consumer retention and growth.

• UAE:

  • Expat population growth has been a key driver of FMCG expansion.
  • Affluent shoppers are driving value growth, especially in Food and Home Care.
  • Online channels present future growth opportunities.

Conclusion

The KSA and UAE FMCG markets in Q3 2022 are influenced by economic stability, inflationary pressures, and changing consumer behavior. Marketers must leverage promotions strategically, understand shopper behavior, and focus on online channels to drive brand growth and market performance.