Kuwait Retail - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

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 Consumption
• Pending Mortgage Law Expected to Unlock Consumer Credit
• Saturation of Prime Mall Space and Rising Rents

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 of purchasing this report:

• Access to the market estimate sheet (Excel format)
• 3 months of analyst support