Shoppers across the Middle East are scaling back on non-essential spending and reprioritising grocery purchases, as inflation and global trade tensions continue to pressure household budgets, according to Blue Yonder’s 2025 Global Consumer Sentiment on Grocery Inflation Survey.
The report, which surveyed more than 6,000 consumers globally, including across the Middle East, found that 82 percent of respondents in the region are concerned about inflated grocery prices, prompting visible shifts in consumption patterns across both essential and discretionary categories.
Tariffs cited as main cause of rising grocery costs
Half of Middle East consumers surveyed believe newly introduced global tariffs are the leading driver of grocery inflation. This perception is consistent with responses from the US (65 percent) and the UK (56 percent), where tariffs also ranked as the top contributor to price increases. Other factors include the rising cost of raw materials (42 percent globally), increased labor costs in manufacturing and food processing (39 percent), and higher profit margins for brands and manufacturers (33 percent).
“In the Middle East, as in many parts of the world, consumers are directly linking rising prices to macroeconomic pressures like tariffs and supply chain disruptions,” said Ben Wynkoop, Senior Director, Global Industry Strategist for Grocery & Convenience at Blue Yonder. “Retailers must now navigate both cost challenges and changing consumer expectations.”
Discretionary spending takes a hit
To manage higher grocery expenses, consumers in the region are cutting back on non-essential spending. According to the survey:
- 47 percent of Middle Eastern respondents are most likely to reduce spending on clothing and footwear
- 40 percent said they would scale back on streaming and gaming subscriptions
These were also among the top global categories impacted, with more than half (56 percent) of respondents globally willing to reduce spending on apparel, followed by electronics (46 percent), subscriptions (43 percent), and personal care (36 percent).
Discount shopping, promotions, and private labels
Globally, 65 percent of respondents said they are buying fewer grocery items to cope with inflation. In addition:
- 42 percent are shopping more frequently at discount or wholesale stores
- 36 percent are increasingly drawn to promotions and discounts
- 34 percent are switching to private label products
These shifts reflect a wider behavioural trend where consumers are seeking greater value and affordability in day-to-day purchases. In the Middle East, this trend is playing out in similar ways, with retailers observing rising demand for value-driven grocery options and loyalty programs tied to pricing incentives.
“Retailers in the region must double down on pricing transparency, targeted promotions, and supply chain efficiency,” Wynkoop added. “There’s also a growing opportunity to invest in private-label strategies and AI-driven forecasting to better match demand with availability.”
Retailers under pressure to adapt
The report suggests that advanced technologies — including AI and machine learning — can play a critical role in helping retailers manage inflationary pressures by optimising inventory, pricing, and sourcing decisions across the supply chain.
“Whether in times of prosperity or difficulty, having agile, tech-enabled supply chains is what will set competitive retailers apart,” said Wynkoop.
