TN Media News Riyadh, KSA: A new global report by NielsenIQ (NIQ) reveals a significant shift in Saudi consumer behavior, with approximately 62% of shoppers in the Kingdom increasingly purchasing private label products. The report, titled “Finding Harmony on the Shelf: 2025 Global Outlook on Private Label & Branded Products,” outlines evolving consumer preferences and offers strategic insights for retailers and manufacturers.
Private labels in Saudi Arabia are benefiting from a growing perception of quality and value. According to the findings, 71% of Saudi consumers see private labels as good alternatives to name brands, and an equal percentage say they would buy more if greater variety were available.
Despite the increased interest, private labels still hold a modest 3.5% market share in the Kingdom, although they are growing slightly faster than the FMCG market overall (3.1% vs. 2.6%).
Meanwhile, global brands have also shown a resurgence, with top names seeing improved sales momentum in 2024. Notably, 66% of Saudi consumers are still inclined to “treat themselves” by purchasing premium-branded products, particularly among Millennials and Gen Z.
The report also highlights growing openness among Saudi consumers, with 67% exploring a wider range of brands and 58% choosing products based on necessity rather than brand recognition.
NIQ recommends collaborative strategies between retailers and manufacturers to leverage these dual trends. Private labels can benefit from the “brand halo” effect when placed near name brands, while trust in retailer-endorsed products continues to drive sales for both categories.
With changing perceptions and increasing consumer openness, the Saudi market presents growth opportunities for both private label and branded products—provided stakeholders align their strategies for mutual success.
