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Country Report

Saudi Arabia Flag Dairy in Saudi Arabia

| Pages: 58

Price: US$2,100

About this Report

Executive Summary

Cheese

TRENDS

  • 2015 witnessed a continued high pace of activity by various cheese manufacturers. Although new product development slowed down, activities were largely focused on packaging improvements, social media communications and aggressive advertising through various mediums. National Agricultural Development Co (NADEC) launched new packaging for its cream cheese in early 2015. Almarai rebranded all its cheese triangles in early 2015 as Nujoom, to bring it under the umbrella of a single brand for children. The leading companies, including Almarai, Fromageries Bel and Kraft Jacobs Suchard, as well as National Agricultural Development Co (NADEC) spent generously on advertising their cheese products through traditional and outdoor media. In addition, these companies remained connected to consumers through social media, with dedicated Facebook, YouTube and similar social media pages. Fromageries Bel also launched a new variation of its Kiri brand by the name of Kiri Taste of Labneh in the last quarter of 2014. These activities helped sales to progress.

COMPETITIVE LANDSCAPE

  • Almarai led the intensely competitive cheese category with a 26% value share in 2015. The company has a strong presence in all categories of processed cheese, as well as soft cheese. It regularly spends on the advertising and promotion of its products through outdoor and broadcast media, as well as interacting with its customers through social media platforms. In early 2015 it also rebranded its cheese triangles as Nujoom in an effort to bring all child-oriented products under a single umbrella brand. Finally, the company’s impeccable distribution network, which is known as the best distribution system in the industry, has helped it to keep ahead of its competitors by supplying its products on time across all retail channels, hence helping it to maintain its leading position in cheese.

PROSPECTS

  • Health awareness, whilst still low, is expected to increase in the forecast period. More than ever, women are interested in cutting down their intake of fatty, sugary and high-calorie food. Also, as they become more knowledgeable about healthy lifestyles, thanks to the widespread penetration of the internet, they are also expected to pay attention to their families’ wellbeing, including their diet. For this reason, they are expected to become more selective about food items. Cheese is already becoming a preferred type of spread instead of jam, peanut butter and chocolate spread. The growing focus on health will also encourage cheese manufacturers to introduce healthier versions of their products or highlight the healthy aspects of their products, which is likely to attract consumers’ attention. To prevent the cheese category from stagnating, manufacturers are expected to continue investing in activities such as new product development, creative advertising and engaging interactions with consumers through digital media. More flavoured versions of regular cheese, such as Kiri Taste of Labneh, are expected in the forecast period.

Drinking Milk Products

TRENDS

  • Drinking milk products has been relatively saturated for many years. Although consumption is strong, there have not been many activities by companies, except for a few regular advertising activities. Furthermore, fresh milk prices have been capped by the government, so manufacturers cannot make any price changes to lift value sales. In 2015, however, a few manufacturers worked on pack sizes to offer something new to customers. Al Safi Danone downsized its 2-litre fresh milk pack to 1.5-litres for its fresh milk in early 2015, and reduced the price by SAR1. A similar step was taken by Al Othman Agricultural & Processing Co, when it downsized its Nada Fresh Milk to 1.5-litres from 2-litres, offered at a reduced price. Both of these developments were supported by strong outdoor media advertising. In addition, Almarai rebranded its dairy only flavoured milk drink as Nujoom in early 2015, in an effort to bring all child-oriented products under one umbrella brand. Finally, Almarai also introduced a new umbrella brand by the name of Saghiri, for fresh milk and dairy only flavoured milk drinks especially targeted to children aged 2 to 5 years in the second quarter of 2015. These developments helped a relatively mature category to pick up volume growth, whilst also keeping value growth strong.

COMPETITIVE LANDSCAPE

  • Almarai maintained its position as the leading company in drinking milk products in 2015, with a value share of 26%. The company continued its streak of new product developments through 2014 and 2015, with more focus on the rebranding of products. It launched two umbrella brands in 2015 by the names of Nujoom and Saghiri. Nujoom brought together cheese and flavoured milk brands under one brand, and is largely targeted towards school children. Saghiri, on the other hand, is directed at children aged 2 to 5 years, and includes milk and yoghurt. The company also continued to invest aggressively in advertising its products through all forms of media throughout the year. It is also highly active on social media platforms, and regularly interacts with consumers with new recipe ideas, health tips, product information and competitions. Finally, its renowned distribution strategy added to its impressive growth.

