Consumer preferences evolve in 2024 - Consumer Outlook 2024

Photo by Mishaal Zahed on Unsplash

This evolution in consumer preferences reflects a growing emphasis on financial prudence and the desire for products that meet essential needs without exceeding budgetary constraints.

In Saudi Arabia (KSA), 98% of KSA consumers have changed how they shop for FMCG – with preferred saving strategies being: shopping online (33%) to get better deals and shopping where loyalty schemes are in effect (27%).

Interestingly, 23% use digital technology to find the best deals on their preferred brands, but only 17% opt for private-label products.

This trend signifies a broader change in purchasing habits, where the allure of premium products has been outweighed by the appeal of affordability and the practical benefits of cost-effective alternatives.

Parents turn to private labels as the rising cost of living bites

5 Apr 2024

These findings appeared in Consumer Outlook 2024, the latest NielsenIQ Thought Leadership report capturing the mindset and sentiment of consumers around the world.

“Over the last two years or more, global consumers have indicated they will seek ways to reduce expenses and prioritise affordability. These intentions are driving real impact; the whole structure of global pricing has experienced a small shift in favour of lower price tiers.

Saudi Arabian consumers are progressively leaning toward selections that prioritise cost-efficiency, reflecting a broader move towards purchasing practices focused on value.

This development highlights a rising focus on affordability in product offerings, pricing models, and buying patterns. Even amidst this trend towards cost sensitivity, there's a persistent demand for high-quality, premium items, especially those offering significant health and wellness benefits," explains Pavlos Pavlou, NielsenIQ managing director in the Kingdom of Saudi Arabia.

99% of consumers have changed their FMCG shopping habits to save money

22 Mar 2024

Other key findings from the report for Saudi Arabian consumers:

• Although cost of living remains top of mind, 71% are optimistic their financial situation will be better by the end of 2024. Concurrently, job security sentiment has also improved by 4 percentage points compared to the previous quarters.

• Healthy living is the top life priority influencing consumers: about a third of consumers want to build, maintain or improve their health and wellness, while 63% would try a new product because it is better for their health.

• More than half of KSA consumers (56%) would choose a product or service because it has sustainable credentials, while about the same would purchase a product that has innovated to make it as affordable as possible (59%).

• More than a third of consumers prefer shopping often and at discount/value stores (37%), while 24% of consumers prefer to buy whatever brand is on promotion.