Changing consumer demand is driving Saudi’s ready meals market

Saudi Arabians are more and more turning to prepared meals – pre-cooked meals that may be ready shortly and conveniently. Estimated immediately at round SAR 320 million, the marketplace for prepared meal gross sales is predicted to develop by SAR 12 billion within the coming two years, in line with evaluation by Glasgow Consulting Group.

In a brand new report, the analysis and administration consultancy explored the state of the prepared meals market within the Kingdom, discovering {that a} vary of traits are converging to drive demand for ‘ready-to-eat’ meals produce.

A decade in the past, complete gross sales of Saudi Arabia’s prepared meals market stood at simply over SAR 250 billion. Quick ahead to immediately and year-on-year progress has seen the market hit SAR 310 billion by the beginning of the pandemic. By the top of subsequent yr, complete gross sales can have damaged via the SAR 330 barrier.

Comfort is among the fundamental drivers of demand, with busier existence amongst company and working-class people and extra working ladies leaving folks with lesser time to organize meals after their work hours. Pre-cooked prematurely, prepared meals might be prepared in minutes and are extra handy to organize.

The rising maturity of provide aspect dynamics is one other progress driver, says Glasgow Consulting Group in its report, with a rising variety of malls, purchasing facilities and supermarkets (supported by a maturing distribution and infrastructure community) offering prepared meals on their cabinets.

In the meantime, prepared meal producers are taking part in their half in stimulating uptake. In line with the researchers, packaging of prepared meals has through the years grow to be each extra interesting (extra engaging to shoppers) and handy (for instance bulk packaging). Throughout the section, producers are additionally extra energetic with advertising efforts and promotions.

Outdoors of the buyer section (which accounts for 80% of prepared meal gross sales), one fifth of income is generated within the enterprise panorama. This section spans corporates and companies that present their staff with prepared meal meals throughout working hours.

The section additionally consists of as an illustration chilled lunch kits at colleges (which is among the quickest rising segments as per the report) and authorities supplied prepared meals throughout giant occasions, such because the Hajj pilgrimage. By 2023, the enterprise section is anticipated to hit SAR 66 billion, up from underneath SAR 60 billion 5 years in the past.

Throughout each prepared meal areas, two area of interest segments are gaining recognition. Whereas prepared meal meals for lengthy have been infamous for being unhealthy, immediately health-conscious recipes are trending, with pure and health-promoting components discovering their approach into the class.

Sustainability is one other space the place progress is being booked. Some meals producers are transferring into manufacturing of more healthy merchandise – free from synthetic components and preservatives – and greening their packaging, and consequently, well being and sustainable acutely aware shoppers are more and more seeing their appetites fulfilled.

Frozen meals

Throughout the prepared meals market, frozen meals and chilled meals are broadly anticipated to develop at comparable charges. Frozen meals is produce that’s instantly positioned within the freezer (-18°C or decrease) after being bought. Examples of things which can be generally frozen embody meat, fish, rooster, pasta, greens, and fruits.

Chilled meals gadgets are as a substitute saved within the fridge (not the freezer) to maintain them recent and protected (generally at a temperature of between 0 and 5 levels). Whereas frozen merchandise don’t require any preservatives (as a result of microorganisms don’t develop at temperatures under -9.5 °C), chilled meals gadgets do require preservatives.

At present estimated to be value SAR 21.6 billion (with consumption at round 500 tonnes), the frozen meals section is anticipated to achieve SAR 22.2 billion by the of 2023. Demand is buoyed by rising selection in provide (extra variations of meals on provide), broader availability throughout the meals retail community and producer-push efforts.