|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD 449.76 Million
|
|
CAGR
(2023-2028)
|
10.23%
|
|
Fastest
Growing Segment
|
Sweet
Biscuits
|
|
Largest
Market
|
Western
|
Market Overview
Saudi Arabia Biscuit Market has valued at USD 449.76 million in
2022 and is anticipated to project robust growth in the forecast period with a
CAGR of 10.23% through 2028. Saudi Arabia's biscuit industry has experienced
significant growth in recent years, reflecting the nation's evolving consumer
preferences and economic development. Biscuits, often referred to as
"biscuits" in the region, have become a staple in Saudi households
and are enjoyed with tea or coffee, especially during the traditional Arabic
coffee gatherings.
Local and international brands compete in this market,
offering a wide variety of biscuits to cater to diverse tastes. Traditional
favorites like ma'amoul (shortbread filled with dates or nuts) and petit fours
remain popular, but newer, innovative flavors and textures have also gained
ground.
As a predominantly Muslim country, Saudi Arabia follows halal
dietary guidelines, which have influenced the ingredients and production
processes used in biscuit manufacturing. This ensures that biscuits comply with
Islamic dietary laws and are permissible for consumption by Muslims.
The biscuit industry has benefited from Saudi Arabia's
thriving hospitality sector and its commitment to promoting local industries,
with many hotels and restaurants using locally produced biscuits. Moreover, the
government's diversification efforts, such as Vision 2030, have encouraged the
growth of domestic industries, including the biscuit market. As a result, Saudi
Arabia's biscuit industry is poised for continued expansion, both domestically
and for potential export opportunities to neighboring countries and beyond.
Key Market Drivers
Cultural Preferences and Traditions
Saudi Arabia has a rich culinary tradition with a preference
for sweet treats, especially during special occasions and festivals. Biscuits,
locally known as "biscuits," are deeply ingrained in the Saudi
culture. They are often enjoyed during the daily ritual of drinking Arabic
coffee (qahwa) or tea. Traditional biscuit favorites like ma'amoul, which are
shortbread cookies filled with dates or nuts, and petit fours, a variety of
small, delicate pastries, have been enjoyed for generations. The cultural
significance of biscuits as a symbol of hospitality and a gesture of warmth and
welcome makes them a vital part of Saudi Arabian cuisine. These cultural
preferences and traditions have been the driving force behind the consistent
demand for biscuits in the country.
Rapid Economic Growth and Urbanization
Saudi Arabia has undergone significant economic development
over the past few decades, transforming from an oil-dependent economy to a more
diversified one as part of its Vision 2030 plan. This economic growth has led
to increased urbanization, higher disposable incomes, and changing lifestyles
among the population. As a result, consumers in Saudi Arabia have become more brand
conscious and demanding of high-quality, convenient, and diverse food products,
including biscuits. With greater access to international brands and a wide
range of choices, consumers are exploring various biscuit options, from
traditional to innovative flavors and textures. The urban lifestyle, with busy
work schedules and on-the-go snacking, has also fueled the demand for
convenient biscuit products, further propelling the industry's growth.
Halal Certification and Compliance
As a predominantly Muslim country, Saudi Arabia follows
strict halal dietary guidelines. Halal, meaning "permissible" in
Arabic, refers to food and beverages that comply with Islamic dietary laws.
This includes the sourcing of ingredients, food preparation, and the overall
production process. The Saudi Arabian biscuit industry is no exception, with a
strong emphasis on ensuring that biscuits are produced in accordance with halal
standards. This commitment to halal certification is not only crucial for domestic
consumption but also opens the doors for export opportunities to other
Muslim-majority countries. Biscuit manufacturers in Saudi Arabia must adhere to
halal requirements, and this has become a driving factor in shaping the
industry and ensuring that all biscuits produced are compliant with Islamic
dietary laws, expanding their market reach and appeal.
Government Initiatives and Vision 2030
The Saudi Arabian government has been actively promoting the
growth of domestic industries as part of its Vision 2030 plan, which seeks to
diversify the nation's economy and reduce its dependence on oil revenue. The
biscuit industry is no exception to these initiatives, as it aligns with the
government's goals to boost local manufacturing and create jobs. The
government's support, such as financial incentives, regulatory reforms, and
infrastructure development, has encouraged investment in the biscuit sector.
