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:
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