Saudi Arabia has the highest purchasing power as its population accounts for more than 60% of total GCC population – Foodex Saudi
Saudi Arabia & GCC food industry is on a sustainable and balanced growth path says Alpen Capital’s new report
The GCC population is expected to witness an addition of 6.5 million individuals between 2016 and 2021. The growing consumer base will continue to act as the chief contributor to the growth in food consumption in the region. A growing proportion of working couples has led to an increase in demand for packaged foods and ready meals.
Economic growth in the GCC is expected to gradually gather momentum in line with stability in the oil prices and expansion of the non-oil sectors. Subsequently, GDP per capita in the region is projected to expand annually by 3.7% between 2016 and 2020, a strong indicator of increasing food consumption.
The increasing influx of tourists into the GCC, will also play a role in the growth of food consumption. Additionally, seasonal events such as Ramadan, shopping festivals, and food festivals will continue to boost food consumption in the region.
Increasing penetration of organised retail formats such as hypermarkets and supermarkets is likely to support the region’s demand for packaged, healthy, and processed foods.
Source: Alpen Capital