PROSPECTS

  • Orthopaedic diseases such as arthritis and osteoporosis and deficiencies such as vitamin D are widespread in Saudi Arabia, especially amongst women. However, as health providers continue to improve in terms of both quality and quantity, there is growing awareness amongst women about taking care of their health. The number of health providers is expected to continue growing in the future, as the government aims to further expand healthcare. This will result in the proper education of women on taking care of their diet to avoid health problems in later life. Such steps will also include increasing the consumption of dairy products, which will eventually result in the higher consumption of drinking milk products.

Yoghurt and Sour Milk Drinks

TRENDS

  • The Saudi Arabian population suffers from a large number of orthopaedic diseases, affecting bone health. These include osteoporosis and osteoarthritis, as well as mineral and vitamin deficiencies, such as vitamin D and calcium. According to the Osteoporosis Awareness Committee, the incidence rate of osteoporosis in women after menopause is 36%, and in men over 50, 42%. Owing to this high precedence of the disease, the government is trying to invest in healthcare in order to raise awareness about taking care of one’s bone health, through various organisations. One such organisation is the Saudi Society for Osteoporosis, which is very active in terms of organising events and publishing materials in order to make the general public aware of the dangers of osteoporosis and how to overcome and avoid it. In November 2014 the society helped organise an event by the name of “Strong bones for a healthy life” in Jeddah, in collaboration with King Abdulaziz Medical City. Various participating doctors gave out important information regarding osteoporosis to the visiting audience and handed out various literature, in addition to answering their questions. Such activities, amongst others, as well as growing exposure to information available over the internet, helped to raise awareness of health in general, and of bone health in particular.

COMPETITIVE LANDSCAPE

  • Almarai led yoghurt and sour milk products in 2015, with a 50% value share. Just like in other dairy categories, Almarai also continued its new product developments in yoghurt. In the first quarter of 2014 it tried to revive the saturated category of plain yoghurt by introducing sour yoghurt. In the second quarter of 2015 it launched a new 2.75-litre pack of regular drinking yoghurt and half kilo pack of plain yoghurt. It also further launched a new line of drinking, plain and flavoured yoghurts for children aged 2-5 by the name of Saghiri during the same period. Such aggressive new product developments, coupled with Almarai’s strong brand name and renowned distribution system, helped the company to stay way ahead of its competitors in 2015.

PROSPECTS

  • Saudi Arabia is expected to witness growing health awareness, as the quality and quantity of healthcare providers in the country improves. The government set aside nearly SAR108.0 billion of its 2014 budget for healthcare purposes, which was 8% higher than in the 2013 budget. It has also relaxed the rules for investment in healthcare, which is expected to lead more international players to enter the country’s lucrative healthcare market. These developments will eventually lead to wider knowledge about healthcare amongst the country’s residents. Lifestyle and diet changes are also expected to be at the top of the list of healthcare advice and literature, as the country seeks to combat the growing incidence of osteoporosis. Residents, armed with better knowledge of how to improve their health, will also seek to make healthier choices when it comes to food. This will include the reduction of junk and fatty food in their diet and an increase in the consumption of healthier food, including dairy products in general and yoghurt in particular.

Other Dairy

TRENDS

  • Saudi Arabia’s traditional grocery retailers suffered immensely, as the Saudisation drive resulted in massive labour shortages. The Labour Ministry introduced a points system by the name of Nitaqat in early 2013, which categorised companies into Red, Yellow or Green Zones. The companies that had less than the required number of Saudi nationals compared with expatriates were put in Red Zone, and were penalised. In order to overcome the problem, many companies fired employees. Some even shut down. Retailing was amongst the worst affected, with traditional grocery retailers facing the brunt of the drive. Most independent small grocers have foreign labour, as local Saudis usually do not take these jobs. Many went out of business. As a result, the products that were heavily dependent on this channel, such as some in other dairy, suffered greatly. Nevertheless, the situation started improving from late 2014, as the government relaxed the rules slightly, and independent small grocers also fixed their Nitaqat system.

