TGM Global Ramadan Insights 2023

Muslims worldwide observe Ramadan as a momentous occasion, with an impressive 97% of the Muslim population expected to partake in this year's festivities. The holy month holds tremendous significance for followers of Islam and is a time for prayer, fasting, and reflection. Moreover, this is the most awaited season of the year for 96% of respondents worldwide, which they like primarily because of the opportunity to spend time with the family (92%).

62% of respondents plan to spend time gathering with loved ones and waking up early for the pre-dawn meal (suhoor). Besides, over 30% of people plan to engage in other cherished traditions like shopping and watching Ramadan TV shows.

Overall, Ramadan activities hold the same significance level for Muslims of all age ranges. In keeping with the principles of Islam and the holy month's spirit, charitable giving and worship remain the main priorities among Muslim communities worldwide (70%).

After isolation, this much-needed break is a welcome opportunity to share in the holy month's warmth, generosity, and cherished traditions. With only 27% of Muslims feeling the threat of COVID-19, this Ramadan is set to return to the familiar, a time of togetherness and a celebration of the community's resilience.

Besides spiritual reflection, worship, and acts of charity, food and drinks also play a significant role in Ramadan during iftar and suhoor meals. Being one of the busiest periods for consumer goods companies, Fast Moving Consumer Goods (FMCG) brands considerably impacts consumers' minds across all regions during Ramadan. Among the most famous FMCG brands, Coca-Cola ranked first, followed by Marjan (syrup), Vimto (soft drinks), Almarai (dairy and bakery products), and Nestle. These brands are ubiquitous during Ramadan and hold a special place in people's hearts, creating a sense of unity and togetherness among families and communities.

Fasting
Ramadan is a significant event for Muslims, and fasting is an essential aspect of this celebration. Over 98% of Muslims participate in the fast, making it the most prominent religious season that unites Muslim communities in spiritual and compassionate practices. Daily gatherings, communal prayers, charitable events, and Iftar or Suhoor outings are all integral to the month of Ramadan, and it's a time of year that Muslims eagerly anticipate.

Increased Budget for Food Expenses
Food shopping is an integral part of this season, as consumers purchase gourmet dishes and imported foods to enhance the social aspect of eating during Iftar. This year, there will be a significant rise in spending on food, with 51% of people surveyed claiming they will spend more on food and drinks, which could be attributed to the increase in consumer prices.

Ramadan embraces convenience
Although cooking at home remains the prevalent method of food consumption during the month, accounting for 88% of meals consumed, ordering food through mobile apps has become the go-to method (36%), followed closely by online orders (27%). As more and more families shift from traditional meals to prepared ones, those who do not have time to cook can still partake in the celebratory feasts of Ramadan.

The shift towards digital platforms and mobile devices during Ramadan reflects Muslims' changing media consumption habits worldwide. With the rise of smartphones and social media, people are increasingly turning to digital channels for daily news, entertainment, and spiritual guidance.

81% of respondents choose to spend more time using mobile devices during Ramadan, making it the dominant media form, surpassing all others, followed by social media (74%). On the other hand, only 39% of participants said they would spend time on the radio during the observance.

The use of social media during Ramadan is particularly noteworthy, as it reflects a desire among Muslims to stay connected with friends and family during this critical time of year. Social media also provides a platform for people to learn about their faith, share their experiences, and seek guidance from religious leaders and scholars. Staying connected through social media is a top priority for Muslims, with 87% using it to send greetings. Meanwhile, 89% use it to learn new things, and 70% use it to find attractive promotions and deals for shopping.

With the widespread use of technology, many Muslims have turned to mobile apps to stay connected with their faith and enhance their spiritual practices. Our survey found that Quran apps (11.1%) are the most popular among all regions, followed by Muslim Pro (8.0%).

Ramadan is a highly anticipated period of the year for shoppers in the Muslim world as they look forward to indulging in retail therapy. Retailers cater to this trend by offering special promotions and extended store hours to meet increased demand. During this season, consumers are more open-minded and receptive to trying new products or supporting local businesses that align with their values. It is evident as 78% of respondents expressed interest in exploring new brands during their Ramadan shopping spree.

Hunting for the best deals
Despite the openness to novelty, the most significant factors that influence their purchasing decisions continue to be price and discounts. TGM 2023 Ramadan Survey has shown that an overwhelming majority (95%) of shoppers prioritize affordability during this period, with discounts also playing a crucial role in influencing their buying behavior (93%).

The gift that keeps on giving
Buying gifts for loved ones is always a joyful part of Ramadan. Overall, this year’s gifting budget will increase compared to last year’s for all regions, particularly in the Middle East, at 46%. Mobile is the most convenient tool shoppers use to discover new ideas/inspiration for Ramadan purchases (73%). With the rise of e-commerce and the proliferation of mobile apps, it is becoming increasingly evident that mobile devices are changing how people shop and seek information about products and services. This trend is likely to continue in the years to come as more and more consumers embrace the convenience and accessibility of mobile technology.

Shopping Online vs. Offline
Ramadan is a social time spent with loved ones, and in-store shopping allows people to enjoy the experience together. Additionally, many prioritize charitable acts and community support by choosing local markets and small businesses over high-end malls and supermarkets. 33% of respondents plan to do most of their Ramadan shopping in physical stores with some online shopping.

The 2023 Ramadan budget will be more prominent - with some financed by loans.
During Ramadan, more than half of Muslim respondents will likely increase spending, increasing demand for personal loans from banks and financial institutions. Almost one-fifth of all Muslims plan to seek loan options to support their expenses during this period. The Middle East has the highest incidence of consumers seeking loan options at 25%, followed by Asia at 23%. These findings demonstrate Ramadan's significant impact on consumer behavior and emphasize the importance of financial services in supporting Muslims during this time.