The food retail market in Saudi Arabia to grow at a CAGR of around 5% by 2020-Foodex Saudi
Technavio’s market research analyst predicts the food retail market in Saudi Arabia to grow at a CAGR of around 5% by 2020. Saudi Arabia accounts for around 51% of the total food retail sales in the GCC region, thanks to the rising population and the increasing disposable income of people in the country. The food retail outlets in Saudi Arabia carry a broad range of options for consumers such as domestically processed foods, imported specialty food products, and organic food products. Consumers prefer to shop at supermarkets and hypermarkets as these food stores also provide an outing for families. The retailers in the food market are trying to increase their stores to gain more market share and consumer segments. With the rise in the influx of tourists in the country because of Mecca, the demand for packaged food in this region will see tremendous growth in the coming years.
One of the latest trends gaining prominence in the food retail market in Saudi Arabia is the increasing use of private-label brands. Most Saudi supermarkets have their private-label brands. The Saudi importers purchase food products under their brand names and pack those products locally using their label. Private-label brands with Arabic sounding brand names are more appealing to Saudis and other Arabs in the country. For instance, one of the largest importers in Saudi Arabia uses the Arabic sounding brand name Al-Alali for its products to appeal to Saudi nationals.