Packaged Food Sales in Saudi Arabia

14 Pages·2015·0.24 MB·English

MAR KET ACCESS SECRETARIAT
Global Analysis Report

Packaged Food Sales

in Saudi Arabia

July 2015

EXECUTIVE SUMMARY CONTENTS

In 2013, Saudi Arabia imported close to US$24.1 billion worth of Executive Summary ........................ 1
agrifood and seafood products, which is roughly a 10.5% increase
over 2012. Saudi Arabia imported US$128.3 million worth of Economic Trends ............................ 2
agrifood and seafood products from Canada in 2013, thus making
Canada its 41st ranked importer (Global Trade Atlas). As a result of Packaged Foods Market
the ongoing water supply shortage for agricultural products, Characteristics ................................ 2
domestic production for various commodities are decreasing;
Key Categories 2014………………. 4
consequently, Saudi Arabia will require more imported food
products to meet the country’s increasing demand.
Nutrition and Staples ..…………. 4

Saudi Arabia is one of six gulf countries that are part of the
Impulse and Indulgence
Gulf Co-operation Council (GCC), along with Bahrain, Kuwait,
Products ..................................... 6
Oman, Qatar and the United Arab Emirates (UAE). Saudi Arabia is
the economic leader within the GCC and is the single-largest
Meal Solutions…………………… 7
market for agri-food and seafood in the Gulf, based on data from
2013. The GCC as a whole has limited local agriculture production, Packaged Food Market Leaders .... 9
as well as a growing demand for agriculture, food and beverage
Packaged Food in Foodservice ...... 9
products and a strong re-export market, making for strong export
opportunity for foreign exporters. The Saudi market perceives
Canadian packaged food products as unique and of high quality. 1 Conclusion .................................... 12

For More Information…………… . .13

Resources .................................... 13

Visit our online library of public
1 Foreign Affairs and International Trade Canada (DFAIT), Overview of GCC reports for more information on this
and other markets.
ECONOMIC TRENDS

In 2013, the Saudi population reached 29.3 million, where approximately 60% of those were under the
age of 20. The population is forecasted to grow at an average annual rate of 2.0% until 2018
(Euromonitor, 2014). Approximately 82% of the population lives in urban areas (Euromonitor
International, 2014). Over the coming years, in addition to urbanization trends, western influences on the
younger generation of Saudis are likely to have a positive impact on packaged food consumption within
the region.

According to the Department of Foreign Affairs, Trade and Development Canada (DFATD), Saudi Arabia
has limited agricultural production due to the nature of its climate, terrain, and the scarcity of water
resources. The Department notes that in recent years, the government has made extensive efforts to
expand the Saudi agriculture sector with investments in technology, machinery, and new crop varieties.
As a result, self-sufficiency was achieved in a number of agricultural products. In 2008, however, the
government reduced production of these goods to save the country’s limited water resources. It is
expected that agriculture production that relies on water-intensive inputs, particularly wheat, will end by
2016. Despite fluctuating oil prices seen in 2014, government projects and a rise in foreign investment are
expected to expand the Saudi economy overall.

PACKAGED FOOD MARKET CHARACTERISTICS

As a result of a strong economy and population growth in 2013, the packaged food industry in Saudi
Arabia performed extremely well, reaching retail value sales of US$18.3 billion (forecasted to reach
US$20.0 in 2014). Value sale are projected to continue to increase over the forecasted period reaching
US$26.9 billion by 2019. In comparison to other countries in the region, such as Iran, Egypt and Morocco,
Saudi Arabia’s packaged food industry ranks second. First is Iran with US$20.3 billion in values sales,
then Saudi Arabia, followed by Egypt with US$13.8 billion and Morocco with US$5.4 billion in values for
2013.

Saudi consumers have become increasingly more concerned and aware of dietary health, thus
influencing packaged food manufactures to develop products with greater health and nutritional benefits.
To further demonstrate this emerging consumer view, manufactures are now making an effort to
emphasize the health benefits on their package labels.

