United Arab Emirates

Country Overview

Country Overview

With a focus on innovation, the United Arab Emirates (UAE) is one of the fastest growing countries in the world. It has a population of 9.5 million and imports around 80% of its food, creating significant opportunities for New Zealand food and beverage exporters.

Already the world's 17th most competitive economy, the UAE seeks to shift its economy away from labour-intensive oil and gas (which accounts for 30% of its NZ$68 billion GDP) to one based on knowledge, technology and skilled labour. Wholesale and retail trade, financial and insurance activities, and construction and building are also major contributors. The UAE aspires to be a world leader in healthcare and education, and has the budgets to achieve this.

Just 10% of the population of UAE are Emirati – people from East Asia and South Asia make up the biggest demographic group. Consumers, especially expatriates who may be new to the country, have little brand loyalty. The population is active on social media and the nation’s mobile penetration rate is the highest in the world.

 

Trade agreements

New Zealand finished negotiating the NZ-Gulf Cooperation Council free trade agreement in 2009, however it is not yet in force. The Gulf Cooperation Council (GCC) includes the UAE, Saudi Arabia, Bahrain, Oman and Kuwait.

 

Country intelligence

The Robinson Country Intelligence Index is a holistic measurement of country-level risk and serves as an alternative measure of country development. It incorporates four broad dimensions of Governance, Economics, Operations and Society. A higher ranking indicates a better Country Intelligence Index score. 

 

Value of New Zealand exports

International logistics performance

The International Logistics Performance Index measures how efficiently countries move goods across and within borders. Countries are ranked on their index score with a higher ranking indicating higher performance of trade logistics based on six components: customs, infrastructure, ease of international shipments, logistics services quality and competence, tracking and tracing, and timeliness.

Income and distribution of wealth

Global National Income (GNI) per capita is the dollar value of a country's final income in a year, divided by its population. 

Annual Disposable Income refers to gross income minus social security contributions and income taxes. Each income band presents data referring to the percentage of households with a disposable income over that amount.

Further information

For more information to validate the United Arab Emirates as an export market, see our United Arab Emirates Market Guide.

Market Size
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  • Vitamins & Dietary Supplements
  • Skin Care
  • Dog & Cat Food
  • Alcoholic Drinks
  • Health & Wellness Packaged Food & Beverages

Vitamins & Dietary Supplements

Market size and growth

Note: Data on the top left corner of the image (61, 46 and 50) showcases respective ranks for UAE for its market size, per capita, and forecast growth rate compared against 99 countries globally. The blue line on the grey bar represents the relative position of the country as per their rank.

 

Note: Latest market size data for the year 2021 has been shared for Vitamins & Dietary Supplements

Retail value sales of vitamins and dietary supplements in UAE witnessed a historic compound annual growth rate (CAGR) of 1.9% during 2016-2021. It is further expected to grow at an increased retail value CAGR of 2.9% over 2021-2026.  However, at the global level, the category is estimated to witness a slowdown in its retail value compound annual growth rate from historic (2016-2021: 5.1%) to forecast period (2021-2025: 2.4%). 

Sub-category breakdown

Note: Current year growth in the above chart refers to the period 2021-22

Category

Unit

Market size (2021)

Retail value RSP

Forecast compound annual growth rate (2021/2026) %

Vitamins and Dietary Supplements

USD million

84.91

2.85

Vitamins

USD million

38.84

1.90

Paediatric Vitamins and Dietary Supplements

USD million

2.39

1.36

Dietary Supplements

USD million

38.69

3.84

Tonics

USD million

4.99

2.94

 

Channel distribution

Note: The chart here showcases the retail value share of different channel sales for Vitamins and dietary supplement products in UAE in 2021. The triangle/dash represents whether the specific channel share has increased/decreased or remained the same against its share in the previous year.

Market Insights

Market trends

  • In UAE, consumers’ heightened health awareness continues to drive demand for immune-boosting vitamins and dietary supplements to support their general health and wellbeing even in 2021. Vitamin C, multivitamins, including zinc, and vitamin D, continue to experience demand because of the pandemic as consumers look to boost their immunity. As a result, vitamins witnessed a current value growth of 2% in 2021. Such health awareness is expected to grow further, and therefore the growth of vitamins is likely to remain strong in the forecast period to 2026. Amid this higher demand for vitamins, there was a limited selection of adult vitamin gummies in the review period (2016-2021). This was because the format mainly targets children to make the taking of vitamins more enticing and enjoyable. New product innovations in terms of better taste are fuelling the sales of this category. This could also be an opportunity to attract consumers who are discouraged by traditional tablets or liquid formulations.
  • Dietary supplements recorded a 3% value growth in 2021 and are also expected to register a 6% value CAGR over the forecast period 2021-2026. Demand for probiotic supplements has increased since the pandemic because people realized that probiotics could help boost one’s gut health, immune system, and overall health. Probiotic supplements recorded the highest value growth of 8% in 2021. In addition, there has been a greater demand for eye health supplements in 2020 because of greater time spent at home in front of digital devices, either due to remote work or study measures or for entertainment.

Prospects and growth opportunity

  • Despite vitamins being anticipated to record a stronger growth over the forecast period (2021-2026), purchases tend to be mainly limited to consumers who enjoy higher disposable incomes. Even though the pandemic accelerated a shift in how vitamins are perceived in terms of immune-boosting properties, lower-income citizens do not consider these products an essential purchase. Consumers who have been most hit economically by the pandemic are less likely to splurge on vitamins unless more affordable brands enter the category over the forecast period. The prices of vitamins are quite expensive in the country, with its unit prices being the highest globally. 
  • Over the forecast period to 2026, supplements manufacturing companies will likely continue to introduce new probiotic supplements in the United Arab Emirates. The country continues to have a high prevalence of digestive issues and limited product range compared to other international markets. Local consumers have grown increasingly aware of the benefits of probiotics in terms of their immune-boosting potential and supporting a healthy gut. However, while probiotic supplements are predicted to record a solid performance over the forecast period, volume growth is expected to slow due to increasing competition from alternative options from other markets, including packaged food such as probiotic-infused yoghurt.

General health & wellness trends

  • The onset of the pandemic has boosted awareness of and surge in demand for herbal/traditional dietary supplements such as ginseng, garlic, echinacea and elderberry. With a shift towards preventative health awareness set to become permanent, combined with heightened awareness and interest in products with a more natural positioning, herbal/traditional dietary supplements are predicted to record higher growth rates over the forecast period (2021-2026) compared to the review period (2016-2021).
  • The United Arab Emirates is unique in that it predominantly comprises expatriates and therefore does not have a significant ageing population. Consequently, age-related dietary supplements that claim to improve muscle, joint and cognitive health is less likely to be in high demand over the forecast period.

 

Skin Care

Market size and growth

Note: Data on the top left corner of the image (44, 27 and 59) showcases respective ranks for UAE for its market size, per capita, and forecast growth rate compared against 99 countries globally. The blue line on the grey bar represents the relative position of the country as per their rank.

Retail value sales of skin care products in UAE is expected to rise from a historic compound annual growth rate (CAGR) during 2015-2020 of 0.1% to a forecast compound annual growth rate of 2.4% over 2020-2025. This is mainly in line with the category’s performance at the global level, where the category is also estimated to rise from a historic CAGR of 4.7% to a forecast compound annual growth rate of 5.3% during the same period.

Sub-category breakdown

Note: Current year growth in the above chart refers to period 2019-20

Category

Unit

Market size (2020)

Retail value RSP

Forecast compound annual growth rate (2020/2025) %

Skin Care

USD million

296.84

2.44

Body Care

USD million

61.72

3.09

Facial Care

USD million

222.14

2.21

Hand Care

USD million

6.72

2.26

Skin Care Sets/Kits

USD million

6.26

4.22

 

Channel distribution

Note: The chart here showcases the retail value share of different channel sales for skin care products in the UAE in 2020. The triangle/dash represents whether the specific channel share has increased/decreased or remained the same against its share in the previous year. 

Market Insights

Market trends

  • The retail value sales of skin care products in the United Arab Emirates witnessed a decline of 7.6% in 2020. Fashionable, on-trend packaging, low prices and good quality skin care treatments are attracting younger consumers to Japanese variety stores such as Minisu and Mumusu in the United Arab Emirates. Millennials and Gen Z especially are enjoying the thrill of the bargain hunt and the visually appealing products that are unlike what you can buy at traditional beauty and personal care retailers. These stores also differentiate themselves by their focus on seasonal occasions and collections for each celebrated time of year. These outlets not only attract budget-conscious shoppers but also high-income ones who want to save money on “ordinary” products and splurge on other things.
  • The need to wear face masks due to the pandemic has also led to the emergence of “maskne”, a skin irritation resulting in acne and breakouts. This has led to increasing demand for skin care solutions to combat maskne, driving sales of spot treatment products. With face mask-wearing set to be the new normal, it is expected that there will be newer, novel skin care solutions to help reduce instances of maskne soon.
  • Recognizing the above opportunities, UAE witnessed few new entrants in the skin care segment. In 2020, Watsons entered the United Arab Emirates, its first store in the Middle East and its first exclusive franchise agreement worldwide, signed with Dubai-based retail conglomerate Al-Futtaim. The retailers launched an e-commerce portal (Watsons. ae) and an accompanying app and loyalty programme. Currently, there are three outlets, with plans to expand. Watsons offers a comprehensive product range with several organic and natural skin care products, which is a likely growth area for the future.

 

Prospects and growth opportunity

  • One important way to attract consumers back to brick-and-mortars could be through creating engaging in-store experiences or “Retailtainment”. The United Arab Emirates, specifically Dubai, is considered a mecca of beauty. Consumers are savvy about colour cosmetics and have access to a wide range of brands to choose from. Therefore, it is becoming increasingly important to create a buzz in such a saturated market. The most recent example is the Fenty island that was launched on the promenade on Dubai Mall. Fenty’s celebrity creator, Rhianna, was broadcast from the Burj Khalifeh to promote the new launch of her skin care range, and there were prizes and games to be won in a bid to create a memorable experience.
  • As discretionary income took a hit in the United Arab Emirates in 2020 and some people were cautious about spending, mini sizes proved popular, affordable to consumers while offering higher margins to companies. Most notable was the introduction of mini La Mer skin care. Another reason mini-sized packages had a greater shelf space is that travel-sized products that were not sold in airport duty frees were brought into retail settings. Shrinkflation could prove a key strategy in the future, given the uncertain macroeconomic environment following COVID-19.

