Saudi Arabia’s unstable economy in the recent
years has led to inflation of various grocery products. Few grocery products in
Saudi Arabia did not witness a decline in consumption; however, a few other
categories have slowed major fall in demand due to their high prices. Breakfast
cereals prices have risen due to the country’s slowed economy. Saudi Arabia
ranks 20th in the bakery products market around the world while generating huge
revenue for the country. Mondelez International Inc is the leading
international bakery company that introduced bakery products sector in Saudi
Arabia.
Saudi Arabia had witnessed a severe shortage
of labour in the recent years and the government started the Nitaqat program
which had an inverse impact over the market. This program is an initiative to
encourage businesses to hire Saudi nationals and had a negative impact on the
traditional grocery retailers and bakeries. Traditional grocery retail market
accounts for a major share of bakery products causing it the biggest retail
channel for bakery sales in Saudi Arabia with products such as unpackaged
breads, cakes, and pastries. The distribution channels of the breakfast cereals
in Saudi are through hypermarkets, supermarkets, convenience stores, department
stores, e-Retailers, and other general retailers.
Recent studies indicate that about 807 new
bakery products were launched in Saudi Arabia in the recent years. Out of these
new bakery products, 45% are new products and rest are a combination of new
variation in the form of packaging, formulation, and variety of already
existing products. Within the 807 new products, the top five ingredients used
were white sugar, salt, wheat flour, sodium hydrogen carbonate, and
emulsifiers. In 615 products white sugar, salt, and wheat flour are the most
commonly used ingredients along with vegetable oils, palm oil, skimmed milk
powder, and disodium diphosphate. Also,
47% of the new bakery products were domestic, while other imported products
were originated in the United Arab Emirates, Italy or Turkey. Consumers are
increasing their preference for international bakery products rather than
country made bakery products.
Awareness in health and wellness food products
amongst Saudi consumers has increased and consumers are modifying their diet
accordingly. It was observed that there is an increase in demand for whole
wheat, reduced-sugar, and gluten-free bakery products by health-conscious
consumers. The domestic leading player in Saudi Arabia's bakery product
industry is Almarai Co. Ltd. The various bakery products in Saudi are
crispbread, gingerbread, sweet biscuits, toasted bread, rusks, wafers, waffles
and other bakery products. The bakery products market in Saudi Arabia is
estimated to grow at a rapid rate due to the increasing population. The bakery
product is a subsector within bakery products category and witnesses a huge
growth in terms of sales and volumes. Overall, Saudi Arabia's both traditional
and modern grocery retail market is thriving continuously and will witness a
continuing growth over the next five years.
Biscuits market in Saudi has witnessed a
strong performance and the growth is continuing over the recent years. The
biscuit category consists of Savoury biscuits and sweet biscuits. Yildiz
holding as is the domestic leading player in Saudi Arabia along with four
international companies.
Breakfast cereals in Saudi include all forms
of pre-packaged cereals whether eaten hot or cold and also include porridge
oats, oatmeal and prepackaged cereal/milk kits. The breakfast cereal sector is
the smallest sub-sectors within the bakery category in Saudi Arabia. The
increasing population and with increasing families with dual income has led to
more dependence on breakfast cereals due to lack of time. The breakfast cereal
subsector is classified into three categories for children, family breakfast
cereal, and hot cereal. The family breakfast cereal holds the largest share of
more than 50% of retail volume of the cereals market, followed by children's
breakfast cereals and hot cereals.
Breakfast cereals were not a part of the daily
breakfast in the typical traditional Saudi Arabian household. However, the
dynamic changes of households where women entering the workforce, demand has
uplifted for easy breakfast cereals. The leading players in Saudi’s breakfast
cereals are all multinationals such as Kellogg Co., General Mills Inc., PepsiCo
Inc., Cereal Partners Worldwide SA, and Post Holdings Inc. These five
competitors in Saudi Arabia collectively control more than half the breakfast
cereal market along with other small players accounting for the remaining
market. The breakfast cereal market in Saudi will witness a steady continuing
growth over the next few years.
Key Topics
Covered in the Report
Breakfast Cereals Market in Saudi Arabia
Saudi Arabia Cereals Market Revenue
Cereals Consumption in Saudi Arabia
Bakery Products Market In Saudi Arabia
Breakfast Cereals Future Outlook in Saudi
Arabia
Saudi Arabia Cereals Market Research Report
Pre-Packaged Cereals Market in Saudi Arabia
Oatmeal Consumption in Saudi Arabia
Saudi Arabia Breakfast Cereal Retail Sales
Mondelez International Inc Market Share
Almarai Co. Ltd Market Share
Saudi Arabia Breakfast Cereal Market
Competition
Saudi Arabia Breakfast Cereal Market Trends
and Developments
Saudi Arabia Breakfast Cereals Trade
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Ankur Gupta, Head Marketing &
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0124-4230204