According to Euromonitor, in 2014, bakery, dairy and dried processed food were estimated to be the top
three selling segments within the packaged food category. These three subcategories are expected to
have increased sales during the 2015 to 2019 forecasted period, but they are not projected to have the
highest compound annual growth rates (CAGR) during this time period.

The promising sector according to Euromonitor (segments that will show the highest CAGR during the
period of 2015 to 2019) are baby food (10.6%), meal replacement products (9.8%), and oil and fats
(8.0%). The increase in baby food consumption is largely due to the convenience it offers especially to
the working moms. Saudi Arabia enjoys one of the highest birth rate (22%) in the world. Future increased
consumption of meal replacements and oils and fats, such as olive oil and vegetable and seed oil, shows
a direct correlation with Saudi consumers becoming more health conscious.

According to Euromonitor, the expansion of the retail network is undoubtedly a contributor of this
sustained growth. For example, in 2013/2014, an estimated 1,000 outlets were added to the growing
retail food network in Saudi Arabia. Saudi food retailers carry a wide range of products, from domestically
processed food to imported upscale specialty and organic food products. The fast growth of retail food
outlets in Saudi Arabia provides an excellent opportunity for suppliers of consumer products to expand
their exports throughout the Kingdom.

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Retail Value Sales of Packaged Food in Saudi Arabia, by Segment
Historic in US$ Millions and Period Growth (%)
Current Prices – Fixed 2014 Exchange Rates
Categories 2009 2010 2011 2012 2013 2014F % CAGR
2009-14
Total Packaged Food 12,540.2 13,631.0 14,954.4 16,472.1 18,335.7 20,082.7 9.9%
Bakery 3,729.0 4,026.5 4,375.7 4,803.1 5,312.2 5,779.5 9.2%
Dairy 3,094.4 3,392.3 3,740.0 4,140.6 4,641.5 5,050.9 10.3%
Dried processed food 1,281.6 1,331.1 1,372.4 1,427.6 1,527.3 1,638.8 5.0%
Confectionery 891.7 961.6 1,123.1 1,267.1 1,448.1 1,608.2 12.5%
Oils and fats 810.4 907.7 1,029.3 1,184.0 1,353.6 1,510.7 13.3%
Baby Food 575.2 681.1 807.9 939.7 1,092.8 1,252.2 16.8%
Sweet and savoury snacks 493.6 525.2 565.7 618.2 683.2 762.7 9.1%
Sauces, dressings and condiments 403.9 424.7 444.7 467.8 496.2 527.5 5.5%
Ice cream 281.6 334.4 371.2 418.5 471.8 523.7 13.2%
Frozen processed food 310.2 330.5 354.2 377.3 411.5 460.8 8.2%
Canned/preserved food 332.2 347.6 364.7 385.6 406.5 428.3 5.2%
Spreads 192.3 212.7 240.0 272.6 305.7 336.2 11.8%
Chilled processed food 128.1 137.3 145.2 147.7 161.0 176.5 6.6%
Noodles 98.9 105.1 110.3 114.0 119.9 128.1 5.3%
Pasta 73.6 77.5 81.7 86.7 92.7 98.7 6.0%
Soup 31.1 32.7 34.4 36.4 37.7 38.5 4.4%
Snack bars 13.0 14.9 16.4 17.6 19.2 20.7 9.8%
Ready meals 8.9 9.5 10.2 10.7 11.4 12.2 6.5%
Meal replacement 2.8 3.3 3.8 4.4 5.1 5.8 15.7%

Retail Value Sales of Packaged Food in Saudi Arabia, by Segment
Forecast in US$ Millions and Period Growth (%)
Current Prices – Fixed 2014 Exchange Rates

