As Saudi Arabia accelerates its economic transformation under Vision 2030, many emerging industries have popped up. These industries show great potential, and both foreign and local investors need to learn about new market trends for a successful investment. As a Saudi market research agency, AMC insights has created this insightful article to give you an overview of general Saudi Consumer behavior in the modern day, and insights on the most popular Saudi industries in 2025.
The Need for Consumer Behavior Insights
Driven by digital innovation and economic diversification, the Saudi consumer base is rapidly changing Because of these rapid changes, old expectations and investment planning does not match up with the Saudi Arabia of today. That’s why it’s key to understand these factors to know how the current markets work. For both foreign and local investors, it’s not possible to stay ahead without proper Saudi consumer behavior analysis.
The Evolving Saudi Consumer: Key Behavioral Shifts in 2025
Consumer spending reached 1.41 TRILLION SAR in 2024, or around 0.375 billion USD, grown at rate of 7%. Clearly, the consumer market in Saudi Arabia has a lot to offer.
Saudi consumers are increasingly prioritizing convenience, personalization, and sustainability. A report by the Saudi Central Bank (SAMA) noted that 68% of urban households now allocate over 40% of their budget to non-essential goods, reflecting rising disposable incomes and appetite for premium experiences.
Another 2024 survey revealed that Saudi consumers exhibit a high propensity for adopting digital services, with significant engagement in online video consumption and smart home technologies, with platforms like Noon and Amazon.sa leading the charge. Meanwhile, mobile commerce trends in Saudi Arabia highlight that 74% of online purchases are made via smartphones This shift underscores the need for businesses to optimize mobile-first strategies.
Cultural changes are also evident. Younger demographics (under 35) now dominate spending, favoring brands that align with their values—such as sustainability or local heritage.
Key Market Trends Shaping Saudi Consumer Behavior
With our Saudi market analysis, we’ve identified these three general trends that shape the broad part of Saudi consumer behavior:
Economic Diversification:
Non-oil sectors contributed 50% to GDP in 2023, up from 35% in 2016. This growth fuels employment and disposable incomes, enabling higher spending on lifestyle and leisure.
Digital Transformation:
Reportedly over 90% of Saudis use social media daily, accelerating demand for seamless online experiences.
Vision 2030 Impact:
Mega-projects like NEOM and the Red Sea Development are fostering a culture of innovation, influencing consumer expectations for cutting-edge products and services. You can learn more about the complete impact of Vision 2030 on Saudi economy.
These trends converge to elevate demand for trending products in Saudi Arabia, including smart home devices, health-focused foods, and eco-friendly apparel.
E-Commerce & Digital Transformation in Saudi Arabia
The kingdom’s e-commerce market reached around 52 billion in sales by 2025, driven by government investments in logistics and digital payment systems. Saudi Arabia e-commerce growth is further supported by high internet penetration (99% in urban areas) and widespread adoption of “buy now, pay later” services like Tamara.
Retailers are now using digital tools to enhance customer engagement. For example, augmented reality (AR) tools for virtual try-ons are gaining traction in the beauty sector, with brands like Sephora KSA reporting a 25% increase in online conversions after implementing AR features.
Mobile commerce trends in Saudi Arabia emphasize speed and convenience. Apps offering one-hour delivery, such as Nana and Jahez, have seen user bases triple since 2021, catering to time-pressed urban consumers.
Consumer Confidence & Spending Habits
Saudi Arabia consumer confidence levels remains stable according to the latest reports. This confidence translates into diversified spending on:
- Luxury Goods: Demand for high-end fashion and electronics rose by 18%.
- Experiential Spending: Entertainment and tourism expenditures grew by 27% post-pandemic, fueled by events like Riyadh Season.
Vision 2030’s focus on quality of life initiatives, such as expanding cultural venues and recreational facilities, continues to increase the popularity of leisure and self-improvement in the general Saudi population.
Industry-Specific Consumer Insights
Fashion Industry Trends in Saudi Arabia
The Saudi fashion industry growth is marked by a blend of tradition and modernity. Modest fashion remains dominant, with local designers like Arwa Al Banawi gaining global recognition. Sustainability is also rising: 45% of shoppers prefer brands with eco-friendly practices. Luxury fashion and sustainable apparel brands have taken off in the Saudi market.
Retail Sector Dynamics
The Saudi retail market trends show a shift toward omnichannel experiences. Pop-up stores and AI-driven inventory systems are becoming common, with retailers like Centrepoint investing in IoT-enabled fitting rooms. Saudi retail technology adoption is projected to grow by 20% annually, driven by demand for seamless in-store and online integration.
Tourism and Hospitality Trends
Saudi tourism growth 2025 is fueled by Vision 2030 projects like the Red Sea Development and AlUla. Domestic tourism surged by 35% in 2023, with luxury resorts and heritage sites attracting both locals and international visitors.
Automotive Market Shifts
The Saudi automotive market trends reflect a move toward electric vehicles (EVs). Government incentives, including tax exemptions for EVs, contributed to a 40% increase in EV sales in 2023 (CEIC Data).
Real Estate Developments
Saudi real estate market 2025 is shaped by affordable housing initiatives and smart city projects. Demand for suburban villas rose by 22%, while commercial spaces in Riyadh’s King Abdullah Financial District saw a 15% occupancy increase.
Health and Wellness Boom
The health and wellness trends Saudi Arabia sector is thriving, with fitness app downloads increasing by 50% in 2023. Demand for organic products and mental health services is rising. Startups like Nalafood are capitalizing on plant-based diet trends, reporting 60% revenue growth last year.
Social & Cultural Influences on Consumer Behavior
Social media platforms like TikTok and Snapchat are critical in shaping trending products in Saudi Arabia. Influencer marketing now drives 30% of purchase decisions among Gen Z. For instance, viral campaigns for Saudi-made skincare brands like Layali Cosmetics have spurred a 50% increase in local beauty product sales.
Cultural pride also influences buying habits. Products celebrating Saudi heritage, such as traditional fragrances or handicrafts, are gaining popularity both domestically and internationally.
Future Predictions: Where is Saudi Consumer Behavior Headed?
In 2025, expect these developments:
- Hyper-Personalization: AI-driven recommendations will dominate retail, with tools like chatbots offering tailored shopping experiences.
- Sustainability as Standard: Consumers will demand transparency in supply chains, favoring brands with carbon-neutral pledges.
- Hybrid Retail Models: Brick-and-mortar stores will integrate digital features, such as in-store AR navigation, to bridge online and offline experiences.
Ongoing market research insights for Saudi Arabia will remain essential for adapting to these shifts. If you need market research services, contact amc insights for the best plans for Saudi market analysis.
Conclusion & Key Takeaways
Saudi Arabia’s consumer landscape in 2025 will be defined by digital fluency, cultural pride, and evolving priorities. Key drivers include:
- Vision 2030’s economic reforms, boosting disposable incomes and tech adoption.
- E-commerce expansion, with mobile-first strategies becoming non-negotiable.
- Demand for sustainability and personalization, reshaping retail and F&B sectors.
For investors, aligning strategies with these trends is critical. Partnering with local market research firms ensures access to real-time data and cultural nuance, helping you take informed and beneficial decisions for your business.
