USD 7.2 billion on FMCG, reflecting a 1.6% increase, while spending on Tech & Durables totaled USD 2.7 billion, a decline of 3.2% from the prior year.
Riyadh, Kingdom of Saudi Arabia, 26th November 2024 – The Kingdom of Saudi Arabia’s (KSA) retail market demonstrated a measured performance during the third quarter of 2024, with consumers collectively investing USD 9.97 billion in Fast-Moving Consumer Goods (FMCG) and Technology & Durable Goods, marking a modest 0.4% increase compared to the same period last year.
According to the latest insights from the NIQ Retail Spend Barometer, powered by GfK intelligence, KSA shoppers spent USD 7.2 billion on FMCG and USD 2.7 billion on Tech & Durable products in Q3 2024, reflecting the market’s nuanced response to economic conditions and seasonal events.
KSA Consumer Spending Trends
The KSA retail landscape in Q3 2024 was characterized by moderate growth, significantly influenced by key events such as National Day, Amazon Prime Day, and Back-to-School sales. The total expenditure of USD 9.9 billion demonstrates the market’s resilience amid challenging economic conditions, including inflationary pressures and shifts in consumer spending patterns.
Market Evolution and Consumer Dynamics
The KSA retail market continues to adapt to post-pandemic economic realities. The consumer electronics sector, in particular, has entered a more stable phase, with longer replacement cycles becoming evident. Categories like televisions are expected to see a more significant recovery only by 2026-2027, reflecting a more measured approach to technology purchases.
Providing an overview of the market dynamics between KSA and the UAE, David Cantatore, Retail Lead NIQ Middle East, explains, “In Q3 2024, UAE and KSA consumers demonstrated distinct market trends, with UAE experiencing notable growth driven by strategic promotions and an increase in consumer spending on FMCG and Tech products. The rise in promotional activities, including back-to-school sales and significant product launches, played a key role in boosting consumer demand.”
In contrast, KSA saw slower growth in the same period, impacted by inflationary pressures and a decline in non-food categories, although FMCG remained resilient due to key events like National Day and Prime Day. “The market for tech products in both regions reflects ongoing post-pandemic stabilization, with demand gradually adjusting to new consumer cycles,” he added.
FMCG
The FMCG sector recorded USD 7.2 billion in sales during Q3 2024. Analyzing the quarterly progression, the sector showed a consistent pattern: Q1 2024 saw sales of USD 7.4 billion, which slightly moderated to USD 7.3 billion in Q2, and further adjusted to USD 7.2 billion in Q3. The sector’s performance was primarily driven by strategic promotions, seasonal events, and the continued demand for essential household items.
TECH & DURABLES
The Technology and Durables sector achieved USD 2.7 billion in sales in Q3 2024. The quarterly trend showed a peak in Q1 2024 with sales of USD 2.7 billion, a slight increase to USD 2.8 billion in Q2, followed by a decline to USD 2.6 billion in Q3. This trajectory reflects the sector’s ongoing stabilization, with consumers adopting a more cautious approach to technology purchases.
About the Study
The NIQ Retail Spend Barometer by GfK intelligence provides a complete overview of KSA spending for the FMCG sector (beverages, fresh food, healthcare, personal care, baby care) and the T&D sector (technical consumer goods, household appliances and DIY). This cross-category and cross-channel overview is based on real sales data and is published every quarter to illustrate household spending priorities.
About NielsenIQ
NielsenIQ (NIQ) is the world’s leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together the two industry leaders with unparalleled global reach. Today NIQ has operations in more than 95 countries covering 97% of GDP. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™.
For more information, please visit www.niq.com
