Ramadan Kareem! We extend our warmest wishes to you and your loved ones. This sacred time brings together people worldwide in a shared journey of reflection, fasting, and prayer.
In anticipation of Ramadan, we conducted a comprehensive study to understand consumer needs, motivations, and preferences during this period.
This year, we see a dynamic intersection of retail consumption and cultural traditions, shaping new patterns in consumer engagement. In this newsletter, we will explore these shifting trends and evolving consumer sentiment.
Read on to find more.
Willingness to spend has seen a surge; This is fueled by the growing excitement around Ramadan, as the shopping spirit makes a strong comeback!
This year, UAE consumers are displaying heightened excitement around Ramadan. This enthusiasm is evident in a +20% YoY increase in consumers expressing excitement about the season. Several factors are driving this:
• Higher willingness to spend: Consumer willingness to spend more has risen +5% YoY.
• Positive economic outlook: IMF has revised its 2025 growth forecast for the UAE upward from its previous estimate, indicating strong confidence in the economy.
• Ramadan coincides with spring and Mother’s Day: The overlap with spring—a key season for new fashion collections—and Mother’s Day further amplifies consumer spending.
This is expected to drive the Ramadan retail sales to $10 Bn in 2025
The UAE’s Ramadan retail market is on a steady growth trajectory, expected to reach $10 Bn in 2025. This growth is driven by several key factors, including an extended Ramadan sales window, as retailers stretch promotions over a longer period to align with shifting shopping habits. Additionally, the rise of Ramadan-specific products, with brands launching exclusive collections, is fueling consumer interest.
Amongst sectors, food services, home & personal services, retail, and travel are expected to witness the highest surge
UAE consumers are increasing their spending across key sectors, with food services, home & personal care, retail, and travel witnessing the highest surge. Dining out, ordering in, and personal care services are seeing notable spikes.
Grocery and beauty/personal care are leading the surge in retail growth, with spending increasing by over 20%, driven by rising self-care trends and the tradition of gifting, especially in the lead-up to Eid. Home products are also witnessing strong demand, growing by 10-15% as households prepare for gatherings and celebrations. Meanwhile, fashion and electronics are experiencing more moderate growth of less than 10%, fueled by Ramadan-specific shopping behaviors such as gifting, exclusive collections, and increased consumer spending during the festive season.
Importance of value proposition and experience is seeing the highest growth, while prices’ importance is declining
In 2025, consumer preferences are shifting, with value proposition and shopping experience taking precedence over price sensitivity.
The importance of good quality products has surged by 36%, while consumer interest in a wider product variety has risen by 47%, and the demand for faster delivery services has jumped by 85%. This evolution underscores the need for businesses to enhance product quality, expand their selection, and optimize delivery services to align with changing consumer expectations.
The UAE’s Ramadan retail market is on an impressive growth trajectory, driven by evolving consumer preferences, a heightened shopping spirit, and a strong economic outlook. With spending projected to hit $10 billion in 2025, businesses must adapt by prioritizing premium offerings, expanding product variety, and optimizing delivery services. As value proposition and shopping experience take center stage over price sensitivity, retailers who focus on quality, convenience, and engagement will emerge as the biggest winners in this evolving landscape.
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