Spend on Consumder Packaged Goods Slowing In key GCC Markets

 In Australia, International, NewZealand
The United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA), key markets in the Gulf Cooperation Council (GCC) region, have experienced significant change over the last few years. Current global economic conditions, oil price fluctuations, decreased tourism activity, an unstable real estate market in the UAE, and higher defense spending in KSA over the last year have all pressured the growth rate of the region’s consumer packaged goods (CPG) segment.
For consumers, the changing economic landscape has made the job market more challenging, which has subsequently affected disposable incomes. Consumer sentiment has dampened as a result, which is reflected in their spending patterns. As a result, the growth rate of the CPG sector in the UAE has slowed by 1{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} year on year and by 3{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} in the first five months of 2016, according to Nielsen’s Retail Audit Tracking study. The CPG market in KSA on the other hand, has been more resilient, posting growth of 7{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} year on year and 5{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} in first five months of 2016. Are these rates the new normal for these two economies that saw high single- to double-digit growth just a few years back? Nielsen – Read more…

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