Consumer Profile – Kuwait

Key demographic indicators

Kuwait recorded a population of 4.4 million in 2022, the population is expected to increase every year from then on to a population of 5.1 million in 2040. The economy of Kuwait is a wealthy petroleum-based economy (World Bank 2022). As a result of various diversification policies, petroleum now accounts for 43% of the total GDP and 70% of export earnings (Santander/Trade Markets)

GDP per Capita in Kuwait is expected to reach US$33,000 by the end of 2022, according to Trading Economics global macro models and analysts expectations.

The 85 to 89 age group is recording the fastest growth (compound annual growth rate (CAGR) 11.9% from 2015 to 2040) among all age groups in Kuwait and will represent 0.8% of the total population from in 2040. The 40 to 44 age group records a lowest growth (−2.9% from 2015 to 2040). Population growth in 2020 to 2040 will be driven by the 55 to 59 group at a CAGR of 4.9%, 60 to 64 group at a CAGR of 7.4%, 65 to 69 group at a CAGR of 9.9%, 70 to 74 group at a CAGR of 11.2%, 75 to 79 group at same CAGR of 11.2%, 80 to 84 group at CAGR of 11.6%, 85 to 89 group at a CAGR of 11.9% and 90+ age group at CAGR of 10.6% from 2015 to 2040.

Despite population decline in middle age and younger: 45 to 49 at a CAGR of −2.6%, 40 to 44 at a CAGR of −2.9%, 35 to 39 at a CAGR of −2.2% and 30 to 34 at a CAGR of −1.0% from 2015 to 2040, Kuwait is expected to become a more attractive consumer market, as a result of income increases.

Kuwait's vital statistics

In Kuwait, the fertility rate was 2.1 children per female in 2020, same as the replacement rate of 2.1. It will continue to fluctuate around 1.9 children per female up to 2040. Women giving birth to children later in life, from age 29.3 in 2020, and is forecast to remain the same at age 29.3 in 2040. Infant death declines from 456.0 in 2015 to 173.0 in 2040. Birth rate per '000 population also decreased from 15.5 per '000 population in 2015 to 11.2 per '000 population in 2040. Live birth decreased too from 59.3 thousand in 2015 to 57.2 thousand in 2040. However both death rates per '000 population and deaths (000) increased from 2015 to 2040.

Household structure in Kuwait

The average Kuwait household in 2021 is home to 5 people. The biggest households contain 1 children, followed by 2 children households and 4 children households.

Number of households by type

The primary household type was couples with children, with a CAGR growth of 2.1% from 2016 to 2021, reaching 259,400 in 2021. Single person, couples without children and single-parent family are the three fast growing house types, 4.0%, 3.2% and 2.2% CAGR respectively from 2016-2021.

Population by religion

In 2020, 59.2% of the population believed in Islam: Sunni,14.8% of the population believed in Islam: Shi'a, 10.6% of the population believed in Christianity and 15.4% of the population believed in other religion. Compared with 2015, 82.6% of the population believed in Islam: Sunni while only 3.2% of the population believed in other religions. By 2025, people who believe in Islam: Sunni will decline to 42.3% while people who believe in other religions will increase to 28.6%.

Population by citizenship

In 2020, 30.6% of the population were Kuwait citizens while 69.4% of the population were non-Kuwait citizens. Kuwait citizens will have a slightly decrease at a CAGR of −0.2% and non-Kuwait citizens will have a slightly increase at a CAGR of 0.1% from 2015 to 2040.

Population by language

In 2020, 89.0% of the population spoke Arabic while 11.0% of the population spoke other languages. People who speaks Arabic will have a slightly decrease at a CAGR of −0.1% and people who speak other language will have a slightly increase at a CAGR of 0.6% from 2015 to 2040.

Business environment and dynamics

Age 40 to 44 is the group that earned the most, US$24,753.2 in 2021 while age 15 to 19 was the group that earned the least, US$10,651.3. Age 60 to 64 still worked and earned more than age 20 to 24 group. All the age group earnings declined at a CAGR of −3.4% between 2016 and 2021 and is expected to grow at a CAGR of 3.0% between 2021 and 2026.

It is interesting to note that starting from the smallest disposable income at US$500 to the biggest disposable income US$300,000, the CAGR growth steadily decreased from 2.6% to −6.9% between 2016 and 2021.

However, between 2021 and 2026, starting from the smallest disposable income at US$500 to the biggest disposable income US$300,000, the CAGR growth gradually increased from 0.9% to 13.6%.

Food and beverage preferences and expenditures

In 2021, Kuwait's total consumer expenditure on food and non-alcoholic was US$6.7 billion, of which US$6.1 billion was spent on food. Expenditure on meat was the largest category, with expenditure of US$1.9 billion in 2021, followed by bread and cereals at US$940.6 million in 2021 and vegetables at US$843.3 million in 2021.

Consumer expenditure is expected to grow by a CAGR of 4.3% from 2021 to 2026. Bread and cereal, meat, fish and seafood, all three are forecast to grow the fastest at a CAGR of same 4.5%, reaching US$1.2 billion, US$2.4 billion and US$1.0 billion respectively between 2021 and 2026. All subcategories are expected to grow steadily at a CAGR of above 3.0% to 4.4% between 2021 and 2026.

Per capita consumer expenditure on food decline at a CAGR of −3.5% from 2016-2021. All subcategories decreased at CAGR from −2.9% to −6.0% from 2016 to 2021.

From 2021-2026, growth in per capita expenditure on food is expected to rise to a CAGR of 3.5%, with all subcategories seeing similar positive growth rates, along with alcoholic and non-alcoholic beverages.

In 2021, total consumer expenditure per capita was US$1,535.5, out of which US$1,411.5 was spent on food, US$0.5 was spent on alcoholic drinks, and US$124.0 on non-alcoholic beverage. "There's no alcohol available in Kuwait, that means even hotels and restaurants don't serve alcohol. The act of drinking alcohol privately is not illegal in itself, but buying and/or selling, bringing alcohol to a public place or being intoxicated in public areas, including a car as a passenger, are all serious crimes." (TFC)

Consumer trends and opportunities

Increased interest in health and wellness

The pandemic has significantly increased consumer interest in health and wellbeing, and consumers are becoming more likely to choose foods perceived as having health benefits.

Naturally healthy foods is currently the largest category of Kuwait health and wellness food, It grew at CAGR of 3.7% between 2016 and 2021, reaching US$341.0 million. It is also expected to be growing at a CAGR of 4.9% from 2021-2026, reaching US$432.3 million in 2026.

Fortified/Functional (FF) products were valued at US$312.8 million in 2021, growing at 4.1% between 2016 and 2021 and are expected to reach US$375.1 million by 2026. Sales of better for you products grew at a CAGR of 4.2% between 2016 and 2021, reaching US$174.2 million in 2021 and is expected to grow at a CAGR of 4.5% from 2021 to 2026, reaching US$216.6 million in 2026.

Organic products had the fastest growth at a CAGR of 46.9% between 2016 and 2021, reaching US$38.3 million in 2021 from US$5.6 million in 2016. It is expected to grow at a CAGR of 10.1% between 2021 and 2026, reaching US$61.9 million in 2026.

For more information

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For additional information on Gulfood 2023, please contact:

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Resources

• Euromonitor, 2022
• Santander/Trade Markets 2022
• TFC: Gulf Law 2022
• Trading Economics 2022
• United Nation Data, 2022
• World Bank 2022

Consumer Profile – Kuwait
Global Analysis Report

Prepared by: Hongli Wang, Market Analyst

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2023).

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