In the final quarter of 2023, the Fast-Moving Consumer Goods (FMCG) sector in Saudi Arabia (KSA) and the UAE witnessed a tentative recovery, with consumption increasing by less than 0.5% in both regions, according to the latest NIQ Retail Spend Barometer from NielsenIQ. The observed sluggishness can be attributed to heightened price sensitivity among consumers and evolving preferences. However, amidst these challenges, the e-commerce sector emerged as a beacon of growth, reporting impressive consumption rates throughout the quarter and the past three years.During Q4 2023, E-commerce FMCG categories experienced a notable reduction in prices, with decreases of approximately 3% in the UAE and 5% in KSA. This price adjustment significantly stimulated consumption through online channels, leading to a remarkable increase of 28% in the UAE and 16% in KSA.While UAE saw a modest increase of 2.3% in FMCG consumption through Modern Trade channels, there was a simultaneous decline in overall FMCG consumption by 3% in the same period. In KSA, consumption reduction stood at 0.9%, accompanied by a marginal downturn in growth by 0.2%.Price fluctuations played a pivotal role in shaping consumption patterns, notably within the Baby Care category in KSA and the Personal Care category in the UAE. A substantial proportion of FMCG categories in both regions experienced price increases of up to 10%, with promotional sales witnessing a significant rise in KSA, reaching 42%, while stabilizing at 33% in the UAE compared to the previous year.Commenting on these trends, Andrey Dvoychenkov, NielsenIQ APP General Manager, highlighted the resilience and dynamism of the e-commerce sector, attributing its growth to evolving consumer preferences for convenience, variety, and competitive pricing. Dvoychenkov emphasized the significance of recognizing and capitalizing on these trends to reinforce market presence and capitalize on sector expansion.In contrast, Traditional Trade (TT) outlets in both regions experienced average price increases of 2.1% and 1.9% in KSA and UAE, respectively, in the last three months of 2023. Snacking emerged as the category with the highest price increase, influencing consumption dynamics differently in KSA and the UAE.Furthermore, in the Technology and Durables (T&D) sector, both regions witnessed consistent full-year growth in 2023, with increases of 5% in KSA and 4% in the UAE. Notably, advances in the Telecom and Small Domestic Appliances categories were the primary drivers of growth in both regions.Dvoychenkov concluded by advocating for an omnichannel strategy in both FMCG and T&D sectors, emphasizing the importance of convenience and product selection in influencing consumer behavior and market success.