Gen Z has been seen as a global proponent of the consumer of tomorrow but nowhere does this sentiment ring as true as in the Middle East. While previously known as a brand-orientated luxury consumer, younger audiences bring additional nuance to the conversation.
Under-30-year-olds make up 55% of the MENA population. By comparison, this figure is 36% for the Organization for Economic Cooperation and Development (OECD) countries. Sixty-three percent of the Saudi Arabian population is under the age of 30. However, in other regions, this figure varies: Kuwait’s under 30s are 38%, for example. As always, making room for regional interpretation, rather than a one-size-fits-all approach when researching the Middle East, remains crucial.
While luxury brands still perform well, a legacy name is not enough to entice this generation. Instead, they are looking for more niche brands that hold modern views in terms of social values and sustainability—at least if the evolution of the region’s fashion landscape is any indication. Finding that unique item, rather than an overexposed label, is more important to these individuals who are more desiring to express individual taste than following mass waves.
Beauty companies are eager to tap into this younger consumer generation. K-beauty retailer Olive Young launched into the UAE with its in-house color cosmet- ics brand Wakemake in March 2023, specifically due to the region’s under-30s population. In terms of the values they are looking for in consumer brands; a solely pretty face is no longer sufficient. A PwC Consumer Insights survey found that in the region, 71% of respondents bought items with eco-friendly packaging, and 74% checked for sustainability certification on product labels. Seventy-five percent of MENA consumers would buy from eco-conscious brands.
On the subject of Gen Z’s purchasing habits, they are more interconnected than ever thanks to social media. Zoha Zoya, Head of Experience Design at R/ GA London, explains that in the UAE and Saudi Arabia, 90% of purchases are influenced by online content. According to Lucidity Insights, in Saudi Arabia, 82% of surveyed participants across all generations were social media users while the smartphone penetration rate was 97%. The e-commerce sector in the Middle East is projected to reach $50 billion by 2025.
Middle Eastern Gen Z and Alpha are inspiring the global conversation on fragrance with the hashtags #ArabianPerfume and #LayeringPerfume sweeping TikTok. For this generation, perfumes must encapsulate their dreams, and storytelling is paramount. Informed by an approach to the category where tradition intertwines with modernity, they are steering trends toward fresh creative expressions.
That tech-savviness also extends to how brands can reach this audience. Metaverse and gaming activations are ripe opportunities. According to research done by the Chalhoub Group, 67% of the Saudi Arabia population (23.5 million individuals) are gamers. As of October 2022, there has been a total of $553 million in funding in companies of the GCC region. Crypto transactions in Saudi Arabia have seen 195% year-over-year growth, and the metaverse is expected to increase Dubai’s GDP by $4 billion in the next five years. An amount of $15 billion could be added to the GCC economies by 2030.
Many young people are striving to build their own businesses to be a part of the wave of change for the future. A HSBC Private Bank report across 2,800 business owners states that 63% of entrepreneurs in the Middle East are age 35 or under, the highest ratio any- where, and the average age was 26.
Speaking to this audience requires a digital-native, multifaceted approach; one adapted to the nuances of the region rather than tapping into outdated or too simplistic narratives. However, given the large wave of influential individuals prospering in the region (now and for the future), it is worth it to grab their attention.