 

General health & wellness trends

  • DIY (Do-It-Yourself) and self-pampering routines will continue to resonate in 2021 as consumers are left with a wider range of possibilities in the beauty and the personal care segment. Consumers will be looking for products to help them “reset” or “rejuvenate” following a stressful year. In addition, clean beauty trends are likely to become mainstream, given consumers’ increased knowledge about sustainability and heightened anxiety around chemicals and parabens. Sephora, one of the leading retailers in the United Arab Emirates, is ahead of the curve with its Clean at Sephora campaign. Clean and conscious beauty will continue to influence personal care, as seen in new formulations of deodorants, oral care, sun care and hair care.

 

Dog & Cat Food

Market size and growth

Note: Data on the top left corner of the image (47, 35 and 6) showcases respective ranks for UAE for its market size, per capita, and forecast growth rate compared against 53 countries globally. The blue line on the grey bar represents the relative position of the country as per their rank.

 

Note: Latest market size data for the year 2021 has been shared for Dog and Cat food

Performance of retail value sales of dog and cat food in UAE is estimated to slow down from a historic compound annual growth rate (CAGR) of 11.6% during 2016-2021 to an estimated forecast CAGR of 10.4% over 2021-2026. The category’s performance in the country has been slightly slower than its global performance. Globally, the category witnessed a historic CAGR of 6.9% and an estimated forecast CAGR of 4.7% during the same period.

Sub-category breakdown

Note: Current year growth in the above chart refers to period 2020-21

Category

Unit

Market size (2021)

Retail value RSP

Forecast compound annual growth rate (2021/2026) %

Dog and Cat Food

USD million

91.79

10.36

Dog Food

USD million

38.94

9.92

Dog Treats and Mixers

USD million

9.01

10.85

Dry Dog Food

USD million

23.56

11.14

Wet Dog Food

USD million

6.37

3.22

Cat Food

USD million

52.85

10.68

Wet Cat Food

USD million

36.83

11.90

Dry Cat Food

USD million

15.11

7.55

Cat treats and mixers

USD million

0.92

9.18

 

Channel distribution

Note: The chart here showcases the retail value share of different channel sales for dog and cat food products in UAE in 2021. The triangle/dash represents whether the specific channel share has increased/decreased or remained the same against its share in the previous year.

Market Insights

Market trends

  • Retail current value sales of both dog and cat food continues to exhibit double-digit growth during 2021 (11.3% during 2020-2021). Dry products dominate dog food and wet products cat food, with premium brands particularly popular. Dog and cat treats and mixers continue to see strong demand growth, with COVID-19 deepening the trend towards pet indulgence, as locked-down owners spent more time with their pets. Cat treats and mixers continues to witness a strong increase in retail current value sales during 2021 (4% during 2020-2021). These strong performances illustrate the increasing pet humanisation trend in UAE. The opening of UAE’s first cat hotel in Dubai in early 2021 further supports this growing trend. In addition, there was also a continued focus on nutritional quality in cat food in the latter part of the review period.
  • On similar lines, retail current value sales of dog food are anticipated to rise by 10% during 2021. Owners are continuing to learn about the benefits of feeding their dogs premium brands and are looking at nutritional content with a more informed eye, as the bond between owner and pet continues to deepen, with the latter increasingly being treated as ersatz children. Premium dog food continues to be influenced by a shift towards organic, natural and healthy products, with Lily’s Kitchen successfully tapping into growing demand for organic, gluten-free and grain-free dog food. Flavours such as duck, rabbit and lamb are popular, and there is growing demand for dog food containing chicken, salmon or trout.

 

Prospects and growth opportunity

  • E-commerce is expected to grow as an important distribution channel for dog food during the forecast period (2021-2026). Local consumers are becoming more confident about making online purchases, accessing the internet and smartphone ownership are now close to ubiquitous. Some smaller brands are now bypassing physical stores entirely. For example, UK-based pet food brand Webbox, which is owned by Pets Choice, has partnered with UAE-based Kibsons International to distribute its dog food products locally. 38 Webbox products are now available on the Kibsons website. More brands are likely to follow this strategy to launch dog food in the UAE during the forecast period to 2026.
  • Retail current value sales of cat food are expected to continue to exhibit double-digit growth throughout the forecast period. Premium wet and dry cat food will be the top performers during the forecast period, followed by cat mixers and treats, as owners continue to anthropomorphise their pets – even treating them as children in some cases. Pet ‘parents’ like these are willing to spend significant amounts of money on feeding their cats. Spending on cat food will also be boosted as the UAE’s expatriate population may begin to grow again during the forecast period on the back of a post-pandemic economic recovery.

 

General health & wellness trends

  • During the forecast period, the UAE’s feline population is expected to expand faster than its canine population. More and more people in the UAE live in apartments or houses with no more than a small garden – or no garden at all – and cats are generally more suited to such environments than dogs. Moreover, as cats typically require less attention than dogs, they are likely to grow in popularity vis-à-vis the latter as lifestyles begin to accelerate again as the threat posed by COVID-19 fades and consumers spend less time at home.
  • During the forecast period to 2026, both online and physical pet shops are expected to cater more to the needs of smaller dogs as their number continues to expand as most people in the UAE live in apartments or villas with limited outside space. Also, many shopping centres, parks and restaurants now allow them onto the premises. As a result, smaller pack sizes within both wet and dry dog food are expected to increase. Moreover, labelling and packaging will become customized utilising such colours as lilac and mint green or featuring flowers or small dogs, as manufacturers seek to attract the attention of their owners.

 

Alcoholic Drinks

Market size and growth

Note: Market size data for the alcoholic drinks category in the country reflects the total volume in a million litres. Data on the top left corner of the image (87, 75 and 50) showcases respective ranks for UAE for its market size, per capita, and forecast growth rate compared against 99 countries globally. The blue line on the grey bar represents the relative position of the country as per their rank. 

The compound annual growth rate (CAGR) for alcoholic drinks in UAE, both in terms of total value and volume, is expected to gain momentum over the forecast period (2020-2025: FCAGR for total value: 3.7% and for total volume: 3.3%) against its performance in the historic period (2015-2020: HCAGR for total value: -3.0% and for total volume: -3.2%). This is mainly in line with the category’s performance at the global level, where both in terms of total value and volume, alcoholic drinks are expected to gain momentum over the forecast period (2020-2025: FCAGR for total value: 4.6% and for total volume: 2.0%) against its performance in the historic period (2015-2020: HCAGR for total value: 0.9% and for total volume: -0.7%) 

Sub-category breakdown

Current year growth in the above chart refers to the period 2019-20

Category

Data type

Market size (2020)

USD million

Forecast compound annual growth rate (2020/2025) %

Alcoholic Drinks

Total Value RSP

7,960.97

3.66

Alcoholic Drinks

Off-trade Value RSP

1,180.33

-0.35

Alcoholic Drinks

On-trade Value RSP

6,780.64

4.29

Beer

Total Value RSP

839.25

3.71

Beer

Off-trade Value RSP

150.37

-0.42

Beer

On-trade Value RSP

688.87

4.53

Cider/Perry

Total Value RSP

2.79

2.48

Cider/Perry

Off-trade Value RSP

0.06

-3.92

Cider/Perry

On-trade Value RSP

2.72

2.61

RTDs

Total Value RSP

17.24

0.05

RTDs

Off-trade Value RSP

3.99

-0.18

RTDs

On-trade Value RSP

13.25

0.12

Spirits

Total Value RSP

5,565.95

3.14

Spirits

Off-trade Value RSP

652.38

-0.29

Spirits

On-trade Value RSP

4,913.58

3.56

Wine

Total Value RSP

1,535.75

5.47

Wine

Off-trade Value RSP

373.53

-0.42

Wine

On-trade Value RSP

1,162.22

7.12

 

Channel distribution

Note: The chart here showcases the off-trade volume share of different channel sales for alcoholic drink products in UAE in 2020. The triangle/dash represents whether the specific channel share has increased/decreased or remained the same against its share in the previous year.

Market Insights

Market trends

  • COVID-19 led to a decline in total volume growth for alcoholic drinks in the United Arab Emirates. The category witnessed a double-digit decline of 15.3% in total volume growth in 2020. International border closures led to a severe decline in inbound tourists, while many non-Muslim expatriates returned to their home countries early in the pandemic. As a Muslim country, the United Arab Emirates relies heavily on tourists and Western residents to sell alcoholic drinks. Specifically, cider/perry suffered the steepest total volume losses as these drinks are mainly served in the on-trade.  On the other hand, wine is the smallest area within alcoholic drinks and was the least affected as retail sales witnessed strong growth in 2020 as many consumers switched to at-home consumption. The most significant development arising from the crisis is the allowance of alcohol home deliveries, which was hitherto unavailable. Maritime and Mercantile International (MMI) and African + Eastern, the two legal entities that can sell alcohol, have enabled an online delivery service for consumers with a legal license and who are aged over 21.
  • Steep declines in on-trade sales due to COVID-19-related closures led to a weak total volume performance for beer in 2020. Consumer buying behaviour and falling disposable incomes were already negatively impacting beer sales in the United Arab Emirates in 2019. Retail prices per litre within the off trade include additional taxation at 30% in the Emirate of Dubai and the additional 5% VAT applicable since the end of 2017 had impacted the purchasing frequency of the consumers. Non-alcoholic beer is the only area to achieve positive total volume growth of 4% in 2020 as an increasing number of new brands are aiming to capitalise on the proclivity of consumers in the region to opt for beverages which do not contain alcohol, whether based on health or religious grounds.
  • Spirits recorded a total volume decline of 13.2% in 2020 for similar reasons as mentioned above. A major switch to retail purchases could not offset the steep declines in on-trade spirits sales during the COVID-19 pandemic in 2020. Amid the pandemic, the country witnessed a change in consumption pattern with expatriates switching from blended Scotch whisky to single malt and Japanese whiskies. The median age in the United Arab Emirates is 33, with most expatriates aged between 25 and 40. This young expatriate group lacks brand loyalty, and their purchasing decisions are highly driven by innovations.

