Prime Highlight:
- Strong demand in Saudi Arabia and the UAE is making the MENA region a bright spot for the global consumer packaged goods industry.
- Companies are urged to innovate as consumers increasingly prioritize trust, value, relevance, and convenience.
Key Facts:
- The MENA fast-moving consumer goods market reached over $450 billion in 2024 and is projected to hit $650 billion by 2030, growing around 5% annually.
- Online retail now accounts for 12–14% of UAE consumer product sales and could rise to 25% by 2030.
Background:
The Middle East and North Africa region is emerging as a major growth hub for consumer packaged goods, supported by strong demand in Saudi Arabia and the UAE, according to a new report by Bain & Company.
Bain’s Middle East Consumer Products Report 2025 said the region’s fast-moving consumer goods market exceeded $450 billion in sales in 2024. It is expected to grow to as much as $650 billion by 2030, implying annual growth of about 5%, well above the global average.
The report showed that key markets grew strongly in volume. The UAE recorded around 6% growth in consumer products, compared with a global average of 1.7%. Saudi Arabia followed with about 4% growth, supported by favourable demographics, economic reforms, and resilient consumer demand.
Bain said consumer confidence in the region remains steady despite inflation and shifting spending patterns. Survey respondents rated sentiment at 6 out of 10, though purchasing decisions are becoming more selective. Consumers care more about value, convenience, and trusting brands.
Consumers expect convenience, with 37% saying they struggle to find time for daily shopping. More than half of consumers avoid brands that don’t match their values, because they trust only brands that align with what they believe.
Digital channels are also driving growth. Bain estimates that e-commerce accounts for 12% to 14% of retail sales in the UAE and could rise to 20% to 25% by 2030. Online sales are expected to deliver around 60% of future retail growth.
The study is based on a survey of 3,500 consumers across Saudi Arabia, the UAE, Egypt and Iraq, along with interviews with regional industry leaders.
While competition and cost pressures are rising, Bain said companies that adapt quickly can succeed. The firm outlined three priorities for growth: revisiting growth strategies, simplifying operations and scaling digital and artificial intelligence capabilities.
