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Report
Kuwait Retail - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)
Market Report I 2026-01-16 I 130 Pages I Mordor Intelligence
Kuwait Retail Market Analysis
The Kuwait retail market is expected to grow from USD 22.56 billion in 2025 to USD 23.26 billion in 2026 and is forecast to reach USD 27.1 billion by 2031 at 3.1% CAGR over 2026-2031. The current Kuwait retail market size reflects the country's robust GDP per capita of USD 52,823 and a resident base in which expatriates account for 70% of 5 million people, a mix that sustains diversified consumer demand. Growth is anchored by steady oil-backed fiscal capacity, a fast-rising cohort of digitally fluent youth, and ongoing investments in retail real estate that keep modern formats relevant. Store-based outlets still dominate foot traffic, yet rapid e-commerce adoption signals accelerating channel convergence. Meanwhile, large incumbents leverage scale to shield margins from import-driven cost swings and to fund technology upgrades that sharpen customer experience and supply-chain agility.
Kuwait Retail Market Trends and Insights
Rising Disposable Incomes and Young Population Mix
High earning power and a youthful demographic reinforce steady expansion in the Kuwait retail market. Expatriates bring diverse consumption habits that spur demand for premium global labels, illustrated by Trafalgar Group's 2024 restructuring to deepen luxury brand coverage. Digital-native buyers further accelerate card and wallet uptake, while a GDP per capita above USD 52 thousand sustains spending even amid macro volatility.
Surge in E-commerce and Omni-Channel Ecosystems
Online shopping frequency has climbed 140% since 2020, steering retailers toward integrated fulfillment. Cash-on-delivery now accounts for only 20% of digital orders, freeing working capital. Lulu Retail's digital success demonstrates this shift, with over 300,000 daily visitors to its website and app, offering approximately 104,000 SKUs online while maintaining seamless integration with physical stores. Alshaya's TAMANNA offers next-day delivery and click-and-collect, proving that digital convenience is reshaping the Kuwait retail market.
Heavy Reliance on Imports and Supply-Chain Cost Volatility
More than 75% of stock-keeping units are sourced offshore, leaving retailers exposed to exchange swings and shipping delays. Complex GCC tariff structures add administrative overhead, and congestion at Shuwaikh Port inflates last-mile costs. The pharmaceutical sector exemplifies this challenge, with over three-fourths of medicines imported despite government efforts to encourage local production, creating pricing pressures and supply security concerns. Foreign exchange rate volatility particularly impacts retailers' working capital requirements, as duties are payable in Kuwaiti Dinars.
Other drivers and restraints analyzed in the detailed report include:
Growing Expatriate Workforce Boosting ConsumptionPending Mortgage Law Expected to Unlock Consumer CreditSaturation of Prime Mall Space and Rising Rents
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
Food, Beverage, and Tobacco accounted for 45.76% of the Kuwait retail market in 2025, anchored by daily necessities and the popularity of one-stop hypermarkets. Lulu's eight hypermarkets average 9,200 square meters and serve more than 600 thousand shoppers per day, validating the segment's scale advantage. Across 2026-2031, this category should expand steadily as the population rises and tourism rebounds. Meanwhile, Pharmaceuticals, Luxury Goods, and Others record the fastest 4.86% CAGR, powered by an aging expatriate cohort and surging appetite for prestige labels. The luxury share of the Kuwait retail market has widened as high-income consumers seek experiential retail and limited-edition collections. Trafalgar Group's portfolio of Chopard and Bvlgari exemplifies this premiumization trend. Personal and Household Care also benefits from higher hygiene awareness and the availability of international brands. Electronics and Home Appliances growth aligns with new housing projects and smart-home uptake, while Industrial and Automotive retail rides infrastructure spending, albeit at a slower clip.
