Consumers more likely than ever to pay extra for sustainable retail, experts say

Sustainable shopping is going to be one of the key consumer trends in the region next year, with people more prepared than ever to "pay for what makes a difference", according to experts. More than 80 per cent of consumers both regionally and globally have noticed climate-related disruptions in their daily lives in the past 12 months, according to research by PwC. This has resulted in an increase in the number of consumers who support local products, are mindful of the environmental impact of manufacturing and value brands' reputations in meeting climate goals, the same report said. As a result, consumers are willing to spend more on what they deem makes a difference. The survey, which gathered insights from more than 20,000 consumers across 31 countries and territories, highlighted that despite cost of living and inflationary concerns, consumers are willing to spend an average of 9.7 per cent more on sustainably produced or sourced goods. "In the year ahead, companies must achieve a delicate balance between consumer affordability and environmental impact if they are to source and retain consumers. They will also need to bolster their digital engagement and service delivery, particularly as more consumers purchase products directly through social media,” said Sabine Durand-Hayes, global consumer markets leader, PwC France. In a preview of key retail drivers for the coming year, Pathfinder highlighted that the Middle East continues to outpace global e-commerce growth rates, driven by mobile-first strategies, self-checkout technology, and advanced payment solutions. The retail technology firm has also identified sustainability and AI-powered tech as a key consumer trends for the year ahead. “Retail in the GCC is undergoing rapid transformation,” said Sadique Ahmed, chief executive of Pathfinder Global. “Consumers today demand convenience, personalisation and sustainability. These trends reflect not just technological advancements but a deeper cultural shift in how people shop. These insights highlight the key areas retailers must focus on to succeed in this dynamic landscape.” To cater to more sustainably minded consumers looking for local UAE products, more platforms are being launched to help small local businesses to expand and sell their products online. MintMarket.ae is the brain child of Sally Maddison, a resident of Sustainable City in Dubai. The online platform evolved from pop-up makers markets across Dubai and Abu Dhabi that showcased mainly handmade products – opening the door to the expanding e-commerce industry. The Mint Market started with just two physical markets in 2021, supporting 50 local businesses. In 2024, this number ballooned to 24 markets, supporting more than 600 small businesses – with close to 200 more registering an interest to participate in the last two months of the year. Ms Maddison told The National that this is an indication of the demand for less mass market products and growth potential of the market in the UAE. "I've had all of these brands that were making the products on their own. They were their own marketing manager. They were building their own websites. They're putting so much money for social adverts and SEO, and I just thought, hang on a second, if we all came together, this could be enormous," said Ms Maddison. To encourage more consumers to shop locally, Mint Market will be launching a collaboration with Smart EV in 2025 to have items delivered via electric vehicle. According to a report released earlier this year by EZDubai, the total size of the e-commerce market in the UAE reached Dh27.5 billion in 2023. This number is expected to exceed Dh48.8 billion by 2028. Ripe Market, a community-led enterprise to support small local businesses launched in 2011. Becky Balderstone, Ripe founder and managing partner told The National that sustainability is top of mind for many consumers today, "more and more, people are making conscious decisions to support small, local businesses that prioritize reducing waste and offering eco-friendly products." Ms Balderstone said that as a result of consumer demand, the Ripe Market has intentionally shifted its vendor selection to focus on businesses that offer locally sourced, organic products and eco-friendly alternatives. "The rising interest in conscious fashion has drawn more people to explore unique, eco-friendly clothing options that help reduce the waste caused by fast fashion. Additionally, many of our food and beverage vendors have made the switch to recyclable materials for their takeaway items." Sustainability professional Charlene Nawar is one of the makers selling products on the Mint Market site and at the Ripe Market. Like many of the other vendors, her soaps were a passion project developed during the Covid-19 pandemic. Ms Nawar's brand, Unwrapped, creates handmade soaps and candles inspired by local produce. "The containers are made with desert sand and the rubble from demolished buildings," she said. "It's crushed into smaller particles and mixed with concrete, and we create this really beautiful container that obviously speaks of the UAE and tells the story of the UAE, which people absolutely love, and then we can refill it." Unwrapped has seen an annual average increase in sales of around 20 per cent over the past three years. "Since the pandemic, there has been a noticeable shift in consumer behaviour, with a growing preference for locally made products that support local artisans and reduce carbon footprints," said Ms Nawar.

Consumers more likely than ever to pay extra for sustainable retail, experts say

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