- Latest NielsenIQ report shows that spending by exception is becoming the new norm worldwide as consumers demand stronger justification for every purchase decision.
- KSA and the UAE are polarised markets where value and premium consumer products are gaining share from the mid-range and mainstream tier.
- Despite regional conflict, consumers in KSA and the UAE report higher levels of financial confidence than the average among the markets NielsenIQ tracked in its new survey.
27 October 2026 – New research from NielsenIQ shows how shoppers in Saudi Arabia (KSA) and the United Arab Emirates (UAE) are shifting spending on FMCG goods from the mainstream middle toward both value and premium alternatives, with consumers seeking products that clearly justify either the savings they offer or the premium they command.
These findings come from NielsenIQ’s latest global Consumer Outlook 2027 survey of more than 21,000 respondents across 31 countries, combined with NielsenIQ’s measurement of real-world purchasing behaviour. This is the first time the UAE has been part of the Consumer Outlook report. With both markets in view, clients can tell KSA and UAE sentiment apart and plan with more confidence amid an uncertain environment. The research shows that consumers in KSA and the UAE are building new routines, priorities and expectations around a future where volatility remains part of everyday life.
Consumers in KSA are among the most optimistic in the world about their finances. Nearly half (46%) reported they feel better off than a year ago, compared with 30?ross all countries tracked in the survey. Only 20?el they are worse off, versus 34% worldwide. Respondents from the UAE are slightly less positive than those in KSA, with 37% saying they feel better off and 31% saying they feel worse off.
Findings include:
- Most financially challenged consumers in KSA (68%) and the UAE (69%) blame rising living costs for their worsening financial situation.
- Around 22% of consumers in KSA and 31% in the UAE report that global conflict is their biggest near-term concern. Food prices, utility bills and housing costs also rank high among their worries for the next six months.
- Worldwide, more than US$23 billion in value share has shifted away from mainstream-priced products toward value and premium alternatives. KSA and the UAE are among the markets where the trend toward polarisation is most evident.
- A basket costing US$100 in 2024 now costs approximately $105, showing that global inflation remains high.
Deliberate shopping decisions
The research shows that households in the region are becoming more deliberate about what they purchase, where they shop and which brands they choose. Consumers are adapting their lifestyles, spending habits and long-term aspirations to a fundamentally different reality, where inflation is persistent and volatility is a fact of life.
“Consumers across KSA and the UAE are no longer buying by default. They buy when a compelling reason exists and walk away from purchases that fail to justify their place. Purchases are no longer evaluated on cost alone, but on the balance between price, quality, performance and personal relevance” Andrey Dvoychenkov, General Manager Arabian Peninsula and Pakistan.
“Polarisation exists not only between different consumers, but also in how the same shopper makes purchase decisions. Some consumers are seeking savings and value. Others continue to spend on premium products that they believe are worth the additional cost. And the same consumer may seek value in one category while remaining open to buying the premium option in another.”
NielsenIQ categorises both KSA and the UAE as polarised markets, where shoppers are gravitating toward either meaningful savings or meaningful upgrades. In KSA, 20.3% of sales value comes from the value segment, 41.9% from mainstream products and 37.9% from the premium segment. In measured FMCG retail sales, the value tier gained 1 percentage point of value share and the premium segment gained 1.5 points year-on-year. The mainstream segment lost 2.5 points.
The UAE is one of the few markets worldwide where the premium segment dominated, holding a 45.2% share of sales value. The mainstream segment accounts for just 32.8% of sales value and the value tier for 22%. In measured FMCG retail sales, the value tier gained 0.3 percentage points of value share and the premium segment gained 0.5 points year-on-year. The mainstream segment lost 0.7 points.
Consumer attitudes explain why polarisation is extreme in KSA and the UAE. Around seven in 10 shoppers in both markets agree they would rather save money if a product is not clearly better. Roughly two-thirds in both territories prefer to choose something clearly premium if they are spending more. Among KSA and the UAE consumers, six in 10 say mid-range options need a clear reason to be chosen over cheaper or premium alternatives.
In KSA, 43% of respondents prioritise quality and performance when judging whether an everyday household or grocery purchase is worth it, compared to 29% who prioritise affordability. In the UAE, around 36% prioritise quality and performance and 28% prioritise affordability. However, price and affordability still matter, even among those shoppers who put quality and performance first.
