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kenresearchblog · 7 years ago

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Saudi Arabia Canned Food Market Facing Trouble Putting the Lid on Thinning Customer Base : Ken Research

Product and Packaging Innovation in Canned Food Market

According to Chitwan Tayal, Market Research Associate at Ken Research, “Canned food market can be aided by introduction of new product categories and investment in packaging innovation. Organic food can be introduced in canned form to deliver health with convenience. Additionally, packaging innovation can be carried out in terms of non-BPA cans, recyclable cans and differentiated labeling based on target audience.”

Ken Research estimates that the canned food market in Saudi Arabia is expected to grow at CAGR of 1.9% for the next five years to reach around USD 509.9 million by 2022.”

Genesis of Canned Food Market

The canned food market in Saudi Arabia is about a 100 year old market. Most canned food companies in KSA were established in the late 1900s. Growth was seen in this market in its initial years due to the convenience canned food provided in terms of storage as well as cooking. Over time, however, the reach of fresh products has expanded in KSA and consumers have started opting for these over canned food products as these are perceived to be healthier. Growth in the market has become stagnant and is likely to grow at a subdued rate in the future.

Matured Stage of Canned Food Sector in KSA

Canned food market in KSA is currently in its mature stage. There are very limited product innovations happening and companies are having trouble retaining customers. Product categories available in the canned food market include canned dairy, canned fish, canned meat, canned fruits and vegetables, canned legumes and beans and canned cooking sauces. Of these, canned dairy is the leading product category. Canned food market in Saudi Arabia has grown at a CAGR of 3.1% in the past 5 years.

Saudi Arabia canned food market is concentrated in nature. There are a limited number of large domestic players dominating the market. The major players in the canned food market in Saudi Arabia include Saudi Goody Products Marketing Company Ltd., Gulf Food Industries – California Garden, Almarai Co., Luna (NFIC), Saudia Dairy and Foodstuff Company (SADAFCO), Del Monte Saudi Arabia Ltd., Al-Wedyan National Company for Food Products Ltd., Al-Alali and AKH Foods. Canned food companies compete on the basis of various factors including price of products, product differentiation and location of their distribution depots.

Revival in Demand from End User Segments

Growth in institutional end user segments such as hotels, restaurants and fast food outlets will be a major source of demand for canned food products in the future. Saudi Arabia has shifted its focus to investments in the tourism sector to reduce its dependence on revenues from oil. Canned food products are also in demand by catering companies supplying meals to Hajj and Umrah pilgrims. The pilgrims were 2.4 million in number in 2017.

Demand for canned food is likely to be adversely affected by the NITAQAT scheme and Saudization. This is because this scheme is leading to exit of expatriates, which are major end users for canned food, in large numbers. Negative perception of healthiness of canned food is also affecting the market negatively. Consumers are increasingly opting for fresh and frozen products over canned substitutes.

For more information about the research report, refer to below link:

https://www.kenresearch.com/food-beverage-and-tobacco/general-food/saudi-arabia-canned-food-market/149549-11.html

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#Saudi Arabia Canned Food MarketSaudi Arabia Ready to Eat IndustryKSA Packaged Food MarketSaudi Arabia Canned Food Industry TrendsSaudi Arabi

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kenresearchblog · 7 years ago

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Saudi Arabia Canned Food Market Outlook To 2022 : Ken Research

