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Consumer and Market Insights: Ice Cream Market in Saudi Arabia

CS1956MF April 2015

22215/05/2015 25/15/2015 25/15/2015 25/15/2015 2

This report brings together multiple data sources to provide a comprehensive overview of the Ice Cream sector in

Saudi Arabia as part of our global coverage of the sector. This report draws on market data, analyzing value and

volume data and category and channel distribution breakdown, also highlighting which categories are witnessing the

biggest growth. Brand and Private Label analysis is also provided. It also contains top line foodservice transaction

figures highlighting where the most opportunistic channels are for industry players in the country. Detailed packaging

analysis is also provided, analyzing category trends and also packaging material and type

Market data coverage – The overall market value and volume included in the report is split on the basis of on-trade

and off-trade volume and value.

Category coverage: This report provides information on three Ice Cream categories including Artisanal Ice

Cream, Impulse Ice Cream - Single Serve and Take-home and Bulk Ice Cream.

More extensive brand coverage: The report provides more extensive brand share coverage. Brand share data is

also validated by inputs from industry experts.

Distribution channel: The Distribution data included in the report covers 11 distribution channels including Cash &

Carries & Warehouse Clubs, “Dollar Stores”, Variety Stores & General Merchandise Retailers, Hypermarkets &

Supermarkets, Convenience Stores

Time period: The report provides overall market value and volume data, including category level data for the period

2009-2019. Distribution channel and brand share data is included for the year 2014.

Report scope

333

Table of Contents

• Country Context

• Market Overview

• Retail Landscape and Key Distribution Channels

• Packaging

• Brand Share

• Appendix

444

High disposable income and large proportion of young population will drive the demand for packaged goods market

The GDP growth rate of Saudi Arabia showed an

upward trend in 2014 after declining during 2011-2013.

It reached SAR99,322.8 in 2014.

Saudi Arabia has a large young population, 40.6% of

the population is between the age 15 and 35.

Consumer prices in Saudi Arabia increased by 6.3%

during 2012-2014 reaching 121.9 basis points in 2014.

The population in Saudi Arabia grew at a CAGR of

1.9% during 2011-2014 and totaled 29.4 million in 2014.

Saudi Arabia is one of the largest producer and exporter of oil in the world. Significant young consumer base and

high disposable income makes Saudi Arabia a key Ice Cream market.

GDP Per Capita Population

Consumer Price Index Age Profile

0 - 9

40 - 49

70 - 79

80+

100

110

120

130

2009 2010 2011 2012 2013 2014

Con

sum

er P

rice

Inde

x

-25%

-15%

-5%

5%

15%

25%

35%

0

20,000

40,000

60,000

80,000

100,000

120,000

2009 2010 2011 2012 2013 2014

GD

P P

er

Ca

pita

(SA

R)

Ann

ual g

row

th (

%)

0 - 9

10 - 19

20 - 29

30 - 39

40 - 49

50 - 59

60 - 69

70 - 79

80+

1.4%

1.6%

1.8%

2.0%

0

5

10

15

20

25

30

2009 2010 2011 2012 2013 2014

An

nu

al G

row

th (%

)

Po

pu

latio

n (M

illio

n)

555

The retail and foodservice markets in Saudi Arabia: an overview

Foodservice

This slide provides an overview of the retail and foodservice markets in Saudi Arabia, in which industry

players in the Ice Cream market operate:

Profit

Total number of transactions in the Profit

Sector, 2014: 2,462.5 million

Largest channel in the Profit Sector and

transactions, 2014: Restaurants, 1,865.4

million

Cost

Total number of transactions in the Cost

Sector, 2014: 1,207.0 million

Largest channel in the Cost Sector and

transactions, 2014: Education, 556.6

million

Retail

Country indicator Units Value

Total value of Food

market, 2014

US$

millions 21,078.5

Total volume of Food

market, 2014

Millions

of Kg 6,712.3

Total Food volume growth

2009-2014CAGR 4.4%

Proportion of Ice Cream

as part of overall food

volume, 2014

% 0.9%

Biggest category within

the Ice Cream market as

part of overall volume,

2014

%

Impulse Ice

Cream –

Single

Serve, 45%

Figures for overall food 2014 are forecasts.

