Shoppers in Saudi Arabia and the UAE are moving away from mid-priced brands towards premium and value products, according to new NielsenIQ data. Mainstream brands lost 2.5 points of Saudi FMCG sales value in a year to 41.9%, and 0.7 points in the UAE to 32.8%.
The findings come from NielsenIQ's Consumer Outlook 2027 survey of more than 21,000 people in 31 countries, combined with its tracking of actual purchases. The UAE is included for the first time. Share of FMCG sales value by tier:
Saudi Arabia: mainstream 41.9% (down 2.5 points), premium 37.9% (up 1.5) and value 20.3% (up 1.0).
UAE: premium 45.2% (up 0.5), mainstream 32.8% (down 0.7) and value 22% (up 0.3).
Globally: more than $23 billion of value share has moved from mainstream products to value and premium.
About seven in ten shoppers in both markets would rather save money when a product offers no clear advantage, roughly two-thirds want something clearly premium when they spend more, and six in ten say mid-range options need a clear reason to be chosen.
Quality still comes first for many. In Saudi Arabia, 43% put quality and performance first when judging an everyday purchase, against 29% who put affordability first. In the UAE, the split is 36% to 28%. Shoppers in both markets are also managing their spend closely:
Discount stores: 43% of Saudi and 39% of UAE shoppers shop more often at lower-priced stores.
Basket cost: 38% and 35% watch the cost of their overall basket.
Online deals: 35% and 32% shop online for better deals.
Bigger packs: 32% and 27% buy larger sizes for a better unit price.
Loyalty: 30% and 35% use loyalty programmes and points.
Promotions: 29% and 33% stock up when a preferred brand is on offer.
Saudi shoppers are more upbeat than most. 46% feel better off than a year ago, against 30% globally, while 37% of UAE shoppers say the same. About seven in ten in both markets say AI tools influence their grocery purchases at least sometimes, against 55% globally.
"Consumers across KSA and the UAE are no longer buying by default," said Andrey Dvoychenkov, General Manager for the Arabian Peninsula and Pakistan at NielsenIQ. "The brands and retailers that win in 2027 will be those that adapt as quickly as consumers do."
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