The report titled “Saudi Arabia Canned Food Market Outlook to 2022 - by Product Categories (Canned Dairy, Canned Meat, Canned Fish, Canned Cooking Sauces, Canned Legumes and Beans and Canned Fruits and Vegetables), by Distribution Channels (Bakalas, Hypermarkets, Supermarkets, Others), by Regional Sales (Riyadh, Jeddah, Mecca-Medina, Dammam and Others), by End User (Hotels, Restaurants and Catering Companies, Fast Food Outlets and Retail Consumers)” provides a comprehensive analysis on the Saudi Arabia Canned Food Market. The report covers overview and genesis, food market size by value and volume, market segmentation by Categories (Canned Dairy, Canned Meat, Canned Fish, Canned Cooking Sauces, Canned Legumes and Beans and Canned Fruits and Vegetables, by Distribution Channels (Bakalas, Hypermarkets, Supermarkets, Others), by Regional Sales (Riyadh, Jeddah, Mecca-Medina, Dammam and Others), by Sector (Organized and Unorganized) and by End User (Hotels, Restaurants and Catering Companies, Fast Food Outlets and Retail Consumers). Competitive landscape of Major players in Saudi Arabia canned food market including Saudi Goody Products Marketing Ltd., Gulf Food Industries – California Garden, Almarai Co. Ltd., Luna (National Food Industries Company), Saudia Dairy and Foodstuff Co., Del Monte Saudi Arabia Co. Ltd., Al-Wedyan National Company for Food Products, Al-Alali and AKH Foods are covered in the report. The report also covers Value Chain Analysis, Recent trends and developments, Issues and Challenges, Government role and regulations, SWOT Analysis, Export and Import trade scenario, Macroeconomic factors affecting Saudi Arabia canned food market, Future Outlook and Analyst recommendations.

The report is useful for investors, packaged food manufacturers, food ingredient supplier, potential entrants, food retailers and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Saudi Arabia Canned Food Market Size and Overview

The market for canned food in Saudi Arabia is at a matured stage, with a limited number of players dominating the market. Canned foods industry is driven by increasing urban population, rising female participation in the labor force, increasing share of income being spent on food, the growth in religious tourism that Saudi Arabia receives every year at the time of Hajj and Umrah and increasing product and packaging innovation.

Market Segmentation:

By Product Type: There are several product categories in canned foods market, the main ones being canned dairy, canned cooking sauces, canned fruits and vegetables, canned legumes and beans, canned meat, canned fish and others. Canned dairy is the leading product category with the highest revenue share of the market by value.

By Distribution Channels: Distribution channels for canned food products are hypermarkets, supermarkets and bakalas among other small departmental stores and online channel. In CY’2017, bakalas had the maximum revenue share, owing to their easy accessibility and high number of bakalas in Saudi Arabia.

By Regional Sales: The sales of canned foods are concentrated in urban areas, especially major cities such as Riyadh, Dammam, Jeddah and Mecca-Medina. Out of these, Mecca-Medina holds the largest revenue share by value as of CY’2017 because this region receives high amount of religious tourism at the time of Hajj and Umrah during which demand for canned foods is extremely high.

By Market Structure: Organized sector dominated the retail sales with a higher revenue share of the market in CY’2017. Organized players are better positioned and have well-established procurement and distribution systems as compared to unorganized players.

By End User: Hotels and restaurants (including catering companies) has contributed the highest share by value in CY’2017, as they use canned foods in large quantities and catering companies use canned foods to serve the pilgrims during Hajj and Umrah.

Competitive Landscape

The Saudi Arabia canned foods market is concentrated with few large players holding a high revenue share of the market. Saudi Goody Products Marketing Ltd. is the leading company in terms of revenue in the Saudi Arabia canned food market. Gulf Food Industries – California Garden is the second largest company followed by Almarai Company. The other major companies in Saudi Arabia canned food market are Luna (National Food Industries Company), Saudia Dairy and Foodstuff Co., Del Monte Saudi Arabia Co. Ltd., Al-Wedyan National Company for Food Products, Al-Alali and AKH Foods.

Future Outlook to Saudi Arabia Canned Food Market

The Saudi Arabia canned food market, in terms of revenue, is expected to grow at a single digit CAGR during CY’2018-CY’2022 owing to increasing urban population, rising female workforce and product and packaging innovation. The growth of the tourism industry leading to expansion of hotels, restaurants and fast food outlets is also likely to be another major contributor as these entities are major end users of canned food products.