666

Table of Contents

• Country Context

• Market Overview


• Packaging

• Brand Share

• Appendix

777

The Ice Cream market in Saudi Arabia will register high growth in value terms during 2014-2019

Market value of Saudi Arabia’s Ice Cream

market, 2009-2019

Market volume of Saudi Arabia’s Ice Cream

market, (Millions of Kg), 2009-2019

Total Off-trade On-trade

CAGR 2009–2014 5.4% 5.8% 4.8%

CAGR 2014–2019 5.8% 6.3% 5.1%

• The Ice Cream market in Saudi Arabia grew at a CAGR of 6.8% in US$ terms during 2009-2014 and is

forecast to register growth at a CAGR of 7.2% during 2014-2019. Off-trade consumption will grow at a higher

rate in value terms at a CAGR of 7.8% compared to 6.4% CAGR for on-trade consumption during 2014-2019.

• The volume consumption of Ice Cream products is forecast to grow from 95.2 Kg million in 2014 to 126.4 Kg

million in 2019 to register growth at a CAGR of 5.8% during 2014-2019.

Total(US$

million)

Off-trade (US$

million)

On-trade (US$

million)

2009 632.0 355.7 276.2

2014 877.0 507.0 370.0

2019 1,243.6 736.4 504.8

CAGR 2009–

20146.8% 7.3% 6.0%

CAGR 2014–

20197.2% 7.8% 6.4%

73.195.2

126.4

45.560.4

81.8

27.6 34.844.6

2009 2014 2019

Total Volume Off Trade On Trade

888

Off-trade transactions accounted for higher growth in local currency terms and volume terms compared to on-trade transactions during 2014-2019

The Ice Cream market in Saudi Arabia grew at a similar rate during 2009-2019 both in local currency terms and US$

terms. It was worth SAR3,288.7 million (US$877.0 million) in 2014, and is forecast to register a CAGR of 7.2% in

local currency terms during 2014-2019 to reach SAR4,654.7 million (US$1,241.3 million) in 2019. The Ice Cream

market in Saudi Arabia recorded high growth in volume terms, at a CAGR of 5.6% during 2009-2019.

On-trade transactions accounted for 42.2% of the Ice Cream market in local currency terms and 36.6% in volume

terms, in 2014.

Market value (SAR m and US$ m) and volume growth of

Saudi Arabia’s Ice Cream market, 2009–2019

Off-trade On-trade

Value

growth

Volume

growth

Value

growth

Volume

growth

2014 7.5% 6.0% 6.2% 4.9%

2015 7.6% 6.1% 6.3% 4.9%

2016 7.7% 6.2% 6.3% 5.0%

2017 7.8% 6.3% 6.4% 5.1%

2018 7.8% 6.3% 6.5% 5.1%

2019 7.9% 6.4% 6.6% 5.2%

Market value (SAR m) and volume growth of

Saudi Arabia’s Ice Cream market, 2014–2019

– Off-trade/on-trade

0%

1%

2%

3%

4%

5%

6%

7%

8%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Gro

wth

Rate

(%

)

Value (SAR m) Value (US$ m) Volume Kg m

999

Saudi Arabia’s consumers will prefer value for money Ice Cream products

Extent to which consumers are trading up or

down in Saudi Arabia’s Ice Cream market (off-

trade)

In 2014, the value of Saudi Arabia’s Ice Cream market grew by 7.4% for off-trade and 6.2% for on-trade sales.

There was a volume growth of 6.0% for off-trade and 4.9% for on-trade. Overall food prices increased by 2.6% and

the average price change for Ice Cream stood at 1.4% for off-trade and 1.2% for on-trade. There was a 1.2%

trading-down in off-trade market and 1.3% trading-down in on-trade market. The consumers will trade down and

purchase value for money products.

Extent to which consumers are trading up or

down in Saudi Arabia’s Ice Cream market (on-

trade)

7.4%

6.0%

1.4%2.6%

-1.2%

0%

2%

4%

6%

8%

10%

Change in Sales Value

Change in Sales Volume

Change in Average Price

Food Price Inflation

Trading Up or Down

2014 A

nnual

Chang

e %

6.2%

4.9%

1.2%

2.6%

-1.3%

0%

2%

4%

6%

8%

Change in Sales Value

Change in Sales Volume

Change in Average Price

Food Price Inflation

Trading Up or Down

2014 A

nnual

Chang

e %

101010

Impulse Ice Cream – Single Serve is the most consumed Ice Cream product in Saudi Arabia

Market volume of Saudi Arabia’s Ice Cream

market, (Millions of Kg), 2014, by category*

The volume consumption of Ice Cream was 95.2 Kg

million in 2014, of which Impulse Ice Cream - Single

Serve accounted for 45.0% followed by Artisanal Ice

Cream with 34.0% share. Impulse Ice Cream - Single

Serve will also register fastest growth in volume terms

at a CAGR of 7.6% during 2014-2019.

