Food retail in Saudi Arabia: Key market research findings
- Expansion of retail stores drives growth in the market
- Cereal segment accounts for majority of the market’s revenue
- Key vendors – Carrefour, NESTO, Othaim, Panda, and Tamimi
Technavio’s market research analysts predict the food retail market in Saudi Arabia to grow at a CAGR of more than 5% between 2016 and 2020. The market’s growth is fueled by an increase in the number of retail outlets in the region. Food retailers are expanding rapidly to strengthen their foothold in the market and access more consumer segments. The number of food retail outlets in Saudi Arabia was more than 42,000 during 2014, and it is projected to reach 50,000 by the end of the forecast period. For instance, Al Sadhan Supermarkets plans to increase its number of stores by 18 in the next ten years.
The new market research report from Technavio presents a breakdown and analysis of the food retail segments based on the product.
“Recently, there has been an increase in the import of food products in the retail market in Saudi Arabia. About 80% of the nation’s food requirement, which is worth about $24 billion, is being imported from foreign countries. Over the next four years, the import rate is expected to grow by about 35% to reach a revenue of almost $35 billion,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
At present, the cereal segment accounts for almost 51% of the total market share and will be the dominant shareholder in the food retail market in Saudi Arabia. The demand for cereals, especially breakfast cereals, is augmented by an increase in population and urbanization in the region. The recent increase in the number of women and men joining the workforce is also bolstering the demand for food items that can be consumed on the go.
The key vendors in the food retail market in Saudi Arabia include Carrefour, NESTO, Othaim, Panda, and Tamimi. The market is dynamic with the presence of a vast number of players and is dominated by modern retail chains such as supermarkets and hypermarkets. The Saudi Arabian retailers are constantly searching for new products and are focusing towards product promotion and advertising. Vendors in the market are aiming for better market positions through competitive pricing, weekly promotional offers, and by offering advertisement support to the customers.
A more detailed analysis is available in the Technavio report, Food Retail Market in Saudi Arabia 2016-2020.
We can customize reports by other regions and specific segments upon request.
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