May 21, 2024
Business Saudi Arabia

98% Of Saudi Consumers Seen In FMCG Purchasing Shift

Echoing A Broader Global Sentiment

Consumer behaviour, a dynamic interplay of economic conditions, societal values, and individual priorities, is profoundly transforming in Saudi Arabia.

This shift, revealed in NielsenIQ’s Consumer Outlook 2024 report, reveals a new consumer landscape in which preferences are recalibrated. Consumers increasingly gravitate towards affordability, health consciousness, and sustainability in purchasing decisions.

The NielsenIQ report highlights a staggering shift in Saudi Arabian consumer behaviour, with 98% of consumers altering their approach to purchasing Fast-Moving Consumer Goods (FMCG).

This significant change reflects a major shift in the Arabian Gulf country’s shopping habits, which has implications for the FMCG market.

The allure of premium brands is diminishing, with 24% of consumers now prioritising products on promotion.

Innovative Products

More than half (59%) of Saudi consumers prefer innovative products to maximise affordability. These trends echo a broader global sentiment where consumers increasingly value affordability over brand prestige.

Pavlos Pavlou, a respected figure in the field as the Managing Director of NielsenIQ Saudi Arabia, provides valuable context to these shifts within the broader global consumer landscape: “Over the last two years or more, global consumers have indicated they will seek ways to reduce expenses and prioritise affordability.

“These intentions are driving real impact; the whole structure of global pricing has experienced a small shift in favour of lower price tiers. Saudi Arabian consumers are progressively leaning into selections prioritising cost-efficiency, reflecting a broader move towards purchasing practices focused on value.”

However, amidst this trend towards cost sensitivity, there remains a steadfast demand in Saudi Arabia, with its population of 36.41 million, for quality and premium products, especially those offering health and wellness benefits.

Healthy living emerges as the top life priority for a significant portion of Saudi consumers, with one-third expressing a desire to build, maintain, or improve their health and wellness. This sentiment is mirrored in consumer behaviour, with 63% willing to try new products if they are perceived to be better for their health.

Sustainable Credentials

Moreover, sustainability is gaining prominence on the Saudi consumer’s radar, with 56% indicating a preference for products with sustainable credentials. This aligns with a global shift towards eco-conscious consumption patterns, where consumers increasingly seek products and brands that demonstrate a commitment to environmental stewardship.

The Consumer Outlook 2024 report also illuminates Saudi consumer optimism regarding financial stability, with 71% expressing confidence in an improved financial situation by the end of 2024. This sentiment is accompanied by an uptick in job security perception, indicating a more optimistic outlook towards economic prospects.

Regarding FMCG shopping behaviour, convenience and value remain paramount for Saudi consumers, with 37% preferring to shop frequently at discount or value stores. Additionally, a quarter of consumers opt to purchase whatever brand is on promotion, underlining the importance of promotional strategies in influencing purchasing decisions.

The NielsenIQ Consumer Outlook 2024 report offers invaluable insights into Saudi Arabia’s evolving consumer landscape. It gives businesses and stakeholders a strategic understanding of shifting consumer values and preferences for FMCG. In a world marked by rapid change and uncertainty, staying attuned to these dynamics is essential for businesses seeking to adapt and thrive in the marketplace.

NielsenIQ’s Consumer Outlook report delves into critical trends shaping the consumer landscape, offering invaluable data and analysis for businesses and stakeholders worldwide. The report provides deep insights into consumer preferences and purchasing patterns through comprehensive surveys conducted across multiple regions, enabling companies to tailor strategies for sustainable growth in an ever-evolving marketplace.

Headquartered in Chicago, Illinois, United States, NielsenIQ is a leading consumer intelligence company that offers comprehensive insights into consumer buying behaviour and pathways to growth.

Through advanced analytics and state-of-the-art platforms, NielsenIQ provides a holistic view of the consumer landscape, empowering businesses with actionable insights for sustainable development.

Featured image: Saudi consumers’ purchasing trend for FMCG items broadly aligns with global trends. Credit: Arnold Pinto

    Middle East News 247

    Middle East News 247 delivers trending business and lifestyle news and essential infotainment for, and from the Middle East region, with key focus on the GCC nations: United Arab Emirates (UAE), Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman.
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