Thursday 20 June 2024

The Saudi consumer preference chart

Notable shift in Saudi consumer behaviour: NielsenIQ

RIYADH, May 10, 2024

Some 98% of Saudi consumers have changed how they shop for FMCG, with 24% preferring to buy whatever brand is on promotion, according to NielsenIQ, a world-leading consumer intelligence company.
More than half of KSA consumers say they would purchase a product that has innovated to make it as affordable as possible (59%).
There has been a notable shift in consumer behaviour, as preferences have increasingly leaned away from premium market offerings towards more economically priced options within the mainstream or budget-friendly tiers. This evolution in consumer preferences reflects a growing emphasis on financial prudence and the desire for products that meet essential needs without exceeding budgetary constraints.
Digital technology
Interestingly, 23% use digital technology to find the best deals on their preferred brands, but only 17% opt for private-label products. This trend signifies a broader change in purchasing habits, where the allure of premium products has been outweighed by the appeal of affordability and the practical benefits of cost-effective alternatives.
These findings appeared in “Consumer Outlook 2024", the latest NielsenIQ Thought Leadership report capturing the mindset and sentiment of consumers around the world. 
“Over the last two years or more, global consumers have indicated they will seek ways to reduce expenses and prioritize affordability. These intentions are driving real impact; the whole structure of global pricing has experienced a small shift in favour of lower price tiers. Saudi Arabian consumers are progressively leaning into selections that prioritise cost-efficiency, reflecting a broader move towards purchasing practices focused on value. This development highlights a rising focus on affordability in product offerings, pricing models, and buying patterns. Even amidst this trend towards cost sensitivity, there's a persistent demand for high-quality, premium items, especially those offering significant health and wellness benefits,” explains Pavlos Pavlou, NielsenIQ Managing Director in Saudi Arabia.
Other key findings
Although cost of living remains top of mind, 71% are optimistic their financial situation will be better by the end of 2024. Concurrently, job security sentiment has also improved by 4 percentage points compared to the previous quarters.
Healthy living is the top life priority influencing consumers: about a third of consumers want to build, maintain or improve their health and wellness, while 63% would try a new product because it is better for their health.
More than half of KSA consumers (56%) would choose a product or service because it has sustainable credentials, while about the same would purchase a product that has innovated to make it as affordable as possible (59%).
More than a third of consumers prefer shopping often and at discount/value stores (37%), while 24% of consumers prefer to buy whatever brand is on promotion.--TradeArabia News Service


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