Market Volume, forecast Compound Annual

Growth Rate, 2014-2019

Market

Volume 2014

(Kg Million)

CAGR

2014-2019

Impulse Ice Cream - Single

Serve42.9 7.6%

Artisanal Ice Cream 32.3 4.7%

Take-home and Bulk Ice

Cream20.0 3.5%

* Market volume includes on-trade + off-trade sales

42.9

32.3

20.0Impulse Ice Cream - Single Serve

Artisanal Ice Cream

Take-home and Bulk Ice Cream

111111

Impulse Ice Cream - Single Serve have majority share in off-trade consumption while Artisanal Ice Cream accounted for highest on-trade consumption

Saudi Arabia’s Ice Cream market, Off-trade (Millions of Kg), 2014, broken down by category

Impulse Ice Cream - Single Serve accounted for 61.2% of off-trade volume consumption, while Artisanal Ice Cream

accounted for 77.0% of on-trade volume consumption. Impulse Ice Cream - Single Serve is forecast to record

fastest growth in both off-trade and on-trade markets at a CAGR of 7.7% and 7.3% respectively, during 2014-2019.

Market Volume 2014 (Kg Million)CAGR

2014–2019

Impulse Ice Cream - Single Serve 36.9 7.7%

Take-home and Bulk Ice Cream 17.9 3.5%


Saudi Arabia’s Ice Cream market, On-trade (Millions of Kg), 2014, broken down by category

Market Volume 2014 (Kg Million)CAGR

2014–2019


Impulse Ice Cream - Single Serve 5.9 7.3%

Take-home and Bulk Ice Cream 2.1 3.3%

121212

The Impulse Ice Cream – Single Serve category will register fastest growth in the off-trade market in value terms

Market value of categories in the Ice Cream market (Off-trade)

Impulse Ice Cream – Single Serve which accounted for off-trade sales of SAR1,253.0 million (US$334.1 million) in

2014, is the largest category by value sales. It is also forecast to register fastest growth in local currency value

terms, at a CAGR of 9.1% during 2014-2019 and will be followed by Artisanal Ice Cream with a CAGR of 6.2% during

the same period.

0%

2%

4%

6%

8%

10%

12%

0% 2% 4% 6% 8% 10% 12%

2014–2019 C

ate

gory

Valu

e in

SA

R

CA

GR

(%

)

2009–2014 Category Value in SAR CAGR (%)

Impulse Ice Cream - Single Serve


Artisanal Ice Cream

Bubble size= 2014 Category Value

(SAR million)

131313

The Impulse Ice Cream – Single Serve category will register fastest growth in the on-trade market in value terms

Artisanal Ice Cream which accounted for on-trade sales of SAR1,068.4 million (US$284.9 million) in 2014 is the

largest category by value sales. Impulse Ice Cream – Single Serve accounting for 17.0% of the Ice Cream market in

2014 will grow at the fastest CAGR of 8.9% during 2014-2019.

Market value of categories in the Ice Cream market (On-trade)

0%

2%

4%

6%

8%

10%

12%

0% 2% 4% 6% 8% 10%

2014–2019 C

ate

gory

Valu

e in

SA

R

CA

GR

(%

)

2009–2014 Category Value in SAR CAGR (%)

Artisanal Ice Cream



Bubble size= 2014 Category Value

(SAR million)

141414

Impulse Ice Cream – Single Serve, the largest category in value terms will register high growth during 2009-2019

The Impulse Ice Cream - Single Serve category was worth SAR973.7 million (US$259.7 million) in 2009 and is forecast to reach

SAR2,300.1 million (US$613.4 million) by 2019, registering a CAGR of 9.0% in local currency terms during 2009–2019. On-trade

transactions accounted for 15.8% of the category sales in 2014.

