Saudi Arabia’s Consumer Spending Resilience Continues Into 2025, AlixPartners Survey Reveals

Saudi Arabia’s consumer market is evolving rapidly, characterized by adaptability, shifting spending patterns, and resilience in the face of global economic challenges, according to the latest insights from 2025 Global Consumer Outlook published by AlixPartners, the global consulting firm.Despite global trends of reduced discretionary spending, Saudi consumers exhibitrobust spending intentions, with a focus on value and cost efficiency as part of their purchasing strategies across essentials and discretionary categories.

The report, based on responses from over 15,000 consumers across nine countries presents a nuanced global picture – while spending is resilient in Saudi Arabia, UAE, and China, it contrasts starkly with spending restraint in the U.S. and Europe, where spending next year is projected to decline further from this year’s already-muted levels, signalling another challenging year for global consumer-facing industries.

Saudi consumers are expected to maintain robust spending habits into 2025, driven by strategic priorities and a strong focus on essentials and experiences. Saudi households are navigating rising costs with a strategic approach, often adopting more value-oriented choices to balance their spending priorities. For instance, in groceries, there is a clear trend of consumers trading down to entry-price ranges and private labels, while discounters across retail segments—whether grocery or fashion—are gaining ground at the expense of established chains by offering better value.

Demographic insights reveal that younger consumers (18-34) are driving growth across most retail segments, reflecting a strong appetite for new experiences and products. Meanwhile, spending on essentials like groceries and clothing remains consistent across all age groups and income levels. Low-income shoppers are focusing on necessities in response to inflation, while high-income groups are fuelling growth in discretionary categories, supported by their greater disposable income.

“Saudi Arabia’s retail landscape is undergoing profound transformation,” said Karl Nader, Partner & Managing Director at AlixPartners. “While consumer confidence remains evident in categories like dining out and entertainment, rising costs are reshaping shopping behaviors. Consumers are prioritizing value, exploring discount options, and balancing essentials with discretionary spending. This evolution will compel operators to rethink their engagement strategies and innovate to meet the changing expectations of the Saudi shopper.”

AlixPartners’s report, titled Spending Disrupted, identified several key trends in the Kingdom across categories, including:

• Value-Driven Consumption: Grocery (55.4%) and Clothing (43%) categories dominate as key spending categories same as last year, with consumers prioritizing value-driven deals and savings.
• Rise of Discounters: Discount-driven retailers are transforming consumer expectations, challenging established market players and altering shopping behavior.
• Growth in Entertainment and Dining: 33% of Saudi Consumers plan to increase spending on entertainment outside of home, well above 19 % global average. Dining out also remains a robust category – one third of KSA consumers plan to spend more on eating out, while globally34% intend to spend less. Younger shoppers under 35 are leading spending growth showcasing a strong appetite for new experiences and products.
• Shift Towards Local Experiences:Desire to travel remians strong, affordability and expanding domestic tourism offerings have driven more consumers toward local staycations.
• Digital Integration and Shopping Convenience: Digital tools and technologies, including AI-driven product suggestions, mobile payment solutions, and delivery services, are becoming essential elements of consumer shopping experiences.

“In a market defined by evolving preferences and increasing choice, established operators must adapt to the dual forces of economic pressure and changing consumer priorities. “Consumers now have more choices than ever before,” Karl Nader concluded. “Established operators will need to innovate and reimagine their approach to thrive in this dynamic environment. Success will come to those who prioritize value-driven offerings, leverage digital tools, and adapt swiftly to meet the changing demands of Saudi shoppers.”