Strategies for navigating affordability pressures
With regional conflict affecting consumer confidence in the Middle East, consumers in KSA and the UAE are adopting a range of tactics to improve their financial health and stretch their money further:
- Stop buying certain products to focus just on essentials: 28% in KSA and 33% in UAE.
- Shopping online for better deals, fuel savings or fewer store trips: 35% in KSA and 32% in UAE.
- Stocking up or buying in bulk when their preferred brand goes on sale or promotion: 29% in KSA and 33% in UAE.
- Monitoring the cost of the overall basket: 38% in Saudi Arabia and 35% in UAE.
- Shopping more often at discount or lower-priced stores: 43% in KSA and 39% in UAE.
- Shopping at stores with loyalty programmes and using points to manage spending: 30% in KSA and 35% in the UAE.
- Buying larger sizes to get a better price per amount of product: 32% in KSA and 27% in UAE.
Dvoychenkov says: “The brands and retailers that win in 2027 will be those that adapt as quickly as consumers do, creating relevance as financial realities become more polarised and value expectations rise. They will focus on affordability, pack-price architecture, value credentials and optimised channel strategies to capture market share as consumers in the UAE and KSA continue to monitor their spending carefully.”
AI shapes consumer decision-making
AI is becoming an increasingly important part of product discovery and decision-making. Around seven in 10 consumers in KSA and the UAE say AI tools or assistants influence their household and grocery purchases at least sometimes, compared with 55% of the global respondents. Around 34% in KSA and 37% in the UAE report using AI-powered tools to research or decide what to buy in the past three months.
“AI is creating new pathways through which consumers discover products and brands. As recommendation engines, digital assistants, and AI-powered search tools become more influential, brands in KSA and the UAE must consider how they appear and perform within these environments alongside traditional marketing channels,” says Dvoychenkov.
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FAQs
Q: What is Consumer Outlook: Guide to 2027?
A: Consumer Outlook: Guide to 2027 is NielsenIQ's latest global thought leadership report exploring how consumers are adapting to ongoing economic uncertainty, shifting spending priorities, and changing purchasing behaviours. The report combines NielsenIQ's global consumer survey data with observed retail purchasing behaviour to identify emerging trends shaping consumer markets worldwide.
Q: How was the research conducted?
A: The findings are based on NielsenIQ's global Consumer Outlook survey of more than 21,000 consumers across 31 countries, combined with NielsenIQ's measurement of real-world purchasing behaviour across global retail markets.
Q: What does the $23 billion shift away from mainstream-priced products mean?
A: NielsenIQ's analysis found that consumers are increasingly moving spending away from traditionally mainstream-priced consumer packaged goods and toward either value-oriented options that help stretch budgets or premium products that offer perceived quality, performance, or other benefits that justify a higher price.
Q: Are consumers simply trading down because of inflation?
A: No. The research suggests a more nuanced trend. While some consumers are seeking savings and value, others continue to spend on premium products that they believe are worth the additional cost. This has created increasing polarisation in spending patterns across many categories.
Q: What is driving the growing consumer divide?
A: Consumers are experiencing economic conditions differently. Rising living costs, income differences, varying levels of financial resilience, and changing personal priorities are contributing to different spending behaviours and financial outcomes.
Q: What does this mean for brands and retailers?
A: Brands and retailers may need to move beyond a one-size-fits-all strategy. Understanding which consumer segments are driving growth, how spending priorities differ, and where consumers perceive value can help organizations better position products and marketing investments.
About NielsenIQ
NielsenIQ is a leading consumer intelligence company, delivering the most complete and trusted understanding of consumer buying behaviour and revealing new pathways to growth. By combining an unmatched global data footprint and granular consumer and retail measurement with decades of AI modelling expertise, NielsenIQ builds decision systems that help companies turn complex data into confident action.
With operations in more than 90 countries, NielsenIQ covers approximately 82% of the world’s population and more than $7.4 trillion in global consumer spend. Through cloud-based platforms, advanced analytics and AI-driven insights, NielsenIQ delivers The Full View™—helping brands and retailers understand what consumers buy, why they buy it, and what to do next.
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Forward Looking Statement
This press release regarding Consumer Outlook: Guide to 2027 may contain forward-looking statements regarding anticipated consumer behaviours, 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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