Self-gifting trend grows 15% in UAE amid shift in emotional support – News

In a world where online shopping carts double as personal wish lists, a strange phenomenon has emerged: gift-giving to yourself. The lure of that fancy gadget, that soft cashmere sweater or those handmade chocolates is irresistible. And so, with one click, you become both Santa and the recipient, wrapping up a little joy for your own soul.

Why is giving gifts to yourself on the rise? Maybe it's the ongoing stress of the pandemic that's prompting us to treat ourselves. Or maybe it's the thrill of getting a bargain. Whatever the reason, giving gifts to yourself is no longer a guilty conscience, but a sign of self-love. And the trend is also filling the coffers of online players.

The UAE is currently experiencing a 15 percent increase in self-gifting, driven by increasing consumer focus on self-care and dynamic economic development. Forecasts suggest that the UAE gifting market will grow at a compound annual growth rate (CAGR) of 14.7 percent through 2029, while the overall e-commerce market is expected to grow at an annual rate of 8.63 percent to reach a market value of $10.56 billion by 2029.

Experts say the phenomenon of self-gifting can be a form of self-care in an increasingly stressful and fast-paced world. People reward themselves for their hard work, their achievements, or simply to lift their spirits. At the same time, buying gifts for yourself can be an expression of independence, self-reliance, and financial stability, as the choice of gifts is based solely on your own preferences and desires.

Flowwow, a gift marketplace for local brands in over 30 countries, recorded a 15 percent year-on-year increase in self-gifting among UAE consumers in the first half of 2024. Notably, 44 percent of those buying gifts for themselves cite “mental health,” “well-being,” and “independence” as their primary motivation. The most popular gift categories for self-gifting were customized bouquets (+38 percent), balloons (+29 percent), and flower boxes (+26 percent). Less popular were handmade chocolates and bento cakes.

Booming e-commerce scene

According to statistics from Admitad, a partnership marketing platform, the UAE remains one of the most active markets in the MENA region: online orders increased by 6 percent in the first half of 2024, while gross merchandise value (GMV) grew by 12 percent compared to the same period in 2023. The average transaction value in the UAE increased from Dh344 to Dh433.

Flowwow has partnered with Admitad to release the results of their latest e-commerce market research for the Middle East and North Africa (MENA) region for the first half (H1) of 2024.

The three countries with the highest order volume in the MENA region in H1 2024 were Saudi Arabia, the United Arab Emirates and Algeria, closely followed by Morocco. Saudi Arabia led with the highest order growth of over 20 percent, while sales volume in the country increased by more than 25 percent. Morocco also recorded significant GMV growth of 23 percent.

Seasonal fluctuations

Seasonal trends show an uptick in the months of February, March and April, coinciding with Valentine's Day, Ramadan celebrations and Eid Al Fitr, while sales generally follow a more consistent pattern during the summer months.

March, which marks the beginning of Ramadan, was also a peak time, although there was a slight decline of 25 percent compared to February. Despite the overall growth, the average transaction value in March fell by 25 percent compared to March 2023, due to discounts and promotions.

As the UAE and MENA region continue to experience strong growth in e-commerce, fueled by technological advancements and a young, digitally savvy population, the importance of these trends cannot be overstated. The region's expansion highlights a promising future for consumers and businesses, with self-gifting emerging as an indicator of evolving preferences in today's market.