Showing posts with label Canned Food Sales Bakalas Saudi Arabia. Show all posts
Showing posts with label Canned Food Sales Bakalas Saudi Arabia. Show all posts

Friday, June 29, 2018

Saudi Arabia Canned Food Market Facing Trouble Putting the Lid on Thinning Customer Base : Ken Research


Product and Packaging Innovation in Canned Food Market
According to Chitwan Tayal, Market Research Associate at Ken Research, “Canned food market can be aided by introduction of new product categories and investment in packaging innovation. Organic food can be introduced in canned form to deliver health with convenience. Additionally, packaging innovation can be carried out in terms of non-BPA cans, recyclable cans and differentiated labeling based on target audience.”
Ken Research estimates that the canned food market in Saudi Arabia is expected to grow at CAGR of 1.9% for the next five years to reach around USD 509.9 million by 2022.”
Genesis of Canned Food Market
The canned food market in Saudi Arabia is about a 100 year old market. Most canned food companies in KSA were established in the late 1900s.  Growth was seen in this market in its initial years due to the convenience canned food provided in terms of storage as well as cooking. Over time, however, the reach of fresh products has expanded in KSA and consumers have started opting for these over canned food products as these are perceived to be healthier. Growth in the market has become stagnant and is likely to grow at a subdued rate in the future.
Matured Stage of Canned Food Sector in KSA
Canned food market in KSA is currently in its mature stage. There are very limited product innovations happening and companies are having trouble retaining customers. Product categories available in the canned food market include canned dairy, canned fish, canned meat, canned fruits and vegetables, canned legumes and beans and canned cooking sauces. Of these, canned dairy is the leading product category. Canned food market in Saudi Arabia has grown at a CAGR of 3.1% in the past 5 years.
Saudi Arabia canned food market is concentrated in nature. There are a limited number of large domestic players dominating the market. The major players in the canned food market in Saudi Arabia include Saudi Goody Products Marketing Company Ltd., Gulf Food Industries – California Garden, Almarai Co., Luna (NFIC), Saudia Dairy and Foodstuff Company (SADAFCO), Del Monte Saudi Arabia Ltd., Al-Wedyan National Company for Food Products Ltd., Al-Alali and AKH Foods. Canned food companies compete on the basis of various factors including price of products, product differentiation and location of their distribution depots.
Revival in Demand from End User Segments
Growth in institutional end user segments such as hotels, restaurants and fast food outlets will be a major source of demand for canned food products in the future. Saudi Arabia has shifted its focus to investments in the tourism sector to reduce its dependence on revenues from oil. Canned food products are also in demand by catering companies supplying meals to Hajj and Umrah pilgrims. The pilgrims were 2.4 million in number in 2017.
Demand for canned food is likely to be adversely affected by the NITAQAT scheme and Saudization. This is because this scheme is leading to exit of expatriates, which are major end users for canned food, in large numbers. Negative perception of healthiness of canned food is also affecting the market negatively. Consumers are increasingly opting for fresh and frozen products over canned substitutes.
For more information about the research report, refer to below link:
Related Reports
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
sales@kenresearch.com
+91-9015378249

Wednesday, June 6, 2018

Saudi Arabia Canned Food Market Driven by Increasing Number of Hotels, Restaurants and Fast food Outlets, a Rising Number of Modern Retail Outlets and Growth in the number of Hajj and Umrah Pilgrims: Ken Research


Analysts at Ken Research in their latest publication Saudi Arabia Canned Food Market Outlook to 2022 - by Product Categories (Canned Dairy, Canned Meat, Canned Fish, Canned Cooking Sauces, Canned Legumes and Beans and Canned Fruits and Vegetables), by Distribution Channels (Bakalas, Hypermarkets, Supermarkets, Others), by Regional Sales (Riyadh, Jeddah, Mecca-Medina, Dammam and Others), by End User (Hotels, Restaurants and Catering Companies, Fast Food Outlets and Retail Consumers)believe that investing in packaging innovations can help canned food manufacturers to alleviate health concerns of consumers over cans and their linings. Tying up with hotels, restaurants and fast food outlets, all of which generally purchase canned food in larger quantities, will also enable greater revenue from canned food for companies.
Canned dairy is the leading product category with the highest revenue share of the market by value. In CY'2017, bakalas had the maximum revenue share, owing to their easy accessibility and high number of bakalas in Saudi Arabia. The sales of canned foods are concentrated in urban areas, especially major cities such as Riyadh, Dammam, Jeddah and Mecca-Medina. Out of these, Mecca-Medina holds the largest revenue share by value as of CY'2017 because this region receives high amount of religious tourism at the time of Hajj and Umrah during which demand for canned foods is extremely high.
An increase in the focus on the tourism industry by Saudi Arabia leading to growth in number of hotels and restaurants and increasing number of bakalas, hypermarkets and supermarkets have driven the growth of the canned food market in Saudi Arabia.
Canned food is in high demand by institutional and retail consumers because it is quicker to prepare and easier to store as compared to fresh food. Saudi Arabia has also been focusing on the tourism industry in the recent years in order to reduce its dependence on the oil industry. For this, it has been initiating several construction projects for hotels. Due to the government’s advertising campaigns, the number of tourists visiting Saudi Arabia has been increasing. This has been a major contributor to the growth of the canned food market as hotels and restaurants are the largest end-user of canned food. A rise in the number of modern retail outlets such as hypermarkets and supermarkets which are becoming prevalent in urban areas has meant that increased shelf space is available for canned food products. This has increased the sale of canned food because a larger number of options are now available to consumers. The canned food manufacturers are also engaging in various marketing activities such as advertising on television and digital media to expand and enhance their presence in the market.
For more information about the research report, refer to below link:
Related Reports
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
sales@kenresearch.com
+91-9015378249