 

Prospects and growth opportunity

  • The COVID-19 pandemic has increased awareness of the importance of health and wellness, and many consumers will undoubtedly seek less harmful options such as soft drinks or lower-alcohol brands of beer as part of their healthier regimes. In addition, the long-planned Expo 2020, which was postponed to late 2021 due to the global COVID-19 pandemic, is expected to be a success and will remain a positive factor in sales of beer given the context of changes in travel restrictions and the success of many of the vaccination programmes in source countries.
  • Low and non-alcoholic spirits are expected to gain popularity in the country, albeit from their minor bases, especially those designed as bases for low and non-alcoholic cocktails. Consumers seeking to lead healthier lifestyles as well as the preference for premium lower harm cocktails will drive the development of these spirits. Guests in on-trade outlets are increasingly looking for alternatives to alcoholic cocktails. There is a reliance on using spices and herbs in these drinks and the mixing of complex flavours, which is compatible across demographics and customer segments.

 

General industry trends

  • Imported premium lager accounts for virtually all lager volume sales in the United Arab Emirates. Many of the leading lager brands in the country, namely Heineken, Foster’s, Budweiser, Carlsberg and Corona Extra, are all positioned in the premium segment, thus making it the largest price band in the category. Despite this, intense competition in beer has encouraged retailers to offer these products on price promotions to attract more consumers. In addition, with the growing health and wellness trend in the United Arab Emirates, many consumers are increasingly opting for healthier versions of their favourite products, irrespective of the price. Amstel Light has a low alcohol content – less than 4% – and fewer calories than other beers, such as Budweiser and Corona Extra. It has so far been highly successful in attracting the attention of the country’s more health-conscious beer drinkers. 
  • Restrictions on sales of alcoholic drinks were eased within the United Arab Emirates towards the end of 2020. Residents and tourists will now be allowed to purchase and possess alcohol from shops and consume it within hotels, clubs, and other outlets without buying a special licence. This will undoubtedly support sales of alcoholic drinks over the forecast period (2020-2025).

 

Health & Wellness Packaged Food & Beverages

Market size and growth

Note: Data on the top left corner of the image (45, 23 and 40) showcases respective ranks for UAE for its market size, per capita, and forecast growth rate compared against 53 countries globally. The blue line on the grey bar represents the relative position of the country as per their rank.

The retail value sales of health and wellness food and beverage products in UAE is expected to slow down when comparing the compound annual growth rates from historic to forecast periods, i.e. (6.5% during 2015-2020 to 1.7% during 2020-2025). This was also the case with the category’s performance at the global level, where its compound annual growth rate for retail value sales is estimated to slow down from 4.6% during 2015-2020 to 2.4% during 2020-2025.

Sub-category breakdown

Current year growth in the above chart refers to the period 2019-20

Category

Unit

Market size (2020)

Retail value RSP

Forecast compound annual growth rate (2020/2025) %

Health and Wellness by Type

USD million

2,010.71

1.69

Better For You (BFY)

USD million

154.23

2.38

Fortified/Functional (FF)

USD million

767.37

1.62

Free From

USD million

32.69

7.74

Naturally Healthy (NH)

USD million

1,022.40

1.22

Organic

USD million

34.02

7.28

 

Channel distribution

Note: The chart here showcases the retail value share of different channel sales for health and wellness by type products in UAE in 2020. The triangle/dash represents whether the specific channel share has increased/decreased or remained the same against its share in the previous year.

Market Insights

Market trends

  • Demand for health and wellness packaged food and beverages generally increased in the United Arab Emirates throughout 2020. Consumers have become more focused on the importance of maintaining a healthy diet for their general health and wellbeing and for bolstering their immunity to viral illnesses. Among the categories to benefit the most from the situation were naturally healthy packaged food and fortified/functional packaged food. In the case of naturally healthy products, consumers are increasingly looking for products that align with the emerging clean eating trend, which focuses more on reducing one’s intake of artificial ingredients. Meanwhile, fortified/functional packaged food and beverages gained ground as consumers looked to products that have an immunity positioning via the addition of key nutrients such as vitamin C, among others.
  • The adverse and uncertain economic situation that unfolded over the course of 2020 was detrimental to sales of naturally healthy beverages. Many consumers reduced spending as their incomes came under pressure due to the interruption that COVID-19 posed in key sectors of the economy. Volume sales of naturally healthy beverages were already in decline prior to the onset of the COVID-19 pandemic and with many consumers interested in avoiding unnecessary spending during 2020, these volume sales declines deepened over the course of the year. Many consumers also became more interested in the ingredients contained within their beverages, which encourage them to check labels to ensure that their intended purchases are in keeping with their healthy lifestyles. Manufacturers have sought to tap into this trend via new product innovation, with the more regular launches of healthy new variants being seen. For example, in addition to low sodium bottled water, players are also looking to introduce products with alkaline pH values as a point of differentiation within NH bottled water.

 

Prospects and growth opportunity 

  • The forecast period (2020-2025) is set to see FF (fortified/functional) bottled water register by far the strongest growth of any category of fortified/functional beverages in the United Arab Emirates. One of the main factors underpinning the strong performance anticipated for the category is that bottled water is one category of soft drinks that is entirely exempt from the special taxes recently imposed on sugary beverages. Indeed, consumers are increasingly looking to bottled water as the healthiest type of soft drink since these products contain no sugar. Thus, products that can be presented as particularly healthy due to being fortified can be expected to attract huge numbers of consumers.
  • One of the most important trends that are expected to emerge in naturally healthy beverages during the forecast period to 2025 is the emergence of naturally healthy soft drinks in small pack sizes. This can be seen as part of the efforts of the category’s leading manufacturers to differentiate their product ranges and attract the attention of consumers. In addition, small pack sizes tend to have higher unit prices, enabling manufacturers to charge higher prices and generate higher profits. Naturally healthy 100% juice is the category in which smaller pack sizes are increasingly being seen. For example, Barakat Quality juice shots, for instance, are now available in multiple variants and at a higher unit price than the average unit price of 100% juice shots.

 

General health & wellness trends 

  • The forecast period (2020-2025) is expected to see sales of health and wellness packaged food and beverages increase substantially, with many categories having registered a major spike in sales and/or a reversal of previously negative growth trends as the COVID-19 pandemic gripped the nation during 2020. The newfound focus on health and wellness and increasing consumer awareness of the importance of maintaining a healthy diet for immunity and general health can be expected to underpin strong sales growth across both health and wellness beverages and health and wellness packaged food during the forecast period.
  • Opportunities are expected to emerge for segmentation, with consumers increasingly focused on specific aspects of their health and wellness and increasingly interested in products that respond to their needs. For instance, free from gluten and free from lactose are expected to become more popular as digestive health, and dietary intolerances become increasingly important issues in society. Meanwhile, naturally healthy olive oil and naturally healthy honey are expected to benefit from the clean eating trend and the increasing desire of the consumers to eliminate the inherently harmful products, especially those that contain high levels of sugar and/or artificial ingredients. Another important trend to note is that consumers are increasingly focused on products that combine health and wellness attributes e.g. free from products that are also fortified/functional and naturally healthy products that are also free from and/or organic.

 

 

Retail Landscape

Retail Landscape

Brand shares of supermarkets

Note: The 14th supermarket in the above chart is – Al Dhafra Co-operative society

Brand shares of chemists/pharmacies

Retail insights
  • The UAE retail landscape has been confronted with unprecedented problems in 2020, a market that is particularly sensitive to the economic disruptions created by the COVID-19 pandemic due to the high share of GDP powered by retail, transportation, and hospitality. The retailing industry in the United Arab Emirates witnessed a decline of 6.5% in retail value sales in 2020. Foreigners make about 98% of Dubai's private sector labour. Given that 90% of the UAE population comprises expats with residency tied to employment, population and tourist arrivals are the primary drivers of retail expansion. As a result, UAE retailing took a huge hit in 2020, when tourism came to a halt, and failing enterprises cut off thousands of workers, sparking an "expat exodus". Leading up to the pandemic, the UAE suffered from sluggish growth due to increasing global protectionism, geopolitical tensions, and financial market turbulence. The economy has been impacted by falling oil prices and the implementation of a 5% VAT rate in 2018, both of which harmed consumer confidence. However, because the UAE's population is youthful and digitally sophisticated, e-commerce and digital payments exploded, fuelling the pockets of development observed in 2020.
  • In another such impact of Covid-19, consumer confidence and worries about limited disposable income are driving some consumers to downgrade to private labels. This increased demand led to an increase in the shelf space for local produce. Also propelling the purchasing of the private label was the fact that they were the products that were the least likely to be out of stock. Private label is expected to gain over the forecast period (2020-2025) due to its favourable price points and good quality. To curb the growing dominance of private labels, brands offer discounts on discretionary products and lots of promotions, including 2-for-1 offers to attract frugal shoppers.
  • The COVID-19 pandemic shed light on the increasing importance of having an omnichannel approach for retailers. During the lockdown, only essential shops like grocers could stay open and to deal with the surge in demand, grocery retailers had to be agile and find ways to fulfil demand. For example, in 2020, Lulu supermarkets introduced a new online shopping service through its smart app, where customers can place orders and collect them from the branch. Carrefour similarly offered a click-and-collect system for five of its Dubai stores. In 2020, Carrefour launched a state-of-the-art click-and-collect service at its DIFC (Dubai International Financial Centre) branch. The new service dispenses online grocery orders through a dedicated robot, providing a convenient alternative to online deliveries.
  • The country's chemist/pharmacies market was valued at USD 3,143.6 million in 2020 (Retail value RSP without sales tax). In 2020-2021, the channel's year-over-year growth rate was 2.6%. The value compound annual growth rate has been 3.7% over the last five years (2015-2020). Also, the channel's retail value compound annual growth rate is expected to rise by 3.2% over the forecast period (2020-2025).