% CAGR
Categories 2015 2016 2017 2018 2019
2015-19
Total Packaged food 21,197.2 22,438.1 23,804.6 25,323.5 26,989.4 6.2%
Bakery 6,064.6 6,377.3 6,716.7 7,087.1 7,489.6 5.4%
Dairy 5,295.4 5,570.3 5,873.1 6,210.2 6,580.4 5.6%
Confectionery 1,721.4 1,846.7 1,981.0 2,130.1 2,294.4 7.4%
Oils and fats 1,626.6 1,753.7 1,892.1 2,044.7 2,211.4 8.0%
Baby food 1,378.7 1,518.9 1,680.5 1,860.4 2,062.6 10.6%
Dried processed food 1,687.4 1,744.2 1,807.1 1,882.5 1,960.5 3.8%
Sweet and savoury snacks 819.6 884.2 956.7 1,037.7 1,129.3 8.3%
Ice cream 559.7 599.3 641.7 688.3 739.0 7.2%
Frozen processed food 497.2 538.5 584.7 636.8 693.7 8.7%
Sauces, dressings and condiments 540.0 554.8 571.3 589.5 609.4 3.1%
Spreads 357.6 382.7 411.2 442.1 476.5 7.4%
Canned/preserved food 435.2 441.3 449.2 458.6 469.4 1.9%
Chilled processed food 186.0 196.6 208.3 222.5 237.9 6.3%
Noodles 131.8 135.9 140.4 145.5 150.9 3.4%
Pasta 101.2 104.1 107.3 110.9 114.8 3.2%
Soup 38.6 38.8 39.0 39.7 40.4 1.1%
Snack bars 21.6 22.5 23.6 24.7 26.0 4.7%
Ready meals 12.5 12.8 13.2 13.6 14.1 3.1%
Meal replacement 6.4 7.0 7.7 8.4 9.3 9.8%
Source for all: Euromonitor international, 2014 Note*: 2014 figures are estimates based on partial-year and forecasted data
Note: CAGR is the Compound Annual Growth Rate.
Page | 3
KEY CATEGORIES 2014

The information contained in this section has been sourced from Euromonitor International (2014).
Numbers are partial year forecasts for 2014 and growth forecasts are based on compound annual growth
rates unless otherwise indicated. The average exchange rate of the Saudi Rial was US$0.266 (2009-
2014).

Nutrition and Staples

Main Categories

• The value sales of nutrition and staples products are anticipated to increase from US$11.7 billion in
2013 to US$12.8 billion in 2014, a growth of 9.3%, while volume is forecasted to increase by 4.2% for
the same period.
• Sales of bread increased by 3.2% in value from US$2.56 billion to US$2.75 billion, while volume
increased by 7.2% from 2013 to 2014.
• Dairy sales are projected to increase from US$4.7 billion to US$5.1 billion (8.8%), and the volume is
projected to see an increase of 5.8%.

Category Leader

• Almarai Co Ltd, leads the impulse and staples category with almost 12.8% of the market in 2014,
followed respectively by Saudi Vegetable Oil & Ghee Co (SAVOLA) (5.4%) and Al Safi Danone Ltd
(3.6%) respectively.

Forecasts for 2015-2019

• Retail sales of nutrition and staples products are forecast to grow by 4.4% by 2019. Baby food is
expected to grow by 10.1%, breakfast cereals will likely grow 8.9%, and dairy will keep its growth
pace to 5.8% over the period.

Retail Volume Sales of Nutrition and Staples in Saudi Arabia, by Category
Historic in Thousand Tonnes and Period Growth (%)

