With its latest forecast for regions food and beverage consumption – a 5.0% expansion over 2014
Driven by rising disposable incomes, favourable demographics and increasing urbanisation, the Saudi retail sector has a promising medium-term future, according to regional Food & Drink Report Q1 2014.
Over 2014, food consumption will grow in local currency terms by 8%, in line with an average annual increase of 7.8% from 2013 to 2017, said report.
This year will also see confectionery sales climb 6.9% and mass grocery sales soar 10.3%, in local currency, according to the research company.
Poultry is due to continue its rebound from 2011/12, when disease hit the sector, with a 15.8% surge to a record 660,000 tons, according to media reports.
BMI also forecasts “increased formalisation” of the mass grocery sector, with “both domestic and international investors” drawn by regional consumers’ spending power.