Continuous innovation inside physical stores, ranging from in-aisle digital screens to scan-and-go checkout, keeps brick-and-mortar relevant. Retailers layer loyalty apps atop these upgrades to capture data that guides assortment optimization. By 2031, food retail is expected to remain dominant, yet luxury and healthcare niches will account for a rising slice of the Kuwait retail market size as disposable incomes grow.
Kuwait Retail Market is Segmented by Product Type (Food, Beverage and Tobacco, Personal and Household Care, Apparel, Footwear and Accessories, Furniture, Toys and Hobby, and More), by Distribution Channel (Store-Based, Direct Selling, E-Commerce, and Others) and by Geography (Kuwait City Governorate, Hawalli Governorate and More). The Market Forecasts are Provided in Terms of Value (USD).
List of Companies Covered in this Report:
Alshaya Group The Sultan Center Carrefour (Kuwait) Lulu Hypermarket X-cite (Alghanim Electronics) Al-Babtain Group Morad Yousuf Behbehani Group Gulf Franchising Company IKEA (Kuwait) Centrepoint (Landmark Group) H&M (Alshaya) Sephora (Kuwait) Decathlon (Kuwait) Abdul-Wahab Al-Wazzan Group Al-Nasser Sports OnCost Cash & Carry Grand Hyper Villa Moda YIACO Medical Company SAFWAN Pharma*
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising disposable incomes and young population mix
4.2.2 Surge in e-commerce and omni-channel ecosystems
4.2.3 Growing expatriate workforce boosting consumption
4.2.4 Pending mortgage law expected to unlock consumer credit
4.2.5 Retail-media networks creating new revenue streams
4.3 Market Restraints
4.3.1 Heavy reliance on imports and supply-chain cost volatility
4.3.2 Saturation of prime mall space and rising rents
4.3.3 Cross-border online shopping draining local sales
4.3.4 Digital-talent shortage across retail and logistics
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook (AI, Retail Media, 5G)
4.7 Porter's Five Forces
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Buyers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes
4.7.5 Competitive Rivalry
4.8 Customer Behaviour Analysis
4.9 Advertising and Retail-Media Insights
5 Market Size and Growth Forecasts (Value, 2024-2030)
5.1 By Product
5.1.1 Food, Beverage and Tobacco
5.1.2 Personal and Household Care
5.1.3 Apparel, Footwear and Accessories
5.1.4 Furniture, Toys and Hobby
5.1.5 Industrial and Automotive
5.1.6 Electronics and Home Appliances
5.1.7 Pharmaceuticals, Luxury Goods and Others
5.2 By Distribution Channel
5.2.1 Store-based (Hypermarkets, Supermarkets, Department Stores)
5.2.2 Direct Selling
5.2.3 E-commerce
5.2.4 Others (Drugstores, Institutional Retail)
5.3 By Geography
5.3.1 Kuwait City Governorate
5.3.2 Hawalli Governorate
5.3.3 Farwaniya Governorate
5.3.4 Al-Ahmadi Governorate
5.3.5 Al-Jahra Governorate
5.3.6 Mubarak Al-Kabeer Governorate
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products & Services, Recent Developments)
6.4.1 Alshaya Group
6.4.2 The Sultan Center
6.4.3 Carrefour (Kuwait)
6.4.4 Lulu Hypermarket
6.4.5 X-cite (Alghanim Electronics)
6.4.6 Al-Babtain Group
6.4.7 Morad Yousuf Behbehani Group
6.4.8 Gulf Franchising Company
6.4.9 IKEA (Kuwait)
6.4.10 Centrepoint (Landmark Group)
6.4.11 H&M (Alshaya)
6.4.12 Sephora (Kuwait)
6.4.13 Decathlon (Kuwait)
6.4.14 Abdul-Wahab Al-Wazzan Group
6.4.15 Al-Nasser Sports
6.4.16 OnCost Cash & Carry
6.4.17 Grand Hyper
6.4.18 Villa Moda
6.4.19 YIACO Medical Company
6.4.20 SAFWAN Pharma*
7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-need Assessment
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