UAE and Saudi Arabia power MENA consumer goods growth as market heads to $650bn

The Middle East and North Africa (MENA) region is emerging as a hot spot for global consumer packaged goods (CPG), with the UAE and Saudi Arabia helping to lead volume, according to the first Middle East Consumer Products Report 2025 by Bain & Company.

The report examines what is driving the momentum across Saudi Arabia, the UAE, Egypt and Iraq, and what CPG players must do to capture the next phase of growth in the region.

The MENA CPG market will generate more than $450bn in fast-moving consumer goods sales by 2024, including nearly $200bn in food and beverage and nearly $250bn in non-food sectors.

Looking ahead, the market is expected to reach $650bn by 2030, representing annual growth of around 5 per cent, supported by good regional fundamentals and continued consumer demand.

The findings draw on a survey of 3,500 consumers across four focus markets, interviews with 20 regional CPG managers, and Bain’s proprietary analysis supported by market data.

Faisal Sheikh, Senior Partner at Bain & Company, said: “CPG leaders must look to MENA as a true growth area. The opportunity is real, but the bar is rising—consumers are more hungry, more determined, and more focused on loyalty and relevance.

“The winners will be the companies that adapt their growth algorithms to match regional realities and invest after the times that matter most to local consumers. This will inevitably mean cost planning to create reinvestable funds after growth.”

The growth of the consumer packaged goods sector

The report highlights strong momentum in key markets. The UAE recorded nearly 6 percent volume growth, well above the global average of 1.7 percent, while Saudi Arabia followed with 4 percent growth, along with strong value gains.

Consumer sentiment across MENA remains strong at 6.0 out of 10, with overall spending steady despite selective shopping behavior.

While consumers are not backing down, the report notes that purchasing decisions are becoming more deliberate, with brands increasingly being rewarded for delivering value, trust and relevance rather than relying solely on price and availability.

Convenience has become a key expectation across the region, with nearly 37 percent of MENA consumers saying they don’t have enough time for everyday essentials, making them more time-conscious than their global peers.

At the same time, price and identity are playing a growing role in brand relationships, with more than half of MENA consumers reporting straying from brands due to price misunderstandings.

Digital adoption is also accelerating rapidly. In the UAE, e-commerce already accounts for between 12 percent and 14 percent of retail sales and is expected to rise to 20 percent to 25 percent by 2030, accounting for nearly 60 percent of the market’s growth.

Federico Piro, Partner at Bain & Company, said: “The growth of MENA is influenced by the evolution of the channel and the rising expectations of convenient operations, especially in markets like the UAE, where e-commerce is already meaningful and growing.

“Companies that adapt their go-to-market approach, sharpen their portfolio, and act ethically can capture growth while strengthening brand resilience.”

Against a global backdrop of slowing CPG growth and average volume gains of around 1.7 percent globally, the report notes that while MENA stands out as a growth engine, companies in the region are exploring changing consumption patterns, growing cost pressures, regulatory complexity, and strong competition from emerging companies and local powerhouses.

Expansion strategy

To succeed, the report identifies three key priorities for CPG players. These include rethinking growth algorithms to expand core market profit pools while expanding into new categories and territories, reinventing productivity by simplifying portfolios and operations to free up resources to grow, and redefining the role of artificial intelligence and technology in business models.

While 91 percent of global executives recognize the importance of a long-term strategy for productive AI, only 6 percent report having a clear and effective roadmap by the end of 2025.

Karim Chehade, Associate Partner at Bain & Company, said: “The next chapter in MENA will reward companies that turn complexity into profit, by simplifying where it counts, freeing up resources through continuous manufacturing, and using technology to build deeper customer relationships and greater efficiency. This is the time to be bold and proactive at the same time.”

Taken together, the findings point to a clear mandate for consumer goods companies operating in the region.

MENA remains one of the world’s most dynamic frontiers for consumer products, but continued success will require strategies tailored to local realities, strong leadership and focused execution to secure both sustainability and relevance in consumers’ daily lives.