About the Food Retail Market in Saudi Arabia
Saudi Arabia is a desert country and is known as the birthplace of Islam. It is home to the religion’s two most sacred mosques, Masjid al-Haram in Mecca and Masjid an-Nabawi in Medina, the burial site of prophet Muhammad. It is the world's largest producer and exporter of petroleum products. It has the world's second-largest oil reserves and sixth-largest gas reserves. The country is categorized as a World Bank high-income economy with a high Human Development Index.
Technavio’s analysts forecast the food retail market in Saudi Arabia to grow at a CAGR of 4.9% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the food retail market in Saudi Arabia for 2016-2020. To calculate the market size, the report has taken into consideration the revenue generated from the retail sales of food products in Saudi Arabia and has not included revenue generated from on-trade sales. It also includes the market size based on volume, which has been calculated based on the retail consumption of food products.
The market is divided into the following segments based on product categories:
Technavio Announces the Publication of its Research Report – Food Retail Market in Saudi Arabia 2016-2020
Technavio recognizes the following companies as the key players in the food retail market in Saudi Arabia: Carrefour, NESTO, Othaim Markets, Panda United, and Tamimi Markets.
Other Prominent Vendors in the market are: Al Raya Supermarkets, Al Sadhan Supermarkets, Balsharaf Supermarkets, Bin Dawood Supermarkets, Farm Supermarkets, Lulu Hypermarket, Manual Hypermarket, Marhaba Supermarkets, Sarawat Supermarkets, and Star Hypermarkets.
Commenting on the report, an analyst from Technavio’s team said: “A trend which is helping to boost market growth is the increasing imports of food products. It is estimated that Saudi Arabia is importing about 80% of its food requirements, worth about $24 billion, from foreign countries. For religious reasons, all food products imported to Saudi Arabia must be certified halal and also Saudi Arabia bans the import of alcoholic beverages, pork meat, and food ingredients or additives that contain pork products, including pork fat, gelatin, and lard.”
According to the report, a key growth driver is the increase in number of retail outlets. Food retailers are trying to increase their store numbers so as to gain more market share and also access more consumer segments. Panda supermarket chain plans to increase its number of stores to 250 by 2020 from the current number of 240. Al Sadhan Supermarkets plans to increase its number of stores by 18 in the next 10 years. Also, Carrefour plans to increase its number of stores to 20 from 14 during the forecast period.
Further, the report states that one challenge that could restrict market growth is Nitaqat Law. One of the main challenges faced by the market is the lack of experienced human personnel due to the Nitaqat law implemented by the Saudi Arabian government. The Nitaqat law was implemented by the government to replace foreign workers with Saudi nationals in the private sector.
Carrefour, NESTO, Othaim Markets, Panda United, Tamimi Markets, Al Raya Supermarkets, Al Sadhan Supermarkets, Balsharaf Supermarkets, Bin Dawood Supermarkets, Farm Supermarkets, Lulu Hypermarket, Manual Hypermarket, Marhaba Supermarkets, Sarawat Supermarkets, Star Hypermarkets.
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