Western Firms Suffer as Boycotts Spread Over Gaza War

One in Three People Boycotting Brands Over Gaza War, Poll Finds

A significant number of consumers globally are boycotting brands perceived as supporting one side in Israel’s war on Gaza. This trend is particularly pronounced in oil-rich Gulf states and large Muslim-majority countries.

Impact of Consumer Sentiment

A recent Trust Barometer report from public relations firm Edelman reveals the sharp divides over the war are prompting consumers worldwide to take action with their wallets. The survey, which polled 15,000 consumers across 15 countries, including France, Saudi Arabia, the UK, and the US, highlights a growing trend.

The poll did not specify which side respondents favored, but three of the top five countries boycotting brands over Gaza are Muslim-majority nations: Saudi Arabia, the UAE, and Indonesia. India, with a sizeable Muslim minority, and Germany also featured prominently.

Growing Support for the BDS Movement

The Boycott, Divestment, and Sanctions (BDS) movement has been gaining momentum globally. It aims to pressure Israel over its violations of international law and repression of Palestinians. Despite significant opposition in the US and other Western countries where many support Israel, the movement is making inroads.

Saudi Arabia Leading the Boycott

Saudi Arabia had the highest number of respondents, with 71 percent indicating they were boycotting brands perceived to support one side in the conflict. A December poll by the Washington Institute for Near Eastern Affairs found that 96 percent of Saudi nationals believe Arab countries should sever ties with Israel in response to its war on Gaza.

Economic Consequences for Western Companies

The effects of these boycotts are being felt in Western corporate boardrooms. In March, the Alshaya Group, which owns the rights to Starbucks in the Middle East, began laying off over 2,000 staff in the region and North Africa due to consumer boycotts related to Gaza.

McDonald’s has also faced backlash. Earlier this year, McDonald’s CEO Chris Kempczinski noted weaker sales in Muslim-majority countries such as Malaysia and Indonesia, as well as across the Middle East. The company’s Israel franchise sparked outrage in October by announcing free meals for Israeli soldiers, leading to significant backlash and forced price drops in countries like Pakistan.

Consumer Nationalism in the Gulf

Consumers in the Gulf region, with their high purchasing power and relatively stable economies, have long been a target for Western corporations. However, the ongoing support from the US and its allies for Israel is causing many Gulf consumers to turn away from Western brands. For instance, in Oman, consumers are switching from products like Mountain Dew to local brands like Kinsa. In Pakistan, local companies are producing alternatives to Western soft drinks and cosmetics.

Rise of Local Brands

The poll highlights a rise in consumer nationalism in Gulf states. The number of respondents in Saudi Arabia and the UAE preferring their own country’s brands over foreign ones increased by 13 and 10 points, respectively.

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