The MENA region is seeing a paradigm shift in gifting trends, with shoppers increasingly preferring sustainable and locally sourced brands over the hyped up international brands, leading to a 35 percent surge in orders for eco-friendly local brands in the UAE alone in the past one year, industry insiders and market studies said.
The shifting trend is also bringing about a significant change in the consumption habits of the region’s shoppers, with customers avoiding buying more than they can consume.
The region is also seeing a spike in online gifting, with a 30 percent surge in online orders in November 2023 alone which has seen celebrations like Diwali, Black Friday and UAE National Day.
“Sustainability and an eco-friendly approach are gaining traction in the Middle East e-commerce landscape in a big way of late,” Slava Bogdan, CEO and co-founder of Flowwow, a global gifting marketplace, told Arabian Business.
“Customers are becoming more conscious of the impact that brands can make on communities and the environment, leading to a cutback on short-lived goods and disposable packaging,” he said.
Bogdan said Flowwow is also changing tack in line with the fast emerging trend by steadily growing interest in local sellers.
“We’re working with local businesses that follow the demand and produce as many products as customers actually need,” Bogdan said, adding that the changing approach is helping shoppers in the region to become more aware of their consumption habits.
Sustainable gifting trend to see further surge in Christmas, New Year shopping season
The Flowwow top executive said the sustainable gifting trend in the region is expected to gain more momentum during the current Christmas, and New Year shopping season.
“As the MENA region gears up for the festive season, there is a notable shift in consumer behavior with a distinct preference for sustainable and eco-friendly gifting.”
Recent insights from the global gifting marketplace showed a remarkable 35 percent surge in orders for eco-friendly local brands in the UAE between November 2022 and November 2023.
Flowwow’s data also highlighted a considerable preference for sustainable options, with a 25 percent increase in live plant purchases and a 15 percent rise in dried flower orders compared to the preceding year in the UAE.
PwC’s latest Global Consumer Insights Survey also showed that the MENA region’s shoppers are leading by example when it comes to festive shopping and environmental consciousness.
“ESG (Environmental, Social, and Governance) and sustainability factors affect Middle Eastern consumers’ decisions more (31 percent) than global ones (18 percent),” the survey said.
Moreover, a staggering 83 percent of MENA shoppers are willing to pay more for locally produced products, and 58 percent would recommend a brand for its environmental record, it said.
MENA is also seeing a surge in online gifting orders
November 2023 has also posted a 30 percent upsurge in online gifting orders, compared to the preceding month, indicating the region’s increasing demand for online gifting options and early preparations for the holiday season.
The heightened activity is driven by the festivals in November and the upcoming Christmas and New Year, Flowwow said.
According to the ‘Think with Google’ report, on average, shoppers in the MENA region start searching for gifts four weeks ahead of big festivities, and the search interest for New Year’s Day and Christmas has risen by 20 percent over the past two years.
MENA consumers are increasingly opting for online gifting for its convenience, personalised options, and expedited delivery services.
“Cost-consciousness, however, remains pivotal, with searches for discounts and winter sales increased by 55 percent and 25 percent respectively, signalling consumers’ desire for value-driven purchases,” the report said.
Senior executives at Flowwow, which has more than 11,000 local brands from 1,000 cities and operates in over 30 countries including the UAE, said they expect to see a continued emphasis on sustainable gifting practices and a growing trend for online gift-giving in MENA as the current celebration season unfolds.
The global personalised gifts market, estimated at over $23 billion, is projected to grow to $34.3 billion by 2026, according to Statista.
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