Saudi Arabia entered 2025 with improving economic fundamentals – stronger GDP growth and momentum in the non oil sector. But rising inflation, especially in housing, continues to pressure household budgets, driving more conservative spending behaviour.
Across FMCG, consumers are buying less and spending less. Total volumes are supported by population growth, yet per buyer consumption has declined across almost all sectors except dairy, which remains resilient due to its essential nature and health relevance.
Shoppers are adjusting how they buy
Several behavioural shifts shaped the 2025 landscape:
- Low consumption across most sectors except dairy, where health and cost management keep demand stable
- Average pack sizes increased for most FMCG categories (except beverages), but fewer packs per trip are being purchased
- This results in fewer packs per buyer overall, adding to negative organic volume trends
- Consumers are also making more discreet spending choices and shifting to lower priced channels, particularly discounters and wholesale
Channels reshaped by value priorities
With tighter wallets, shoppers are gravitating toward channels that deliver better value. Discounters and lower priced store formats continue to gain volume and penetration, supported by competitive pricing and the rising share of larger, cost efficient packs.
Meanwhile, modern trade remains important but is under pressure as shoppers optimise spend and shift trips elsewhere.
What this means for brands and retailers
Success in today’s KSA FMCG market requires:
- Adapting pack and price architecture to new affordability thresholds
- Recognising where category specific consumption declines are concentrated
- Understanding the role of value led channels in shaping conversion
- Monitoring where larger pack adoption can support retention, despite reduced trip counts
For a detailed breakdown by sector, buyer profile or channel opportunity, our experts can guide you through the full set of insights. Also, if you would like to tailor these insights to your categories, get in touch with our experts for deeper guidance.
Priyanshu Rana
Though Leadership, Africa & Middle East Worldpanel by Numerator
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