Kuwait retail market projected to hit $27 billion by 2031 amid digital shift
A recent study by Mordor Intelligence projects steady growth in Kuwait’s retail sector, with the market expected to expand from $22.56 billion in 2025 to $23.26 billion in 2026, reaching approximately $27.1 billion by 2031.
The report forecasts a compound annual growth rate of 3.1 percent between 2026 and 2031, reflecting gradual but sustained expansion driven by evolving consumer trends and ongoing economic development.
According to the study, consumer behavior in Kuwait is increasingly shifting toward a hybrid model that combines traditional in-store shopping with digital purchasing.
This transformation is being fueled by the growth of e-commerce platforms and the widespread adoption of instant payment systems, which are reshaping shopping patterns and boosting digital transaction rates.
The study also highlighted the significant role of expatriate workers, who make up the majority of the workforce in Kuwait.
Their consumption patterns continue to drive demand across key retail segments, including food, clothing, electronics, and household goods, while also contributing to the expansion of transactions across modern retail channels.
In addition, large-scale infrastructure projects and development initiatives linked to Kuwait Vision 2035 are expected to play a key role in expanding the consumer base, particularly in newly developed residential areas, thereby increasing demand for retail goods and services.
Sector-wise, the food, beverage, and tobacco segment is projected to dominate the retail market, accounting for 46.19 percent of total market share in 2025.
Meanwhile, sectors such as pharmaceuticals and luxury goods are anticipated to record the fastest growth, with an annual rate of approximately 5.04 percent through 2031.
The findings underscore the resilience and adaptability of Kuwait’s retail sector, positioning it for continued growth amid digital transformation and demographic dynamics.
