Three Consumer Shifts Shaping MENA’s Demand Landscape in 2025

Three Consumer Shifts Shaping MENA’s Demand Landscape in 2025

Sandeep GanediwallaSandeep Ganediwalla

Consumer behaviour across MENA recalibrated in 2025, shaped by evolving expectations around convenience, engagement, and affordability. While headline consumption remained resilient, underlying decision drivers shifted in more structural ways. Three trends stand out for their implications on how demand is forming and how supply is responding.

Convenience has strengthened its role in everyday consumption

Convenience is no longer a differentiator; it has become a baseline expectation for consumers across sectors. In the UAE, speed has emerged as the #1 decision-making criterion for online grocery purchases, reflecting a wider regional trend across categories. Consumers now expect frictionless, immediate access to products, and purchase frequency has increased as a result.

The rise of multi-vertical platforms and super apps further underscores this shift: consumers increasingly seek one-stop solutions for multiple needs, from groceries to lifestyle services. Retailers are responding by expanding smaller-format, quick-access stores, ensuring proximity, speed, and ease of transaction.

The structural impact of this behavioural shift is evident in the rapid growth of the quick retail market in the UAE, which expanded by 50% over the past year. What was once a convenience premium has become a baseline expectation, driving both offline and online operators to innovate in last-mile fulfilment and accessibility.

AI is capturing a growing share of consumer digital time

Artificial Intelligence has transitioned from an experimental tool to an embedded part of daily life. While early adoption focused on general queries and question-answering, usage has now expanded significantly to include research assistance, content creation, and notably, product discovery and comparisons. In KSA, which serves as a representative view of the wider MENA market, 56% of consumers now use AI chat platforms, spending an average of 54 minutes per day on tools such as ChatGPT, Gemini, and Claude.

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The year 2025 also marked a pivotal inflection point for AI adoption. Earlier models had shown limitations in reasoning and context retention, constraining habitual use. This created strong demand for upgraded models, which were more reliable, capable, and user-friendly. The improved functionality accelerated both consumer and enterprise adoption, creating a virtuous cycle: increased usage drove upgrades, and upgrades reinforced habitual reliance.

This shift signals a fundamental change in digital behaviour – AI is moving from novelty or experimentation to infrastructure. Platforms and enterprises that integrate AI seamlessly into workflows and engagement touchpoints are now better positioned to capture and retain attention, making AI a core component of the digital ecosystem rather than a peripheral tool.

Value has re-emerged as a primary decision driver for MENA consumers

Affordability and value have historically been central to consumer choices. However, in recent years, other factors such as speed of fulfilment, trust in the brand, and product variety have temporarily overshadowed price considerations. Over the past 1–2 years, a resurgence in the importance of value has been observed across MENA markets.

While trust, service quality, and convenience continue to influence purchase decisions, consumers are now placing greater emphasis on the price–value equation. Across segments, they are more willing to switch retailers when pricing and value propositions improve.

Supply is responding across both offline and online channels, with retailers refining assortments, pricing, and service to meet this renewed demand. Operators that combine affordability with relevant offerings, operational discipline, and strong execution are best positioned to capture the next phase of value-led growth in the region.

Together, these shifts point to a more efficiency-driven consumer across MENA – one that values speed, relevance, and affordability in equal measure. For operators, winning demand in this environment will require sharper execution across convenience-led formats, deeper integration of AI into consumer journeys, and a disciplined approach to delivering both affordability and a compelling overall customer experience. These themes are likely to remain central as the region’s consumer economy continues to evolve into 2026.

Sandeep Ganediwalla

Written by

Sandeep Ganediwalla

Partner

Sandeep is the Partner with 20+ years of experience in consulting and technology. He has expertise in multiple sectors including ecommerce, technology, telecom and private equity.

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