Saudi Arabia Biscuit Market By Type (Crackers & Savory Biscuits, Sweet Biscuits), By Packaging (Pouches/Packets, Boxes, Cans/Jars, Others), By Sales Channel (Supermarkets/Hypermarkets, Specialist Retailers, Departmental Stores, Online, Others) By Region, By Competition Forecast & Opportunities 2018-2028F
Published Date: October - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Consumer Goods and Retail | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 449.76 Million |
| CAGR (2023-2028) | 10.23% |
| Fastest Growing Segment | Sweet Biscuits |
| Largest Market | Western |
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.
Key Market Drivers
Cultural Preferences and Traditions
Saudi Arabia? Oh, they love their sweets! Especially when there's a celebration or festival going on. And biscuits—they're a big deal. We're talking deeply ingrained in their culture. They even call them "biscuits," which is pretty cute, right? You'll often find folks enjoying them with a cup of Arabic coffee (qahwa) or tea. Think of classics like ma'amoul, those amazing shortbread cookies stuffed with dates or nuts, and petit fours – you know, those tiny, delicate pastries. People have been enjoying them for ages. These biscuits aren't just snacks, though. They're a sign of hospitality, a warm welcome. That's why they're such a vital part of Saudi Arabian cuisine. And, let's be honest, all that love for tradition is probably why there's always a demand for them!
Rapid Economic Growth and Urbanization
Saudi Arabia? Wow, things have really changed there! They've been working hard to move beyond just oil, and their Vision 2030 plan is a big part of that. All this economic growth means people are moving to cities, earning more, and living differently. And guess what? They're becoming super picky about what they eat, especially when it comes to food like biscuits! They want the best of the best – high quality, easy to grab, and lots of variety. Thanks to international brands and tons of choices, folks are trying everything from old-school favorites to crazy new flavors. Plus, everyone's so busy these days, always rushing around, so those easy-to-eat biscuits are a perfect snack. No wonder the biscuit business is booming!
Halal Certification and Compliance
Saudi Arabia, being a mainly Muslim country, really takes its halal food seriously. Halal, which basically means "allowed" in Arabic, isn't just about avoiding pork; it's about making sure everything – from where the ingredients come from to how the food is made – follows Islamic rules. Even the biscuit industry here is all about keeping things halal. Why? Well, it's not just for folks here in Saudi Arabia. Getting that halal certification unlocks a whole world of export opportunities to other Muslim countries. So, biscuit makers in Saudi Arabia? They've got to stick to those halal requirements. It's a huge deal in how they run things, making sure every biscuit is good to go according to Islamic law, and, you know, helping them sell more biscuits to more people!
Government Initiatives and Vision 2030
Saudi Arabia is really pushing to grow its own businesses as part of its Vision 2030 plan. The goal is to make the economy more diverse and less reliant on oil money. And you know what? That includes the biscuit industry! The government wants more local factories and more jobs, so biscuits fit right in. They're helping out with things like financial support, easier regulations, and better infrastructure, which is getting people to invest in biscuit-making. Plus, since Vision 2030 is all about boosting exports besides oil, there's a lot of buzz about selling Saudi biscuits overseas. So, yeah, the biscuit business in Saudi Arabia is booming, which is great news for big companies and newcomers alike – everyone's getting a slice of the pie, so to speak.
So, what's making the Saudi Arabian biscuit scene tick? Well, it's a cool mix of things. First off, it's all about what folks really want to eat, their deep-rooted cultural preferences. Then, you've got the booming economy and people's lives changing, which means more folks are reaching for biscuits. Crucially, these biscuits need to be halal – that's super important not just for satisfying the local market, but also for selling them abroad to lots of other Muslim countries. And let's not forget the government's helping hand with initiatives like Vision 2030, which is creating a sweet spot for the industry to grow. Put it all together, and you've got a recipe for the biscuit industry's continued growth and success in Saudi Arabia.
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
Saudi Arabia's changing a lot these days, with cities growing and the economy booming. Because of all this, people are starting to want different things, even when it comes to biscuits! More and more folks are thinking about their health, looking for biscuits with less sugar, whole grains, and natural stuff. This means the old-school biscuit makers, who usually make really sweet and yummy treats, have a problem. It's tricky to keep that classic biscuit taste while giving people what they want – healthier options. So, figuring out how to adapt and deal with these health concerns is a real challenge for biscuit companies.
Supply Chain and Ingredient Sourcing
Making biscuits in Saudi Arabia? It's not always a piece of cake! We really depend on having the right stuff to make them, you know, all the raw materials and ingredients. But things like the tough climate and not growing tons of food here can make it tricky to get everything we need. Take wheat, for instance. It's super important for many recipes, but we just don't grow enough of it because it's so dry here. So, we have to import it – along with other things – which can be a pain. It can mess with our supply lines, make costs jump around, and make us vulnerable to what's going on in the rest of the world. Being so reliant on imported ingredients means things like global commodity prices and trade restrictions can really throw a wrench in our plans.
Regulatory and Halal Compliance
Okay, so being halal is super important for the Saudi Arabian biscuit business, but it's not always easy. Think of it like thiskeeping everything strictly halal means dealing with some seriously complicated rules. Getting that halal certification can take a lot of time and money for biscuit makers. You've got to be super careful about every single ingredient and how you make the biscuits, with loads of paperwork to prove it all. Plus, those halal standards? They sometimes change, so manufacturers have to stay on their toes! Mess up, and you could lose your customers' trust and even face legal trouble. That's why it's so crucial for biscuit companies to invest in making sure their products are always 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
Lately, it seems like everyone in Saudi Arabia is looking for healthier biscuits! People are paying more attention to what they eat, especially the sugar, salt, and saturated fats in their snacks. Because of this, you're seeing more biscuits with better-for-you ingredients, like whole grains, seeds, and natural sweeteners. Companies are really trying to appeal to folks who want a treat without the guilt. Plus, you'll find more and more gluten-free and allergen-free options hitting the shelves, so everyone can find something they enjoy. These are often marketed as a better-for-you snack option.
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.
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.
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.
Recent Developments
- In May 2023, The International Biscuits Company (IBC) createdquite a show with a huge re-launch ceremony. A glider carrying a massive 30X1Om Rico Biscuits flag flew over the Jeddah Corniche, leaving thousands ofwitnesses speechless. This occasion also served as the official debut of thefreshly packaged Rico biscuits, ushering in a new chapter in the company'shistory.
- In June 2023, Bangladeshi Biscuits established a significantfoothold in the Saudi Arabian market, taking about one-third of the market. Thebiscuits, known for their variety of sweet, plain, and savoury tastes, saw aboom in demand, which was mostly attributed to Saudi Arabia's growingBangladeshi 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)
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
- Saudi Arabia Biscuit Market, By Packaging
- Saudi Arabia Biscuit Market, By Sales Channel
- Saudi Arabia Biscuit Market, By Region
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