Prime Highlight
- The MENA consumer packaged goods (CPG) market is projected to grow at a 5% CAGR, reaching $650 billion by 2030.
- Strong economic conditions, rising household incomes, and urban expansion are driving growth, particularly in Saudi Arabia and the UAE.
Key Facts
- The UAE’s CPG sector grew about 6% in volume in 2024, while Saudi Arabia saw around 4% growth, both exceeding the global average of 1.7%.
- Egypt leads the region with approximately $67 billion in annual CPG sales, followed closely by Saudi Arabia at nearly $65 billion.
Background
The consumer packaged goods market in the Middle East and North Africa is set for strong growth and is expected to reach $650 billion by 2030, says a new report from Bain & Co. The market is projected to grow at a compound annual growth rate of 5%.
The report said positive economic conditions and steady consumer demand are supporting the sector, especially in Saudi Arabia and the UAE. These countries are moving ahead with economic reforms and are becoming key centers for tourism, business, and entertainment.
Bain & Co. said the UAE recorded about 6% volume growth in the CPG sector in 2024, well above the global average of 1.7%. Saudi Arabia followed with around 4% growth. Both markets also showed strong value growth, helped by easing inflation and higher household incomes.
The report estimates that the MENA CPG market already exceeds $450bn in fast-moving consumer goods sales. Egypt leads the region with about $67bn in annual sales, followed by Saudi Arabia at nearly $65bn.
Several factors are driving growth. Population growth remains strong, with more than 50% of the GCC population under the age of 30. Urban expansion is increasing demand for modern retail and global brands. Lower inflation and expected interest rate cuts are also improving spending power.
Shopping habits are also changing. People still mostly shop for groceries in physical stores, but younger and wealthier consumers are buying more online. In the UAE, e-commerce accounts for 12% to 14% of retail sales and is expected to reach 20% to 25% by 2030.
The report said companies face higher costs, tougher competition, and changing consumer values. Bain & Co. said businesses that build trust, stay relevant locally and grow online are more likely to succeed.