 

Definitions
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  • Definitions
  • Acronyms Used & Key Notes

Definitions

Industry

Category

Definition

Alcoholic Drinks

Alcoholic Drinks

Alcoholic drinks are the aggregation of beer, wine, spirits, cider/perry and RTDs.

Alcoholic Drinks

Beer

An alcoholic drink usually brewed from malt, sugar, hops and water and fermented with yeast. Some beers are made by fermenting a cereal, especially barley, and therefore not flavoured by hops. Alcohol content for beer is varied – anything up to and over 14% ABV (alcohol by volume), although 3.5% to 5% is most common. Beer is the aggregation of lager, dark beer, stout and non/low alcohol beer.

Alcoholic Drinks

Cider/Perry

Cider is made from fermented apple juice while perry is made from fermented pear juice. Both artisanal and industrial cider/perry are included.

Alcoholic Drinks

RTDs

RTD stands for ‘ready-to-drink’. Other terms which may be used for these products are FABs, alcopops and premixes. The RTDs sector is the aggregation of malt-, wine-, spirit- and other types of premixed drinks. These drinks usually have an alcohol content of around 5% but this can reach as high as 10% ABV. Premixes containing a high percentage of alcohol of around 15%+ combined with juice or any other soft drink are included here. RTDs are usually marketed as products to be drunk neat, with ice, or as a cocktail ingredient. Fruit-flavoured, vodka-based spirits with an alcohol content of between 16-21% are classified here. Examples: Alizé, Ursus Roter, Berentzen Fruchtige, Kleiner Feigling.

Alcoholic Drinks

Spirits

This is the aggregation of whisk(e)y, brandy and Cognac, white spirits, rum, tequila, liqueurs and other spirits.

Alcoholic Drinks

Wine

This is the aggregation of still and sparkling light grape wines, fortified wine and vermouth and non-grape wine. In terms of alcohol content, light wine usually falls into the 8-14% ABV bracket while fortified wine ranges from 14-23% ABV. Low and non-alcoholic wine is also included in the data (attributed to each sector as appropriate).

Beauty and Personal Care

Skin Care

This is the aggregation of facial care, body care, hand care and skin care sets/kits.

Beauty and Personal Care

Body Care

This is the aggregation of firming/anti-cellulite products and general-purpose body care.
Eaux de soin products which offer skin hydration/moisturisation are also included here.
Also included are moisturising creams, which have additional soothing properties (for post-shave/epilation) and/or also claim to slow the growth of body hair.
Excluded are foot care products.

Beauty and Personal Care

Facial Care

This is the aggregation of acne treatments, moisturisers and treatments, facial cleansers, toners, face masks, and lip care. Please note that Moisturisers and Treatments is the aggregation of basic moisturisers and anti-agers.

Beauty and Personal Care

Hand Care

Includes all hand moisturisers, both premium and mass market, as well as combination hand and nail products. Includes protective emollients and deep moisturisers formulated to sooth and hydrate very dry or irritated skin, as well as those that prevent, or that are suitable for, eczema-prone or redness-prone skin. Excludes medicated emollients and/or those positioned as treatment for eczema or psoriasis.

Beauty and Personal Care

Skin Care Sets/Kits

Multiple skin care items of the same brand line packaged together in a set and priced at an advantageous price compared to purchasing the items separately. Includes traditional gift sets, multi-step skin care regimens, skin care starter kits (including acne treatment regimen sets/kits) and skin care travel kits (sold through retail outlets). Also includes sets, which comprise of products from multiple categories (e.g. makeup and skin care), as long as the primary product is skin care. Men’s, women’s and unisex versions are included. Excludes: GWP (Gift with Purchase) – consumer does not pay for this (e.g. free product when you purchase a set or a free sample kit).

Consumer Health

Dietary Supplements

It is the aggregation of all dietary supplements: Minerals, fish oils/omega fatty acids, garlic, ginseng, ginkgo biloba, evening primrose oil, Echinacea, St John's Wort, protein supplements, probiotic supplements, eye health supplements, co-enzyme Q10, glucosamine, combination herbal/traditional supplements, non-herbal/traditional supplements, and all other dietary supplements specific to country coverage.

Consumer Health

Paediatric Vitamins and Dietary Supplements

All vitamin and dietary supplement products formulated, designed, marketed and labelled specifically for children.

Consumer Health

Tonics

Include versions of combination dietary supplements that are sold in the format of liquid concentrates, mini-drinks, shots or oral gels. Include concentrated energy shot boosters and tonics such as 5-Hour Energy and Lipovitan. Exclude remedies made with active pharmaceutical ingredients as well as super fruit juice concentrates and weight-loss beverages, tracked under the Health and Wellness (HW) system.

Consumer Health

Vitamins

This is the aggregation of multivitamins and single vitamins.

Health and Wellness

Health and Wellness by Type

Health and Wellness by Type is the aggregation of all health and wellness food and beverages broken down by organic, fortified/functional, naturally healthy, better for you and free from products.

Health and Wellness

Better For You (BFY)

Products where the amount of a substance considered to be less healthy (eg fat, sugar, salt, carbohydrates) has been actively reduced during production. To qualify for inclusion in this category, the “less healthy” element of the foodstuff needs to have been actively removed or substituted during the processing. This should also form a key part of the positioning/marketing of the product. Products which are naturally fat/sugar/carbohydrate -free are not included as nothing out of the ordinary has been done during their production to make them “better for you”. “No added sugar” claims are excluded too. Products most likely to be included here will be those which are low-fat/low-sugar versions of standard products (i.e. reduced fat mayonnaise, reduced fat cheese, reduced fat milk, reduced sugar confectionery, etc).

Health and Wellness

Fortified/Functional (FF)

This category includes fortified/functional food and beverages. When identifying fortified/functional products, we focus on products to which health ingredients or/and nutrients have been added as well as brands that are positioned to deliver a certain functionality. To be included here the enhancement must be highlighted in the label or hold a health claim/nutritional claim. Fortified/functional food and beverages provide health benefits beyond their nutritional value and/or the level of added ingredients wouldn’t normally be found in that product. To merit inclusion in this category, the defining criterion here is that the product must have been actively fortified/enhanced during production. As such, inherently healthy products such as 100% fruit/vegetable juices are only included under "fortified/functional" if additional health ingredients (e.g. calcium, omega 3) have been added. To be included, the health benefit needs to form part of positioning/marketing of the product. For product category definitions please refer to the definitions section (can be found under the "Help" section on Passport) for the respective system: Packaged Food, Hot Drinks, Soft Drinks.

Health and Wellness

Free From

This category includes free from gluten, free from lactose, free from allergens, free from dairy and free from meat products. This excludes foods which are certified ‘free’ of a specific product when this is based on use of sterilised equipment.

Health and Wellness

Naturally Healthy (NH)

This category includes food and beverages based on naturally containing a substance that improves health and wellbeing beyond the product’s pure calorific value. These products are usually a healthier alternative within a certain sector/subsector. High fibre food (wholegrain/wholemeal/brown), soy products, sour milk drinks, nuts, seeds and trail mixes, honey, fruit and nut bars and olive oil are considered NH foods and 100% fruit/vegetable juice, superfruit juice, natural mineral water, spring water, RTD green tea etc. are considered NH beverages. While many of these products are marketed on a health basis, this might not always be the case. Naturally healthy food and beverages that are additionally fortified fall into the 'fortified/functional' category.

Health and Wellness

Organic

Certified organic products are those which have been produced, stored, processed, handled and marketed in accordance with precise technical specifications (standards) and certified as "organic" by a certification body such as the Soil Association in the UK, the European Union or the US Department of Agriculture. It is important to note that an organic label applies to the production process, ensuring that the product has been produced and processed in an ecologically sound manner. The organic label is therefore a production process claim as opposed to a product quality claim. Note: For organic products to be included, the organic aspect needs to form a significant part of the overall positioning/marketing of the product, including the organic certification label in the packaging.

Pet Care

Dog and Cat Food

This is the aggregation of dog and cat food.

Pet Care

Cat Food

This is the aggregation of wet and dry cat food.

Pet Care

Cat Treats and Mixers

This is the aggregation of mixers and treats for cats.

Pet Care

Dry Cat Food

These products have a moisture content of 10-14% and are generally packed into paper, plastic or cardboard. Dry cat food is typically made from a combination of grain-based ingredients (corn and rice) and a meat component. It is typically produced by extrusion cooking under high heat and pressure and then sprayed with fat to increase palatability. Other ingredients may also be added to complete its composition. This is the aggregation of premium, mid-priced and economy dry cat food. Note: semi-moist food is included here. These products are extruded (combining meat and cereal), have a higher moisture content (20-40%) and are usually packaged in plastic or foil sachets.

Pet Care

Wet Cat Food

These products have a moisture content of 60-85% and are generally (though not always) preserved by heat treatment. They are packaged in steel or aluminium cans, rigid or flexible plastic or semi-rigid aluminium trays. This is the aggregation of premium, mid-priced and economy wet cat food.

Pet Care

Dog Food

This is the aggregation of wet and dry dog food.

Pet Care

Dog Treats and Mixers

This is the aggregation of mixers and treats for dogs.

Pet Care

Dry Dog Food

These products generally have a moisture content of 6-14% and are generally packed into paper, plastic or cardboard. Complete dry dog foods fall into two broad categories: Flaked (or 'Muesli' type blended products) and Extruded products (meat and cereals cooked by direct steaming). This is the aggregation of premium, mid-priced and economy dry dog food. Note: semi-moist food is included here. These products are extruded (combining meat and cereal) have a higher moisture content (20-40%) and are usually packaged in plastic or foil sachets.

Pet Care

Wet Dog Food

These products have a moisture content of 60-85% and are generally (though not always) preserved by heat treatment. They are packaged in steel or aluminium cans, rigid or flexible plastic or semi-rigid aluminium trays. This is the aggregation of premium, mid-priced and economy wet dog food.