Impulse Ice Cream - Single Serve – US$ Impulse Ice Cream - Single Serve – SAR

Market value of categories in the Ice Cream market

Artisanal Ice Cream – US$ Artisanal Ice Cream – SAR

The Artisanal Ice Cream category was worth SAR986.4 million (US$263.0 million) in 2009 and is forecast to reach SAR1,748.4 million

(US$466.2 million) by 2019, registering a CAGR of 5.9% in local currency terms during 2009–2019. On-trade transactions accounted for

82.0% of the category sales in 2014.

0%

2%

4%

6%

8%

10%

0

200

400

600

800

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Valu

e (

US

$ M

illio

n)

Off-trade On-trade Annual Growth (%)

0%

2%

4%

6%

8%

10%

0

500

1,000

1,500

2,000

2,500

20092010201120122013201420152016201720182019

Valu

e (

SA

R M

illio

n)


0%

2%

4%

6%

8%

0

100

200

300

400

500

20092010201120122013201420152016201720182019

Valu

e (

US

$ M

illio

n)


0%

2%

4%

6%

8%

0

500

1,000

1,500

2,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Valu

e (

SA

R M

illio

n)


151515

Take-home and Bulk Ice Cream is the smallest category in value terms

The Take-home and Bulk Ice Cream category was worth SAR409.8 million (US$109.3 million) in 2009 and is forecast to reach SAR606.2

million (US$161.6 million) by 2019 registering a CAGR of 4.0% in local currency terms during 2009–2019. On-trade transactions

accounted for 16.7% of the of the category sales in 2014.

Take-home and Bulk Ice Cream – US$ Take-home and Bulk Ice Cream – SAR

Market value of categories in the Ice Cream market

0%

1%

2%

3%

4%

5%

0

50

100

150

200

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Valu

e (

US

$ M

illio

n)


0%

1%

2%

3%

4%

5%

0

200

400

600

800

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Valu

e (

SA

R M

illio

n)


161616

The Impulse Ice Cream - Single Serve category will gain maximum market share in value terms during 2014-2019

Winners Losers


Serve

The Impulse Ice Cream - Single Serve category is

forecast to gain market share, growing from 45.3% in

2014 to 49.4% in 2019.

1 1

Change in market

share, 2014–2019Category

Change in market

share, 2014–2019Category

Artisanal Ice Cream

The Artisanal Ice Cream category is forecast to lose

market share, declining from 39.6% in 2014 to 37.5%

in 2019.

4.1%

Change in market share (in value terms) in the Ice Cream market*

-2.1%

* Change in market share based on on-trade + off-trade sales

2Take-home and Bulk Ice

Cream

The Take-home and Bulk Ice Cream category is

forecast to lose market share, declining from 15.1% in

2014 to 13.0% in 2019.

-2.1%

17171715/05/2015 175/15/2015 175/15/2015 175/15/2015 17

Category level pricing

Average category level prices (SAR) in Saudi Arabia’s Ice Cream market, 2014

Category Average Price/ Kg (SAR)

2014

Average Price/Kg (USD)

2014

Artisanal Ice Cream 40.3 10.7

Impulse Ice Cream - Single Serve 34.7 9.3

Take-home and Bulk Ice Cream 24.8 6.6

18181815/05/2015 185/15/2015 185/15/2015 185/15/2015 18

Dairy-Based Ice Cream is the largest segment in value terms in both Impulse Ice Cream - Single Serve and Take-home and Bulk Ice Cream categories

Segment’s share of the overall category by value and change in market share in Saudi Arabia’s Ice Cream

Market, 2014

Category Off-trade / On-trade Segment Segment’s Share,

2014Change 2014/2019

Impulse Ice Cream -

Single Serve

Off-trade Dairy-Based 64.4% -0.1%

Off-trade Water-Based 19.8% 0.2%

On-trade On-trade 15.8% -0.2%

Artisanal Ice CreamOff-trade Artisanal Ice Cream 18.0% 0.2%


Take-home and Bulk

Ice Cream

Off-trade Dairy-Based 69.5% 0.1%



191919

Table of Contents

• Country Context

• Market overview


• Packaging

• Brand Share

• Appendix

202020

Profiles of Selected Grocery Retailers

Leading retailers in Saudi Arabia’s Food retail market, 2014

Leading retailers, Saudi Arabia

Company Name Overview

Azizia Panda

Azizia Panda is the subsidiary of the Savola Group which runs one of the

largest chain of grocery stores in Saudi Arabia. Azizia Panda operates 146

stores located across the country.