COMPETITIVE LANDSCAPE

  • National Food Industries led other dairy with a 20% value share in 2015. The company has a strong following for its evaporated milk brand Luna. Owing to its massive production facility in the country, the company is able to offer its products across all channels at very reasonable prices, which helps it to gain a competitive advantage, since the market is quite price-sensitive. In addition, the company is also investing in regular in-store promotions, such as multipack offers, helping to drive sales of its brand.

PROSPECTS

  • Traditional grocery retailing is now bouncing back in Saudi Arabia, after suffering a setback in late 2013 and 2014. The government has realised the loopholes in the Nitaqat system, and is seeking to address them so that the growth of retailing is revived. Steps are being taken to protect the rights of foreign workers and increase the employment rate for Saudis in order to achieve the right balance. As a result, products such as some of those within other dairy are also expected to show a full recovery in terms of sales through this channel in the forecast period.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Saudi Arabia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Saudi Arabia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Saudi Arabia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Saudi Arabia?
  • What are the major brands in Saudi Arabia?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Table of Contents

Dairy in Saudi Arabia - Category Analysis

CHEESE

Headlines

Trends

Competitive Landscape

Prospects

Category Data

  • Table 1 Sales of Cheese by Category: Volume 2010-2015
  • Table 2 Sales of Cheese by Category: Value 2010-2015
  • Table 3 Sales of Cheese by Category: % Volume Growth 2010-2015
  • Table 4 Sales of Cheese by Category: % Value Growth 2010-2015
  • Table 5 Sales of Spreadable Processed Cheese by Type: % Value Breakdown 2010-2015
  • Table 6 Sales of Unprocessed Cheese by Type: % Value Breakdown 2010-2015
  • Table 7 NBO Company Shares of Cheese: % Value 2011-2015
  • Table 8 LBN Brand Shares of Cheese: % Value 2012-2015
  • Table 9 Distribution of Cheese by Format: % Value 2010-2015
  • Table 10 Forecast Sales of Cheese by Category: Volume 2015-2020
  • Table 11 Forecast Sales of Cheese by Category: Value 2015-2020
  • Table 12 Forecast Sales of Cheese by Category: % Volume Growth 2015-2020
  • Table 13 Forecast Sales of Cheese by Category: % Value Growth 2015-2020

DRINKING MILK PRODUCTS

Headlines

Trends

Competitive Landscape

Prospects

Category Data

  • Table 14 Sales of Drinking Milk Products by Category: Volume 2010-2015
  • Table 15 Sales of Drinking Milk Products by Category: Value 2010-2015
  • Table 16 Sales of Drinking Milk Products by Category: % Volume Growth 2010-2015
  • Table 17 Sales of Drinking Milk Products by Category: % Value Growth 2010-2015
  • Table 18 NBO Company Shares of Drinking Milk Products: % Value 2011-2015
  • Table 19 LBN Brand Shares of Drinking Milk Products: % Value 2012-2015
  • Table 20 Distribution of Drinking Milk Products by Format: % Value 2010-2015
  • Table 21 Forecast Sales of Drinking Milk Products Products by Category: Volume 2015-2020
  • Table 22 Forecast Sales of Drinking Milk Products Products by Category: Value 2015-2020
  • Table 23 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2015-2020
  • Table 24 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2015-2020

YOGHURT AND SOUR MILK PRODUCTS

Headlines

Trends

Competitive Landscape

Prospects

Category Data

  • Table 25 Sales of Yoghurt and Sour Milk Products by Category: Volume 2010-2015
  • Table 26 Sales of Yoghurt and Sour Milk Products by Category: Value 2010-2015
  • Table 27 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2010-2015
  • Table 28 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2010-2015
  • Table 29 Sales of Flavoured Yoghurt by Flavour: Rankings 2010-2015
  • Table 30 Sales of Fruited Yoghurt by Flavour: Rankings 2010-2015
  • Table 31 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2011-2015
  • Table 32 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2012-2015
  • Table 33 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2010-2015
  • Table 34 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2015-2020
  • Table 35 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2015-2020
  • Table 36 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2015-2020
  • Table 37 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2015-2020