Retail in Alcoholic Drinks

Store-Based Retailing

Store-based retailing is the aggregation of grocery retailers and non-grocery specialists and mixed retailers.

Retail in Alcoholic Drinks

Grocery Retailers

Retailers selling predominantly food/beverages/tobacco and other everyday groceries. This is the aggregation of hypermarkets, supermarkets, discounters, convenience stores, independent small grocers, forecourt retailers, food/drink/tobacco specialists and other grocery retailers.

Retail in Alcoholic Drinks

Convenience Stores

Chained grocery retail outlets selling a wide range of groceries and fitting several of the following characteristics: Extended opening hours •Selling area of less than 400 sq. metres •Located in residential neighbourhoods •Handling two or more of the following product categories: audio-visual goods (for sale or rent), foodservice (prepared take-away, made-to-order, and hot foods), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Example brands include 7-Eleven, Spar.

Retail in Alcoholic Drinks

Discounters

Discounters are retail outlets typically with a selling space of between 400 and 2,500 square metres. Retailers' primary focus is on selling private label products within a limited range of food/beverages/tobacco and other groceries at budget prices. Discounters may also sell a selection of non-groceries, frequently as short-term special offers. Discounters can be classified as hard discounters and soft discounters. Hard discounter: first introduced by Aldi in Germany, and also known as limited-line discounters. Retail outlets, typically of 300-900 square metres, stocking fewer than 1,000 product lines, largely in packaged groceries. Goods are mainly private-label or budget brands. Soft discounter: usually slightly larger than hard discounters, and also known as extended-range discounters. Retail outlets typically stocking 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Discounters excludes mass merchandisers and warehouse clubs. Example brands include Aldi, Lidl, Plus, Penny, Netto.

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Forecourt Retailers

Grocery retail outlets selling a wide range of groceries from a gas station forecourt and fitting several of the following characteristics: • Extended opening hours • Selling area of less than 400 sq. metres • Handling two or more of the following product categories: audio-visual goods (for sale or rent), take-away food (readymade sandwiches, rolls or hot food), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Example brands include BP Connect, Shell Select. Forecourt retailers includes both chained forecourt retailers and independent forecourt retailers.

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Hypermarkets

Hypermarkets are retail outlets with a selling space of over 2,500 square metres and with a primary focus on selling food/beverages/tobacco and other groceries. Hypermarkets also sell a range of non-grocery merchandise. Hypermarkets are frequently located on out-of-town sites or as the anchor store in a shopping centre. Example brands include Carrefour, Tesco Extra, Géant, E Leclerc, Intermarché, Auchan. Excludes cash and carry, warehouse clubs and mass merchandisers.

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Supermarkets

Retail outlets selling groceries with a selling space of between 400 and 2,500 square metres. Excludes discounters, convenience stores and independent grocery stores. Example brands include Champion, Tesco, Casino.

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Food/drink/tobacco specialists

Retail outlets specialising in the sale of mainly one category of food, drinks store and tobacconists. Includes bakers (bread and flour confectionery), butchers (meat and meat products), fishmongers (fish and seafood), greengrocers (fruit and vegetables), drinks stores (alcoholic and non-alcoholic drinks), tobacconists (tobacco products and smokers’ accessories), cheesemongers, chocolatiers and other single food categories. Alcoholic drinks stores are retail outlets with a primary focus on selling beer/wine/spirits/other alcoholic beverages. Example brands include: Threshers, Gall & Gall, Liquorland, Watson’s Wine Cellar

Retail in Alcoholic Drinks

Independent Small Grocers

Retail outlets selling a wide range of predominantly grocery products. These outlets are usually not chained and if chained will have fewer than 10 retail outlets. Mainly family owned, often referred to as Mom and Pop stores.

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Other Grocery Retailers

Other retailers selling predominantly food, beverages and tobacco or a combination of these. Includes kiosks, markets selling predominantly groceries. Includes CTNs and health food stores, Food & drink souvenir stores and regional speciality stores. Direct home delivery, eg of milk, meat from farm/dairy is excluded. Sari-Sari stores in Philippines and Warung (Waroon) in Indonesia, that can either be markets or kiosks, are included in Other grocery retailers unless they occupy a separate permanent outlet building, in which case they are included in Independent small grocers. Outlets located within wet markets, particularly in South East Asia (often located in government-owned multi-story buildings) should be counted as separate outlets. Wine sales from Vineyards are included here.

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Non-Grocery Specialists

Retail outlets selling predominantly non-grocery consumer goods. Non-grocery retailers is the aggregation of: • Apparel and footwear specialist retailers • Electronics and appliance specialist retailers • Health & beauty specialist retailers • Home and garden specialist retailers • Leisure and personal goods specialist retailers • Other non-grocery retailers

Retail in Alcoholic Drinks

Drugstores/parapharmacies

Retail outlets selling mainly OTC healthcare, cosmetics and toiletries, disposable paper products, household care products and other general merchandise. Such outlets may also offer prescription-bound medicines under the supervision of a pharmacist. Drugstores in Spain (Droguerias) also sell household cleaning agents, paint, DIY products and sometimes pet products and services such as photo processing. Example brands include Rossmann (Germany), Kruidvat (Netherlands), Walgreen’s (US), CVS (US), Medicine Shoppe (US), Matsumoto Kiyoshi (Japan), HAC Kimisawa (Japan).

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Mixed Retailers

This is the aggregation of department stores, variety stores, mass merchandisers and warehouse clubs.

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Department Stores

Outlets selling mainly non-grocery merchandise and at least five lines in different departments, usually with a sales area of over 2,500 sq metres. They are usually arranged over several floors. Example brands include Macy’s, Bloomingdale’s, Marks & Spencer, Harrods, Sears, JC Penney, Takashimaya, Mitsukoshi, Daimaru, Karstadt, Rinascente.

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Mass Merchandisers

Mixed retail outlets that usually: (1) convey the image of a high-volume, fast-turnover outlet selling a variety of merchandise for less than conventional prices; (2) provide centralised check-out service; and (3) provide minimal customer assistance within each department. Example brands include Wal-Mart, Target and Kmart. Excludes hypermarkets and warehouse clubs/cash and carry stores.

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Variety Stores

Non-grocery general merchandise outlets usually located on one floor, offering a wide assortment of extensively discounted fast-moving consumer goods on a self-service basis. Normally over 1,500 sq. metres in size, except in the case of dollar stores, these outlets give priority to fast-moving non-grocery items that have long shelf-lives. Includes catalogue showrooms and dollar stores. Example brands include Woolworth (Germany), Upim (Italy).

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Warehouse Clubs

Warehouse Clubs are chained outlets that sell a wide variety of merchandise but do have a strong mix of both grocery and non-grocery products. Customers have to pay an annual membership fee in order to shop. The clubs are able to keep prices low due to the no-frills format of the stores and attempt to drive volume sales through aggressive pricing techniques. Warehouse Clubs typically: - exceed 2,500 sq. metres of selling space and are invariably -over 4,000 sq. metres in size; - convey the image of a high-volume, fast-turnover retailing at less than conventional prices; - provide minimal customer assistance within each department; and - are situated in out-of-town locations. Example brands include: - Costco - Sam’s Club (Wal-Mart) - PriceSmart - Cost-U-Less

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Non-Store Retailing

The retail sale of new and used goods to the general public for personal or household consumption from locations other than retail outlets or market stalls. Non-store retailing is the aggregation of Vending, Direct Selling, Homeshopping and Internet Retailing.

Retail in Alcoholic Drinks

Direct Selling

Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations. Direct selling occurs in two primary ways: one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose).

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Homeshopping

Homeshopping is the sale of consumer goods to the general public via mail order catalogues, TV shopping and direct mail. Consumers purchase goods in direct response to an advertisement or promotion through a mail item, printed catalogue, TV shopping programme, or Internet catalogue whereby the order is placed, and payment is made by phone, by post or through other media such as digital TV. Excludes sales on returned products/unpaid invoices. Excludes sales ordered and paid online which are instead included within Internet retailing.

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E-Commerce

Sales of consumer goods to the general public via the Internet. Please note that this includes sales through mobile phones and tablets. Internet retailing includes sales generated through pure e-commerce web sites and through sites operated by store-based retailers. Sales data is attributed to the country where the consumer is based, rather than where the retailer is based. Also includes orders placed through the web for which payment is then made through a storecard, an online credit account subsequent to delivery or on delivery of the product. This payment may be by any mode of payment including postal cheque, direct debit, standing order or other banking tools. Includes orders paid for cash on delivery. Includes m-commerce: where consumers use smart phones or tablets to connect to Internet and purchase the goods online.

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Vending

Vending means automatic retailing. It covers the sale of products and services at an unattended point of sale through a machine operated by introducing coins, bank notes, payment cards, tokens or other means of cashless payment. Coverage includes vending systems installed in public and semi-captive environments only. Hotels, transport networks, recreational centres, shopping centres/malls are included. Factories, offices, hospitals, prisons, schools and other captive environments are excluded.

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Store-Based Retailing

Store-based retailing is the aggregation of grocery retailers and non-grocery specialists and mixed retailers.

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Grocery Retailers

Retailers selling predominantly food/beverages/tobacco and other everyday groceries. This is the aggregation of hypermarkets, supermarkets, discounters, convenience stores, independent small grocers, forecourt retailers, food/drink/tobacco specialists and other grocery retailers.

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Modern Grocery Retailers

Modern grocery retailing is the aggregation of those grocery channels that have emerged alongside the growth of chained retail: Hypermarkets, Supermarkets, Discounters, Forecourt Retailers and Convenience Stores.

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Convenience Stores

Chained grocery retail outlets selling a wide range of groceries and fitting several of the following characteristics: Extended opening hours •Selling area of less than 400 sq. metres •Located in residential neighbourhoods •Handling two or more of the following product categories: audio-visual goods (for sale or rent), foodservice (prepared take-away, made-to-order, and hot foods), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Example brands include 7-Eleven, Spar.