% CAGR
Categories 2009 2010 2011 2012 2013 2014
2009-14
Total Nutrition/Staples 5,744.9 5,971.1 6,190.5 6,459.6 6,741.3 7,024.0 4.1%
Bread 3,137.4 3,236.6 3,328.9 3,442.3 3,559.6 3,674.9 3.2%
Dairy 1,571.1 1,656.4 1,744.1 1,846.4 1,954.2 2,066.6 5.6%
Rice 612.4 625.8 635.6 655.5 677.4 696.4 2.6%
Oils and Fats 266.6 285.5 305.5 328.1 352.0 376.9 7.2%
Baby Food 38.3 41.4 44.7 48.5 53.0 58.1 8.7%
Pasta 45.7 47.7 49.8 52.3 54.5 56.0 4.1%
Spreads 28.3 29.9 31.6 33.8 35.2 36.6 5.3%
Noodles 29.3 31.1 32.6 33.7 34.6 36.1 4.2%
Breakfast Cereals 15.7 16.7 17.7 19.1 20.6 22.3 7.3%
Meal Replacement 0.08 0.09 0.09 0.10 0.11 0.11 6.6%
S ource: Euromonitor international, 2014 Note*: 2014 figures are estimates based on partial-year data
CAGR= Compound Annual Growth Rate.

Page | 4
Retail Volume Sales of Nutrition and Staples in Saudi Arabia, by Category
Forecast in Thousand Tonnes and Period Growth (%)

% CAGR
Categories 2015 2016 2017 2018 2019
2015-19
Total Nutrition/Staples 7,313.9 7,631.0 7,963.9 8,314.9 8,687.2 4.4%
Bread 3,788.7 3,913.9 4,043.9 4,180.2 4,325.1 3.4%
Dairy 2,185.2 2,311.5 2,445.3 2,588.7 2,739.7 5.8%
Rice 714.7 738.9 765.1 794.0 826.0 3.7%
Oils and Fats 403.6 431.0 457.9 483.1 508.5 5.9%
Baby Food 63.7 70.0 77.2 85.0 93.8 10.1%
Pasta 57.6 59.3 61.3 63.4 65.7 3.4%
Spreads 38.3 40.3 42.5 44.9 47.4 5.5%
Noodles 37.8 39.7 41.8 44.2 46.9 5.6%
Breakfast Cereals 24.2 26.4 28.8 31.3 34.1 8.9%
Meal Replacement 0.1 0.1 0.1 0.2 0.2 7.5%

Retail Sales of Nutrition and Staples in Saudi Arabia, by Company Shares
(by National Brand Owner) % Breakdown Based on Retail Sales Value

Companies 2010 2011 2012 2013 2014*
Almarai Co Ltd 11.8 12.1 12.2 12.6 12.7
Saudi Vegetable Oil & Ghee Co (SAVOLA) 4.1 4.3 4.8 4.9 5.1
Al Safi Danone Ltd 5.1 5.0 5.0 4.9 4.9
Al Muhaidib Grains Co 3.9 3.6 3.6 3.6 3.6
Nestlé SA 2.6 2.6 2.6 2.6 2.6
Wyeth-Ayerst International 1.6 1.8 1.9 2.0 2.2
Western Bakeries Co 1.8 1.9 2.1 2.1 2.1
National Agricultural Development Co (NADEC) 1.9 2.0 2.0 2.0 2.0
Saudi Dairy & Foodstuff Co Ltd (SADAFCO) 2.1 2.1 2.1 2.1 2.0
Saudi Food Industries Co Ltd 1.8 1.8 1.9 1.9 2.0
Generics 0.1 0.1 0.1 0.1 0.1
Others 27.6 27.0 25.8 25.3 24.8
S ource for all: Euromonitor international, 2014 Note*: 2014 figures are estimates based on partial-year data
CAGR= Compound Annual Growth Rate.

Rising awareness of general well-being among Saudi consumers, as well as new product developments
in the nutrition and staples food category is contributing to category transformation by introducing
products centered on health and nutrition. Consequently, manufacturers are responding by offering
healthier alternatives to their regular products, as was witnessed especially in nutrition and staples
products, with a focus on whole wheat, and organic food and beverages (which remained negligible in
size), and by adding variants to their existing products, such as better-for-you (BFY), to answer consumer
demand.

Euromonitor International has noted that, reduced fat and reduced sugar products also saw increased
shelf-space, especially in ice cream, dairy, confectionery and oils and fats. The manufacturers are also
ensuring that the product labels clearly communicate any health benefits. For this reason, many product
labels clearly mention the inclusion of nutrients such as vitamins and minerals, whole wheat content,
cholesterol-free and pre-probiotic in order to attract consumers’ attention.