Additionally, Vision 2030's emphasis on increasing non-oil exports has led to
greater interest in exporting Saudi-made biscuits to international markets. As
a result, the biscuit industry in Saudi Arabia is experiencing growth and
expansion, creating opportunities for both established manufacturers and new
entrants.
In conclusion, the Saudi Arabian biscuit industry is driven
by a combination of cultural preferences, economic growth, adherence to halal
standards, and government initiatives. The rich cultural traditions, economic
development, and changing lifestyles of the population have led to a growing
demand for biscuits. Ensuring that these biscuits comply with halal dietary
guidelines not only caters to the local market but also opens doors for exports
to a broader Muslim-majority audience. Furthermore, government initiatives,
such as Vision 2030, have created a favorable environment for the industry's
growth. These four drivers collectively contribute to the ongoing evolution and
success of the biscuit industry in Saudi Arabia.
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Key Market Challenges
Market Competition and International
Brands
The Saudi Arabian biscuit industry faces stiff competition
from international brands and products. While the demand for biscuits in the
country is high, many consumers have a preference for well-established foreign
brands. These international brands often have a long-standing reputation for
quality and variety, which can make it challenging for local producers to
capture a significant market share. The presence of international brands also
means that local producers must continually innovate and maintain high
standards to remain competitive. This intense competition can be a barrier for
smaller, domestic manufacturers trying to establish themselves in the market.
Changing Consumer Preferences and Health
Concerns
As Saudi Arabia undergoes economic development and
urbanization, consumer preferences for food products, including biscuits, are
evolving. There is a growing awareness of health and nutrition, and many
consumers are becoming more health-conscious, looking for products with lower
sugar content, whole grains, and natural ingredients. This shift in preferences
poses a challenge for the traditional biscuit industry, which often relies on
sweet, indulgent flavors and ingredients. Meeting these changing demands while
maintaining the essence of traditional biscuit flavors is a balancing act that
local manufacturers must navigate. Adapting to these evolving consumer
preferences and addressing health concerns can be a significant challenge for
the industry.
Supply Chain and Ingredient Sourcing
The biscuit industry in Saudi Arabia heavily relies on the
availability of raw materials and ingredients. However, the country's harsh
climate and limited agricultural production can pose challenges in sourcing
certain ingredients. For example, wheat, a key ingredient in many biscuit
recipes, is not grown in significant quantities in Saudi Arabia due to its arid
environment. This necessitates the importation of wheat and other raw
materials, which can lead to supply chain disruptions, cost fluctuations, and
vulnerability to international market conditions. The industry's dependence on
imported ingredients makes it susceptible to global factors, such as
fluctuations in international commodity prices and trade restrictions.
Regulatory and Halal Compliance
While adherence to halal standards is a driver for the Saudi
Arabian biscuit industry, it also presents challenges, particularly in terms of
compliance with complex regulatory requirements. The strict regulations
surrounding the halal certification process can be time-consuming and costly
for biscuit manufacturers. Ensuring that every ingredient and production
process adheres to halal guidelines requires meticulous oversight and
documentation. Additionally, there may be occasional changes or updates in halal
standards that manufacturers need to stay abreast of, adding to the complexity
of maintaining compliance. Failure to meet these requirements can result in a
loss of consumer trust and legal repercussions, so manufacturers must invest in
ensuring that their products remain halal.
In conclusion, the Saudi Arabian biscuit industry faces
challenges related to market competition, evolving consumer preferences,
ingredient sourcing, and regulatory compliance. The industry's competitiveness
with international brands, changing consumer demands, the dependence on
imported ingredients, and the need to navigate complex halal certification
processes all present hurdles for local manufacturers. Overcoming these
challenges requires innovation, adaptability, and a commitment to quality and
compliance with both cultural and regulatory standards. Addressing these issues
is vital for the continued growth and success of the biscuit industry in Saudi
Arabia.
Key Market Trends
Health-Conscious Biscuits
One notable trend in the Saudi biscuit market is the growing
demand for healthier biscuit options. As consumers become more health-conscious
and aware of the nutritional content of the food they consume, there is a shift
towards biscuits that are lower in sugar, salt, and saturated fats.
Manufacturers are responding by introducing biscuits with healthier
ingredients, such as whole grains, seeds, and natural sweeteners. These
biscuits cater to consumers looking for guilt-free indulgence and are marketed as
a better-for-you snack option. Additionally, there is a focus on providing
gluten-free and allergen-free options to meet the dietary needs of a broader
audience.