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Discounters

Discounters are retail outlets typically with a selling space of between 400 and 2,500 square metres. Retailers' primary focus is on selling private label products within a limited range of food/beverages/tobacco and other groceries at budget prices. Discounters may also sell a selection of non-groceries, frequently as short-term special offers. Discounters can be classified as hard discounters and soft discounters. Hard discounter: first introduced by Aldi in Germany, and also known as limited-line discounters. Retail outlets, typically of 300-900 square metres, stocking fewer than 1,000 product lines, largely in packaged groceries. Goods are mainly private-label or budget brands. Soft discounter: usually slightly larger than hard discounters, and also known as extended-range discounters. Retail outlets typically stocking 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Discounters excludes mass merchandisers and warehouse clubs. Example brands include Aldi, Lidl, Plus, Penny, Netto.

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Forecourt Retailers

Grocery retail outlets selling a wide range of groceries from a gas station forecourt and fitting several of the following characteristics: • Extended opening hours • Selling area of less than 400 sq. metres • Handling two or more of the following product categories: audio-visual goods (for sale or rent), take-away food (ready-made sandwiches, rolls or hot food), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Example brands include BP Connect, Shell Select. Forecourt retailers includes both chained forecourt retailers and independent forecourt retailers.

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Hypermarkets

Hypermarkets are retail outlets with a selling space of over 2,500 square metres and with a primary focus on selling food/beverages/tobacco and other groceries. Hypermarkets also sell a range of non-grocery merchandise. Hypermarkets are frequently located on out-of-town sites or as the anchor store in a shopping centre. Example brands include Carrefour, Tesco Extra, Géant, E Leclerc, Intermarché, Auchan. Excludes cash and carry, warehouse clubs and mass merchandisers.

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Supermarkets

Retail outlets selling groceries with a selling space of between 400 and 2,500 square metres. Excludes discounters, convenience stores and independent grocery stores. Example brands include Champion, Tesco, Casino.

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Traditional Grocery Retailers

Traditional grocery retailing is the aggregation of those channels that are invariably non-chained and are, therefore, owned by families and/or run on an individual basis. Traditional grocery retailing is the aggregation of three channels: Independent Small Grocers, Food/Drink/Tobacco Specialists and Other Grocery Retailers.

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Non-Grocery Specialists

Retail outlets selling predominantly non-grocery consumer goods. Non-grocery retailers is the aggregation of: • Apparel and footwear specialist retailers • Electronics and appliance specialist retailers • Health & beauty specialist retailers • Home and garden specialist retailers • Leisure and personal goods specialist retailers • Other non-grocery retailers

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Apparel and Footwear Specialist Retailers

Outlets specialising in the sale of all types of apparel, footwear and fashion accessories including costume jewellery, belts, handbags, hats, scarves or a combination of these (for example stores selling handbags only are included). This includes those stores that carry a combination of all products for either men or women or children and those that may specialise by either gender, age or product. Example brands include Gap, H&M, Zara, C&A, Miss Selfridge, Foot Locker, Uniglo, Next, Matalan. Brands that offer sports apparel and sports goods are excluded from Apparel and footwear specialist retailers and are included in Sports goods stores.

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Electronics and Appliance Specialist Retailers

Retail outlets specialising in the sale of large or small domestic electrical appliances, consumer electronic equipment (including mobile phones), computers or a combination of these. For mobile phone retailers, this excludes revenues derived from telecoms service plans and top-up cards, etc. Example brands include Apple, Best Buy, Euronics, PC World, Darty, But, Media Markt, Yamada Denki, Gome (China).

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Health and Beauty Specialist Retailers

This is the aggregation of chemists/pharmacies, drugstores/parapharmacies, beauty specialist retailers, optical goods stores and other healthcare specialist retailers.

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Beauty Specialist Retailers

Beauty specialist retailers are chained or independent retail outlets with a primary focus on selling fragrances, other cosmetics and toiletries, beauty accessories or a combination of these. Examples of Beauty specialist retailer brands include: Body Shop, Marionnaud, Sephora and Bath and Body Works.

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Chemists/Pharmacies

Retail outlets selling prescription-bound medicines under the supervision of a pharmacist and as its core activity (other activities include sales of OTC healthcare and cosmetics and toiletries products).

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Drugstores/parapharmacies

Retail outlets selling mainly OTC healthcare, cosmetics and toiletries, disposable paper products, household care products and other general merchandise. Such outlets may also offer prescription-bound medicines under the supervision of a pharmacist. Drugstores in Spain (Droguerias) also sell household cleaning agents, paint, DIY products and sometimes pet products and services such as photo processing. Example brands include Rossmann (Germany), Kruidvat (Netherlands), Walgreen’s (US), CVS (US), Medicine Shoppe (US), Matsumoto Kiyoshi (Japan), HAC Kimisawa (Japan).

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Home and Garden Specialist Retailers

This is the aggregation of homewares and home furnishing stores and home improvement and gardening stores. Business-to-business sales are excluded. Home improvement and gardening stores are chained or independent retail outlets with a primary focus on selling one or more of the following categories: Home improvement materials and hardware, Paints, coatings and wall coverings, Kitchen and bathroom, fixtures and fittings, Gardening equipment, House/Garden plants. Home improvement and gardening stores includes Home improvement centres / DIY stores, Hardware stores (Ironmongers), Garden centres, Kitchen and bathroom showrooms, Tile specialists, Flooring specialists. Homewares and Home Furnishing stores are retail outlets specialising in the sale of home furniture and furnishings, homewares, floor coverings, soft furnishings, lighting etc.

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Homewares and Home Furnishing Stores

Retail outlets specialising in the sale of home furniture and furnishings, homewares, floor coverings, soft furnishings, lighting etc.

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Other Non-Grocery Specialists

Other non-grocery retailers are chained or independent retail outlets, kiosks, market stalls or street vendors and with a primary focus on selling non-food merchandise. Other non-grocery retailers include Charity shops, Second-hand shops and Market stalls.

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Outdoor Markets

Includes bazaars, kiosks, street vendors and beach vendors.

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Mixed Retailers

This is the aggregation of department stores, variety stores, mass merchandisers and warehouse clubs.

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Department Stores

Outlets selling mainly non-grocery merchandise and at least five lines in different departments, usually with a sales area of over 2,500 sq metres. They are usually arranged over several floors. Example brands include Macy’s, Bloomingdale’s, Marks & Spencer, Harrods, Sears, JC Penney, Takashimaya, Mitsukoshi, Daimaru, Karstadt, Rinascente.

Retail in Beauty and Personal Care

Mass Merchandisers

Mixed retail outlets that usually: (1) convey the image of a high-volume, fast-turnover outlet selling a variety of merchandise for less than conventional prices; (2) provide centralised check-out service; and (3) provide minimal customer assistance within each department. Example brands include Wal-Mart, Target and Kmart. Excludes hypermarkets and warehouse clubs/cash and carry stores.

Retail in Beauty and Personal Care

Variety Stores

Non-grocery general merchandise outlets usually located on one floor, offering a wide assortment of extensively discounted fast-moving consumer goods on a self-service basis. Normally over 1,500 sq. metres in size, except in the case of dollar stores, these outlets give priority to fast-moving non-grocery items that have long shelf-lives. Includes catalogue showrooms and dollar stores. Example brands include Woolworth (Germany), Upim (Italy).

Retail in Beauty and Personal Care

Warehouse Clubs

Warehouse Clubs are chained outlets that sell a wide variety of merchandise but do have a strong mix of both grocery and non-grocery products. Customers have to pay an annual membership fee in order to shop. The clubs are able to keep prices low due to the no-frills format of the stores and attempt to drive volume sales through aggressive pricing techniques. Warehouse Clubs typically: - exceed 2,500 sq. metres of selling space and are invariably -over 4,000 sq. metres in size; - convey the image of a high-volume, fast-turnover retailing at less than conventional prices; - provide minimal customer assistance within each department; and - are situated in out-of-town locations. Example brands include: - Costco - Sam’s Club (Wal-Mart) - PriceSmart - Cost-U-Less

Retail in Beauty and Personal Care

Non-Store Retailing

The retail sale of new and used goods to the general public for personal or household consumption from locations other than retail outlets or market stalls. Non-store retailing is the aggregation of Vending, Direct Selling, Homeshopping and Internet Retailing.

Retail in Beauty and Personal Care

Direct Selling

Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations. Direct selling occurs in two primary ways: one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose).

Retail in Beauty and Personal Care

Homeshopping

Homeshopping is the sale of consumer goods to the general public via mail order catalogues, TV shopping and direct mail. Consumers purchase goods in direct response to an advertisement or promotion through a mail item, printed catalogue, TV shopping programme, or Internet catalogue whereby the order is placed, and payment is made by phone, by post or through other media such as digital TV. Excludes sales on returned products/unpaid invoices. Excludes sales ordered and paid online which are instead included within Internet retailing.

Retail in Beauty and Personal Care

E-Commerce

Sales of consumer goods to the general public via the Internet. Please note that this includes sales through mobile phones and tablets. Internet retailing includes sales generated through pure e-commerce web sites and through sites operated by store-based retailers. Sales data is attributed to the country where the consumer is based, rather than where the retailer is based. Also includes orders placed through the web for which payment is then made through a storecard, an online credit account subsequent to delivery or on delivery of the product. This payment may be by any mode of payment including postal cheque, direct debit, standing order or other banking tools. Includes orders paid for cash on delivery. Includes m-commerce: where consumers use smart phones or tablets to connect to Internet and purchase the goods online.

Retail in Beauty and Personal Care

Vending

Vending means automatic retailing. It covers the sale of products and services at an unattended point of sale through a machine operated by introducing coins, bank notes, payment cards, tokens or other means of cashless payment. Coverage includes vending systems installed in public and semi-captive environments only. Hotels, transport networks, recreational centres, shopping centres/malls are included. Factories, offices, hospitals, prisons, schools and other captive environments are excluded.

Retail in Beauty and Personal Care

Hair Salons

Hair salons
This includes hair dressing salons as well as barbers. Included are only hair care products sold to the consumer at the hairdresser. Products used by hairdressers (‘back bar sales’) in the salon are excluded.