Page | 5
Impulse and Indulgence Products

Main Categories

• In impulse and indulgence products saw strong growth in 2014, reaching almost 11% increase in
sales from 2013.
• The expanding retail infrastructure in all Saudi Arabia is playing a major role the sales growth in the
indulgence sector.
• Confectionery is predicted to see the strongest growth, at 13% in current value terms, US$1.6 billion
and 7.1% in volume in 2014 from the previous year.

Category Leader

• Master Foods Middle East remains the leader in impulse and indulgence products in 2014 with 8.5%
market share, followed by Saudi Snack Foods Co. with 5.4%, and International Foodstuffs Co. with
3.6%. However, the sector remains highly fragmented.

Forecasts for 2015-2019

• Retail sales of impulse and indulgence products are forecast to grow by 9% by 2019. Sweet and
savoury snacks expected to grow by 13.5%, cakes will likely grow by 9.6%, and confectionery will
keep its growth pace to 9.1% over the same period.

• Euromonitor predicts a significantly positive development in volume and value growth in impulse and
indulgence products over the forecast period of 2015-2019, in nearly all categories

Retail Volume Sales of Impulse and Indulgence Products in Saudi Arabia, by Segment
Historic in Thousand Tonnes and Period Growth (%)
%CAGR
Categories 2009 2010 2011 2012 2013 2014E
2009-14
Total Impulse and indulgence
480.9 504.9 536.9 573.5 612.6 654.3 6.4%
products
Pastries 162.2 171.0 181.2 194.4 207.7 221.1 6.4%
Biscuits 86.7 91.4 96.1 101.7 107.6 114.1 5.6%
Confectionery 72.1 75.4 83.0 88.7 95.2 101.8 7.1%
Sweet and Savoury Snacks 58.0 60.6 64.4 69.4 74.8 81.5 7.1%
Cakes 58.0 60.3 64.3 68.7 73.7 79.3 6.5%
Ice Cream 43.2 45.3 47.1 49.7 52.6 55.6 5.2%
Snack Bars 0.7 0.8 0.9 0.9 0.9 0.9 5.2%

Retail Volume Sales of Impulse and Indulgence Products in Saudi Arabia, by Segment
Forecast in Thousand Tonnes and Period Growth (%)
% CAGR
Categories 2015 2016 2017 2018 2019
2015-19
Total Impulse and indulgence
700.1 750.1 803.8 861.8 924.5 9.0%
products
Pastries 235.3 250.7 266.7 283.5 300.9 8.0%
Biscuits 121.1 128.6 136.5 144.7 153.4 7.7%
Confectionery 108.9 116.7 125.1 134.3 144.3 9.1%
Sweet and savoury snacks 89.4 98.5 109.0 121.1 135.1 13.5%
Cakes 85.5 92.1 99.0 106.5 114.3 9.6%
Ice cream 59.0 62.6 66.5 70.8 75.3 7.9%
Snack bars 1.0 1.0 1.1 1.1 1.2 5.4%
Source for all: Euromonitor international, 2014 E: 201 4 figures are estimates based on partial-year data
CAGR= Compound Annual Growth Rate.
Page | 6
Retail Sales of Impulse and Indulgence Products in Saudi Arabia, by Company Shares
(by National Brand Owner) % Breakdown Based on Retail Sales Value