OTHER DAIRY

Headlines

Trends

Competitive Landscape

Prospects

Category Data

  • Table 38 Sales of Other Dairy by Category: Volume 2010-2015
  • Table 39 Sales of Other Dairy by Category: Value 2010-2015
  • Table 40 Sales of Other Dairy by Category: % Volume Growth 2010-2015
  • Table 41 Sales of Other Dairy by Category: % Value Growth 2010-2015
  • Table 42 Sales of Cream by Type: % Value Breakdown 2010-2015
  • Table 43 Distribution of Other Dairy by Format: % Value 2010-2015
  • Table 44 Forecast Sales of Other Dairy by Category: Volume 2015-2020
  • Table 45 Forecast Sales of Other Dairy by Category: Value 2015-2020
  • Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2015-2020
  • Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2015-2020

Dairy in Saudi Arabia - Company Profiles

Almarai Co Ltd in Packaged Food (Saudi Arabia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 1 Almarai Co Ltd: Key Facts
  • Summary 2 Almarai Co Ltd: Operational Indicators

COMPETITIVE POSITIONING

  • Summary 3 Almarai Co Ltd: Competitive Position 2015

Halwani Bros Co in Packaged Food (Saudi Arabia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 4 Halwani Bros Co: Key Facts
  • Summary 5 Halwani Bros Co: Operational Indicators

COMPETITIVE POSITIONING

  • Summary 6 Halwani Bros Co: Competitive Position 2015

Saudi Dairy & Foodstuff Co Ltd (SADAFCO) in Packaged Food (Saudi Arabia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 7 Saudi Dairy & Foodstuff Co Ltd (SADAFCO): Key Facts
  • Summary 8 Saudi Dairy & Foodstuff Co Ltd (SADAFCO): Operational Indicators

COMPETITIVE POSITIONING

  • Summary 9 Saudi Dairy & Foodstuff Co Ltd (SADAFCO): Competitive Position 2015

Sunbulah Food & Fine Pastries Mfg Co Ltd in Packaged Food (Saudi Arabia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 10 Sunbulah Food & Fine Pastries Mfg Co Ltd: Key Facts

COMPETITIVE POSITIONING

  • Summary 11 Sunbulah Food & Fine Pastries Mfg Co Ltd: Competitive Position 2015

Packaged Food in Saudi Arabia - Industry Context

EXECUTIVE SUMMARY

Packaged food continues to register a strong performance

Digital media gains importance for manufacturers

Local players compete aggressively with international companies

Traditional grocery retailers resumes growth after setback

An improved forecast period performance expected for packaged food

KEY TRENDS AND DEVELOPMENTS

Increasing female employment drives growth of convenience products

Digital communication is fast replacing traditional media

Health consciousness still nascent but impacting some categories

Grocery retailing growth back on track

FOODSERVICE: KEY TRENDS AND DEVELOPMENTS

Headlines

Trends: Sales to foodservice

Trends: Consumer foodservice

Prospects

Category Data

  • Table 48 Foodservice Sales of Packaged Food by Category: Volume 2010-2015
  • Table 49 Foodservice Sales of Packaged Food by Category: % Volume Growth 2010-2015
  • Table 50 Forecast Foodservice Sales of Packaged Food by Category: Volume 2015-2020
  • Table 51 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2015-2020

Market Data

  • Table 52 Sales of Packaged Food by Category: Volume 2010-2015
  • Table 53 Sales of Packaged Food by Category: Value 2010-2015
  • Table 54 Sales of Packaged Food by Category: % Volume Growth 2010-2015
  • Table 55 Sales of Packaged Food by Category: % Value Growth 2010-2015
  • Table 56 GBO Company Shares of Packaged Food: % Value 2011-2015
  • Table 57 NBO Company Shares of Packaged Food: % Value 2011-2015
  • Table 58 LBN Brand Shares of Packaged Food: % Value 2012-2015
  • Table 59 Penetration of Private Label by Category: % Value 2010-2015
  • Table 60 Distribution of Packaged Food by Format: % Value 2010-2015
  • Table 61 Distribution of Packaged Food by Format and Category: % Value 2015
  • Table 62 Forecast Sales of Packaged Food by Category: Volume 2015-2020
  • Table 63 Forecast Sales of Packaged Food by Category: Value 2015-2020
  • Table 64 Forecast Sales of Packaged Food by Category: % Volume Growth 2015-2020
  • Table 65 Forecast Sales of Packaged Food by Category: % Value Growth 2015-2020

