Saudi Arabia Canned Food Market - Forecasts from 2023 to 2028

The Saudi Arabia canned food market is projected to grow at a CAGR of 3.55% during the forecast period to reach US$1,132.689 million by 2028, from US$887.449 million in 2021.

Saudi Arabia canned food markethas reached a mature level and is dominated by a select group of competitors. The growth of the urban population, the rise in female labour force participation, the increased proportion of income spent on food, the increase in religious tourism to Saudi Arabia during the Hajj and Umrah each year, and the expansion of product and packaging innovation are all factors that support the canned food industry. For instance, Saudi Arabia's tourist industry is expected to increase at an average rate of 11% per year over the next several years, making it the Middle East country with the fastest growth in the travel and tourism industry. The Kingdom anticipates that the sector as a whole will contribute SAR 635 billion (USD 168.93 billion) in 2032, or roughly 17.1% of the overall GDP.

Increasing focus on the tourism sector

Saudi Arabia has also been concentrating on the tourism sector in recent years to lessen its reliance on the oil sector. For this, it has started a number of hotel construction projects. The government's advertising activities have led to an increase in the number of tourists coming to Saudi Arabia. As hotels and restaurants are the main consumers of canned food, this has significantly contributed to the Saudi Arabia's canned food market expansion. The availability of shelf space for canned food goods has expanded as a result of the development in the number of contemporary retail establishments, such as supermarkets and hypermarkets, which are becoming more common in urban areas. As a result, there are now more options available to consumers, which has increased the selling of canned food. To increase and strengthen their market presence, the manufacturers of canned foods are also taking part in a variety of marketing initiatives, such as television and digital media advertising.

Rising demand for the food processing industry

Saudi Arabia has the Arab world's largest economy and a thriving food production and processing sector. The sector's overall investments are anticipated to reach $70 billion in 2030, up about 59% from the total investments in 2016. The Saudi economy's strongest sector continues to be the food industry. For instance, According to Minister of Industry and Mineral Resources Bandar Alkhorayef, the Saudi Arabian food industry is expected to grow by $20 billion by 2035 as the Kingdom welcomes new investments. According to the Saudi Press Agency, the new monies will have the greatest impact on the beverage and juice industries, poultry, dairy, bakery, and confectionery sectors. These investments have increased the demand for canned beverages and canned dairy products in the Saudi Arabian region. More and more Saudis are relying on quick, accessible, ready-to-eat meals. Over the coming years, it is projected that the Saudi Arabia canned food market will expand. As more shopping centres and supermarkets stock ready-to-eat meals on their shelves, supported by an established infrastructure and distribution system, the supply side's rising rate is also fueling expansion.

It is projected that the online distribution channel for canned food in Saudi Arabia will grow steadily

Cost-effectiveness provided by the online channels in terms of convenience, varied product offerings, and payment options reduces the overall shopping time. Growing technological adoptions, and improvement in living standards coupled with a booming urban population in Saudi Arabia are set to positively impact the scale of usage of online channels for purchasing necessities and food products inclusive of canned foods as well. According to the World Bank, in 2022, 47% of the total population in Saudi Arabia resided in urban agglomerations of more than 1 million.

Growth in internet usage in Saudi Arabia

Growing internet usage coupled with an increase in smartphone penetration has also provided a positive scope for the usage of online platforms. According to the same source in 2022, the percentage share of individuals using the internet in Saudi Arabia accounted for 100% of the total population. In 2020, the percentage share stood at 98%. Moreover, according to the General Authority of Statistics, in 2021, the percentage of individuals aged 15 years and above who use mobile phones reached 97.7% in Saudi Arabia. Furthermore, various initiatives undertaken by the Saudi government to promote e-commerce such as “Saudi Vision’s 2030” coupled with favorable regulatory standards and investment to digitize the economy are also acting as an additional driving factor to accelerate online channels usage for purchasing activities, thereby augmenting the overall Saudi Arabia canned food market growth.

Market Key Developments

• In December 2022,a new gourmet line of meals from Siwar Foods that include dishes strong in protein and low in calories was released. The 'time-saving' meals give customers the convenience of being able to heat and eat a meal in minutes, with outstanding taste, and now with a healthy choice option.
• In June 2022,Siwar Food introduced a line of frozen meals and sweets. The convenience product line, which costs SAR 20, is offered online, in retail stores, and at "Chef in a Box" vending machines. It contains rice and pasta dishes. The devices have been placed at key spots all throughout Riyadh, including schools, hospitals, and companies.

Segmentation:

By Type

• Organic
• Inorganic

By Product Type

• Canned Meat
• Canned Fish/Seafood
• Canned Fruits and Vegetables
• Canned Beans and Legumes
• Others

By Distribution Channel

• Online
• Offline
• Supermarket/ Hypermarket
• Convenience Store
• Others