Al-OthaimAl-Othaim is one of the leading supermarkets chain in Saudi Arabia, and

runs 127 stores located across the country.

Al-RayaAl-Raya is the one of the largest supermarkets chain in Saudi Arabia. It

has more than 40 stores around the country.

TamimiTamimi is one of the largest and fastest growing supermarkets in Saudi

Arabia. It runs Approximately 11 stores across the country.

CarrefourCarrefour, one of the largest retailers globally, operates in Saudi Arabia

with 15 stores located across the country.

Leading retailers, Saudi Arabia

Company Name Overview

Azizia Panda

Azizia Panda is the subsidiary of the Savola Group which runs one of the

largest chain of grocery stores in Saudi Arabia. Azizia Panda operates 146

stores located across the country.

Al-OthaimAl-Othaim is one of the leading supermarkets chain in Saudi Arabia, and

runs 127 stores located across the country.

Al-RayaAl-Raya is the one of the largest supermarkets chain in Saudi Arabia. It

has more than 40 stores around the country.

TamimiTamimi is one of the largest and fastest growing supermarkets in Saudi

Arabia. It runs Approximately 11 stores across the country.

CarrefourCarrefour, one of the largest retailers globally, operates in Saudi Arabia

with 15 stores located across the country.

212121

Leading distribution channels –Overall Food

Ice Cream market as a percentage of overall

Food: Ice Cream accounted for 2.7% of food retail

sales in Saudi Arabia in 2013.

Hypermarkets & Supermarkets are the leading

retailers of food in Saudi Arabia. They accounted for

47.3% of food retail sales in the country, followed by

Food & Drinks Specialists with a 26.6% share. On-

trade transactions registered the fastest growth at a

CAGR of 6.0% in local currency terms during 2010-

2013.

On trade is the leading distribution channel in Saudi Arabia’s Ice Cream market in 2014

Leading distribution channels in Saudi Arabia’s Ice Cream market, 2014

Leading distribution channels – Ice Cream

On-trade transactions accounted for 42.2% of the

distribution share in Saudi Arabia’s Ice Cream market

in 2014. Hypermarkets & Supermarkets was the

second leading distribution channel and accounted for

34.2% of the market share. Convenience Stores

registered the highest growth at a CAGR of 7.9% in

local currency terms during 2011-2014.

42%

34%

12%

10%2%

On-trade

Hypermarkets & Supermarkets

Food & Drinks Specialists

Convenience Stores

Others

0

2

4

6

8

10



Convenience Stores

Others

Va

lue

(U

S$ b

illio

n) 2010 2013

222222

On-trade transactions account for majority sales in the Artisanal Ice Cream category

Key distribution channels – Impulse Ice Cream -

Single Serve

Key distribution channels – Take-home and Bulk Ice

Cream

Key distribution channels – Artisanal Ice Cream

Leading distribution channels by category in the Ice Cream market, 2014

56%

17%

16%

8%3%


Convenience Stores

On-trade


Others82%

18%

On-trade


58%

17%

17%

5%3%


Convenience Stores

On-trade


Others

232323

Table of Contents

• Country Context

• Market Overview


• Packaging

• Brand Share

• Appendix

242424

Flexible Packaging is the most used packaging material in Ice Cream market in Saudi Arabia

Bag/Sachet was the most commonly used container

type in Ice Cream market and accounted for 58.2% of

the market share in 2014. It was followed by Tub with

32.4% packaging share.

Flexible Packaging was preferred for packaging of

Impulse Ice Cream – Single Serve in 2014.

Tub container was preferred across

categories, while Bag/Sachet was mostly used for

Impulse Ice Cream – Single Serve in 2014.

Key Packaging Materials Key Packaging Materials by category

Key Container Types Key Container Types by category

Overview of Saudi Arabia’s Ice Cream market by type of packaging in 2014

Flexible Packaging was the most used packaging

material in the Ice Cream market in Saudi Arabia

followed by Paper & Board with 29.1% share in terms

of volume in 2014.

