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Evolution of Health and Wellness Food Products in Saudi Arabia to Amplify Growth of Breakfast Cereals Market: Ken Research

Saudi Arabia’s unstable economy in the recent years has led to inflation of various grocery products. Few grocery products in Saudi Arabia did not witness a decline in consumption; however, a few other categories have slowed major fall in demand due to their high prices. Breakfast cereals prices have risen due to the country’s slowed economy. Saudi Arabia ranks 20th in the bakery products market around the world while generating huge revenue for the country. Mondelez International Inc is the leading international bakery company that introduced bakery products sector in Saudi Arabia.

Saudi Arabia had witnessed a severe shortage of labour in the recent years and the government started the Nitaqat program which had an inverse impact over the market. This program is an initiative to encourage businesses to hire Saudi nationals and had a negative impact on the traditional grocery retailers and bakeries. Traditional grocery retail market accounts for a major share of bakery products causing it the biggest retail channel for bakery sales in Saudi Arabia with products such as unpackaged breads, cakes, and pastries. The distribution channels of the breakfast cereals in Saudi are through hypermarkets, supermarkets, convenience stores, department stores, e-Retailers, and other general retailers.

Recent studies indicate that about 807 new bakery products were launched in Saudi Arabia in the recent years. 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. In 615 products white sugar, salt, and wheat flour are the most commonly used ingredients along with vegetable oils, palm oil, skimmed milk powder, and disodium diphosphate.  Also, 47% of the new bakery products were domestic, while other imported products were originated in the United Arab Emirates, Italy or Turkey. Consumers are increasing their preference for international bakery products rather than country made bakery products.

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. The domestic leading player in Saudi Arabia’s bakery product industry is Almarai Co. Ltd. The various bakery products in Saudi are crispbread, gingerbread, sweet biscuits, toasted bread, rusks, wafers, waffles and other bakery products. The bakery products market in Saudi Arabia is estimated to grow at a rapid rate due to the increasing population. The bakery product is a subsector within bakery products category and witnesses a huge growth in terms of sales and volumes. Overall, Saudi Arabia’s both traditional and modern grocery retail market is thriving continuously and will witness a continuing growth over the next five years.

Biscuits market in Saudi has witnessed a strong performance and the growth is continuing over the recent years. The biscuit category consists of Savoury biscuits and sweet biscuits. Yildiz holding as is the domestic leading player in Saudi Arabia along with four international companies.

Breakfast cereals in Saudi include all forms of pre-packaged cereals whether eaten hot or cold and also include porridge oats, oatmeal and prepackaged cereal/milk kits. The breakfast cereal sector is the smallest sub-sectors within the bakery category in Saudi Arabia. The increasing population and with increasing families with dual income has led to more dependence on breakfast cereals due to lack of time. The breakfast cereal subsector is classified into three categories for children, family breakfast cereal, and hot cereal. The family breakfast cereal holds the largest share of more than 50% of retail volume of the cereals market, followed by children’s breakfast cereals and hot cereals.

Breakfast cereals were not a part of the daily breakfast in the typical traditional Saudi Arabian household. However, the dynamic changes of households where women entering the workforce, demand has uplifted for easy breakfast cereals. The leading players in Saudi’s breakfast cereals are all multinationals such as Kellogg Co., General Mills Inc., PepsiCo Inc., Cereal Partners Worldwide SA, and Post Holdings Inc. These five competitors in Saudi Arabia collectively control more than half the breakfast cereal market along with other small players accounting for the remaining market. The breakfast cereal market in Saudi will witness a steady continuing growth over the next few years.

Key Topics Covered in the Report

Breakfast Cereals Market in Saudi Arabia

Saudi Arabia Cereals Market Revenue

Cereals Consumption in Saudi Arabia

Bakery Products Market In Saudi Arabia

Breakfast Cereals Future Outlook in Saudi Arabia

Saudi Arabia Cereals Market Research Report

Pre-Packaged Cereals Market in Saudi Arabia

Oatmeal Consumption in Saudi Arabia

Saudi Arabia Breakfast Cereal Retail Sales

Mondelez International Inc Market Share

Almarai Co. Ltd Market Share

Saudi Arabia Breakfast Cereal Market Competition

Saudi Arabia Breakfast Cereal Market Trends and Developments

Saudi Arabia Breakfast Cereals Trade

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Contact Us:

Ken Research

Ankur Gupta, Head Marketing & Communications

[email protected]


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Evolution of Health and Wellness Food Products in Saudi Arabia to Amplify Growth of Breakfast Cereals Market: Ken Research


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