Report Overview

Saudi Arabia Spreads Market – Industry Trends & Forecast Report, 2030

The Saudi Arabia Spreads Market size was estimated at USD 1,300.55 million in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Spreads Market size is projected to grow at a CAGR of 7.88% reaching a value of USD 1,589.21 million by 2030. Prominent drivers of the Saudi Arabia Spreads Market are the growing busy lifestyles and the fast-paced schedules of individuals and increasing popularity of Western food items and the thriving FMCG sector. Notably, there is a growing preference for convenient, ready-to-eat, and affordable processed foods among consumers. This, combined with the use of spreads to enhance food flavor and prolong shelf life, is fueling market expansion. Diverse spread flavors like chilly chutney, honey mustard, chipotle, and spicy avocado are attracting investment opportunities. Also, the widespread availability of spreads across various distribution channels, including hypermarkets, supermarkets, and online stores, is fostering market growth. Rising health consciousness is driving demand for organic and natural products, supported by the proliferation of fast-food chains and QSRs. Another driving force is the introduction of sugar-free syrups with added health benefits by key market players further strengthens market dynamics in Saudi Arabia.

Spreads Market – Overview

Spreads encompass a diverse range of food products applied on items like bread, waffles, pancakes, and crackers. These concoctions are crafted from various ingredients including milk, nuts, fruits, butter, cocoa, extracts, herbs, and spices. Commonly found in forms such as jam, chocolate spread, peanut butter, and syrup, spreads serve versatile culinary roles, from snack dips to dessert glazes and salad dressings. Embraced for their convenience and flavor, they offer a cost-effective alternative to traditional food items and can support a healthy lifestyle. Abundant in protein, fiber, minerals, and vitamins, spreads can foster a sense of fullness while aiding in weight management.

Saudi Arabia Spreads Market

Growth Drivers

Increasing Number of Innovations in Spreads

The Spreads Market in Saudi Arabia is experiencing notable expansion, primarily fueled by the availability of diverse products like honey, chocolate-based spreads, nut and seed-based spreads, and fruit-based spreads. There is a growing preference for spreads with high fruit content, emphasizing the need for innovation to enhance flavor and nutritional value. Consumers are increasingly wary of artificial additives and preservatives in their food, leading to a demand for spreads with clean labels. Such labels aim to promote sustainability and ensure great taste without compromising health. This emphasis on innovations and clean ingredients is driving the growth of the spreads market in Saudi Arabia.

Challenges

Volatile Raw Material Prices

The Saudi Arabia Spreads Market faces a growth constraint due to the volatility in raw material prices. Fluctuations in the prices of key ingredients, such as nuts, seeds, fruits, and cocoa, can lead to uncertainties in production costs, impacting profit margins and pricing strategies for spread manufacturers. Price instability hampers market growth by increasing production expenses and potentially limiting the availability of affordable spread products for consumers, thereby posing a challenge to market expansion and sustainability.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Spreads Market

The Saudi Arabia Spreads Market experiences profound impacts due to escalating geopolitical tensions. Heightened instability and uncertainties stemming from geopolitical conflicts can disrupt supply chains, leading to potential disruptions in the availability of raw materials and logistical challenges in distribution networks. Moreover, such tensions can undermine consumer confidence, leading to reduced spending and altered consumption patterns. Foreign investments and trade relations may also be affected, further complicating market dynamics. Overall, escalating geopolitical tensions pose a risk to the stability and growth of the spreads market in Saudi Arabia, potentially stifling market expansion and investment opportunities.

Saudi Arabia Spreads Market

Segmental Coverage

Saudi Arabia Spreads Market – By Product Type

By product type, the Saudi Arabia Spreads Market is divided into Spreadable Fats, Fruit Jam & Preserve Spreads Chocolate Spreads, Savory Spreads, and Honey-based Spreads segments. The honey-based spreads segment is expected to hold the highest share in the Saudi Arabia Spreads Market by product type during the forecast period. The health-conscious demographic is boosting the market for honey, renowned for its health benefits and positive image. Recent endorsements by medical professionals, nutritionists, and media reports have solidified honey's reputation as a nutritious, antioxidant-rich substitute for refined sugar. As a result, there is a rising demand for honey, driven by consumers seeking healthier alternatives.

Saudi Arabia Spreads Market – By End Use

By end use, the Saudi Arabia Spreads Market is bifurcated into Household and Commercial segments. The household segment is expected to hold a higher share in the Saudi Arabia Spreads Market by end use during the forecast period. With the adoption of Western dietary habits, spreads are increasingly favored as convenient breakfast options or snacks. Moreover, households often use spreads in homemade meals and snacks, further driving demand. Additionally, the rising preference for healthier alternatives among health-conscious consumers contributes to the segment's growth. Overall, these factors collectively position the household segment as the primary contributor to the Saudi Arabia Spreads Market.

