RIYADH: The consumer packaged goods market in the Middle East and North Africa region is expected to reach up to $650 billion by 2030, representing a compound annual growth rate of 5 percent from now, according to an analysis. 

In its latest report, Bain & Co. said that this growth will be primarily supported by positive regional fundamentals and continued consumer demand, especially in countries like Saudi Arabia and the UAE. 
The findings align with the evolution of countries in the MENA region, where economic diversification efforts are progressing steadily, and these nations are positioning themselves as a hub for tourism, entertainment and business. 
“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,” said Faisal Sheikh, senior partner at Bain & Co. 
He added: “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.” 
The report draws on a survey of 3,500 consumers across the four focus markets — Saudi Arabia, the UAE, Egypt, and Iraq — and interviews with 20 regional CPG executives, alongside Bain analysis and supporting market data.
In 2025, global consulting firm AlixPartners echoed similar views and said that the consumer market in the region, especially in Saudi Arabia, is evolving rapidly, characterized by adaptability, shifting spending patterns, and resilience in the face of global economic challenges.
Another report by Oxford Economics said that real household consumption across the Gulf Cooperation Council region is projected to increase by 3.4 percent per annum over the next five years, nearly double the 1.7 percent growth forecast for advanced economies. 
In October, another report by Grand View Research projected a slightly smaller figure for the CPG market in the region.  
The report said that the Middle East CPG market size was estimated at $175.72 billion in 2024 and is projected to reach $258.68 billion by 2033, growing at a CAGR of 4.5 percent. 

MENA’s growing role in the CPG sector
According to Bain & Co., the MENA region has emerged as a significant contributor to CPG growth, with the UAE and Saudi Arabia leading the way. 
The UAE recorded approximately 6 percent volume growth in the sector in 2024 — well above the 1.7 percent global average, while Saudi Arabia closely followed with around 4 percent. 
Both countries posted solid value growth alongside volume gains, signaling a strong ability to manage inflation pressures that continue to surge in many parts of the world.
In December, Saudi Arabia’s General Authority for Statistics revealed that the Kingdom’s annual inflation rate slowed to 1.9 percent in November, easing from 2.2 percent in the previous two months. 
The International Monetary Fund, in October, also said that Saudi Arabia is expected to maintain an annual inflation rate of 2.1 percent in 2025 and 2 percent in 2026.
Highlighting the robust size of MENA CPG ecosystem, Bain & Co. revealed that the market totals more than $450 billion in fast-moving consumer goods sales, comprising around $200 billion in the food and beverage sector and $250 billion in non-F&B categories. 
Egypt, having recently rebounded from macroeconomic turbulence, is now leading the regional CPG market with an estimated $67 billion in sales, closely followed by Saudi Arabia at around $65 billion.

Factors driving growth
According to the report, the region’s growth in the CPG sector has been supported by robust structural fundamentals over the recent years. 
Bain & Co. highlighted that population growth in the region is on a steady upward trajectory, laying the groundwork for sustained long-term demand. 
More than half of the GCC’s population is under 30, and rapid urbanization is fueling demand for consumer products, modern retail formats, and global brands.
Easing inflation and anticipated interest rate cuts have also enhanced disposable income and improved consumer spending.
Moreover, government-led initiatives to lessen dependence on oil have paid off, creating new economic opportunities with the intent to lower unemployment rates. 
The report added that increased salaries in the UAE and Saudi Arabia are also increasing consumer spending. The average monthly household income for Saudis exceeds SR18,000 ($4,800), providing purchasing power for more discretionary spending.

Channel evolution and digital adoption
According to the report, in-store shopping remains the dominant channel in the grocery segment, but online platforms are also gaining traction in this area, especially among urban, younger, and higher-income consumers.
Satisfaction with online grocery still trails global benchmarks due to stock and delivery issues, yet adoption is rising quickly as MENA consumers embrace hybrid shopping habits.
The report added that identity-driven brand relationships are a core driver of new purchasing decisions and shopping habits. 
MENA consumers anchor themselves in family, spirituality, education, and work, with Gen Z leaning into self-betterment and older generations emphasizing legacy and stability.
More than half of MENA consumers report boycotting brands due to value misalignment, putting trust and alignment alongside price and quality as decision drivers.
Bain & Co. added that digital adoption and channel evolution are accelerating in MENA’s CPG market. In the UAE alone, e-commerce penetration is already 12 to 14 percent of retail sales and is expected to rise to 20 to 25 percent by 2030, capturing roughly 60 percent of incremental growth.
“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,” Federico Piro, partner at Bain & Co. 
He added: “Companies that adapt route-to-market, sharpen their portfolios, and execute with discipline can capture growth while strengthening brand resilience.” 

Potential challenges and combat measures
The report notes that while MENA is emerging as a bright spot, CPGs in the region are still navigating shifting consumption patterns, rising cost pressures, and regulatory complexity, while also competing harder for share against insurgents and strong local incumbents. 
CPG players in the region are under pressure to rebuild investor and customer confidence, revive volume growth, and strengthen resilience, while funding the capabilities required to succeed in the sector. 
“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,” said Karim Chehade, associate partner at Bain & Co. 
Bain & Co. said that companies operating in the sector should make bold moves and execute flawlessly to maximize core market profit pools, while expanding categories and geographies to access new profit pools.
It is also essential to go beyond traditional cost-cutting by simplifying portfolios and operations to free up resources for growth.
“MENA remains one of the most dynamic frontiers for consumer products, but winning will require more than importing global playbooks,” said Bain & Co. 
It concluded: “With decisive leadership, bold strategies, and disciplined execution, CPGs can secure both resilience and relevance, positioning themselves as trusted partners in the everyday lives of MENA consumers.”