Retail in Health and Wellness

Store-Based Retailing

Store-based retailing is the aggregation of grocery retailers and non-grocery specialists and mixed retailers.

Retail in Health and Wellness

Convenience Stores

Chained grocery retail outlets selling a wide range of groceries and fitting several of the following characteristics: Extended opening hours •Selling area of less than 400 sq. metres •Located in residential neighbourhoods •Handling two or more of the following product categories: audio-visual goods (for sale or rent), foodservice (prepared take-away, made-to-order, and hot foods), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Example brands include 7-Eleven, Spar.

Retail in Health and Wellness

Discounters

Discounters are retail outlets typically with a selling space of between 400 and 2,500 square metres. Retailers' primary focus is on selling private label products within a limited range of food/beverages/tobacco and other groceries at budget prices. Discounters may also sell a selection of non-groceries, frequently as short-term special offers. Discounters can be classified as hard discounters and soft discounters. Hard discounter: first introduced by Aldi in Germany, and also known as limited-line discounters. Retail outlets, typically of 300-900 square metres, stocking fewer than 1,000 product lines, largely in packaged groceries. Goods are mainly private-label or budget brands. Soft discounter: usually slightly larger than hard discounters, and also known as extended-range discounters. Retail outlets typically stocking 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Discounters excludes mass merchandisers and warehouse clubs. Example brands include Aldi, Lidl, Plus, Penny, Netto.

Retail in Health and Wellness

Forecourt Retailers

Grocery retail outlets selling a wide range of groceries from a gas station forecourt and fitting several of the following characteristics: • Extended opening hours • Selling area of less than 400 sq. metres • Handling two or more of the following product categories: audio-visual goods (for sale or rent), take-away food (ready made sandwiches, rolls or hot food), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Example brands include BP Connect, Shell Select. Forecourt retailers includes both chained forecourt retailers and independent forecourt retailers.

Retail in Health and Wellness

Hypermarkets

Hypermarkets are retail outlets with a selling space of over 2,500 square metres and with a primary focus on selling food/beverages/tobacco and other groceries. Hypermarkets also sell a range of non-grocery merchandise. Hypermarkets are frequently located on out-of-town sites or as the anchor store in a shopping centre. Example brands include Carrefour, Tesco Extra, Géant, E Leclerc, Intermarché, Auchan. Excludes cash and carry, warehouse clubs and mass merchandisers.

Retail in Health and Wellness

Supermarkets

Retail outlets selling groceries with a selling space of between 400 and 2,500 square metres. Excludes discounters, convenience stores and independent grocery stores. Example brands include Champion, Tesco, Casino.

Retail in Health and Wellness

Independent Small Grocers

Retail outlets selling a wide range of predominantly grocery products. These outlets are usually not chained and if chained will have fewer than 10 retail outlets. Mainly family owned, often referred to as Mom and Pop stores.

Retail in Health and Wellness

Other Grocery Retailers

Other retailers selling predominantly food, beverages and tobacco or a combination of these. Includes kiosks, markets selling predominantly groceries. Includes CTNs and health food stores, Food & drink souvenir stores and regional speciality stores. Direct home delivery, e.g. of milk, meat from farm/dairy is excluded. Sari-Sari stores in Philippines and Warung (Waroon) in Indonesia, that can either be markets or kiosks, are included in Other grocery retailers unless they occupy a separate permanent outlet building, in which case they are included in Independent small grocers. Outlets located within wet markets, particularly in South East Asia (often located in government-owned multi-story buildings) should be counted as separate outlets. Wine sales from Vineyards are included here.

Retail in Health and Wellness

Non-Store Retailing

The retail sale of new and used goods to the general public for personal or household consumption from locations other than retail outlets or market stalls. Non-store retailing is the aggregation of Vending, Direct Selling, Homeshopping and Internet Retailing.

Retail in Health and Wellness

Vending

Vending means automatic retailing. It covers the sale of products and services at an unattended point of sale through a machine operated by introducing coins, bank notes, payment cards, tokens or other means of cashless payment. Coverage includes vending systems installed in public and semi-captive environments only. Hotels, transport networks, recreational centres, shopping centres/malls are included. Factories, offices, hospitals, prisons, schools and other captive environments are excluded.

Retail in Health and Wellness

Homeshopping

Homeshopping is the sale of consumer goods to the general public via mail order catalogues, TV shopping and direct mail. Consumers purchase goods in direct response to an advertisement or promotion through a mail item, printed catalogue, TV shopping programme, or Internet catalogue whereby the order is placed, and payment is made by phone, by post or through other media such as digital TV. Excludes sales on returned products/unpaid invoices. Excludes sales ordered and paid online which are instead included within Internet retailing.

Retail in Health and Wellness

E-Commerce

Sales of consumer goods to the general public via the Internet. Please note that this includes sales through mobile phones and tablets. Internet retailing includes sales generated through pure e-commerce web sites and through sites operated by store-based retailers. Sales data is attributed to the country where the consumer is based, rather than where the retailer is based. Also includes orders placed through the web for which payment is then made through a storecard, an online credit account subsequent to delivery or on delivery of the product. This payment may be by any mode of payment including postal cheque, direct debit, standing order or other banking tools. Includes orders paid for cash on delivery. Includes m-commerce: where consumers use smart phones or tablets to connect to Internet and purchase the goods online.

Retail in Health and Wellness

Direct Selling

Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations. Direct selling occurs in two primary ways: one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose).

Retail in Pet Care

Store-Based Retailing

Store-based retailing is the aggregation of grocery retailers and non-grocery specialists and mixed retailers.

Retail in Pet Care

Grocery Retailers

Retailers selling predominantly food/beverages/tobacco and other everyday groceries. This is the aggregation of hypermarkets, supermarkets, discounters, convenience stores, independent small grocers, forecourt retailers, food/drink/tobacco specialists and other grocery retailers.

Retail in Pet Care

Modern Grocery Retailers

Modern grocery retailing is the aggregation of those grocery channels that have emerged alongside the growth of chained retail: Hypermarkets, Supermarkets, Discounters, Forecourt Retailers and Convenience Stores.

Retail in Pet Care

Convenience Stores

Chained grocery retail outlets selling a wide range of groceries and fitting several of the following characteristics: Extended opening hours •Selling area of less than 400 sq. metres •Located in residential neighbourhoods •Handling two or more of the following product categories: audio-visual goods (for sale or rent), foodservice (prepared take-away, made-to-order, and hot foods), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Example brands include 7-Eleven, Spar.

Retail in Pet Care

Discounters

Discounters are retail outlets typically with a selling space of between 400 and 2,500 square metres. Retailers' primary focus is on selling private label products within a limited range of food/beverages/tobacco and other groceries at budget prices. Discounters may also sell a selection of non-groceries, frequently as short-term special offers. Discounters can be classified as hard discounters and soft discounters. Hard discounter: first introduced by Aldi in Germany, and also known as limited-line discounters. Retail outlets, typically of 300-900 square metres, stocking fewer than 1,000 product lines, largely in packaged groceries. Goods are mainly private-label or budget brands. Soft discounter: usually slightly larger than hard discounters, and also known as extended-range discounters. Retail outlets typically stocking 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Discounters excludes mass merchandisers and warehouse clubs. Example brands include Aldi, Lidl, Plus, Penny, Netto.

Retail in Pet Care

Forecourt Retailers

Grocery retail outlets selling a wide range of groceries from a gas station forecourt and fitting several of the following characteristics: • Extended opening hours • Selling area of less than 400 sq. metres • Handling two or more of the following product categories: audio-visual goods (for sale or rent), take-away food (ready made sandwiches, rolls or hot food), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Example brands include BP Connect, Shell Select. Forecourt retailers includes both chained forecourt retailers and independent forecourt retailers.

Retail in Pet Care

Hypermarkets

Hypermarkets are retail outlets with a selling space of over 2,500 square metres and with a primary focus on selling food/beverages/tobacco and other groceries. Hypermarkets also sell a range of non-grocery merchandise. Hypermarkets are frequently located on out-of-town sites or as the anchor store in a shopping centre. Example brands include Carrefour, Tesco Extra, Géant, E Leclerc, Intermarché, Auchan. Excludes cash and carry, warehouse clubs and mass merchandisers.

Retail in Pet Care

Supermarkets

Retail outlets selling groceries with a selling space of between 400 and 2,500 square metres. Excludes discounters, convenience stores and independent grocery stores. Example brands include Champion, Tesco, Casino.

Retail in Pet Care

Traditional Grocery Retailers

Traditional grocery retailing is the aggregation of those channels that are invariably non-chained and are, therefore, owned by families and/or run on an individual basis. Traditional grocery retailing is the aggregation of three channels: Independent Small Grocers, Food/Drink/Tobacco Specialists and Other Grocery Retailers.

Retail in Pet Care

Mixed Retailers

This is the aggregation of department stores, variety stores, mass merchandisers and warehouse clubs.

Retail in Pet Care

Department Stores

Outlets selling mainly non-grocery merchandise and at least five lines in different departments, usually with a sales area of over 2,500 sq. metres. They are usually arranged over several floors. Example brands include Macy’s, Bloomingdale’s, Marks & Spencer, Harrods, Sears, JC Penney, Takashimaya, Mitsukoshi, Daimaru, Karstadt, Rinascente.

Retail in Pet Care

Mass Merchandisers

Mixed retail outlets that usually: (1) convey the image of a high-volume, fast-turnover outlet selling a variety of merchandise for less than conventional prices; (2) provide centralised check-out service; and (3) provide minimal customer assistance within each department. Example brands include Wal-Mart, Target and Kmart. Excludes hypermarkets and warehouse clubs/cash and carry stores.

Retail in Pet Care

Variety Stores

Non-grocery general merchandise outlets usually located on one floor, offering a wide assortment of extensively discounted fast-moving consumer goods on a self-service basis. Normally over 1,500 sq. metres in size, except in the case of dollar stores, these outlets give priority to fast-moving non-grocery items that have long shelf-lives. Includes catalogue showrooms and dollar stores. Example brands include Woolworth (Germany), Upim (Italy).

