HORECA KSA. Saudi Food, Beverages and Hospitality Market Analysis

Transcription

1 HORECA KSA Saudi Food, Beverages and Hospitality Market Analysis Signs of stabilization & recovery with high levels of investor interest and activity.

2 HORECA KSA

3 Consumers The size of the population ensures that the market makes a distinction among the gulf region markets which portend especially well on long-term carry in household expenditure growth. While income increases, there will be more spending on fast-moving consumer goods (FMCGs), that will boost per capita food consumption & mass grocery retail sales. In addition, the increases of income demand for high-value luxury goods as Saudi consumers are very brand conscious. Industry Data Highlight 21 per capita food consumption = +1.48%; forecast to 215 = % 21 soft drink value sales = +2.3%; forecast to 215 = % 21 mass grocery retail sales = +6.77%; forecast to 215 = +82.7% Remarkable Notes in Saudi Food Industry Appealing market for investors due to size of youthful population being over 25 million progressively more attracted to western trends, therefore the long-term volume growth is very promising. Towering consumption of high-value packaged and processed foods on account of the enormous expatriate population existence in Saudi Arabia. Saudi Arabia is the largest dairy industry. Comparing to neighboring countries, Saudi Arabia gives a lower cost export base for the fact that the country is a member of the Gulf Co-operation Council (GCC). As the Saudi lifestyles becomes busier along with tastes and preferences development, the demand for processed and packaged goods is meant to carry on more increasingly in the Saudi market. Organic foods are progressively increasing. Health awareness has notably increased opportunities for companies that are able to produce healthy & light food. Remarkable Notes in Saudi Drink Industry Soft drink consumption per capita is high, mainly for carbonate, bottled water and fruit juice. Though Saudi consumers are increasingly brand loyal yet they are interested in new and original products. Saudi consumption for tea and coffee is very high as they consider both as part of tradition and daily lifestyle. A positive forecast is expecting the soft drinks industry to register promising value and volume sales growth. Concerning production innovation the alternative teas, such as herbal and fruit tea, are taking a place in the popularity products in Saudi Arabia, indicating indeed a strong growth opportunities for original and new products Source: UNCTAD United Arab Emirates Bahrain Kuwait Oman Qatar Saudi Arabia Coming From A Lower Base Gulf Region Per Capita GDP (US$) f 1

4 Detailed Analysis for Food Food Data Highlights Headline food consumption forecast annual growth to 215: 8.9% Per capita forecast food consumption annual growth to 215: 5.91% Food Consumption (US$bn) Food Consumption (SARbn) Per Capita Food Consumption (US$) Table: Food Consumption Indicators e , , , , ,55.1 1, , , ,14. Keynotes Factors for New Market 25% of total private consumption in Saudi Arabia consisting of food expenditure. Motivated by the predictable economic and population growth, significant investment into food processing particularly main segments such as dairy, is anticipated to grow by 215, in US$ terms, per capita food consumption to grow past US$2,. Saudi Arabia is the only market in the gulf region which can pragmatically and realistically presents investors with long-term volume growth potential especially with an expected growth of population to reach 28 million by 215. The food market is much less contingent on catching the attention of expatriates to uphold the consumer base, comparing to UAE market where 8% of population is consisted of expatriates, therefore the Saudi market carry less down risks to the population and headline food consumption growth figures. Permeation of expansion of organized retail channels will also contribute to food consumption growth over the long term. Increased in organized retailing will carry on to reinforce internal trade systems, which will put in to lower expenditure & cost savings that can be passed on to consumers. Per Capita Food Consumption (SAR) Total Food Consumption Growth(y-o-y) Per Capita Food Consumption Growth (y-o-y) Food Consumption as % GDP , e/f = BMI estimate/forecast; na = not available/applicable. Source: Ministry of Economy and Planning, Central Department of Statistics, Saudi Arabian Monetary Agency, Company Information, Trade Press, BMI Food Consumption e Per capita food consumption(sar)(lhs) Per capita food consumptiongrowth (y-o-y)(rhs) e/f =BMI estimate/forecast; na = not available/applicable.source: Minisrty of Economy and planning, Central Department of Statisties, Saudi Arabian Monetary Agency, Company Information, Trade Press, BMI 3 4

