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.
To know more, click on the link below:
Related Reports:-
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
sales@kenresearch.com
+91-9015378249
