• 44% increase in spending during Ramadan 2023 versus last year.
• 46% increase in spending on Al-Fitr gifts 2023 versus last year.
• Consumers expect banks to offer deals and special promotions during Ramadan.
• Sweets, cash, toys, and perfumes top the list of Eid gifts.
According to a study conducted by Toluna, a leading provider of market research and consumer insights, the Kingdom of Saudi Arabia market has projected higher expenditure estimates for the Holy Month of Ramadan and Eid Al-Fitr in 2023 compared to 2022.
As per the study, consumer shopping intention in the KSA market for the upcoming period will increase by 44% this year compared to last year. The increase can be seen across all sectors, including entertainment (up by 44% from last year), grocery shopping (up by 51%), traveling abroad (up by 35%), staycation (up by 42%), food delivery (up by 39%), and beauty treatment (up by 31%)
The survey shows that the majority of respondents, 91%, plan to give Eid presents this year, with children (66%), parents (56%), and friends (37%) being the primary recipients. Specifically, 46% of respondents plan to increase their spending on Eid gifts, 39% aim to make the occasion more special this year to compensate for the pandemic years and to treat themselves and their loved ones. 46% noted that prices are higher this year, and as a consequence, they plan on spending more on gifts, and 34% intend to give gifts to more people this year.
Sweets, toys, cash, and perfumes ranked high on the list of most popular Eid gifts for family members: sweets, dates, and chocolates (48%), cash money (Al Ayadi-42%), toys and games (38%), and perfumes (58%), followed by cosmetics and beauty products (27%), and fashion clothing (33%).
Additionally, the poll found that purchasing for fashion, toys, and games is migrating to e-commerce, with 100% planning to do more shopping for these items online during the Holy Month this year; 29% of respondents shop online multiple times each week, as 40% of respondents opt for online shopping for fashion, toys, and games.
Consumer expectations regarding brands during Ramadan
When asked which factors influenced their decision to purchase during Ramadan, 50% chose deals and promotions above price (49%). According to the study, consumers would like to see brands be more generous during the Holy Month; for example, (77%) would like to receive product discounts when purchasing car insurance, and (53%) are interested in free gift vouchers. Although 56% anticipate banks to give discounts on shopping during Ramadan, 41% expect discounts on dining out and 36% on delivery.
Moreover, (38%) preferred brand advertising to be inspired by the spirit of the month about charity and religious connotations while 38% preferred brand marketing to be centered on positive values of culture and tradition and 50% about promotions and offers.
"We saw a considerable rise in plans to spend, with customers prioritizing purchases connected to food, apparel, and gifts for their loved ones," said George Akkaoui Enterprise Account Director, Toluna MEA , commenting on the survey’s findings. “During Ramadan, brands must understand the cultural importance of the month and customize their marketing activities accordingly. By giving unique discounts, promotions, and producing content that is aligned with the spirit of the season content, organizations may engage with customers on a deeper level and embed brands in the community, since the impact they make during this Holy Month can have a long-term influence on customer loyalty".
Activities during Eid
The top activity planned by respondents for the Eid holiday, according to the study, is visiting families and friends, with 82% picking this choice, 72% of those interested in entertainment intend to go to shopping malls, and 69% intend to take a staycation. Moreover, 70% of participants intend to dine out, 42% visit live concerts and shows, and 65% are planning to travel within the kingdom during the Eid vacation.
The findings of the study showed that the majority of participants use social media during Ramadan mainly during the afternoon time and after iftar, with the most popular platforms being YouTube (76%), Instagram (75%), and Facebook (59%) mainly to connect with friends and family and share religious content.
