Fortified/Functional Packaged Food in Saudi Arabia

PROSPECTS

Growth is driven by government initiatives and a rise in health-conscious consumers, boosting value sales

A rise in health awareness among young consumers in Saudi Arabia strengthened demand for FF packaged food in 2019. In 2019, manufacturers in areas such as dairy, confectionery, baby food, breakfast cereals and vegetable and seed oil, continued to fortify their products with fibre, vitamins, minerals and other nutrients, appealing to the rise of health-conscious consumers.

The rise in promotional activities positively boosts growth and awareness of FF packaged foods

Marketing and promotions had a strong influence on raising awareness for FF packaged food in 2019, with increasing competition among players, especially local ones, increasing the levels of advertising and promotions in FF foods.

FF packaged foods benefits from being an affordable choice, while also being widely available

In 2019, FF packaged food remained widely available across multiple modern and traditional retailing channels in Saudi Arabia. Moreover, FF options are priced similarly to regular packaged food products and are therefore much more affordable than other health and wellness offerings – particularly organic goods.

COMPETITIVE LANDSCAPE

Nestlé maintains its lead in FF packaged food, while its Fitness bars encourage growth in FF cereal bars

Nestlé maintained its leading position in FF packaged food in 2019. This is mainly due to its flagship FF powder milk formula brand, Nido, which has a massive following of loyal consumers who appreciate its high quality and consider it to be nutritious.

Fragmented FF packaged food features a mix of local and international players

Baby food and dairy producers continued to lead FF packaged food in 2019. Nestlé was the overall leader in value terms, followed by Almarai, RONESCA, Wyeth-Ayerst International and further down the rankings, Al Safi Danone.

As new players arrive, growth in FF dairy foods continues to increase

Dairy products are one of the major packaged food areas which offer Fortified/functional ingredients. Strong examples of this are offerings from established players like Almarai, Nada and Nestlé, and frequent new product developments and launches - such as FF Greek yoghurt - has further boosted growth in this areas in 2019.

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