This trend aligns with global concerns about obesity and
lifestyle diseases, and it reflects Saudi Arabia's commitment to improving
public health. Biscuit manufacturers are reformulating recipes to meet these
demands, and as a result, the market is witnessing the emergence of a variety
of "healthier" biscuits that are also delicious and satisfying.
Flavor Innovation and Fusion
To cater to diverse consumer tastes and preferences, the
biscuit industry in Saudi Arabia is experiencing a trend towards flavor
innovation and fusion. Traditional flavors like dates, cardamom, and pistachio
are still popular, but there is a growing appetite for unique and exciting
flavor combinations. Manufacturers are experimenting with bold and exotic
flavors, such as saffron, rosewater, and even international tastes like
chocolate and caramel.
This trend is driven by a desire to differentiate products
and create a sense of novelty. It is also influenced by the cosmopolitan nature
of Saudi society, with a diverse population that appreciates a variety of
global cuisines. As a result, biscuit brands are introducing fusion flavors
that blend local and international influences, creating a sense of excitement
and adventure for consumers. Flavor innovation is a powerful tool for
attracting new customers and maintaining the interest of loyal ones.
E-Commerce and Online Sales
Like many other industries, the biscuit sector in Saudi
Arabia is experiencing the digital transformation of retail. With the
widespread use of smartphones and increasing internet penetration, e-commerce
has become a prominent sales channel for biscuits. Consumers are opting for the
convenience of online shopping, and this trend has accelerated, especially in
light of the COVID-19 pandemic, which underscored the importance of e-commerce
for businesses and consumers alike.
Biscuit manufacturers and retailers are investing in
user-friendly websites and mobile apps to facilitate online purchases.
Additionally, they are implementing various digital marketing strategies to
attract online shoppers. This includes using social media, influencer
marketing, and online advertising to engage with customers. The ease of online
ordering and home delivery services has opened new avenues for reaching a
broader customer base, including those in remote areas. As a result, e-commerce
is poised to play a significant role in the future of the Saudi biscuit market.
Sustainability and Corporate
Responsibility
The trend towards sustainability and corporate responsibility
is gaining momentum in the biscuit industry in Saudi Arabia. Manufacturers are
increasingly aware of the environmental impact of their operations and are
taking steps to minimize it. This includes efforts to reduce packaging waste,
optimize energy consumption, and source ingredients responsibly. Many brands
are now incorporating eco-friendly packaging and promoting recycling practices
to minimize their carbon footprint.
Additionally, there is a growing emphasis on corporate social
responsibility (CSR) initiatives. Companies are engaging in philanthropic
activities, supporting local communities, and contributing to social causes.
These efforts not only enhance brand image but also align with the values of a
socially conscious consumer base. Brands that demonstrate their commitment to
sustainability and CSR are finding favor with consumers, especially among
younger, environmentally aware demographics.
In conclusion, the Saudi Arabian biscuit industry is
witnessing several key trends that reflect the evolving preferences and
dynamics of the market. Health-conscious biscuits, flavor innovation, the rise
of e-commerce, and a focus on sustainability and corporate responsibility are
shaping the industry's present and future. As consumer expectations continue to
change and diversify, manufacturers are adapting to these trends to meet the
demands of a dynamic and increasingly sophisticated market. These trends not
only present challenges but also opportunities for growth and differentiation
in the competitive biscuit landscape of Saudi Arabia.
Segmental Insights
Type Insights
Sweet biscuits have emerged as the fastest-growing segment in
the Saudi Arabian biscuit market. This surge in popularity can be attributed to
changing consumer preferences and lifestyle choices. As the nation undergoes
rapid urbanization and economic development, the demand for sweet biscuits has
soared. These biscuits serve as convenient snacks, accompaniments to
traditional Arabic coffee gatherings, and indulgent treats for various
occasions.
Consumers are increasingly seeking a wide range of flavors,
textures, and indulgent experiences in their sweet biscuits. Manufacturers are
responding by introducing innovative and diverse offerings, from classic
date-filled ma'amoul to exotic and fusion flavors. Additionally, the desire for
healthier yet delicious options has led to the development of sweet biscuits
that cater to this demand.
