The report examines the economic landscape of Kuwait and provides information on major monetary indicators, foreign trade and government finance. The economy contracted in real terms in 2024, dragged down by exports, government spending, investments. Furthermore, global economic slowdown, increasing geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

This report assesses the business environment in Kuwait, focusing on the regulatory environment, stability of the financial system, FDI intake, labour market flexibility and skillset, trade openness, mobility infrastructure, ICT adoption and innovative capabilities. Companies can evaluate these factors to understand the strengths and weaknesses of a country’s business environment for better strategic investment decisions.

Retail current value sales of snacks in Kuwait are projected to rise strongly in 2025, faster than in 2024 and the review period CAGR. Retail volume sales are also expected to rise healthily in 2025, in line with 2024 and the review period CAGR. Forecast faster retail current value than volume growth reflects still significant inflation and unit price growth.

The number of households is set to increase moderately, while the average household size will remain unchanged in Kuwait over 2024-2029. Couples with children will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by couples without children. In addition, the share of households living in urban areas is projected to remain unchanged by 2029.

In 2024, alcoholic drinks in Kuwait registered a moderate increase in total volume sales and a fast rise in total current value sales, supported by inflationary pressure on prices. Alcoholic drinks in Kuwait housed only two categories, non alcoholic beer and non alcoholic wine. Alcohol consumption and sales have been banned in Kuwait since 1964, including sales via international hotels. The consumption of alcohol has been a criminal offence since 1983, with potential punishment including fines

Insight into income, wealth and expenditure of consumers and households is vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Polarisation was a key feature of tobacco in Kuwait in 2024. There was higher popularity for premium brands in cigarettes and cigars and cigarillos among higher-income consumers, while inflationary pressures and rising prices led to trading down to standard and economy brands. Economic disparity remained stark in Kuwait, with the wealthiest residents living in luxury and low-income foreign workers surviving on as little as KWD80.00 per month.

Sales of beauty and personal care saw steady growth in current value and retail volume terms in 2024, similar to the performance seen in 2023. There was a pattern of value hacking when it came to beauty and personal care in Kuwait in 2024, with consumers focusing more on discounts and promotions rather than trading down to cheaper brands or cutting down their spending.

The population of Kuwait is predicted to increase by 19.4%, due to changes in net migration and natural change, standing at a total of 5.9 million citizens by 2040. Middle Youth (aged 30-44) will represent the largest portion of the population by 2040. The birth rate in Kuwait is anticipated to increase between 2024 and 2040. Generational cohorts in Kuwait will continue to influence consumer expenditure based on their specific purchasing habits and unique demands.

Tissue and hygiene in Kuwait continues to develop, supported by rising disposable incomes, increasing urbanisation rates, and growing awareness of hygiene and cleanliness. Consumers are prioritising convenience, premium-quality products, and sustainability, shaping the evolving landscape of the product area. In 2024, sales of tissue and hygiene products rose, driven by a combination of factors, including a declining birth rate, increased female workforce participation, a growing elderly populati

Kuwait is an affluent country largely populated by people with cultural and religious backgrounds that require them to adhere to strict hygiene practices, thus presenting significant opportunities for home care brands. In line with this, home care saw steady growth in 2024 backed by rising incomes, population growth, urbanisation and increasing investment in the market. A large number of new and innovative products have also entered the market adding further fuel to the growth of home care.

Economic freedom in Kuwait has improved, but the executive branch of government is extending its power base and state finances have deteriorated. Diversification of the economy remains elusive, which is experiencing recession, but inflation has fallen meaningfully. A wealthy and expanding populace will support the consumer market, as will urbanisation, but inequality is widening. Connectivity is solid and foreign investment will drive innovation, but the fixed line network is contracting.

Hot drinks in Kuwait has seen notable developments in 2024, driven by evolving consumer preferences and distribution dynamics. Premiumisation trends have gained traction, with affluent consumers favouring specialty teas and artisanal coffee blends, reflecting growing health and wellness awareness. The dominance of government-controlled co-ops, which influence pricing strategies, remains pivotal in retail distribution. Additionally, international brands have expanded their presence through online

Hot drinks in Kuwait have experienced notable growth in 2024, driven by increased out-of-home dining and consumer health consciousness. Rising demand for regional coffee brands has reflected a shift towards localised preferences, while Kuwait's high per capita income has bolstered spending on premium options. Distribution has benefited from robust logistics and the expansion of online grocery retailing. Government co-ops have moderated price increases despite rising import costs, sustaining affo

Retail volume sales of staple foods are set to grow in Kuwait in 2024, with demand supported by the essential nature of such products. Bread is the main staple, with rice also highly popular. Health and wellness continues to exert a growing influence on purchasing decisions, with consumers moving towards healthier variants offering nutritional benefits across categories. Demand for staple foods has also been boosted by the easing of inflationary pressures in 2024.

This report covers the retail sector in frontier markets in the Middle East and North Africa. Euromonitor International’s definition of the region includes the following countries

In 2024 cooking ingredients and meals sales witnessed positive growth as, despite economic challenges, including global inflation and restrictions on expat entries, modern retail channels continued expanding. Growing concern over high obesity rates is stimulating some consumers into adopting healthier eating habits, including eating less overall. However, healthier cooking ingredients and meals tend to have higher prices, meaning such products are only popular among more affluent consumers.

Harsh environmental conditions including excessive heat, pollution and dust are contributing to the growth of OTC consumer health in Kuwait, in particular analgesics and cough, cold and allergy (hay fever) remedies. Consumer health is seeing steady growth in 2024, backed by more stable inflation rates in the country. The high disposable income in Kuwait is also a key factor behind the strength of consumer health in Kuwait. Additionally, the ageing population is another key growth driver.

In 2024, demand for baby food is set to continue to be negatively impacted by government regulations halting the entry of immigrants. This has led to an increase in male workers arriving without the ability to bring their families, which means there is less demand for baby food in the country overall. Nonetheless, there are positive factors that continue to support demand, including the rising awareness amongst parents of the importance of healthy nutrition for their children. Another driver of

The commodities country overview provides comprehensive data on production, consumption and price trends on key commodities markets. The commodities overview in Kuwait covers production and consumption trends in agricultural commodities, energy products, electricity, metal products as well as an overview of key economic and business environment trends.

The global energy crisis has had far-reaching implications for consumers, businesses and entire economies, highlighting the importance of the global energy transition and boosting energy efficiency, while creating opportunities for innovation and investments in renewables and green technologies. Timely and effective business strategy adjustments and contingency plans are key to cope with energy price fluctuations and cost pressures, and to address the changing consumer behaviour.