Report Overview

Proliferation of distribution channels, market accessibility, rapid urbanization, a surging level of disposable income, shifting consumer preferences, and sophisticated tastes are expected to drive Saudi Arabia Ice Cream Market during the forecast period between 2024 and 2030.

Saudi Arabia Ice Cream Market – Industry Trends & Forecast Report, 2030

Saudi Arabia Ice Cream Market size by value was estimated at USD 762.6 million in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Ice Cream Market size is projected to grow at a CAGR of 3.1% reaching a value of USD 1,190.3 million by 2030. Prominent drivers of the market include high disposable income levels and increasing demand for premium ice cream variants. The entry and expansion of international and local brands are enhancing market growth.

By volume, Saudi Arabia Ice Cream Market size was estimated at 49.3 million liter in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Ice Cream Market size is projected to grow at a CAGR of 7% reaching the volume of 79.5 million liter by 2030. The rising trend of online shopping and the popularity of e-commerce platforms and food delivery apps make ice cream more accessible. Single-serving and on-the-go products like ice cream bars and mini-cups cater to modern lifestyles, expanding the consumer base. Health-conscious consumers are attracted to offerings with reduced sugar, natural ingredients, and functional additives. The rise of experiential dining and dessert-focused restaurants provides collaboration opportunities for ice cream manufacturers. Also, brands are focusing on eco-friendly practices and introducing innovative flavors and healthier options, further driving Saudi Arabia Ice Cream Market over forecast period.

Ice Cream – Overview

Ice cream is a beloved frozen dessert made from cream, milk, sugar, and various flavorings. The mixture is churned during freezing to incorporate air, resulting in its smooth, creamy texture. It is enjoyed in numerous flavors, from classic vanilla and chocolate to unique options like mango or cookie dough. Served in cones, cups, or as part of sundaes, it is a versatile treat that can be customized with toppings. Ice cream is a refreshing delight, perfect for cooling off on hot days and bringing people together during celebrations. Its role in other desserts like milkshakes and cakes highlights its universal appeal.

Saudi Arabia Ice Cream Market

Growth Drivers

Expanding Distribution Channels

The rising demand for ice cream in Saudi Arabia is significantly driven by the expansion of distribution channels, catering to the nation's hot and humid climate, which makes ice cream a year-round staple for both residents and visitors seeking refreshing relief. The demand is met by the rapid growth in the hospitality sector, propelled by government initiatives aimed at diversifying the economy away from oil dependence. The establishment of numerous hotels, resorts, and restaurants, which frequently offer ice cream, enhances its accessibility and popularity. Additionally, the National Tourism Strategy's goal to attract 100 million tourists by 2030 supports this expansion, as cultural events and festivals often feature ice cream vendors. These strategic advancements in hospitality and tourism infrastructure is projected to ensure that ice cream is widely available, meeting consumer cravings and driving consistent growth of Saudi Arabia Ice Cream Market.

Challenges

Health Concerns

Health concerns may significantly restrain the growth of the Saudi Arabia Ice Cream Market. Rising consumer awareness about the high sugar content, calorie intake, and potential additives in ice cream leads to cautious purchasing decisions. Additionally, post-Covid-19 hygiene and food safety worries have heightened scrutiny over commercially produced ice cream. Consumers are increasingly prioritizing healthier and safer options, which can limit the demand for traditional ice cream products. As a result, market players must innovate with healthier formulations and stringent safety measures to address these growing concerns effectively.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Ice Cream Market

Escalating geopolitical tensions among countries across regions could have a significant impact on the growth of Saudi Arabia Ice Cream Market. Uncertainty and instability in geopolitical landscapes may disrupt supply chains, leading to potential shortages of raw materials and increased production costs. Consumer confidence may also falter amid such uncertainties, influencing spending behaviors and consumption patterns. To navigate these challenges, market players must prioritize robust supply chain management and adaptability in their strategies. Maintaining stringent quality and safety standards becomes crucial to sustain consumer trust and ensure market stability amidst fluctuating geopolitical conditions.

Saudi Arabia Ice Cream Market

Segmental Coverage

Saudi Arabia Ice Cream Market – By Product

On the basis of product, Saudi Arabia Ice Cream Market is bifurcated into Bars & Pops and Cups & Tubs segments. The cups & tubs segment holds a higher share in Saudi Arabia Ice Cream Market by product, primarily due to its convenience and variety. These packaging formats offer consumers ready-to-eat servings that are easily accessible and portable, catering to modern lifestyles. They allow for a diverse range of flavors and toppings, appealing to a broad demographic. Moreover, cups and tubs provide portion control, appealing to health-conscious consumers. Their popularity is further bolstered by the widespread availability in supermarkets, convenience stores, and online platforms, ensuring widespread accessibility and convenience for consumers seeking indulgent yet convenient ice cream options.

Saudi Arabia Ice Cream Market – By Type

Based on type, Saudi Arabia Ice Cream Market is bifurcated into Dairy & Water-based and Vegan segments. The vegan segment is expected to hold a higher share in the Saudi Arabia Ice Cream by type over the forecast period. The growth is fueled by increasing consumer demand for premium, sugar-free, gluten-free, and organic ice creams, catering to health-conscious lifestyles. The market is witnessing a shift towards healthier dessert options, including low-sugar and no-sugar varieties, reflecting evolving consumer preferences. Furthermore, there is a rising appetite for unique flavors, driving the popularity of vegan ice cream alternatives made from almond milk, coconut milk, and other plant-based ingredients. The segment’s trend is amplified by the growing adoption of veganism and the prevalence of lactose intolerance and gluten sensitivity among Arab populations, further boosting the demand for lactose- and gluten-free ice cream options

Saudi Arabia Ice Cream Market – By Flavor

By flavor, Saudi Arabia Ice Cream Market is divided into Chocolate, Vanilla, and Fruit segments. The vanilla segment holds the highest share in Saudi Arabia Ice Cream Market by flavor due to its timeless popularity and widespread appeal. Known for its classic and universally liked taste, vanilla ice cream serves as a versatile base for various toppings and desserts. Its creamy texture and mild flavor make it a preferred choice across all age groups and occasions. Additionally, vanilla's compatibility with diverse flavor combinations enhances its market dominance, ensuring consistent demand throughout the year. Its enduring status as a favorite flavor underscores its leading position in Saudi Arabia Ice Cream Market.

Saudi Arabia Ice Cream Market – By Distribution Channel

Based on distribution channel, Saudi Arabia Ice Cream Market is bifurcated into Foodservice and Retail segments.

Competitive Landscape

Major players operating in Saudi Arabia Ice Cream Market include Saudia Dairy & Foodstuff Co Ltd, IFFCO Group, Saudi Ice Cream Factory Ltd, Mars Saudi Arabia Ltd, Batterjee Foodstuffs Factory, Arabian Food & Dairy Factories, General Mills Inc, Cone Zone Co, and Unilever 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

• Bars & Pops

• Cups & Tubs

By Type

• Dairy & Water-based

• Vegan

By Flavor

• Chocolate

• Vanilla

• Fruit

By Distribution Channel

• Foodservice

• Retail