Companies 2010 2011 2012 2013 2014E
Master Foods Middle East FZE 7.6 7.9 8.2 8.4 8.6
Saudi Snack Foods Co 5.3 5.4 5.3 5.3 5.4
International Foodstuffs Co 2.8 3.1 3.4 3.6 3.6
National Biscuits & Confectionery Co Ltd 3.1 3.1 3.1 3.0 3.1
Saudi Food Industries Co Ltd 3.0 3.0 2.8 2.8 2.9
Nabisco Arabia Co Ltd (NAARCO) 2.0 2.1 2.2 2.3 2.3
Deemah - United Food Industries Corp Ltd 2.5 2.4 2.4 2.3 2.3
Ferrero SpA 1.0 1.6 2.0 2.0 2.1
Cadbury Ltd 1.8 1.8 1.8 1.9 1.9
Procter & Gamble Arabia 1.9 1.8 1.8 1.7 1.6
Artisanal 33.5 32.9 32.8 32.6 32.3
Private Label 0.1 0.1 0.1 0.1 0.1
Others 15.8 15.3 14.7 15.0 14.8
Source: Euromonitor international, 2014 E: 2014 figures are estimates based on partial-year data

Meal Solutions

Main Category

• The meal solutions category was expected to see value growth of 7.8% in 2014, to reach sales of
US$1.6 billion.
• Manufacturers are putting greater emphasis on convenience which is driving growth in several
categories
• The highest growth in 2014 was registered in the frozen and chilled processed food categories with
12% and 9.6% respectively.

Category Leader

• The top 3 companies held close to 25% of the market in the meals solution category. National Food
Co (Americana Cake) leads with 11.2% and Basamh Trading Co and Halwani Bros Co held 7.5% and
5.9% respectively, in 2014.

Forecasts for 2015-2019

• A growing demand for meal solutions and for convenience food is expected, as more women enter
the work force. Furthermore, lifestyles are expected to get even busier as this trend accelerates,
pushing stronger new product development activities by manufacturers.
• Meal solutions will see a value CAGR of 4.8% and 5.2% in volume, during the 2015-2019 period,
according to Euromonitor.

Page | 7
Retail Volume Sales of Meal Solutions in Saudi Arabia, by Segment
Historic in Thousand Tonnes and Period Growth (%)

% CAGR
Categories 2009 2010 2011 2012 2013 2014*
2009-14
Total Meal solutions 284.3 295.0 306.1 317.8 328.0 340.2 3.7%
Canned/preserved food 95.8 99.2 102.9 107.1 108.7 110.1 2.8%
Sauces, dressings and condiments 87.5 91.1 94.8 98.8 102.4 106.1 3.9%
Frozen processed food 79.9 82.6 85.6 89.0 93.4 99.8 4.6%
Chilled processed food 13.7 14.2 14.7 14.5 14.9 15.4 2.4%
Dessert mixes 3.7 3.8 3.9 4.0 4.2 4.2 2.9%
Soup 2.6 2.7 2.9 3.0 3.1 3.2 4.0%
Ready meals 1.2 1.2 1.3 1.3 1.4 1.4 3.6%
Dinner mixes - - - - - - -
S ource: Euromonitor international, 2014 Note*: 2014 figures are estimates based on partial-year data

Retail Volume Sales of Meal Solutions in Saudi Arabia, by Segment
Forecast in Thousand Tonnes and Period Growth (%)

% CAGR
Categories 2015 2016 2017 2018 2019
2015-19
Total Meal Solutions 354.2 370.5 389.0 410.3 434.4 5.2%
Frozen processed food 107.0 115.2 124.6 135.4 147.8 8.4%
Sauces, dressings and condiments 110.3 115.3 121.0 127.5 134.9 5.2%
Canned/ preserved food 111.7 113.4 115.5 117.7 120.3 1.9%
Chilled processed food 16.1 17.1 18.1 19.3 20.7 6.4%
Dessert mixes 4.3 4.5 4.7 4.9 5.2 4.4%
Soup 3.3 3.5 3.7 3.8 4.0 4.7%
Ready meals 1.4 1.5 1.5 1.6 1.6 3.2%
Dinner mixes - - - - - -
Source: Euromonitor international, 2014

Retail Sales of Meal Solutions in Saudi Arabia, by Company Shares
(by National Brand Owner) % Breakdown Based on Retail Sales Value

