The baby foods market in Saudi Arabia registered a strong growth in the period between 2009 an 2015. With 77.4% value sales and 71.1% of volume, the milk segment led the baby foods market in 2015. In the same year, cereals accounted for 23.2% of volume sales, while wet meals and other types of baby food made up for less than 5% market value. Since 2009, consumption of baby foods in the Kingdom has surged 53.5%. However, a recent study has revealed that compared to rice-based cereals, wheat-based food products are more popular among mothers in Saudi Arabia.
For the current year 2016, it is estimated that the Saudi Food Industries Co Ltd, held by Nestlé SA, will lead the baby food market with 19% of retail value sales. Thanks to its flagship brand Cérélac,the company is expected to see maximum sales in the dried baby food segment with a 77% retail value share. The company’s milk formula brands Nido and Nan are also popular in the Kingdom. However, the baby foods market in Saudi Arabia has one drawback- the production of baby food products in the local market is very low.
Furnished below are factors that will bolster the baby foods market in Saudi Arabia:
Saudi Arabia is an economically strong nation with a very high human development index (HDI) and an increased per capita income. This means that the spending power of Saudi families is high.
2.Rising number of working women:
Saudi Arabia is witnessing positive socio-economic changes, the result of which is reflected by the fact that more number of women are now joining work-force. Women employment has surged to 48%. Since women are working, they find it convenient to feed their babies healthy, ready-to-cook/mix baby food products.
3.Rise in number of live births:
Due to improved medical facilities and health consciousness among people, the percentage of live child births has surged.
4.Exposure to Western lifestyle:
Due to exchange of cultural and lifestyle ideas, women in Saudi Arabia are encouraged and influenced to use modern baby food products available in the market.
“The baby foods market in Saudi Arabia is likely to grow further 33.3% in terms of volume through the coming 6 years.”
5.Retail developments and marketing:
Producers and retailers are taking lot of efforts to attract and retain customers. They try to promote brands by offering value packs, infographics, promising child development, carrying out heavy advertising campaigns, and making these products easily available across big and small retail outlets. Labels such as Cérélac and Nido are active even on social media websites Instagram and Facebook so as to remain more connected with their customers (mothers).