Consumers in the Middle East are empowered by technology and making informed choices

• 20% of consumers regionally and 15% globally are willing to pay 11- 20% above average for products that have a lower carbon footprint or by a company with ethical practices

• Prior to purchase, more than 60% of regional and 50% of global consumers research products online, looking for product reviews and competitive prices

• More than 50% of regional and global consumers use subscriptions for convenience

03 October 2023 – PwC’s latest Middle East Pulse report, part of its Global Consumer Insights Survey, highlights that consumers in the Middle East are more aware and better-informed buyers who are empowered by the latest technology and seek out information before making a final decision on a purchase.

With higher awareness levels, the survey reveals an uptake in the use of specialised price comparison platforms to complement relying on search engines, social media, and word-of-mouth as consumers show more price-conscious attitudes. A salient attribute of regional consumers is shown to be sustainability, which remains a top priority. Moreover, a generally younger and tech-savvy population in the Middle East is more likely than consumers globally to use emerging technologies during their purchase journeys.

The most prevalent consumer behaviours that are highlighted during the survey are as follows:

Consumers rely on research and technology as they finalise their purchase decisions: Consumers are revealed as price-conscious individuals who typically use their smartphones or connected devices to compare prices online and in-store.

In-store shopping preferred and self checkouts are gaining a foothold, despite the rise in online buying: More than 50% of regional consumers prefer using self-checkout in a physical store because it is faster, has a more responsive touch screen and has a greater variety of payment options. Also, 42% of regional consumers use it as it enables them to purchase products directly from the shelves without the need to wait in long queues.

Brand websites are trusted: Consumers, particularly millennials and GenZs, prefer to visit a brand’s website for more product information so they can make an informed decision.The website experience was key to 68% of survey participants, who directly purchased products from the brand’s website vs 63% of their global peers.

Willingness to pay more for sustainable and local produce: More than 20% of regional consumers would be willing to pay 11-20% above the average price for a product produced locally. 20% regionally and 15% globally are willing to pay the same percentage for products that have a lower carbon footprint or by a company with ethical practices such as supporting human rights or avoiding animal testing.

Hands on the latest tech products: 67% of consumers in the Middle East would like to be the first to buy cutting-edge technology as soon as it is available and to try out the latest technology before most people - a trend is significantly higher than 48% of the global respondents. Consumers are also showing greater interest in chatbots (57% vs 44% globally) keen to use them for product information. More than 40% are interested in other chatbot functions like retailer customer service, product alerts, updates, and customised offers.

Strong preference for subscriptions: 32% of regional consumers subscribe to household grocery delivery services like fruit and vegetable boxes and meal kits. Cosmetics, wellbeing supplements, tea, coffee, cleaning supplies, grooming products, clothing services and online fitness apps are products that more than 20% of regional consumers currently buy using subscription services.

Norma Taki, PwC Middle East’s Consumer Markets Leader, said: “Consumer behaviour in the Middle East continues to evolve into a more informed, tech savvy group of shoppers, which signifies empowerment by digital transformation and a dynamic shopping landscape. It is important for retailers to accept these changes and reflect them in their strategies, products, and the overall shopping experience.”