Middle East consumers continue to embrace new technologies and demand more from the brands they support amidst global challenges, according to PwC’s Voice of the Consumer 2024 report. 

 

Mirroring global findings, inflation stands as the primary concern for regional consumers, with 56% perceiving it as the greatest threat impacting their country and 65% planning to save or invest in the coming year.  

 

Moreover, environmental factors remain a powerful motivator of purchasing decisions, with 85% of regional consumers worried about climate change, and 83% – compared to 86% globally – noticing climate-related disruptions in their day-to-day lives.

 

No race to the bottom

Norma Taki, PwC’s Middle East Consumer Markets Leader, said: “While global economic headwinds are influencing consumer behaviour in the Middle East, creating heightened price sensitivity and a greater emphasis on value, it is a positive sign that this is not translating into a 'race to the bottom'. In fact, the unwavering focus on sustainability presents a significant opportunity for differentiation and premiumisation.”

 

She added: “The region’s savvy businesses are investing in sustainable practices to attract and retain this value-conscious, yet environmentally aware consumer base. Businesses cognisant of such macroeconomic nuances influencing consumer behaviours will solidify their position in the Middle East."

 

Four key themes

The PwC survey outlines four key themes being witnessed by consumers in the Middle East. 

First, business excellence is seen to determine consumer trust, where customer data protection, fair worker treatment, and transparency around sustainable practices are crucial to earn the trust of 95% regional consumers, compared to 70% worldwide. 

Second, climate concerns are reshaping mobility behaviours. According to the report, 53% of regional consumers (compared to 46% globally) are buying more sustainable products. Climate-awareness is influencing consumer behaviours towards mobility, with 82% of regional buyers willing to use public transportation following infrastructure improvements, and 70% willing to own hybrid or electric vehicles in the next three years. 

Third, the report finds that AI is gaining a foothold in the shopping journey. There is an evident complex relationship with emerging technologies, particularly artificial intelligence (AI). While more than half of the region’s consumers would trust AI to support low-risk activities such as acquiring product information or recommendations, confidence in its ability is lower for high-risk tasks such as stock recommendations, financial transaction management, or making medical diagnoses. 

Fourth, a secure online shopping experience is also seen to be reshaping broader consumer behaviours. While physical stores remain the cornerstone of the shopping journey in the Middle East, with 45% of buyers preferring to make or complete purchases in-store, online shopping via mobile phones are more prevalent regionally, with 44% shopping online frequently (versus 34% globally).

The newly released Voice of the Consumer 2024 report provides insights into the mechanics of delivering convenient and seamless shopping experiences for regional consumers.--TradeArabia News Service