Today's Edition
MAYS IBRAHIM (ABU DHABI)
The Middle East and North Africa (MENA) consumer products market is projected to grow from $488 billion in 2025 to $633 billion by 2030, led by Egypt, Saudi Arabia, and the UAE, according to recent research.
Bain & Company’s latest Middle East Consumer Products Report forecasts an average annual growth rate of 5%, with Egypt showing the fastest expansion at around 8% CAGR from a smaller base.
The UAE and Saudi Arabia are expected to contribute the largest share of regional growth, with projected CAGRs of 5% and 4%, respectively.
The MENA market has outpaced global trends in recent years. Bain’s global Consumer Products Report showed that worldwide sales growth slowed in 2024, constrained by moderate price increases and limited volume gains.
By contrast, the UAE recorded 6% volume growth in the 2023-24 period, well above the 1.7% global average, while Saudi Arabia followed closely at 4%.
“Both countries posted solid value growth alongside volume gains, signalling a strong ability to manage inflation pressures that continue to surge in many parts of the world,” the report said.
It attributed the region’s expansion to robust structural fundamentals, including population growth, economic diversification initiatives, and rising disposable incomes as well as easing inflation and anticipated interest rate cuts, boosting consumer spending.
In interviews, more than three-quarters of CPG executives in the region said EBIT performance improved over the previous year, and two-thirds said it exceeded their forecasts.
The report pointed out that Gulf Cooperation Council (GCC) countries are particularly well-positioned, benefiting from a young population (over half under 30), rapid urbanisation, and government-led reforms under strategies such as Saudi Vision 2030 and the UAE industrial strategy.
“GCC governments have invested in the retail, manufacturing, and tourism sectors while implementing supportive regulatory and infrastructure reforms," the report said.
The report predicts that GDP per capita and wages in the UAE will see an increase, further strengthening consumers’ purchasing power.
Bain’s consumer study rated MENA consumer sentiment at 6.0 out of 10, comparable to Europe and just below US levels.
The UAE and Saudi Arabia scored highest (6.6 and 6.8), while Egypt and Iraq trailed (5.0 and 4.9).
“The MENA region stands out as one of the most dynamic frontiers for consumer products globally. Structural fundamentals remain strong, fuelling long-term demand even as short-term headwinds such as inflation, supply chain pressures, and geopolitical uncertainty intensify,” the report said.
Its findings show that consumers are increasingly selective, prioritising value, trust, and alignment with personal beliefs alongside price and quality.
Time scarcity and digital adoption are also shaping shopping habits. While in-store grocery shopping dominates, online channels are growing among urban and higher-income segments, according to the report.
Health and wellness, identity, and value-driven consumption were highlighted as factors influencing purchases, with more than half of MENA consumers having boycotted brands for misalignment with their values – three times the rate seen in the US or EU.
