Kuwait Retail Market Analysis by Mordor Intelligence
The Kuwait retail market stands at USD 22.56 billion in 2025 and is projected to reach USD 26.32 billion by 2030, translating into a 3.13% CAGR over the forecast period. 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[1]Source: Central Statistical Bureau of Kuwait, “Gross Domestic Product at Current Prices,” csb.gov.kw. 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.
Key Report Takeaways
• By product type, Food, Beverage, and Tobacco led with 46.19% revenue share in 2024, while Pharmaceuticals, Luxury Goods, and Others are forecast to expand at 5.04% CAGR through 2030.
• By distribution channel, store-based retail commanded 56.34% of the Kuwait retail market share in 2024; e-commerce posts the fastest CAGR at 5.13% to 2030.
• By geography, Kuwait City Governorate held 43.43% of the Kuwait retail market size in 2024; Hawalli Governorate is advancing at a 5.68% CAGR to 2030.
• The top five retailers, Alshaya Group, Lulu Hypermarket, Carrefour, The Sultan Center, and X-cite, collectively controlled a significant share in 2024, indicating moderate market concentration.
Kuwait Retail Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Rising disposable incomes and young population mix | +0.8% | National, concentrated in Kuwait City and Hawalli | Medium term (2-4 years) |
Surge in e-commerce and omni-channel ecosystems | +0.6% | National, with higher penetration in urban governorates | Short term (≤ 2 years) |
Growing expatriate workforce boosting consumption | +0.5% | National, particularly Kuwait City and Farwaniya | Long term (≥ 4 years) |
Pending mortgage law expected to unlock consumer credit | +0.4% | National, with early gains in Kuwait City, Hawalli, Farwaniya | Medium term (2-4 years) |
Retail-media networks creating new revenue streams | +0.2% | National, focused on major retail centers | Short term (≤ 2 years) |
Source: Mordor Intelligence
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[2]Source: Lulu Group International, “Corporate Fact Sheet 2025,” lulugroupinternational.com . Alshaya’s TAMANNA offers next-day delivery and click-and-collect, proving that digital convenience is reshaping the Kuwait retail market.
Growing Expatriate Workforce Boosting Consumption
With expatriates representing 70% of residents, retailers tailor assortments to multicultural tastes. Retail formats adapt to serve this diversity, with hypermarkets like Lulu offering approximately 200,000 SKUs to accommodate varied cultural and dietary preferences across different nationalities. Sustained inflows of skilled foreign labor ensure predictable demand for international grocery, apparel, and leisure brands. International retailers recognize this opportunity, with brands like Hamleys opening their 9th GCC store in Kuwait in June 2025, targeting expatriate families seeking familiar international retail experiences.
Pending Mortgage Law Expected to Unlock Consumer Credit
Absence of long-term mortgages hinders big-ticket purchases. Banks signal readiness: National Bank of Kuwait already offers overseas mortgages, suggesting that new rules could funnel local credit into durable goods and home-improvement categories, a shift that would add momentum to the Kuwait retail market. This regulatory change could particularly benefit furniture, electronics, and automotive retail segments, where financing availability directly correlates with purchase decisions.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Heavy reliance on imports and supply-chain cost volatility | -0.4% | National, affecting all retail segments | Short term (≤ 2 years) |
Saturation of prime mall space and rising rents | -0.3% | Kuwait City and Hawalli governorates | Medium term (2-4 years) |
Cross-border online shopping draining local sales | -0.2% | National, with higher impact in Kuwait City and Hawalli | Short term (≤ 2 years) |
Digital-talent shortage across retail and logistics | -0.1% | National, concentrated in major retail centers | Long term (≥ 4 years) |
Source: Mordor Intelligence
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.[3]Source: U.S. International Trade Administration, “Kuwait Country Commercial Guide,” trade.gov
Saturation of Prime Mall Space and Rising Rents
Flagship complexes such as Assima Mall and 360 Kuwait concentrate footfall yet command premium lease rates. Although 173,050 square meters of new retail gross-leasable area is in the pipeline, top-tier space remains tight, pressuring margins for newcomers. Some chains are pivoting to suburban plots where lower rents buffer profitability.
Segment Analysis
By Product Type: Food Dominance Amid Luxury Acceleration
Food, Beverage, and Tobacco accounted for 46.19% of the Kuwait retail market in 2024, 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 2025-2030, this category should expand steadily as the population rises and tourism rebounds. Meanwhile, Pharmaceuticals, Luxury Goods, and Others record the fastest 5.04% 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 2030, 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.
Note: Segment shares of all individual segments available upon report purchase
By Distribution Channel: Store-Based Resilience Versus Digital Disruption
Store-based formats held 56.34% of the Kuwait retail market in 2024, reflecting consumer preference for tactile evaluation and immediate fulfillment. Hypermarkets prosper because expatriate families favor bulk purchases, and value-added services such as in-house bakeries and ready-to-eat counters widen basket size. Department stores emphasize curated assortments that pair apparel with beauty, attracting middle- to high-income shoppers. Convenience outlets in residential clusters target time-pressed buyers with extended hours.
E-commerce, though smaller, is the clear momentum leader with a 5.13% CAGR to 2030. The share of card and wallet payments is climbing as digital trust improves. Alshaya’s TAMANNA platform demonstrates how next-day delivery and 30-day returns can replicate in-store assurance online. Direct selling retains niche resonance among cosmetics and wellness brands, while the Others category—including drugstores—meets specialized demand. Retailers increasingly adopt omnichannel strategies, shipping from stores to speed last-mile fulfillment and using click-and-collect to drive incremental in-store purchases. By the end of the forecast window, digital revenue could approach parity with physical outlets, supported by ongoing 5G rollout and secure payment rails that reinforce shopper confidence.

Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Kuwait City Governorate generated 43.43% of the Kuwait retail market in 2024, with dense business districts, affluent residential communities, and landmark malls like Assima. The district’s shopper mix is skewed toward professionals who spend more per visit, which keeps luxury boutiques and flagship stores profitable. Hawalli Governorate, however, is posting the fastest 5.68% CAGR as families relocate to more affordable suburbs. Retail-anchored mixed-use developments there provide ample parking and child-friendly amenities that extend dwell time.
Farwaniya, Al-Ahmadi, Al-Jahra, and Mubarak Al-Kabeer together constitute a growing frontier for the Kuwait retail market. Projects such as Al Khiran Mall in Al-Ahmadi promise outlet-style value that appeals to cost-conscious shoppers from neighboring countries. Waterfront complexes like Al Kout integrate leisure marinas and dining promenades, converting tourism flows into retail receipts. Improved highways and planned metro extensions will further disperse retail traffic, reducing over-reliance on central malls. Over the forecast period, balanced expansion across governorates is expected to stabilize rental inflation and broaden consumer access to modern retail concepts.
Competitive Landscape
The five leading chains, Alshaya Group, Lulu Hypermarket, Carrefour, The Sultan Center, and X-cite, collectively hold a sizable stake in the Kuwait retail market, signaling moderate concentration. Scale allows these incumbents to negotiate favorable terms with global suppliers, sustain extensive cold-chain networks, and roll out loyalty ecosystems that lock in repeat visits. Lulu’s eight hypermarkets and eight express outlets process 600 thousand daily transactions, supported by 28 central kitchens that ensure fresh, ready meals. Alshaya combines more than 80 international brands with proprietary data analytics to curate assortments across its flagship malls and its TAMANNA e-commerce unit.
Three competitive playbooks dominate. First, format diversification: leading groups balance hypermarkets, supermarkets, concept stores, and digital platforms to hedge against channel risk. Second, geographic expansion: chains are pushing into Hawalli and Al-Ahmadi, where suburban growth promises new traffic. Third, technology integration: AI chatbots and predictive inventory tools enhance service quality and shrink stock-outs. Warba Bank’s AI-powered personal banking advisor underscores how fintech partnerships enrich the wider retail proposition. International entrants sustain pressure; Hamleys’ Gulf franchise and Apparel Group’s 16-brand rollout in Assima Mall illustrate Kuwait’s pull for global retailers.
Newcomers face high capital requirements, tight prime real estate, and entrenched loyalty programs. Nonetheless, whitespace persists in specialty health, sustainable lifestyle, and discount formats. Partnerships with fintech startups and last-mile couriers can help challengers bypass legacy bottlenecks and address evolving shopper expectations.
Kuwait Retail Industry Leaders
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Alshaya Group
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Lulu Hypermarket
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Carrefour
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The Sultan Center
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X-cite
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- June 2025: Hamleys opened its 9th GCC store in Kuwait, widening the global toy retailer’s Gulf network.
- February 2025: Warba Bank unveiled Kuwait’s first AI-powered personal banking advisor, enhancing digital engagement.
- February 2025: National Bank of Kuwait logged KD 600.1 million profit and launched Aura World Mastercard in partnership with Alshaya Group.
Kuwait Retail Market Report Scope
A complete background analysis of the retail industry in Kuwait, which includes an assessment of the National accounts, economy, and the emerging market trends by segments, significant changes in the market dynamics, and the market overview is covered in the report.
By Product | Food, Beverage and Tobacco |
Personal and Household Care | |
Apparel, Footwear and Accessories | |
Furniture, Toys and Hobby | |
Industrial and Automotive | |
Electronics and Home Appliances | |
Pharmaceuticals, Luxury Goods and Others | |
By Distribution Channel | Store-based (Hypermarkets, Supermarkets, Department Stores) |
Direct Selling | |
E-commerce | |
Others (Drugstores, Institutional Retail) | |
By Geography | Kuwait City Governorate |
Hawalli Governorate | |
Farwaniya Governorate | |
Al-Ahmadi Governorate | |
Al-Jahra Governorate | |
Mubarak Al-Kabeer Governorate |
Food, Beverage and Tobacco |
Personal and Household Care |
Apparel, Footwear and Accessories |
Furniture, Toys and Hobby |
Industrial and Automotive |
Electronics and Home Appliances |
Pharmaceuticals, Luxury Goods and Others |
Store-based (Hypermarkets, Supermarkets, Department Stores) |
Direct Selling |
E-commerce |
Others (Drugstores, Institutional Retail) |
Kuwait City Governorate |
Hawalli Governorate |
Farwaniya Governorate |
Al-Ahmadi Governorate |
Al-Jahra Governorate |
Mubarak Al-Kabeer Governorate |
Key Questions Answered in the Report
What is the current value of the Kuwait retail market?
The Kuwait retail market is valued at USD 22.56 billion in 2025.
How fast is the Kuwait retail market expected to grow?
It is projected to register a 3.13% CAGR and reach USD 26.32 billion by 2030.
Which product segment leads the Kuwait retail market?
Food, Beverage & Tobacco leads with 46.19% revenue share, reflecting staple demand patterns.
Which distribution channel is growing the quickest?
E-commerce, with a 5.13% CAGR, is the fastest-expanding channel due to rising digital payment adoption.
Which governorate shows the strongest retail growth prospects?
Hawalli Governorate posts the highest forecast CAGR of 5.68%, driven by suburban residential expansion.
Page last updated on: July 6, 2025