Report Code : CVMI24050425 | Published Date : May 9, 2024

The Saudi frozen bakery market is projected to grow from SAR 2.1 billion (approx. USD 560 million) in 2024 to SAR 5.8 billion (USD 1.55 billion) by 2035, achieving a CAGR of 9.7%. This growth is fueled by:

1.1 Market Evolution Timeline

Period

Key Development

Impact

2017-2020

Basic frozen pita/paratha adoption

22% household penetration

2021-2024

Halal premium pastry launches

38% premium segment growth

2025-2030

Smart freezer infrastructure rollout

45% reduction in cold chain losses

1.2 Consumer Behavior Shifts

  • Expat Influence: European-style croissants now available in 47% of Riyadh households
  • Hospitality Demand: 5-star hotels source 68% of their bakery items from frozen
  • Ramadan Sales: Frozen kunafa dough experiences a 400% seasonal demand increase.

 

2. Growth Accelerators

2.1 Mega Trends Driving Adoption

  • Urban Working Women: 58% buy frozen breakfast items weekly
  • Tourism Boom: Over 30 million visitors annually boosting the bakery industry demand
  • Health Awareness: Sugar-free frozen options are growing at 21% YoY

 

2.2 Supply Chain Advancements

Technology

Adoption Rate

Impact

Solar-powered freezers

42% of retailers

35% energy cost reduction

Blockchain tracking

28% of brands

39% fewer expired goods

AI demand forecasting

19% of suppliers

27% less waste

2.3 Regulatory Support

  • SASO Halal Standards: Required for all frozen bakery products imports
  • Vision 2030 Subsidies: 18% rebate on local production facilities

 

3. Untapped Opportunities

3.1 Product Innovation Potential

  • Date-infused pastries: Aligning with national agriculture strategy
  • Camel Milk Croissants: Differentiating in the GCC markets
  • Iftar-ready products: Pre-portioned dough for Ramadan

 

3.2 White Space Analysis

Segment

Current Penetration

2035 Potential

Hyperlocal bakeries

12%

34%

Oil camp supplies

8%

27%

Airline catering

15%

39%






Reasons To Buy

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Scope

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