58.2%

29.1%

12.7%

Flexible Packaging

Paper & Board

Rigid Plastics

67%

29%

17%46%

4%

83%54%



Artisanal Ice Cream

Flexible Packaging Paper & Board Rigid Plastics

58%32%

9%1% Bag/Sachet

Tub

Wrapper

Box

67%

22%

100% 100%

11%



Artisanal Ice Cream

Bag/Sachet Tub Others

252525

Prize Off is the preferred closure type in the Ice Cream market in Saudi Arabia

Prize Off closure was preferred across categories in

2014.

Key Packaging Closures Key Packaging Closures by category

Overview of Saudi Arabia’s Ice Cream market by packaging closure/outers used in 2014

Prize Off closures were used for packaging of 32.4%

of Ice Cream products in 2014.

32.4%1 Prize Off

* Data for Ice Cream using Closures.

100% 100%

22%

Artisanal Ice Cream Take-home and Bulk Ice Cream


Prize Off

Box outer was preferred for packaging of Impulse Ice

Cream – Single Serve in 2014.

Key Packaging Outers Key Packaging Outers by category

Box outers were used for packaging of 11.5% of Ice

Cream products in 2014.

11.5%1 Box

* Data for Ice Cream using Outers.

13%


Box

262626

Flexible Packaging will register high growth during 2014-2019

The Use of Prize Off closures is forecast to grow at a

CAGR of 5.8% during 2014-2019 to reach 182.3 million

units in 2019.

The use of Bag/Sachet containers is forecast to grow

at a CAGR of 6.5% during 2014-2019 reaching 337.4

million units in 2019.

Key Packaging Materials Key Container Types

Key Packaging Closures

Flexible Packaging will register high growth at a

CAGR of 6.5% during 2014-2019 to reach 337.4

million units in 2019.

Overview of Ice Cream market by type of packaging in 2019

The Use of Box outers is forecast to grow at a CAGR of

6.0% during 2014-2019 to reach 65.0 million units in

2019.

Key Packaging Outers

0

100

200

300

400

Flexible Packaging Paper & Board Rigid Plastics

Millio

n U

nits

2014 2019

0

100

200

300

400

Bag/Sachet Tub Wrapper

Mill

ion U

nits

2014 2019

0

50

100

150

200

Prize Off

Mill

ion

U

nits

2014 2019

0

10

20

30

40

50

60

70

Box

Mill

ion U

nits

2014 2019

272727

Table of Contents

• Country Context

• Market Overview


• Packaging

• Brand Share

• Appendix

282828

Impulse Ice Cream - Single Serve – Brand share

Leading brands - market share

Igloo is the leading brand in the Impulse Ice Cream - Single Serve and Take-home and Bulk Ice Cream categories

Artisanal Ice Cream – Brand share


Take- home and Bulk Ice Cream – Brand share


100.0%

Artisanal Producers

18.0%

9.3%

8.6%

2.2%

Igloo-Overall

Saudia

London Dairy

Twix

Choice

Others

30.4%

28.3%

14.7%

12.0%

8.1%

Igloo-Overall

Saudia

London Dairy

Cone Zone

Private Label

Others

292929

Igloo and Saudia are the leading brands in both Impulse Ice Cream – Single Serve and Take-home and Bulk Ice Cream categories

Brand shares by value in the Ice Cream market, 2014

Artisanal Ice Cream

BrandShare of category,

2014

Artisanal Producers 100%



2014

Igloo-Overall 18.0%

Saudia 9.3%

London Dairy 8.6%

Twix 2.2%

Choice 1.0%

Quanta 1.0%

Corniche 1.0%

Kwality 0.9%

Cone Zone 0.9%

Baboo 0.9%

Kdd 0.8%

Others 55.4%



2014

Igloo-Overall 30.4%

Saudia 28.3%

London Dairy 14.7%

Cone Zone 12.0%

Quanta 1.0%

Corniche 0.9%

Dolce Vita 0.9%

Baskin-Robbins 0.9%

Private Label 8.1%

Others 2.7%

303030

Table of Contents

• Country Context

• Market Overview


• Packaging

• Brand and Private Label Share

• Appendix

313131

Appendix - Country Context

Year 2009 2010 2011 2012 2013 2014

Total (Millions) 26.8 27.3 27.8 28.3 28.8 29.4

Annual Growth (%) 1.6% 1.7% 1.8% 1.9% 1.9% 1.9%

Year 2009 2010 2011 2012 2013 2014

GDP Per Capita (SAR) 60,049.8 72,474.7 90,435.7 97,297.4 97,356.8 99,322.8

Year 2009 2010 2011 2012 2013 2014

Index 100.0 105.3 111.5 114.7 118.7 121.9

Age Group 0 to 9 10 to 19 20 to 29 30 to 39 40 to 49 50 to 59 60 to 69 70 to 79 80+

