Report Overview

Kuwait Retail Market - Industry Trends & Forecast Report, 2029

Kuwait retail market size was estimated at USD 139.2 billion in 2022. During the forecast period between 2023 and 2029, the size of Kuwait retail market is projected to grow at a CAGR of 5.9% reaching a value of USD 208.62 billion by 2029. Major growth drivers for the Kuwait retail market include increasing purchasing capacity fueled by strategic infrastructural projects, a growing retail landscape, and a rising trading and oil sector. The retail domain in Kuwait has witnessed remarkable growth, due to the proliferation of modern shopping centers. The economy's resurgence, along with enhanced consumer buying power, affluent middle-class households, and convenient accessibility, have been instrumental in fostering the country's retail sector. Notably, around 45% of Kuwait's population falls within the 20 to 39 age category, a demographic segment that exhibits a keen preference for retail expenditures within malls and a penchant for international brand acquisitions. Also, Kuwait boasts an increasing internet penetration rate of 98% as of 2017, contributing significantly to the rapid expansion of the e-commerce sector, as both locals and expatriates increasingly engage in online shopping.

Kuwait Retail Market – Overview

Kuwait retail market refers to the economic sector encompassing the buying and selling of goods and services to end consumers within the country of Kuwait. This market involves various activities such as operating retail stores, shopping malls, e-commerce platforms, and other retail-related establishments. It is characterized by the exchange of products between retailers and consumers, driven by factors such as consumer preferences, purchasing power, economic trends, and demographic influences. The Kuwait Retail Market plays a vital role in the nation's economy, contributing to employment, revenue generation, and overall economic growth.

Kuwait Retail Market

Growth Drivers

Growing Population and Urbanization

Kuwait stands as one of the world's most affluent nations. The dynamic interplay of factors such as rapid urbanization, the influx of expatriate professionals, and a burgeoning population of young, prosperous individuals constitutes the driving forces propelling Kuwait's vibrant retail sector. The landscape of e-commerce and online shopping in Kuwait is on a growth trajectory, further fueled by the significant portion of the population below the age of 25. The pervasive presence of social media and robust internet penetration rates in the GCC region contribute to this trend. The expanding population remains a pivotal catalyst for Kuwait's retail market, particularly due to the substantial presence of young, working-class individuals. This demographic shift has reshaped consumer preferences, leading to an increased demand for international and Western products. The retail industry, recognized as one of Kuwait's swiftest-growing domains, has flourished in recent years. This growth can be attributed to escalating purchasing power, a burgeoning expatriate community, and evolving lifestyle patterns, collectively contributing to a thriving retail landscape.

Restraints

Escalating Market Competition

The Kuwait retail sector encounters persistent challenges stemming from government regulations, import delays, and limited commercial and warehousing space. Opening new stores, especially hypermarkets, is costly and scarce due to stringent zoning laws, adversely affecting smaller firms' market expansion. Kuwait's stringent policies targeting expatriate population reduction, from 70% in 2018 to 34% by 2025, contribute to layoffs and contract cancellations. While arrivals grew, it was linked to infrastructure projects and blue-collar worker recruitment. These dynamics reflect the intensifying competition in Kuwait's retail landscape, underscored by hurdles faced by businesses seeking growth amidst regulatory, spatial, and demographic shifts.

Impact of COVID-19 on Kuwait Retail Market

COVID-19 pandemic adversely affected the Kuwait retail market. Lockdowns, restrictions, and reduced consumer confidence led to a decline in foot traffic and sales. Physical store closures forced retailers to pivot towards e-commerce and digital strategies. The government's measures to curb the virus affected supply chains, causing product shortages and import delays. Despite challenges, the crisis accelerated the adoption of online shopping, leading to a digital transformation in the retail sector. As the pandemic waned, consumer behavior shifted, demanding safer shopping experiences. Overall, COVID-19 acted as a catalyst for change, reshaping Kuwait's retail landscape and prompting businesses to adapt to new realities.

Kuwait Retail Market

Segmental Coverage

Kuwait Retail Market – By Product

By product, the Kuwait retail market is divided into Food & Beverages and Tobacco Products; Personal & Household Care; Apparel, Footwear, and Accessories; Furniture, Toys, and Hobby; Industrial & Automotive; Electronic & Household Appliances; Pharmaceuticals, Luxury Goods, and Other Products segments. The food & beverages and tobacco products segment holds the highest share in the Kuwait retail market by product. It can be attributed to their essential nature and consistent demand. These products cater to daily needs, ensuring their continuous consumption regardless of economic conditions. Kuwait's consumer preferences prioritize sustenance and comfort, contributing to the segment's dominance. Additionally, the prevalence of these products in both traditional and modern retail channels further solidifies their market share. Cultural norms and habits also play a role, as food and tobacco are integral parts of Kuwaiti society. Consequently, this segment maintains a strong foothold, shaping the overall dynamics of the retail market.

