Saudi Arabia Baby Food Market Research Report: Ken Research

How Baby Food Market Is Positioned In The Saudi Arabia?

Saudi Arabia, a country located in the Middle East between Arabian Gulf and the Red Sea is further divided into 13 provinces with Riyadh as the capital city. Arabic is the official language of Saudi Arabia and, its currency is Saudi Riyal (SAR). The Saudi Arabia baby food market was observed in a growing stage wherein the market experienced a volatile growth pattern during the review period 2013-2018. The increasing awareness among parents for healthier products for their children has encouraged the demand for organic baby food in the country. In the era of increasing digitization and globalization, a shift in sale of baby food items from offline stores to online channels is expected in the near future as type of online channels reduces the time and effort spent in purchasing. The country reported ~ million internet users in 2018. Majority of the products are imported in the Saudi Arabia baby food market by international players. International players and domestic players, both are using non-store and store based retailers to connect with the target customers. An average margin prevailing in the industry from a local company to distributer ranges between ~%-~% within KSA baby food market.

Saudi Arabia Baby Food Market Outlook to 2023 Ken Research

During 2016-2017, the market experienced least growth in terms of revenue majorly due to poor economic conditions i.e. unstable oil prices in international market and policies implemented by the government to promote breast feeding, in the respective years which created a negative impact on the market. Despite the decline, the baby food market recovered in 2018. Major growth drivers include rising food / household expenditure, increasing awareness among the parents to provide their babies with healthier food options, rise in the internet retailing and other factors. Combining all the above mentioned factors, the KSA baby food market grew at a positive five year CAGR during 2013-2018

SAUDI ARABIA BABY FOOD MARKET SEGMENTATION

By Food Category (Milk Formula, Dried Baby Food, Prepared Baby Food, and Other Baby Food): Milk formula captured the majority of the market share in Saudi Arabia in 2018 owing to its substitution for breastfeeding, and low breast feeding ratio in the country. The remaining market share was captured by the dried baby food, prepared baby food and other baby food products during 2018. Other baby food segment includes biscuits, rusks, and snacks.

Among milk formula type, growing-up milk formula dominated the KSA baby food market followed by follow-on milk powdered formula, standard milk powdered formula and special milk formula.

Among dried baby food products, cereal based dried baby food had a clear domination in the market whereas other foods such as nuts, fruits as well as vegetables had limited sales.

By Distribution Channel (Supermarkets, Health and Beauty Specialist Retailers, Independent Small Grocers, Hypermarkets, Internet Retailing and Convenience Stores): Majority of the baby food sales are made through supermarkets and health and beauty specialist retailers due to the high awareness about modern stores and supermarkets in the KSA. The remaining distribution channels include independent small grocers, hypermarkets, internet retailing and convenience stores.

By Food Type (Inorganic and Organic)

The Saudi Arabia baby food market during the year 2018 was majorly dominated by the inorganic baby food segment as it is widely available at a low cost. However, the growing awareness among the parents to provide healthy food to their babies has given a boost to organic baby food sales in the country.

By Region (West, Centre, North, South and East)

As compared to the central region of Saudi Arabia, the Western region was observed owing to higher disposable income and being a major Islamic religious place in Madinah and Makkah with high awareness and demand for baby food. On the other hand, Northern and Southern regions of the KSA are the upcoming markets for baby food in country. 

For more information, refer to below link:

Saudi Arabia Baby Food Market

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