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

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

The report examines what is driving 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.

MENA’s CPG market generated more than $450bn in fast-moving consumer goods sales in 2024, including around $200bn in food and beverage and approximately $250bn in non-food categories.

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

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

Faisal Sheikh, Senior Partner at Bain & Company, said: “CPG leaders should view MENA as a true growth arena. The opportunity is real, but the bar is rising—consumers are more time-starved, more intentional, and increasingly focused on trust and relevance.

“The winners will be the companies that tailor their growth algorithms to the region’s realities and invest behind the moments that matter most to local consumers. This will inevitably mean streamlining the cost structure to create funds that can be reinvested behind growth.”

Consumer packaged goods sector growth

The report highlights strong momentum in core markets. The UAE recorded approximately 6 per cent volume growth, significantly above the 1.7 per cent global average, while Saudi Arabia followed with around 4 per cent growth, alongside solid value gains.

Consumer sentiment across MENA remains resilient at 6.0 out of 10, with overall spending holding up despite more selective purchasing behaviour.

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

Convenience has become a baseline expectation across the region, with around 37 per cent of MENA consumers saying they do not have enough time for daily essentials, making them more time-strapped than global peers.

At the same time, values and identity are playing a growing role in brand relationships, with more than half of MENA consumers reporting boycotting brands due to value misalignment.

Digital adoption is also accelerating rapidly. In the UAE, e-commerce already accounts for between 12 per cent and 14 per cent of retail sales and is expected to rise to 20 per cent to 25 per cent by 2030, capturing around 60 per cent of incremental growth in the market.

Federico Piro, Partner at Bain & Company, said: “MENA’s growth is being shaped by channel evolution and rising expectations on convenience, especially in markets like the UAE, where e-commerce is already meaningful and still expanding.

“Companies that adapt route-to-market, sharpen their portfolios, and execute with discipline can capture growth while strengthening brand resilience.”

Against a global backdrop of slowing CPG growth and limited volume gains of around 1.7 per cent worldwide, the report notes that while MENA stands out as a growth engine, companies in the region are navigating shifting consumption patterns, rising cost pressures, regulatory complexity, and intensifying competition from insurgent brands and strong local incumbents.

Expansion strategy

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

While 91 per cent of global executives recognise the long-term strategic importance of generative AI, only 6 per cent report having a clear and actionable 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 advantage, by simplifying where it counts, freeing up resources through continuous productivity, and using technology to build deeper customer intimacy and operational excellence. This is a moment to be bold and practical 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 sustained success will require strategies tailored to local realities, decisive leadership and disciplined execution to secure both resilience and relevance in the everyday lives of consumers.