Companies 2010 2011 2012 2013 2014*
National Food Co (Americana Cake) 9.7 10.0 10.0 10.5 11.2
Basamh Trading Co 6.6 7.2 7.5 7.5 7.5
Halwani Bros Co 5.5 5.6 5.6 5.8 5.9
National Food Industries Co Ltd 5.6 5.4 5.3 5.2 5.1
Basamh Marketing Co 4.2 4.6 4.9 4.9 5.0
Sunbulah Food & Fine Pastries Mfg Co Ltd 4.2 4.2 4.3 4.6 4.8
Saudi Food Industries Co Ltd 5.0 4.9 4.8 4.6 4.5
Gulf Food Industries 3.7 3.6 3.5 3.3 3.2
Pure Food Ltd 2.1 2.2 2.3 2.2 2.2
Bolton Alimentari SpA 2.6 2.4 2.2 2.2 2.2
Others 27.9 26.9 26.2 25.7 24.7
S ource: Euromonitor international, 2014 Note*: 2014 figures are estimates based on partial-year data

Page | 8
PACKAGED FOOD MARKET LEADERS

Local manufacturer Almarai Co. Ltd., has led the Saudi packaged food market in terms of market share
over the few years. The success of Almarai Co. Ltd. is attributed to the popularity of the company’s brand,
product innovation and marketing tactics such as television advertising, in-store promotions and customer
communications. The company’s production capacity, competitive pricing and distribution, as well as the
acquisition of small-scale suppliers (a strategy especially practiced by Almarai), are also key factors in its
rise to market leader. Into the near future, Almarai is expected to continue its dominance in the Saudi
packaged food market due to these activities (Euromonitor, 2014).

However, international companies are growing in importance in Saudi Arabia. In 2014, it was estimated
that Nestlé SA, Danone Groupe and Mars Inc. held 5.6%, 4.3% and 2.9% of the Saudi packaged food
market, respectively. In the future, the role of international companies will increase competition as they
respond to the dominance of local manufacturers.

Retail Sales of Packaged Food in Saudi Arabia, by Company Shares (by Global Owner)
% Breakdown Based on Retail Sales Value

Companies 2011 2012 2013 2014E
Almarai Co Ltd 9.3 9.5 9.7 9.5
Nestlé SA 4.3 5.4 5.5 5.6
Danone, Groupe 4.2 4.2 4.2 4.3
Savola Group 2.8 3.0 3.1 3.3
Mars Inc 2.6 2.7 2.8 2.9
Abdul-Kadir Al Muhaidib & Sons Group 2.6 2.6 2.5 2.3
IFFCO Group 2.1 2.2 2.2 2.3
Mondelez International Inc - 2.1 2.2 2.2
Saudi Dairy & Foodstuff Co Ltd (SADAFCO) 1.8 1.8 1.8 1.8
Americana Group 1.8 1.8 1.7 1.8
Source: Euromonitor international, 2014 E: 2014 figures are estimates based on partial-year data

PACKAGED FOOD IN FOODSERVICE

Eating out is a regular part of social life in Saudi Arabia. This is partly due to the lack of other
entertainment options in the country. Consequently, shopping or eating out is among the most popular
leisure activities, and many Saudi consumers frequent fast food establishments, full service restaurants or
cafés for entertainment.

In addition to local consumption, each year, approximately seven million Muslims visit Saudi Arabia to
pray at the Holy Mosques in Mecca and Medina. These pilgrimages, referred to as religious tourism,
account for 50% of tourism in the country. These influxes of tourists with varying international tastes are
increasing demand for foodservice, and potentially affecting packaged food sales during religious
holidays.

The foodservice industry in Saudi Arabia has been rapidly growing over the past decade. Consumption
patterns as well as their work and lifestyle changes, have led to an increased frequency of eating outside
the home and doing more in-country travel.

They are more than seven million expatriates that live and work in Saudi Arabia that also creates demand
for greater diversity and ethnic foods in both the foodservice and the package food sectors.

