KSA Snacks Market Outlook to 2030

KSA Snacks Market Overview

• The KSA Snacks Market is valued at USA 0.7 billion, with growth driven by several factors including the rising demand for convenient, ready-to-eat products, and the increasing shift towards healthier snack options. Consumers, particularly in urban areas, are opting for snacks that cater to their busy lifestyles, pushing demand for on-the-go snacks. Additionally, a growing emphasis on health and wellness has spurred interest in low-fat, gluten-free, and organic snacks, propelling growth across the sector.
• Key regions within Saudi Arabia, such as Riyadh, Jeddah, and the Eastern Province, dominate the snacks market due to their higher population density, increased disposable income, and more developed retail infrastructure. These urban centers are hubs for retail chains, supermarkets, and specialty stores, making them key distribution points for both international and local snack brands. Their dominance is also linked to a youthful demographic with a penchant for global snacking trends.
• The Saudi Food and Drug Authority (SFDA) has set strict guidelines that govern the production, distribution, and sale of snack products in the country. These include rules on food safety, nutritional labeling, and the use of certain additives. Snack manufacturers are required to comply with SFDA standards to ensure consumer safety and transparency. The SFDA also regulates Halal certification, a mandatory requirement for food products sold in Saudi Arabia.

KSA Snacks Market Segmentation

• By Product Type: The KSA snacks market is segmented by product type into potato chips, nuts and seeds, popcorn, tortilla and corn chips, and others (including pretzels and crackers). Among these, potato chips hold the dominant market share due to their widespread popularity and availability. Major brands such as Lay's and Al-Jazira have established a strong presence through extensive marketing and continuous product innovation. The familiarity and convenience of potato chips, alongside their affordability, make them a go-to snack for consumers of all ages.

• By Distribution Channel: By distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, specialty stores, and others (direct sales, vending machines). Supermarkets and hypermarkets dominate the segment due to their expansive presence across Saudi Arabia, offering consumers a one-stop shop for all snack varieties. Retail chains like Panda and Carrefour have capitalized on the snack market by frequently running promotions and introducing new products, thus attracting a large customer base.

KSA Snacks Market Competitive Landscape

The KSA snacks market is characterized by a combination of global giants and local players, with a highly competitive environment. PepsiCo, Mondelez, and Almarai lead the market due to their strong brand portfolios and extensive distribution networks. Local manufacturers also play a key role by offering culturally relevant products and maintaining competitive pricing.

KSA Snacks Market Analysis

Growth Drivers

• Rising Demand for Health-Conscious Snacks (Health Trends): The growing demand for health-conscious snacks in Saudi Arabia is driven by increasing awareness of nutrition and a shift in lifestyle choices. As of 2024, Saudi Arabia has seen a notable rise in obesity rates, with 35% of adults classified as obese, according to World Bank data. This has led consumers to seek healthier snack alternatives, including low-sugar, gluten-free, and organic products. Additionally, the governments Vision 2030 initiative encourages healthier lifestyles, further stimulating the market for nutritious snack options. Health-conscious snack manufacturers have experienced increased interest from consumers prioritizing healthier diets.
• Increasing Youth Population and Western Influence (Demographic Trends): Saudi Arabias youth population (aged 15-29) constitutes nearly 30% of the total population, according to the Saudi General Authority for Statistics. This demographic, heavily influenced by Western dietary trends and media, is driving demand for snacks that blend local flavors with Western influences. Moreover, the youth demographic is more inclined to experiment with innovative snack formats such as protein bars and trail mixes, further diversifying the product range. Western-inspired fast-food chains and social media trends are also fueling this shift in consumer preferences towards convenient, ready-to-eat snacks.

Government Initiatives Supporting Food Manufacturing 

The Saudi government has implemented various initiatives to boost domestic food manufacturing, reducing reliance on imports and encouraging local production. Through Vision 2030, the government has allocated approximately $1.3 billion to enhance food production infrastructure. These initiatives aim to diversify the economy by increasing local food manufacturing, including snack production. Incentives such as tax breaks for local manufacturers and reduced tariffs on raw materials have further encouraged the growth of the snack manufacturing industry, which is expected to meet a significant portion of domestic demand in the coming years.

Market Challenges

• Intense Competition from International Brands (Competitive Landscape): Saudi Arabia's snack market faces fierce competition from global brands such as PepsiCo, Mars, and Mondelez, which dominate supermarket shelves due to their strong distribution networks and brand recognition. The challenge for local brands is significant, given that international brands account for nearly 65% of the market share (as reported by Saudi customs). While local players try to compete by offering unique flavors and regional specialties, international brands benefit from economies of scale and marketing budgets, making it difficult for smaller domestic brands to capture market share.
• Price Sensitivity Among Consumers (Pricing Trends): Price sensitivity remains a key challenge in the Saudi snack market, especially as inflation affects disposable incomes. According to the Saudi Central Bank, inflation is projected at around 3.1% for 2024, leading to a more cost-conscious consumer base. This sensitivity makes it difficult for premium snack brands to penetrate the mass market, as consumers are more likely to opt for affordable, mid-tier products. Consequently, brands must carefully balance pricing strategies to remain competitive without compromising on quality, especially amid fluctuating raw material costs.

KSA Snacks Market Future Outlook

Over the next five years, the KSA snacks market is expected to experience significant growth, driven by shifting consumer preferences towards healthier, low-calorie snacks, and the increasing penetration of e-commerce channels. The rise of conscious consumerism, coupled with government efforts to localize food production, is likely to push the development of healthier snack alternatives. Urbanization, a growing youth population, and international influence will also continue to propel demand for a variety of snack options, further diversifying the market.

Market Opportunities

• Growing Demand for Organic and Gluten-Free Snacks: The growing health awareness in Saudi Arabia has led to an increased demand for organic and gluten-free snacks. A World Bank report indicates that Saudi Arabia's organic food market, including snacks, is valued at approximately $2 billion. As consumers become more health-conscious, the demand for clean-label, non-GMO, and gluten-free snacks is on the rise, offering significant opportunities for manufacturers. With the organic agriculture sector in Saudi Arabia growing, snack producers can leverage locally sourced organic ingredients to meet this demand and cater to a niche but expanding consumer segment.
• Expansion of E-Commerce Channels: The expansion of e-commerce in Saudi Arabia offers a growing platform for snack manufacturers to reach a wider audience. In 2024, e-commerce is expected to account for nearly 15% of total retail sales in the country, according to the Saudi Central Bank. This digital shift allows snack producers to directly engage with consumers, offering a more personalized shopping experience through platforms like Noon and Amazon. The convenience of home delivery, coupled with frequent promotional offers, has made online shopping an increasingly popular choice for snack purchases, opening new growth channels for the industry.