Riyadh, Kingdom of Saudi Arabia – October 23rd, 2025 – NielsenIQ (NIQ) has published its annual Consumer Outlook: Guide to 2026, offering a strategic roadmap for brands navigating a volatile and fast-evolving market. The findings reveal that consumers in Saudi Arabia have become more adaptive to ongoing change, with growing emphasis on values-driven purchasing. Features such as environmental sustainability, organic certification, cruelty-free testing, and the absence of artificial ingredients are playing a more significant role in purchase decisions.
Saudi Arabian consumers (44%) expressed that their household finances are better off than a year ago. And, in terms of financial outlook, 71% expect their household financial situation to improve by the beginning of 2026. This cautious optimism suggests increasing consumer confidence in future economic conditions, potentially driven by expectations of better job stability, rising income levels, or easing inflation.
While rising prices in food and utility bills are still a concern for Saudi consumers (19%), the issues of global conflict, crisis escalation, and war over the next six months were identified as their biggest concern (29%).
Strategic Shopping: A Shift Toward Value and Intentional Consumption
As household expenses evolve, many Saudi consumers are thoughtfully reassessing their shopping habits, especially when it comes to groceries and everyday essentials. A growing number (34%) are embracing smart choices by opting for more affordable brands, reflecting a shift toward value-driven decision-making. This trend highlights an exciting opportunity for retailers: those who offer quality-focused, budget-friendly alternatives are well-positioned to build trust and loyalty among increasingly savvy shoppers. At the same time, consumers continue to monitor their basket cost by shopping more often at discount/value or lower priced shops (41%) or turn to online shopping to get better deals (30%) and focus on essentials (29%).
Consumer behavior has become more mindful and intentional over the past year.
Notably, 51% of respondents agreed with the statement: "I only buy what I know I'll use to avoid waste." This reflects a heightened awareness around sustainability, financial discipline, and responsible consumption. Whether motivated by economic pressures or environmental values, consumers are prioritizing:
- Essential purchases over discretionary items
- Reduced impulse buying
- Minimizing waste in daily consumption
“Consumer confidence in Saudi Arabia is rising, with financial optimism far exceeding the global average (30%). This is driving greater discretionary spending, demand for premium products, and openness to innovative retail, aligning with KSA’s Vision 2030. Shoppers are increasingly value-driven, opting for larger pack sizes and prioritizing cost efficiency. Health-conscious choices are also growing, with 23% seeking plant-based and organic options. Digital engagement is accelerating: 55% use online platforms to find deals, and 30% prefer convenience stores for time-saving benefits. To stay relevant, brands must adapt - rethink pack sizes, refine promotions, and embrace digital transformation to meet the needs of a more informed, value-conscious consumer”, explains Pavlos Pavlou, Managing Director of NielsenIQ Saudi Arabia."
In addition, although social media commerce is growing (22%), a significant portion of consumers remain cautious or prefer traditional online retailers for their purchases. In Saudi Arabia, 41% of consumers still prefer their traditional retailers and in person shopping; a significant percentage – almost a third of respondents – would order online to pick up or have their basket delivered at home (31%).
Consumers are balancing this digital enthusiasm with practical considerations, prioritizing essential spending. Retailers who can adapt by offering personalized, transparent, and sustainable solutions will not only meet the needs of today’s cautious yet optimistic consumers but will also unlock new growth opportunities in this rapidly changing market.”, concludes Pavlou.
NIQ’s Consumer Outlook report shows how these fast-moving disruptions demand proactive strategies. By bridging the gap between consumer intent and behavior, NIQ empowers brands to turn uncertainty into growth, trust, and innovation. Download the Consumer Outlook: Guide to 2026 report here.
About Consumer Outlook: Guide to 2026
NIQ’s Consumer Outlook: Guide to 2026 provides an analytic assessment of the state of consumers, based on a global footprint of consumer intelligence solutions and the feedback of nearly 19,000 consumers in 27 countries. The goal: to better understand their current thinking about the economic environment, as well as what they’re buying—and why. The survey was conducted between June 10 and July 8, 2025.
About NIQ
NielsenIQ (NIQ) is a 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 two industry leaders with unparalleled global reach. Our global reach spans over 90 countries covering approximately 85% of the world's population and more than $7.2 trillion in global consumer spend. 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
Forward-Looking Statements Disclaimer
This press release may contain forward-looking statements regarding anticipated consumer behaviors, market trends, and industry developments. These statements reflect current expectations and projections based on available data, historical patterns, and various assumptions. Words such as “expects,” “anticipates,” “projects,” “believes,” “forecasts,” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future outcomes and are subject to inherent uncertainties, including changes in consumer preferences, economic conditions, technological advancements, and competitive dynamics. Actual results may differ materially from those expressed or implied in these statements. While we strive to base our insights on reliable data and sound methodologies, we undertake no obligation to update any forward-looking statements to reflect future events or circumstances, except to the extent required by applicable law.
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