Page | 9
Foodservice Volume Sales of Packaged Food in Saudi Arabia, by Category
Historic in Thousand Tonnes and Period Growth (%)

(%)
Categories 2009 2010 2011 2012 2013 2014E CAGR*
2009-14
Total Packaged Food 1,163.9 1,220.4 1,279.3 1,341.1 1,407.8 1,476.8 4.9%
Nutrition/Staples 964.0 1,012.9 1,064.2 1,118.0 1,175.6 1,234.9 5.1%
Bakery 436.6 456.6 475.9 497.4 521.2 543.9 4.5%
Dried Processed Food 294.7 311.5 330.0 348.4 366.5 386.7 5.6%
Dairy 237.6 250.3 264.1 278.1 294.0 310.3 5.5%
Meal Solutions 144.2 148.8 153.4 158.3 164.2 170.3 3.4%
Frozen Processed Food 68.9 70.9 72.8 74.7 77.0 79.6 2.9%
Impulse and Indulgence Products 55.8 58.8 61.7 64.9 68.2 71.7 5.1%
Sauces, Dressings and Condiments 54.1 56.2 58.4 60.8 63.6 66.5 4.2%
Oils and Fats 41.0 42.9 45.2 47.7 50.4 53.4 5.4%
Canned/Preserved Food 16.7 17.1 17.4 17.9 18.4 19.0 2.6%
Ice Cream 4.8 5.1 5.2 5.4 5.6 5.9 3.9%
Pasta 4.2 4.3 4.5 4.6 4.7 4.9 3.3%
Chilled Processed Food 3.6 3.7 3.8 3.9 4.1 4.2 3.5%
Spreads 2.1 2.2 2.3 2.4 2.6 2.7 5.4%
Sweet and Savoury Snacks 2.5 2.5 2.5 2.6 2.6 2.7 1.8%
Confectionery 1.5 1.6 1.7 1.8 1.9 2.0 5.3%
Noodles 1.5 1.6 1.6 1.7 1.8 1.8 3.9%
Soup 0.5 0.5 0.6 0.6 0.6 0.6 2.9%

Foodservice Volume Sales of Packaged Food in Saudi Arabia, by Category
Forecast in Thousand Tonnes and Period Growth (%)

% CAGR*
Categories 2015 2016 2017 2018 2019
2015-19
Total Packaged Food 1,549.9 1,631.8 1,719.9 1,813.8 1,915.7 5.4%
Nutrition/Staples 1,297.3 1,367.3 1,442.5 1,522.3 1,608.9 5.5%
Bakery 569.2 594.0 620.8 650.3 682.5 4.6%
Dried Processed Food 406.7 433.1 460.5 491.5 525.7 6.6%
Dairy 327.2 345.8 366.6 385.7 405.7 5.5%
Meal Solutions 177.5 185.5 194.2 203.9 214.7 4.9%
Frozen Processed Food 82.5 85.8 89.4 93.5 97.9 4.4%
Impulse and Indulgence Products 75.3 79.2 83.3 87.6 92.2 5.2%
Sauces, Dressings and Condiments 69.8 73.6 77.7 82.3 87.4 5.8%
Oils and Fats 56.7 60.3 64.0 67.9 72.0 6.2%
Canned/Preserved Food 19.6 20.3 21.1 21.9 22.9 3.9%
Ice Cream 6.1 6.4 6.7 7.0 7.3 4.4%
Pasta 5.1 5.3 5.6 5.8 6.1 4.7%
Chilled Processed Food 4.4 4.6 4.8 5.0 5.3 4.6%
Spreads 2.8 3.0 3.1 3.3 3.5 5.2%
Sweet and Savoury Snacks 2.8 2.8 2.9 3.0 3.1 3.3%
Confectionery 2.1 2.2 2.3 2.4 2.6 5.4%
Noodles 1.9 2.0 2.1 2.2 2.3 4.9%
Soup 0.6 0.7 0.7 0.7 0.8 4.8%

Source for all: Euromonitor international, 2014 E: 2014 figures are estimates based on partial-year data
C AGR: Compound Annual Growth Rate

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