New product development, marketing, promotion, and distribution strategies will be critical to success, finds Frost & Sullivan’s Visionary Science, Agriculture & Nutrition Team

Dubai, U.A.E., 11 September, 2017

The Kingdom of Saudi Arabia’s (KSA) food industry is undergoing a transformation with new societal trends such as social media, the internet, changing consumer purchasing patterns, urbanisation, and fast-paced lifestyles impacting its dietary habits. Furthermore, Government initiatives for food security and planned economic diversification are opening up tremendous untapped growth opportunities. In a competitive ecosystem, successful players will be those that pursue new product development, marketing, promotion, and distribution strategies. 

Frost & Sullivan’s research, “Packaged Foods Market in the Kingdom of Saudi Arabia,” finds that the total food industry in KSA accounted for 12% of its GDP in 2016 and is expected to grow at a CAGR of 5.9% from 2016 through to 2020. Chocolate confectionery, frozen foods, chilled processed foods, and snacks are the key growth segments. The study emphasizes on Mega and micro trends impacting the industry, drivers, restraints, key sales channels, major competitors, top segments for investments, forecasted demand and growth opportunities within the market.

“With all major supermarkets and hypermarkets in expansion mode, the private label segment is poised to experience significant growth over the next four years. An increase from 5% to 10-15 % is expected by 2020,” said Frost & Sullivan Visionary Science Consultant David Anil Kumar. “Major hypermarkets such as Danube and Carrefour are starting to promote their own private label-branded products that carry a perception of quality, while still being affordable.”

Current growth opportunities lie in:

  • Targeting specific needs such as convenience, ease of preparation, health, and innovation;
  • Building product innovation and differentiation through new flavours, formats, fancy packaging, fortification with nutrients, cooking processes, and “healthy” options;
  • Focusing on high-growth segments such as chocolate confectionery, frozen foods, chilled processed foods and snacks;
  • Investing in new products and targeting the younger population to expand market share;
  • Providing western foods or a fusion of western and native tastes for a large expat community and adventurous consumers; and
  • Developing a clear digital and social media-based promotional strategy to enhance brand equity among the younger generation.

Source: Frost & Sullivan

Illustration Photo: Frozen food (Public Domain from


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