As a result, the sweet biscuit segment is thriving, providing
opportunities for both established and emerging brands to capture a growing
market share in Saudi Arabia. This trend underscores the importance of adapting
to changing consumer tastes and preferences in the ever-evolving biscuit
industry.
Sales Channel Insights
Online sales have become a rapidly growing segment in the
Saudi Arabian biscuit market. With the increasing penetration of the internet
and the convenience of e-commerce, consumers are turning to online platforms to
purchase their favorite biscuits. The COVID-19 pandemic further accelerated
this trend as consumers sought contactless shopping options.
Biscuit manufacturers and retailers are responding by
enhancing their digital presence and creating user-friendly websites and mobile
apps. They are also employing various digital marketing strategies, including
social media and online advertising, to engage with consumers and drive sales.
The convenience of online ordering and home delivery services appeals to busy
urban lifestyles and consumers in remote areas.
This shift to online sales not only offers a convenient
shopping experience but also opens up opportunities for reaching a wider
customer base. As a result, online sales have become a dynamic and rapidly
growing segment in the Saudi Arabian biscuit market, reshaping the way
consumers access and enjoy their favorite biscuit brands.
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Regional Insights
The Western region of Saudi Arabia stands out as the
dominating hub in the country's biscuit market. This prominence can be
attributed to several factors, including the region's high population density, urbanization,
and economic development. Cities like Jeddah and Riyadh, located in the Western
region, serve as major commercial and cultural centers, attracting a diverse
consumer base.
Additionally, the Western region is a melting pot of various
cultures and influences, with a significant expatriate population and a growing
number of international residents. This diversity in population translates into
diverse tastes and preferences, creating a robust demand for a wide range of
biscuit products, including traditional Middle Eastern varieties and
international favorites.
Moreover, the Western region's well-developed infrastructure,
including extensive retail networks and e-commerce platforms, further
facilitates the distribution and sale of biscuits. As a result, biscuit
manufacturers and retailers concentrate their efforts in the Western region,
making it the dominant and thriving sector within the Saudi Arabian biscuit
market.
Recent Developments
- In May 2023, The International Biscuits Company (IBC) created
quite a show with a huge re-launch ceremony. A glider carrying a massive 30X
1Om Rico Biscuits flag flew over the Jeddah Corniche, leaving thousands of
witnesses speechless. This occasion also served as the official debut of the
freshly packaged Rico biscuits, ushering in a new chapter in the company's
history.
- In June 2023, Bangladeshi Biscuits established a significant
foothold in the Saudi Arabian market, taking about one-third of the market. The
biscuits, known for their variety of sweet, plain, and savoury tastes, saw a
boom in demand, which was mostly attributed to Saudi Arabia's growing
Bangladeshi population. This development demonstrates Bangladeshi Biscuits'
worldwide success.
Key Market Players
- Mondelez AMEA
- The Kellogg Company
- Britannia Industries Limited
- Food Manufacturers Co FMC (Ulker)
- Gandour
- International Foodstuffs Co (IFFCO)
- NationalBiscuits Confectonery Co. Ltd.
- Nationalfood Company-Americana Cake
- Deemah United Food Industries Corp. Ltd. Co
- Al Wefag Trading & Manufacturing (Haweek)
|
By
Type
|
By Packaging
|
By Sales Channel
|
By Region
|
- Crackers & Savory Biscuits
- Sweet Biscuits
|
- Pouches/Packets
- Boxes
- Cans/Jars
- Others
|
- Supermarkets/Hypermarkets
- Specialist Retailers
- Departmental Stores
- Online
- Others
|
- Western
- Northern & Central
- Eastern
- Southern
|
Report Scope:
In this report, the Saudi Arabia Biscuit market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- Saudi Arabia Biscuit
Market, By Type:
o Crackers & Savory Biscuits
o
Sweet
Biscuits
- Saudi Arabia
Biscuit Market, By Packaging:
o Pouches/Packets
o Boxes
o Cans/Jars
o
Others
- Saudi Arabia Biscuit
Market, By Sales Channel:
o Supermarkets/Hypermarkets
o Specialist Retailers
o Departmental Stores
o Online
o Others
- Saudi Arabia Biscuit
Market, By Region:
o Western
o Northern & Central
o Eastern
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major
companies presents in the Saudi Arabia Biscuit market.
Available Customizations:
Saudi Arabia Biscuit Market report with the given
market data, Tech Sci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
Saudi Arabia Biscuit Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]