A new study from Flowwow, a UAE-based global gifting marketplace for local brands, and Admitad, an affiliate marketing platform, has revealed that Ramadan traditions are fueling a surge in online shopping across the MENA region and motivate people to buy more.
The United Arab Emirates is leading with an average order value (AOV) of 102 USD during Ramadan this year, followed by Kuwait and Qatar with 99 USD and 79 USD, respectively.
Flowwow data shows that sales of the florist’s original bouquets have surged by 220% from 2023 to 2024. The turnover of the “confectionary” category for the first three months of 2024 is already half of the total turnover for 2023. In March 2024, the company's experts observed a 36% uptick in custom-designed cakes, a 26% rise in personalized bento cakes, and a 15% increase in chocolate-covered strawberries featuring customized designs.
Despite the fact that the key days of the holy month are still ahead, according to Admitad partner network, the number of online orders has already increased by 4% and GMV by 6%. The average order volume has also slightly increased — from 34.5 USD to 35.3 USD.
Certain categories of goods and services have experienced significant spikes in popularity compared to non-Ramadan periods. Hotels have seen a remarkable increase of 56%, followed by airplane tickets (+40%), flowers and souvenirs (+37%), electronics (+30%), and food delivery (+26%). Additionally, there has been a notable surge in the purchase of sporting goods (+21%).
As a gifting marketplace, Flowwow is observing a remarkable uptick in the popularity of local and personalized gifts. The company’s experts report that in March 2024 alone, the number of online gift purchases from local brands in the UAE increased by 65% compared to the same period last year and by 84% compared to non-festive periods.
Additionally, there's a noticeable increase in the frequency of orders for cosmetics and fragrances from local brands, including handmade varieties.
“The growing trend towards authenticity highlights a shift towards supporting local businesses and embracing individuality in gift-giving choices. Local makers often have a deeper understanding of multicultural preferences, offering unique options that resonate with people's needs. Given UAE’s diverse population, strong cultural tradition of gift-giving, and the increasing impact of digital technologies, the country’s online gifting market presents significant growth prospects and is predicted to expand at a compound annual growth rate (CAGR) of 19-20% from 2024 to 2028,”
commented Flowwow’s CEO and co-founder.
Admitad experts made a comparison with last year's activity and revealed that users are making 15% more purchases during Ramadan 2024. Interestingly, although the number of purchases has increased, the total amount spent has remained relatively stable. This suggests that shoppers during Ramadan 2024 are making smaller, more frequent orders, resulting in an overall increase in sales volume.
“As Ramadan brings together tradition and modern shopping, we’re seeing more people choosing to buy gifts online, favoring convenience and the chance to support local shops. At Admitad, our numbers show that people aren't just buying more online; they're also making smaller, more thoughtful purchases that truly capture the spirit of Ramadan. As Eid Al-Fitr approaches, a time when everyone is looking to buy gifts, we expect online shopping to hit new highs. This trend shows how digital shopping is not just about buying things easily but also about finding meaningful gifts that celebrate our traditions. ,”
Anna Gidirim, CEO of Admitad.
Drawing from past spending patterns, Flowwow also anticipates significant growth in online gifting, with certain gifting categories experiencing surge in the end of Ramadan: mono bouquet flowers (+75%), original flower bouquets (+55%) festive-themed cakes (31%), cupcakes (+26%), chocolate-covered strawberries (+14%), traditional sweets sets (+9%) and themed gift hampers (+8%).