Saudi Arabia Spreads Market – By Nature

By nature, the Saudi Arabia Spreads Market is bifurcated into Conventional and Organic/Plant-based segments. The organic/plant-based segment holds a higher share in the Saudi Arabia Spreads Market by nature, due to shifting consumer preferences towards healthier and more sustainable options. With a growing awareness of health and environmental concerns, consumers are increasingly gravitating towards organic and plant-based spreads. These products are perceived as offering cleaner ingredients, free from synthetic chemicals and additives, aligning with the preferences of health-conscious individuals. Moreover, there's a rising demand for spreads that cater to dietary restrictions, such as vegan and gluten-free options, further bolstering the market share of the organic/plant-based segment in Saudi Arabia.

Saudi Arabia Spreads Market – By Distribution Channel

By distribution channel, the Saudi Arabia Spreads Market is divided into Hypermarket/Supermarket, Convenience Store, and Online segments. The hypermarket/supermarket segment holds the highest share in the Saudi Arabia Spreads Market. The segment is dominated by major retail chains such as Carrefour, Tamimi Market, Panda, and Danube, offering a diverse array of spreads. These large-scale retailers are popular choices for consumers seeking grocery items, including spreads. Meanwhile, the convenience stores segment is expected to witness the fastest growth rate during the forecast period. Brands like Tamimi Express, AL Sadhan, and Baqala are widely dispersed throughout Saudi Arabia, catering to consumers' need for spreads and other daily essentials in smaller, easily accessible locations.

Competitive Landscape

Major players operating in Saudi Arabia Spreads Market include Schwartau, Darbo, Mondelez International, The J.M. Smucker Company, The Kraft Heinz Company, and Ferrero. 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 Type

• Spreadable Fats

• Fruit Jam & Preserve Spreads

• Nut-based Spreads

• Chocolate Spreads

• Savory Spreads

• Honey-based Spreads

By End Use

• Household

• Commercial

By Nature

• Conventional

• Organic/Plant Based

By Distribution Channel

• Hypermarket/Supermarket

• Convenience Store

• Online

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Spreads Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing Population and Urbanization
         2. Rising Disposable Income
         3. Increasing Innovation in Spreads
      2. Restraints
         1. Price Volatility of Raw Materials
         2. Competition from International Brands
         3. Counterfeit Products
      3. Opportunities
         1. Focus on Premiumization
         2. E-commerce Expansion
         3. Convenience Packaging
      4. Challenges
         1. Developing Engaging Metaverse Experiences
         2. Standardization and Interoperability
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Spreads Market: Marketing Strategies
5. Saudi Arabia Spreads Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
         1. Spreadable Fats
            1. Butter
            2. Margarine
            3. Cheese
         2. Fruit Jam & Preserve Spreads
         3. Nut-based Spreads
         4. Chocolate Spreads
         5. Savory Spreads
         6. Honey-based Spreads
      2. By End Use
         1. Household
         2. Commercial
      3. By Nature
         1. Conventional
         2. Organic/Plant-based
      4. By Distribution Channel
         1. Hypermarket/Supermarket
         2. Convenience Store
         3. Online
         4. Others (Foodservice & Direct Sales)
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Spreads Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Escalating Geopolitical Tensions on Saudi Arabia Spreads Market
8. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Schwartau
   2. Darbo
   3. Mondelez International
   4. The J.M. Smucker Company
   5. The Kraft Heinz Company
   6. Ferrero
   7. Other Prominent Players
9. Key Strategic Recommendations
10. Research Methodology
    1.    Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications-based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Saudi Arabia Spreads Segmentation

Figure 2       Saudi Arabia Spreads Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Saudi Arabia Spreads Market Size, By Value (USD Million), 2019–2030

Figure 5       Saudi Arabia Spreads Market Share, By Product Type, By Value (USD Million), 2019–2030

Figure 6       Saudi Arabia Spreads Market Share, By End Use, By Value (USD Million), 2019–2030

Figure 7       Saudi Arabia Spreads Market Share, By Nature, By Value (USD Million), 2019–2030

Figure 8       Saudi Arabia Spreads Market Share, By Distribution Channel, By Value (USD Million), 2019–2030

List of Tables

Table 1        Saudi Arabia Spreads Market Size, By Value (USD Million), 2019–2030

Table 2        Saudi Arabia Spreads Market Share, By Product Type, By Value (USD Million), 2019–2030

Table 3        Saudi Arabia Spreads Market Share, By End Use, By Value (USD Million), 2019–2030

Table 4        Saudi Arabia Spreads Market Share, By Nature, By Value (USD Million), 2019–2030

Table 5        Saudi Arabia Spreads Market Share, By Distribution Channel, By Value (USD Million), 2019–2030

Table 6                  Schwartau Company Overview

Table 7                  Schwartau Financial Overview

Table 8                 Darbo Company Overview

Table 9                  Darbo Financial Overview

Table 10               Mondelez International Company Overview

Table 11                Mondelez International Financial Overview

Table 12                The J.M. Smucker Company Overview

Table 13                The J.M. Smucker Company Financial Overview

Table 14                The Kraft Heinz Company Overview

Table 15                The Kraft Heinz Company Financial Overview

Table 16                Ferrero Company Overview

Table 17                Ferrero Financial Overview