Retail in Pet Care

Warehouse Clubs

Warehouse Clubs are chained outlets that sell a wide variety of merchandise, but do have a strong mix of both grocery and non-grocery products. Customers have to pay an annual membership fee in order to shop. The clubs are able to keep prices low due to the no-frills format of the stores and attempt to drive volume sales through aggressive pricing techniques. Warehouse Clubs typically: - exceed 2,500 sq. metres of selling space and are invariably -over 4,000 sq. metres in size; - convey the image of a high-volume, fast-turnover retailing at less than conventional prices; - provide minimal customer assistance within each department; and - are situated in out-of-town locations. Example brands include: - Costco - Sam’s Club (Wal-Mart) - PriceSmart - Cost-U-Less

Retail in Pet Care

Non-Grocery Specialists

Retail outlets selling predominantly non-grocery consumer goods. Non-grocery retailers is the aggregation of: • Apparel and footwear specialist retailers • Electronics and appliance specialist retailers • Health & beauty specialist retailers • Home and garden specialist retailers • Leisure and personal goods specialist retailers • Other non-grocery retailers

Retail in Pet Care

Pet superstores

Specialist outlets selling pet food, pet care and pets, sometimes also diversifying into on-site clinics, grooming services etc. These outlets are typically located in shopping parks or out-of-town sites. Superstore selling area will usually be in excess of 10,000 square feet. They tend to sell a very extensive product range, from premium to economy with an emphasis on products in bulk. Examples include PetSmart, PetCo, Fressnapf, Pets At Home, Jumper, Zoomart, Cool Baby, Cobasi, etc.

Retail in Pet Care

Pet shops

Specialist outlets selling pet food, pet care and pets. These outlets are usually located on the high street. Can be chained or independent. Sell mostly premium and premium products.

Retail in Pet Care

Health and Beauty Specialist Retailers

This is the aggregation of chemists/pharmacies, drugstores/parapharmacies, beauty specialist retailers, optical goods stores and other healthcare specialist retailers.

Retail in Pet Care

Beauty Specialist Retailers

Beauty specialist retailers are chained or independent retail outlets with a primary focus on selling fragrances, other cosmetics and toiletries, beauty accessories or a combination of these. Examples of Beauty specialist retailer brands include: Body Shop, Marionnaud, Sephora and Bath and Body Works.

Retail in Pet Care

Chemists/Pharmacies

Retail outlets selling prescription-bound medicines under the supervision of a pharmacist and as its core activity (other activities include sales of OTC healthcare and cosmetics and toiletries products).

Retail in Pet Care

Drugstores/parapharmacies

Retail outlets selling mainly OTC healthcare, cosmetics and toiletries, disposable paper products, household care products and other general merchandise. Such outlets may also offer prescription-bound medicines under the supervision of a pharmacist. Drugstores in Spain (Droguerias) also sell household cleaning agents, paint, DIY products and sometimes pet products and services such as photo processing. Example brands include Rossmann (Germany), Kruidvat (Netherlands), Walgreen’s (US), CVS (US), Medicine Shoppe (US), Matsumoto Kiyoshi (Japan), HAC Kimisawa (Japan).

Retail in Pet Care

Home and Garden Specialist Retailers

This is the aggregation of homewares and home furnishing stores and home improvement and gardening stores. Business-to-business sales are excluded. Home improvement and gardening stores are chained or independent retail outlets with a primary focus on selling one or more of the following categories: Home improvement materials and hardware, Paints, coatings and wall coverings, Kitchen and bathroom, fixtures and fittings, Gardening equipment, House/Garden plants. Home improvement and gardening stores includes Home improvement centres / DIY stores, Hardware stores (Ironmongers), Garden centres, Kitchen and bathroom showrooms, Tile specialists, Flooring specialists. Homewares and Home Furnishing stores are retail outlets specialising in the sale of home furniture and furnishings, homewares, floor coverings, soft furnishings, lighting etc.

Retail in Pet Care

Home Improvement and Gardening Stores

Home improvement and gardening stores are chained or independent retail outlets with a primary focus on selling one or more of the following categories: Home improvement materials and hardware, Paints, coatings and wall coverings, Kitchen and bathroom, fixtures and fittings, Gardening equipment, House/Garden plants. Home improvement and gardening stores includes Home improvement centres / DIY stores, Hardware stores (Ironmongers), Garden centres, Kitchen and bathroom showrooms, Tile specialists, Flooring specialists.

Retail in Pet Care

Homewares and Home Furnishing Stores

Retail outlets specialising in the sale of home furniture and furnishings, homewares, floor coverings, soft furnishings, lighting etc.

Retail in Pet Care

Non-Store Retailing

The retail sale of new and used goods to the general public for personal or household consumption from locations other than retail outlets or market stalls. Non-store retailing is the aggregation of Vending, Direct Selling, Homeshopping and Internet Retailing.

Retail in Pet Care

Direct Selling

Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations. Direct selling occurs in two primary ways: one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose).

Retail in Pet Care

Homeshopping

Homeshopping is the sale of consumer goods to the general public via mail order catalogues, TV shopping and direct mail. Consumers purchase goods in direct response to an advertisement or promotion through a mail item, printed catalogue, TV shopping programme, or Internet catalogue whereby the order is placed, and payment is made by phone, by post or through other media such as digital TV. Excludes sales on returned products/unpaid invoices. Excludes sales ordered and paid online which are instead included within Internet retailing.

Retail in Pet Care

E-Commerce

Sales of consumer goods to the general public via the Internet. Please note that this includes sales through mobile phones and tablets. Internet retailing includes sales generated through pure e-commerce web sites and through sites operated by store-based retailers. Sales data is attributed to the country where the consumer is based, rather than where the retailer is based. Also includes orders placed through the web for which payment is then made through a storecard, an online credit account subsequent to delivery or on delivery of the product. This payment may be by any mode of payment including postal cheque, direct debit, standing order or other banking tools. Includes orders paid for cash on delivery. Includes m-commerce: where consumers use smart phones or tablets to connect to Internet and purchase the goods online.

Retail in Pet Care

Veterinary clinics

Establishments where owners take their pets for medical treatment given by qualified practitioners (single or group practice). Vets/clinics may or may not sell pet food depending on national legislation or personal choice. Almost always sell premium products only.

Acronyms Used & Key Notes

Acronym

Full form

Definition

RSP

Retail selling price

Sales at end price to the consumer, including retailer and wholesaler mark-ups and sales tax (except in the US and Canada) and excise taxes

Y-O-Y

Year on year

Annual changes in data

CAGR

Compound annual growth rate

Annual average growth, expressed in percentage terms, for either the historic or forecast period

FCAGR

Forecast compound annual growth rate

Annual average growth, expressed in percentage terms, for either the forecast period

HCAGR

Historic compound annual growth rate

Annual average growth, expressed in percentage terms, for either the historic period

LBN

Local Brand name

Local Brand Name (LBN) is the term used to refer to a brand's name at a country level – this may or may not extend to variant level depending on the level of detail available from the research source

BFY

Better for you

Products where the amount of a substance considered to be less healthy (eg fat, sugar, salt, carbohydrates) has been actively reduced during production. To qualify for inclusion in this category, the “less healthy” element of the foodstuff needs to have been actively removed or substituted during the processing. This should also form a key part of the positioning/marketing of the product. Products which are naturally fat/sugar/carbohydrate -free are not included as nothing out of the ordinary has been done during their production to make them “better for you”. “No added sugar” claims are excluded too. Products most likely to be included here will be those which are low-fat/low-sugar versions of standard products (eg reduced fat mayonnaise, reduced fat cheese, reduced fat milk, reduced sugar confectionery, etc).

FF

Fortified/Functional

This category includes fortified/functional food and beverages. When identifying fortified/functional products, we focus on products to which health ingredients or/and nutrients have been added as well as brands that are positioned to deliver a certain functionality. To be included here the enhancement has to be highlighted in the label or hold a health claim/nutritional claim. Fortified/functional food and beverages provide health benefits beyond their nutritional value and/or the level of added ingredients wouldn’t normally be found in that product. To merit inclusion in this category, the defining criterion here is that the product must have been actively fortified/enhanced during production. As such, inherently healthy products such as 100% fruit/vegetable juices are only included under "fortified/functional" if additional health ingredients (e.g. calcium, omega-3) have been added. To be included, the health benefit needs to form part of positioning/marketing of the product.

NH

Naturally Healthy

This category includes food and beverages on the basis of naturally containing a substance that improves health and wellbeing beyond the product’s pure calorific value. These products are usually a healthier alternative within a certain sector/subsector. High fibre food (wholegrain/wholemeal/brown), soy products, sour milk drinks, nuts, seeds and trail mixes, honey, fruit and nut bars and olive oil are considered NH foods and 100% fruit/vegetable juice, superfruit juice, natural mineral water, spring water, RTD green tea etc. are considerd NH beverages. While many of these products are marketed on a health basis, this might not always be the case. Naturally healthy food and beverages that are additionally fortified fall into the 'fortified/functional' category.

HW

Health and wellness

Health and wellness is the aggregation of organic food and beverages, fortified/functional food and beverages, naturally healthy food and beverages, better for you food and beverages and food intolerance products.

Notes

Note 1

Forecasts for many passport industries are based on statistical macro and industry demand modelling combined with intuitive local market observations that leverage the expertise of our global analyst network.

Euromonitor reviews and re-evaluates all its core subject markets every year. This involves reconsidering both historic and forecast data sets.

Note 2

To arrive at the value market sizes (USD) for different industries and their respective categories and sub-categories, we have considered "Historic - Current/Forecast - Constant prices and fixed exchange rate "

Disclaimer

This database attempts to compile data from numerous sources. Users should be aware that because different sources are used, there could be errors or omissions. The user accepts that the information is only intended to be an initial reference. The user understands that there is no assurance that this reference material is error free, and that no one involved in compiling or distributing this reference material shall be liable for any damages arising out of its use. Commercially important information should be rechecked and verified with knowledgeable parties in the country of interest.