5 Confectionery Food Data Highlights Confectionery annual value sales growth to 215: 1.11% Notes on Confectionery in Saudi Arabia The forecast until 215 will remain being largely driven by premiumisation momentum with a strong opportunities to producers able to place products to capture upside provided by premiumisation. The growth is expected to be spread across the sugar confectionery, chocolate and gum segments. Putting in mind that Saudi consumers are somewhat sensitive toward prices. Therefore, products at the low end of the price range are probable to remain mostly popular Detailed Analysis for Drink (Soft Drink) Confectionery Sales e Confectionery Sales (SARmn)(LHS) Confectionery Sales growth,sar, (y-o-y) e/f =BMI estimate/forecast; na = not available/applicable.source: Minisrty of Economy and planning, Central Department of Statisties, Saudi Arabian Monetary Agency, Company Information, Trade Press, BMI Confectionery Sales (SARmn) Confectionery Sales Growth, SAR (y-o-y) Table: Confectionery Sales- Historical Data & Forecasts, e Drink Data Highlights Headline soft drinks value sales forecast annual growth to 215: 6.28% Carbonates value sales forecast annual growth to 215: 2.4% Bottled water value sales forecast annual growth to 215: 5.77% Fruit juice value sales forecast annual growth to 215: 11.8% Confectionery Sales (US$mn) , , , , ,55.1 1, , , e/f = BMI estimate/forecast; na = not available/applicable. Source: Ministry of Economy and Planning, Central Department of Statistics, Saudi Arabian Monetary Agency, Company Information, Trade Press, BMI Keynotes Factors for Drink in Saudi Arabia The drink industry will carry on a strong growth and will increase over the forecast period to 215. The growth is out of the following causes: 5 6

6 o Alcoholic drinks industry absence. o Harsh climate in Saudi Arabia. o Size of population which make up approximately two thirds of the Gulf's population Saudi Arabia soft drink industry is the largest by volume and value comparing to the region's industry. The consumers as we mentioned are brand-loyal and are always interested in new and original products, which is a very essential factor in the drink industry. The flavored, bottled water with an emphasis on the size of bottles, are taking a great place in the industry due to the lack of adequate drinkable water thus, it will carry on strong growth over the forecast period. Off-trade sales of soft drink through retail channels account for 8% of total volume sales, with supermarket and hypermarkets accounting for approximately 36% of soft drink sales, while independent food stores accounted for around 22%. Carbonated Drink Sales (SARmn) Bottled Water Sales (SARmn) Juice Sales (SARmn) Laban Sales (SARmn) Energy Drink Sales (SARmn) Soft Drink Sales (SARmn) Total Soft Drink Sales Growth, SAR, (y-o-y) Carbonated Drink Sales (US$mn) Bottled Water Sales (US$mn) Table: Soft Drink Sales- Historical Data & Forecasts, e Soft Drink Sales Juice Sales (US$mn) Laban Sales (US$mn) Energy Drink Sales (US$mn) Soft Drinks Sales (US$mn) Per Capita Soft Drink Spend (US$) e e/f = BMI estimate/forecast; na = not available/applicable. Source: Ministry of Economy and Planning, Central Department of Statistics, Saudi Arabian Monetary Agency, Company Information, Trade Press, BMI Carbonated drink sales (SARmn) Bottled water sales (SARmn) Juice sales (SARmn) e/f =BMI estimate/forecast; na = not available/applicable.source: Minisrty of Economy and planning, Central Department of Statisties, Saudi Arabian Monetary Agency, Company Information, Trade Press, BMI 7 8

7 Detailed Analysis for Drink (Hot Drink) Drink Data Highlights Coffee value sales forecast annual growth to 215: 4.53% Tea value sales forecast annual growth to 215:2.43% Keynotes Factors for Drink in Saudi Arabia Coffee Sales are anticipated to surpass tea sales in term of annual growth to 215. Constant on-trade strength, emphasized by the expanding prominence of western styled coffee shops. Growth in tea is anticipated to be mostly determined by product growth and the wider permeation of fruit teas playing an progressively more key role in motivating growth. Tea And Coffee Sales e Coffee sales (SARmn) Tea sales (SARmn) e/f =BMI estimate/forecast; na = not available/applicable.source: Minisrty of Economy and planning, Central Department of Statisties, Saudi Arabian Monetary Agency, Company Information, Trade Press, BMI 9

8