Juice in Saudi Arabia - New Study Released

From: Fast Market Research, Inc.
Published: Fri Aug 15 2014

The last few years saw the Saudi population inching towards healthier alternatives in food and drink, thanks to growing awareness of health and wellness. 2013 saw a continuation of the trend, with an increasing number of consumers opting for healthier eating and drinking alternatives. As internet penetration is increasing rapidly, consumers are becoming increasingly aware of the latest lifestyle trends followed in the Western world. There is a strong desire amongst modern Saudis to emulate Western lifestyles, including their health and fitness regimes. This has not only led to the development of new health clubs and gymnasia, but also to the expansion of the diet and healthfood sections in supermarkets and hypermarkets. This trend is further backed by the increasing efforts of the government to promote healthier lifestyles through different campaigns in order to fight the alarming rise of obesity. Consequently, demand for healthier food and drink, including juice, has picked up.

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Competitive Landscape

Al Rabie AlSaudia Dairy led juice with a 16% value share and 15% volume share (off-trade) in 2013. The company enjoys a strong position in 100% juice, in which it held a 26% volume share in 2013. The company locks in consumers by offering multi-pack promotions and other in-store activities throughout the year. Mothers in particular are interested in small 200ml packs of juice, as they make good lunchbox items, and therefore are attracted by the offer of multipacks. Finally, a strong distribution network, which ensures the timely supply of its products across all retail channels, helped the company to maintain its position as the leader in juice in 2013.

Industry Prospects

As Saudi society undergoes changes, via embracing more modern and Western lifestyles, consumers are expected to incorporate various new habits into their daily lives, with the introduction of health and fitness regimes being amongst them. Women in particular are expected to lead on this front, as they are the part of society which is fast emerging, with the highest internet penetration and enrolment in higher education. They are also expected to increase in number in the workforce, as now the government is encouraging more Saudi women to take up jobs. This exposure to various knowledge streams will lead to better understanding of the importance of leading healthier lifestyles, which these women will try to incorporate into their family life, focusing on healthy meals. They are expected to pay more attention to the ingredients in the products they choose for their families, especially children, selecting those with the highest nutritional value and avoiding fatty and sugary items. This trend will eventually have a profound effect on various categories, including juice.

Report Overview

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