While Saudi Arabia has managed to contain inflation, the price of many products within baked goods have still risen due to the impact of factors such as Russia's invasion of Ukraine and rising wheat prices. As such, some consumers have become more price sensitive and this is likely to continue influencing the demand for baked goods, at least in the early part of the forecast period.
Supermarkets and hypermarkets are the largest distribution channels for baked goods with consumers gradually migrating away from traditional channels such as bakeries and small local grocers as they look for greater convenience. These larger modern retail outlets allow consumers to shop for a wide range of grocery and non-grocery items and regularly run discounts and promotions to attract shoppers, while many outlets also offer freshly-baked bread and other baked goods from in-store bakeries.
Almarai is known as a key player in dairy in Saudi Arabia and in other GCC countries but it is also the leading player in baked goods with its leading brands 7 Days and L’Usine. Almarai has been focused on improving its strategies as it looks to expand its presence in the market and build its share.
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This is the aggregation of bread, pastries, dessert mixes, frozen baked goods and cakes. Note: Baked goods from in-store bakeries are classified under unpackaged/artisanal, not packaged/industrial. While they may be finished on-site, they are often prepared, then frozen or par-baked, at other locations. Such production models are very important for supermarket in-store bakeries, which have in the past been used to drive traffic and fill stores with appetising aromas, but for which the labour resources required to run a full-service scratch bakery are not always available.See All of Our Definitions
This report originates from Passport, our Baked Goods research and analysis database.
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