Sources

  • Summary 12 Research Sources

Segmentation

This market research report includes the following:

  • Packaged Food
    • Dairy
      • Cheese
        • Processed Cheese
          • Spreadable Processed Cheese
          • Other Processed Cheese
        • Unprocessed Cheese
          • Hard Cheese
            • Packaged Hard Cheese
            • Unpackaged Hard Cheese
          • Soft Cheese
      • Drinking Milk Products
        • Flavoured Milk Drinks
          • Dairy Only Flavoured Milk Drinks
          • Flavoured Milk Drinks with Fruit Juice
        • Milk
          • Cow's Milk
            • Fresh Milk
              • Fat-free Fresh Milk
              • Semi Skimmed Fresh Milk
              • Full Fat Fresh Milk
            • Shelf Stable Milk
              • Fat-free Shelf Stable Milk
              • Semi Skimmed Shelf Stable Milk
              • Full Fat Shelf Stable Milk
          • Goat Milk
        • Powder Milk
        • Non-Dairy Milk Alternatives
          • Soy Drinks
          • Soy Milk
          • Other Non-Dairy Milk Alternatives
      • Yoghurt and Sour Milk Products
        • Sour Milk Products
        • Yoghurt
          • Drinking Yoghurt
          • Flavoured Yoghurt
          • Fruited Yoghurt
          • Plain Yoghurt
      • Other Dairy
        • Chilled and Shelf Stable Desserts
          • Dairy-Based Desserts
            • Chilled Dairy-based Desserts
            • Shelf Stable Dairy-based Desserts
          • Soy-based Desserts
            • Chilled Soy-based Desserts
            • Shelf Stable Soy-based Desserts
        • Chilled Snacks
        • Coffee Whiteners
        • Condensed Milk
          • Flavoured Condensed Milk
          • Plain Condensed Milk
        • Cream
        • Fromage Frais and Quark
          • Flavoured Fromage Frais and Quark
          • Plain Fromage Frais and Quark
          • Savoury Fromage Frais and Quark

Statistics Included

For each category and subcategory you will receive the following data in Excel format:

From Passport

  • Market Sizes
  • Company Shares
  • Brand Shares
  • Distribution
  • Analysis by Flavour
  • Analysis by Type
  • Pricing
  • Products by Ingredient

Market size details:

  • Retail volume
  • Retail volume % growth
  • Retail volume per capita
  • Foodservice volume
  • Foodservice volume % growth
  • Foodservice volume per capita
  • Total volume
  • Total volume % growth
  • Total volume per capita
  • Retail value retail selling price % growth
  • Retail value retail selling price local currency, USD, EUR, GBP, CHF, JPY
  • Retail value retail selling price per capita local currency, USD, EUR, GBP, CHF, JPY
  • Retail value manufacturer selling price % growth
  • Retail value manufacturer selling price local currency, USD, EUR, GBP, CHF, JPY
  • Retail value manufacturer selling price per capita local currency, USD, EUR, GBP, CHF, JPY
  • Retail rtd volume
  • Retail rtd volume % growth
  • Retail rtd volume per capita
  • Foodservice rtd volume
  • Foodservice rtd volume % growth
  • Foodservice rtd volume per capita
  • Total rtd volume
  • Total rtd volume % growth
  • Total rtd volume per capita
  • Retail volume (tonnes)
  • Retail volume (tonnes) % growth
  • Retail volume (tonnes) per capita
  • Foodservice volume (tonnes)
  • Foodservice volume (tonnes) % growth
  • Foodservice volume (tonnes) per capita
  • Total volume (tonnes)
  • Total volume (tonnes) % growth
  • Total volume (tonnes) per capita

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