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.
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