According to study, “Top Growth Opportunities: Bakery
& Cereals in Saudi Arabia” some of the major
companies that are currently working in the bakery & cereals in Saudi
Arabia are Mondelez International, Al Rasheed Food Co, Switz Group, The Kellogg
Company, Cereal Partners Worldwide SA, Almaral, Chpita SA, Americana Group, Sahary
Food InDutries Co, United Food Industries Corporation.
The Saudi Arabian bakery &
cereals market is led by the bread & rolls and 'cakes, pastries & sweet
pies' categories in value terms.Saudi Arabia ranks 20th
in the bakery products market around the world. Private label penetration is
fairly low in this sector, with brand-labeled products making up the vast
majority of sales. Flour is the main ingredient inbakery products. A cereal is
any of the edible components of the grain of cultivated grass, composed of the
endosperm, germ, and bran.Cereals products are porridge oats, oatmeal and
prepackaged cereal/milk kits.
Some subsectors of bakery &
cereal products are included baked goods, biscuits and breakfast cereals. The
baked goods subsector is the largest of the three subsectors within the bakery
category, which is led by artisanal producers. Some trends are included whichare
impacted the baked goods category:the revival of the laborshortage in
traditional grocery retails,the aggressive advertising activities and shifting
of consumers to healthier whole wheat products.Biscuit subsector is included cookies,
sandwich biscuits, wafers, etc. By the end
of 2016, biscuit retail value sales was US$791 million. Moreover breakfast
cereal subsector is divided into three main categories: children breakfast
cereals, family breakfast cereal and hot cereal.
On the basis of product type, the
bakery and cereal market is segmented into crisp bread, dough products, rolls, cereal
bars, energy bars, morning goods, gingerbread, sweet biscuits, toasted bread,
rusks, wafers and waffles etc. On the basis of distribution channel, the market
is segmented into hypermarkets, supermarkets, convenience stores, department
stores, e-Retailers, and other general retailers.
Some growth areas are impact of
changing population profiles, increase in private label products, new product
development and the growth of premiumisation etc. Some growth drivers are convenience
of ready-to-eat products, changing lifestyles and food preferences, and large
varieties of flavored foods.
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.
In recent years, about 807 new
bakery products were launched in Saudi Arabia. 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. White sugar, salt, and wheat
flour are the most commonly used ingredients along with vegetable oils, palm
oil, skimmed milk powder, and disodium diphosphate.
The
bakery products market in Saudi Arabia is estimated to grow at a rapid rate due
to the increasing population.In 2017, the bakery product sector was led with
retail sales of US$138.3 million. The biscuit sector is forecasted to continue
to grow at a CAGR of 7.6% in retail value sales from 2016-21. It is estimated
to grow bakery products at 8.2%CAGR with an estimatedUS$8.7 billion in retail
value sales by 2021.
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