1、Retail Practice State of grocery retail MENA 2026:Managing the growth paradoxConsumer confidence in the Middle East and North Africa is rising,but retail momentum is not.Ten trends can help grocers navigate this paradox,gain granular insights,and identify areas for growth.February 2026by Abdellah If
2、tahy,Damian Hattingh,and Gokmen Cigerwith Pauline CarrionThe past year has been one of mixed fortunes for grocers in the Middle East and North Africa(MENA)region.While consumer confidence continues its upward trend from previous years,that optimism has not translated into faster growth.In fact,growt
3、h has slowed over the past year,despite a sharp uptick in new store openings,suggesting that a change of strategy may be required for grocers to succeed in 2026.Our 2024 State of Grocery Retail MENA research highlighted that,after years of declining consumer confidence,the market had turned a corner
4、and our 2025 research confirms it.1 Across the region,consumers are balancing price consciousness and bargain hunting with a willingness to spend more on selected products.Fewer consumers,from both higher-and lower-income groups,were intending to trade down to save money in 2025,compared to 2023 and
5、 2024,and more consumers across the income spectrum expressed an intent to buy high-quality and premium food products(Exhibit 1).Healthy and fresh produce,and food-to-go,were the primary beneficiaries of this trend.However,this willingness to spend has not provided the tailwind for growth that might
6、 have been anticipated.Growth in the formal grocery industry was slow in the five markets included in this study,with the exception of Morocco,where it picked up to 4.7 percent in 2024(Exhibit 2)(see sidebar,About this research).New store openings in Morocco also topped the region with an 11 percent