Saudi Arabia Canned Food Market is expected to reach around USD 510 Million in 2022-Foodex Saudi
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.
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.
Distribution channels for canned food products are hypermarkets, supermarkets and bakalas (small convenient stores) among other small departmental stores and online channel. In 2017, bakalas had the maximum revenue share, owing to their easy accessibility and high number of bakalas in Saudi Arabia.
The sales of canned foods are concentrated in urban areas, especially major cities such as Riyadh, Dammam, Jeddah and Mecca-Medina. The western region of the kingdom holds the largest revenue share by value as of 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.
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.
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.
Source: Ken Research