Kuwait Retail Market – By Distribution Channel

Based on distribution channel, the Kuwait retail market is divided into Store-based, Direct Selling, and E-commerce segments. The e-commerce segment is expected to witness the fastest growth rate during the forecast period by distribution channel. The expanding landscape of e-commerce distribution channels in Kuwait is attracting new participants to the market. Retail enterprises in Kuwait are strategically enhancing economies of scale, operational efficiency, and revenue diversification by capitalizing on e-commerce avenues. The evolution of sophisticated online platforms has rendered online shopping remarkably convenient, complemented by enticing deals. The substantial smartphone penetration rate in the country significantly contributes to Kuwait's e-commerce surge, facilitated by advanced mobile networks provided by local operators, positioning Kuwait among the forefront of Middle Eastern digital connectivity.

Competitive Landscape

Major players operating in the Kuwait retail market include The Sultan Center, Morad Yousuf Behbehani Group, Alshaya Group, Abdul Aziz S. AL-Babtain & Sons Co, Gulf Franchising Company, Future Communication Company Global, Villa Moda, Musaed Bader Al Sayer Group, YIACO Medical Company, and SAFWAN's Pharma. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2023  - Apparel Group, a fashion and lifestyle company, expanded its Middle East presence by opening 12 new stores in Kuwait's Al Khiran Mall. These outlets featured well-known brands such as Birkenstock, Levi’s, Steve Madden, and more. This strategic expansion aimed to adapt to evolving retail trends and enhance the local shopping experience. The move showcased Apparel Group's commitment to innovation in the Middle East's retail sector. With a network of 2,025 retail stores across various continents, the company solidified its industry position while prioritizing customer satisfaction.

Scope of the Report

By Product

• Food & Beverages and Tobacco Products

• Personal & Household Care

• Apparel, Footwear, and Accessories

• Furniture, Toys, and Hobby

• Industrial & Automotive

• Electronic & Household Appliances

• Pharmaceuticals, Luxury Goods, and Other Products

By Distribution Channel

• Store-based

• Department Stores

• Direct Selling

• E-commerce

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Kuwait Retail Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing population and urbanization
         2. New store openings and acquisitions
      2. Restraints
         1. Increasing competition
         2. Costs of advanced technologies
      3. Opportunities
         1. E-commerce expansion
         2. Market segment diversification
      4. Challenges
         1. Cost management
         2. Consumer trends and preferences
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4.  Kuwait Retail Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share and Forecast
      1. By Product
         1. Food & Beverages and Tobacco Products
         2. Personal & Household Care
         3. Apparel, Footwear, and Accessories
         4. Furniture, Toys, and Hobby
         5. Industrial & Automotive
         6. Electronic & Household Appliances
         7. Pharmaceuticals, Luxury Goods, and Other Products
      2. By Distribution Channel
         1. Store-based
            1. Hypermarkets and Supermarkets
            2. Department Stores
         2. Direct Selling
         3. E-commerce
         4. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Kuwait Retail Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Kuwait Retail Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. The Sultan Center
   2. Morad Yousuf Behbehani Group
   3. Alshaya Group
   4. Abdul Aziz S. AL-Babtain & Sons Co
   5. Gulf Franchsing Company
   6. Future Communication Company Global
   7. Villa Moda
   8. Musaed Bader Al Sayer Group
   9. YIACO Medical Company
   10. SAFWAN's Pharma
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.    Qualitative Research
      1.  Primary & Secondary Research
   2.    Quantitative Research
   3.    Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.    Breakdown of Primary Research Respondents, By Region
   5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Kuwait Retail Segmentation

Figure 2       Kuwait Retail Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Kuwait Retail Market Size, By Value (USD Billion), 2019–2029

Figure 5       Kuwait Retail Market Share, By Product, By Value, 2019–2029

Figure 6       Kuwait Retail Market Share, By Distribution Channel, By Value, 2019–2029

Tables

Table 1        Kuwait Retail Market Size, By Value (USD Billion), 2019–2029

Table 2         Kuwait Retail Market Share, By Product, By Value, 2019–2029

Table 3         Kuwait Retail Market Share, By Distribution Channel, By Value, 2019–2029

Table 4         The Sultan Center Company Overview

Table 5         The Sultan Center Financial Overview

Table 6         Morad Yousuf Behbehani Group Company Overview

Table 7         Morad Yousuf Behbehani Group Financial Overview

Table 8         Alshaya Group Company Overview

Table 9         Alshaya Group Financial Overview

Table 10      Abdul Aziz S. AL-Babtain & Sons Co Company Overview

Table 11      Abdul Aziz S. AL-Babtain & Sons Co Financial Overview

Table 12      Gulf Franchsing Company Overview

Table 13      Gulf Franchsing Company Financial Overview

Table 14      Future Communication Company Global Company Overview

Table 15      Future Communication Company Global Financial Overview

Table 16      Villa Moda Company Overview

Table 17      Villa Moda Financial Overview

Table 18      Musaed Bader Al Sayer Group Company Overview

Table 19      Musaed Bader Al Sayer Group Financial Overview

Table 20      YIACO Medical Company Overview

Table 21      YIACO Medical Company Financial Overview

Table 22      SAFWAN's Pharma Company Overview

Table 23      SAFWAN's Pharma Financial Overview