Total (Millions) 5.4 5.4 6.1 5.7 3.4 1.8 0.9 0.4 0.1

GDP Per Capita (SAR)

Population

Consumer Price Index

Age Profile (Millions of Persons)

Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SAR - US$ Exchange

Rate (Annual Average)0.267 0.267 0.267 0.267 0.267 0.267 0.267 0.267 0.267 0.267 0.267

Exchange Rates: SAR-US$ , 2009–2019

Data/Sector overview/Category focus.xls

323232

2010 2013

Hypermarkets & Supermarkets 7.2 8.3

Food & Drinks Specialists 3.9 4.7

Convenience Stores 3.2 3.7

Others 0.9 0.8

2014 Value

(US$ Million)

2009–2014

CAGR (%)

2014–2019

CAGR (%)

2014 Value

(SAR Million)2009–2014

CAGR (%)

2014–2019

CAGR (%)


Serve397.0 8.9% 9.1% 1,488.9 8.9% 9.1%

Artisanal Ice Cream 347.4 5.7% 6.1% 1,302.8 5.7% 6.1%


Cream132.6 3.9% 4.0% 497.1 3.9% 4.0%

Saudi Arabia’s Food sales Distribution (US$ Billion)

Saudi Arabia’s Ice Cream Market Value by Category (US$ Million and SAR Million)

Appendix – Sector Overview

333333

Saudi Arabia’s Ice Cream sales (US$ Million and SAR Million) – Off-trade


Category2014 Value

(US$ Million)

2009–2014

CAGR (%)

2014–2019

CAGR (%)

2014 Value

SAR Million)

2009–2014

CAGR (%)

2014–2019

CAGR (%)

Impulse Ice Cream - Single Serve 334.1 8.9% 9.1% 1,253.0 8.9% 9.1%

Take-home and Bulk Ice Cream 110.4 4.0% 4.1% 413.8 4.0% 4.1%

Artisanal Ice Cream 62.5 5.9% 6.2% 234.3 5.9% 6.2%

Saudi Arabia’s Ice Cream sales (US$ Million and SAR Million) – On-trade

Category2014 Value

(US$ Million)

2009–2014

CAGR (%)

2014–2019

CAGR (%)

2014 Value

SAR Million)

2009–2014

CAGR (%)

2014–2019

CAGR (%)

Artisanal Ice Cream 284.9 5.7% 6.0% 1,068.4 5.7% 6.0%

Impulse Ice Cream - Single Serve 62.9 8.6% 8.9% 235.9 8.6% 8.9%

Take-home and Bulk Ice Cream 22.2 3.8% 3.9% 83.3 3.8% 3.9%

343434


2013-2014 Annual (%)

Food Price Inflation 2.6%

Change in Sales Value 7.5%

Change in Sales Volume 6.0%

Change in Average Price Paid 1.4%

Trading down -1.2%

Components Of Change (Off-trade)

Components Of Change (On-trade)

2013-2014 Annual (%)

Food Price Inflation 2.6%

Change in Sales Value 6.2%

Change in Sales Volume 4.9%

Change in Average Price Paid 1.2%

Trading down -1.3%

353535

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Value (US$ Million) 259.7 282.4 307.3 334.6 364.4 397.0 432.8 471.9 514.8 561.8 613.4

Growth (%) 8.7% 8.8% 8.8% 8.9% 8.9% 9.0% 9.0% 9.0% 9.1% 9.1% 9.2%

Value (SAR Million) 973.7 1,059.1 1,152.5 1,254.7 1,366.5 1,488.9 1,622.9 1,769.6 1,930.5 2,106.8 2,300.1

Growth (%) 8.7% 8.8% 8.8% 8.9% 8.9% 9.0% 9.0% 9.0% 9.1% 9.1% 9.2%

Impulse Ice Cream - Single Serve Market Value

Take-home and Bulk Ice Cream Market Value

Appendix – Category Data

Artisanal Ice Cream Market Value

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Value (US$ Million) 263.0 277.7 293.4 310.2 328.2 347.4 368.0 390.0 413.7 439.0 466.2

