The Impact of Coronavirus on UAE's FMCG Industry

The Coronavirus outbreak has impacted various industrial sectors, including the FMCG industry significantly, and has exposed many businesses to unprecedented challenges. The United Arab Emirates, as part of the GCC, were already facing economical challenges before the pandemic broke out. So, the pandemic made it more difficult for many FMCG distribution companies in the UAE to overcome these challenges and cater to new consumer buying behavioural patterns.

During the lockdown, many people started developing new, healthy eating habits, originating from the need to lead a healthy, happy lifestyle. In this time, people have preferred to stay indoors, learning a new hobby, practising Yoga, exercising or gymming, and ensuring a well-balanced diet. This led to a rapid shift towards takeaway services and healthy alternatives to essential products, like packaged goods, consumer health products, well-being products, and home care products. So, the demand for these products increased significantly, which led to their increased production, enabling distribution companies in the UAE to meet the new demands and needs of these consumers.

So, food distributors who are better prepared for the changing consumer's needs are managing to recover better from the impact of the pandemic and lockdown. Here's how the industry has been impacted:

1. Stable prices : How prices vary depends on the supply of goods. But since the value of the US dollar had increased, the chances of prices increasing rapidly are low. Distribution companies have been ensuring that the increasing demand is met effectively by enhancing the supply, to stabilize the prices.

2. Enhanced local production : The production of local goods has increased since many people in the UAE have started buying products with a longer shelf-life, much more frequently from local retailers or stores now. So, to meet the increasing demand, some of the best food distribution companies in the UAE have increased their production.

3. Cashless payments : Cashless payments have become a more popular and convenient choice in the UAE, since the COVID-19 outbreak has made people prefer staying indoors and opting for social distancing.

Some of the top food distribution companies in the country, including us at Al Maya Trading, have brought in a variety of new healthy food categories and diversified our product range, thereby meeting the increasing demand for healthier alternatives. These changes have been born out of the increasing inclination towards the idea of minimizing contact and maximizing convenience, for our consumers.