Home Insights Here’s what Saudi consumers will continue to spend on in 2025: survey Spending intentions in Saudi Arabia show a six-percentage-point net positive trend, contrasting with contractions in the US and Europe, reveals the AlixPartners survey by Gulf Business February 3, 2025 Image: Getty Images/ For illustrative purposes Saudi Arabia’s consumer market is defying global economic trends, showing resilience in the face of rising costs and shifting patterns in discretionary spending, according to the latest 2025 Global Consumer Outlook report by AlixPartners, the global consulting firm. Despite broader global trends of reduced consumer spending in regions like the US and Europe, Saudi Arabia’s consumer sentiment remains strong, with robust spending projections for 2025. The report, which surveyed over 15,000 consumers across nine countries, highlights a six-percentage-point net positive shift in Saudi spending intentions, positioning the kingdom as a notable outlier in global consumer behaviour. “Saudi Arabia’s retail landscape is undergoing a profound transformation,” said Karl Nader, partner and MD at AlixPartners. “While consumer confidence remains evident in categories like dining out and entertainment, rising costs are reshaping shopping behaviours. Consumers are prioritising value, exploring discount options, and balancing essentials with discretionary spending. This evolution will compel operators to rethink their engagement strategies and innovate to meet the changing expectations of the Saudi shopper.” The findings underscore Saudi consumers’ commitment to both value and experiences, even as they adopt more cost-efficient purchasing strategies. Spending on essential categories, including groceries and clothing, remains consistent while spending in discretionary sectors shows notable growth — particularly among younger demographics. Key findings in Saudi consumer spending Grocery and clothing categories: Spending on groceries (56 per cent, up from 54 per cent last year) and clothing (43 per cent, up from 40 per cent last year) shows a clear trend toward value-driven consumption. Consumers are increasingly opting for entry-price ranges and private-label products as they seek affordability in response to rising costs. Dining out and entertainment: Dining out remains a polarising category. One-third of Saudi consumers plan to spend more on dining out, while globally, 34 per cent of consumers plan to spend less. Additionally, 33 per cent of Saudi consumers intend to increase their spending on entertainment outside the home, compared to just 19 per cent globally. This reflects the kingdom’s robust appetite for new experiences, with younger shoppers (18-34 years) driving growth in these areas. Rise of discounters: Discount-driven retailers are gaining ground, challenging established players in both the grocery and fashion retail sectors. These retailers are reshaping consumer expectations and shopping behaviour, particularly among value-seeking consumers. Shift toward local experiences: Saudi consumers remain eager to travel, but affordability and the growth of domestic tourism offerings have led to a surge in staycations and local experiences. The desire for international travel is strong, yet many are now opting for more budget-friendly, local alternatives. Digital integration in shopping: Digital technologies such as AI-driven product recommendations, mobile payment solutions, and delivery services are increasingly integrated into Saudi consumer shopping experiences, reflecting the growing demand for convenience and seamless digital interactions. Contrasting global trends The report notes that, while Saudi Arabia and other emerging markets such as the UAE and China show resilience, spending in the US and Europe continues to decline. Consumers in these regions are grappling with inflation and economic uncertainty, with spending projections for 2025 expected to be even more restrained than this year. “Consumers now have more choices than ever before,” Karl Nader concluded. “Established operators will need to innovate and reimagine their approach to thrive in this dynamic environment. Success will come to those who prioritise value-driven offerings, leverage digital tools, and adapt swiftly to meet the changing demands of Saudi shoppers.” Saudi Arabia’s consumer market is expected to maintain its growth trajectory into 2025, with a clear shift towards value-driven consumption, growing demand for experiences, and the continued adoption of digital shopping conveniences. With younger consumers leading the charge, businesses will need to adapt to a rapidly changing landscape, balancing the demands for both affordability and enhanced experiences. Tags consumer behaviour Insights Retail Saudi Arabia shopping You might also like Reshaping financial sector strategies: DeepSeek versus traditional AI models How industrial AI is leading economic hubs toward diversification, autonomy LEAP 2025: What tech leaders have to say about their participation Insights: The AI-powered future of sport and fan engagement