Report Overview

An increasingly high demand for canned food from the thriving religious tourism in the Kingdom, urbanization, high disposable income, and people’ busy lifestyle are expected to drive Saudi Arabia Canned Food Market during the forecast period between 2024 and 2030.

Saudi Arabia Canned Food Market – Industry Trends & Forecast Report, 2030

Saudi Arabia Canned Food Market size was estimated at USD 1.73 billion in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Canned Food Market size is projected to grow at a CAGR of 4.7% reaching a value of USD 2.28 billion by 2030. Prominent drivers of the market include the growing urban population, rising female participation in the labor force, and a greater share of income being spent on food. Also, the growth in religious tourism during Hajj and Umrah, along with continuous product and packaging innovation, significantly contribute to the market's expansion. The market has reached maturity, with a few key competitors dominating the scene. The Kingdom's tourism industry, expected to grow substantially, will significantly boost the canned food sector. Saudi Arabia food processing industry is experiencing remarkable growth, with notable investments anticipated in the coming years. Ministry officials forecast continued robustness in the food sector, further driving the demand for canned food, particularly in beverages, dairy, and ready-to-eat products.

Canned Food – Overview

Canned food refers to food products that are processed, sealed in airtight containers, and subjected to heat to destroy bacteria and other microorganisms. This method preserves the food for extended periods without the need for refrigeration, maintaining its nutritional value, flavor, and texture. Common types of canned foods include fruits, vegetables, meats, soups, and ready-to-eat meals. The convenience, long shelf life, and ease of transportation make canned food a popular choice among consumers.

Saudi Arabia Canned Food Market

Growth Drivers

Growing Urbanization and Busy Lifestyles

Rapid urbanization and fast-paced lifestyles are major drivers of Saudi Arabia Canned Food Market. The growing work culture and hectic schedules have led many consumers to adopt ready-to-eat canned foods to save time and effort. This trend is particularly prominent among the millennial population, who favor convenience over traditional cooking methods. Canned foods eliminate the need for time-consuming tasks, such as chopping, peeling, and cooking, making them a practical choice for busy individuals.

Growth in Religious Tourism

The growth in religious tourism, particularly during Hajj and Umrah, has also contributed to the expansion of the canned food market. The convenience and portability of canned foods make them ideal for travelers. The increasing trend of incorporating canned foods in the menus of hotels, restaurants, and cafeterias (HoReCa) further boosts market growth. The HoReCa industry, driven by the need for quick and efficient customer service, is increasingly relying on canned foods to meet the demands of health-conscious consumers who seek quality and nutritious meals.

Challenges

Price Sensitivity

Price sensitivity among consumers poses a challenge to the growth of Saudi Arabia Canned Food Market. High prices of canned foods, compared to fresh alternatives, can deter cost-conscious buyers. Price sensitivity is particularly significant in regions where consumers prioritize affordability, thus restraining market expansion despite the convenience and longer shelf life offered by canned products.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Canned Food Market

Escalating geopolitical tensions among countries across regions could have a significant impact on the growth of Saudi Arabia Canned Food Market. Trade restrictions, sanctions, and diplomatic conflicts can disrupt supply chains, leading to shortages of raw materials and increased production costs. These tensions may also hinder international trade agreements, affecting import and export activities. Additionally, political instability in key trading partners can result in fluctuating prices and reduced market confidence. The uncertainty caused by geopolitical issues can lead to cautious consumer spending and investments, thereby restraining market growth. Consequently, maintaining stable political relations is crucial for the sustained development of the Saudi Arabia canned food industry.

Saudi Arabia Canned Food Market

Segmental Coverage

Saudi Arabia Canned Food Market – By Product

By product, Saudi Arabia Canned Food Market is divided into Canned Meat Products, Canned Fish/Seafood, Canned Vegetables, and Canned Fruits segments. The canned fish/seafood segment holds the highest share in Saudi Arabia Canned Food Market by product. Seafood, sourced from various aquatic creatures such as fish, crabs, and clams, is renowned for its high nutritional value and abundant protein content. Restaurants and food chains increasingly incorporate canned seafood to impart authentic flavors to their dishes, catering to consumer preferences, especially among younger demographics interested in exotic fish varieties. Canned seafood finds extensive use in diverse culinary preparations like sushi, fish salads, and sandwiches, appreciated for its distinctive and savory taste profile. To meet growing demand, manufacturers are expanding production capacities for canned seafood.

Saudi Arabia Canned Food Market – By Type

Based on type, Saudi Arabia Canned Food Market is split into Organic and Conventional segments.

Saudi Arabia Canned Food Market – By Distribution Channel

By distribution channel, Saudi Arabia Canned Food Market is divided into Supermarkets/Hypermarkets, Convenience Stores, and E-commerce/Online Retail Channels segments. The supermarkets/hypermarkets segment holds the highest share in Saudi Arabia Canned Food Market by distribution channels. The dominance is bolstered by a strategic focus on tourism, leading to an increase in hotels, restaurants, and retail outlets like bakalas. Canned foods are highly sought after by both institutional and retail consumers due to their convenience in preparation and storage compared to fresh alternatives. As Saudi Arabia diversifies its economy away from oil dependence, initiatives in tourism, including hotel construction and government campaigns promoting tourism, have significantly boosted canned food sales. The proliferation of modern retail formats, such as hypermarkets and supermarkets, across urban areas has expanded shelf space for canned goods, offering consumers a wider range of options. Manufacturers are leveraging various marketing channels to strengthen their presence and capitalize on this growing market segment. Meanwhile, the e-commerce or online retail channels segment is expected to record the fastest growth rate during the forecast period. The cost-effectiveness of online channels, offering convenience, a wide range of products, and flexible payment options, reduces overall shopping time. The increasing technological adoption, improved living standards, and a growing urban population in Saudi Arabia are expected to boost the use of online channels for purchasing necessities, including canned foods.

Saudi Arabia Canned Food Market – By End User

By end user, Saudi Arabia Canned Food Market is divided into Hotels, Restaurants and Catering Companies, Fast Food Outlets, and Retail Consumers segments.

Competitive Landscape

Major players operating in Saudi Arabia Canned Food Market include Almarai Company, Savola Group, Nadec Foods, Al Wataniah Food Industries Company, Al-Wedyan National Company for Food Products Ltd, Saudia Dairy and Foodstuff Company, Nestle, Del Monte Saudi Arabia Ltd, Kraft Heinz, and Bolton Group. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product

• Canned Meat Products

• Canned Fish/Seafood

• Canned Vegetables

• Canned Fruits

By Type

• Organic

• Conventional

By Distribution Channels

• Supermarkets/Hypermarkets

• Convenience Stores

• E-commerce/Online Retail Channels

By End User

• Hotels

• Restaurants & Catering Companies

• Fast Food Outlets

• Retail Consumers