Growth (%) 5.5% 5.6% 5.7% 5.7% 5.8% 5.9% 5.9% 6.0% 6.1% 6.1% 6.2%

Value (SAR Million) 986.4 1,041.5 1,100.4 1,163.3 1,230.7 1,302.8 1,379.9 1,462.6 1,551.3 1,646.4 1,748.4

Growth (%) 5.5% 5.6% 5.7% 5.7% 5.8% 5.9% 5.9% 6.0% 6.1% 6.1% 6.2%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Value (US$ Million) 109.3 113.5 118.0 122.6 127.5 132.6 137.9 143.4 149.2 155.3 161.6

Growth (%) 3.9% 3.9% 3.9% 3.9% 4.0% 4.0% 4.0% 4.0% 4.0% 4.1% 4.1%

Value (SAR Million) 409.8 425.7 442.4 459.8 478.0 497.1 517.0 537.8 559.6 582.4 606.2

Growth (%) 3.9% 3.9% 3.9% 3.9% 4.0% 4.0% 4.0% 4.0% 4.0% 4.1% 4.1%




36363615/05/2015 365/15/2015 365/15/2015 365/15/2015 36

Appendix – Segment data

Category Off-trade / On-trade Segment Segment’s Share, 2014 Segment’s Share, 2019

Impulse Ice Cream -

Single Serve



On-trade On-trade 15.8% 15.7%

Artisanal Ice Cream

Off-trade Artisanal Ice Cream 18.0% 18.1%


Take-home and Bulk

Ice Cream




Market Share by Segment by Value

373737

Packaging Material 2014 2019

Flexible Packaging 246.7 337.4

Paper & Board 123.5 170.6

Rigid Plastics 53.7 67.5

Packaging Materials in 2014 Vs. 2019 (Millions of Packs)

Appendix – Packaging Data

Container Types 2014 2019

Bag/Sachet 246.7 337.4

Tub 137.5 182.3

Wrapper 39.6 55.6

Box 0.1 0.2

Container Types in 2014 Vs. 2019 (Millions of Packs)

Closure Types 2014 2019

Prize Off 137.5 182.3

Closure Types in 2014 Vs. 2019 (Millions of Packs)

Outer Types 2014 2019

Box 48.6 65.0

Outer Types in 2014 Vs. 2019 (Millions of Packs)





383838

Category definitions

Category Definition

Artisanal Ice CreamArtisanal Ice cream manufactured (both dairy and water-based) by small local producers for sale on the

premises. Also includes branded gourmet ice cream and includes both on and off trade consumption.


Serve

Impulse Ice Cream - all dairy- and water-based ice creams. Includes single-serve ice cream tubs,

packaged cones (e.g. Cornetto), ice cream sandwiches, and chocolate-coated ice creams (e.g. Magnum).

Includes low fat dairy, oil-based products (other than frozen yogurt) and ice-lollies. Includes all on-trade

and off-trade consumption.


Cream

Take-Home Ice Cream - includes all diary and water-based ice cream products sold for take-home and

bulk consumption. Includes multiple-serving ice cream tubs (e.g. Ben & Jerry's, Carte d'Or, Häagen-Dazs)

and, ice-cream cakes (e.g. Vienetta). Includes low-fat dairy- and oil-based products (other than frozen

yogurt). Also includes sorbets. Includes all on trade and off trade consumption.


393939

Category Definition

Artisanal Ice CreamArtisanal Ice

Cream

Artisanal Ice cream manufactured (both dairy and water-based) by small local producers for sale

on the premises. Also includes branded gourmet ice cream and includes both on and off trade

consumption.

Impulse Ice Cream -

Single Serve

Dairy-BasedDairy- or vegetable oil-based ice cream products purchased for immediate consumption. Includes

low fat dairy and oil-based products (other than frozen yogurt).

Water-BasedWater-based frozen desserts purchased for immediate consumption. Includes single serve

sorbet/sherbert tubs and ice lollies e.g. Calippo

Take-home and

Bulk Ice Cream

Dairy-Based

Dairy- or vegetable oil-based ice cream intended for consumption in the home, as opposed to an

impulse purchase for immediate consumption. Includes multiple-serving ice cream tubs and ice-

cream cakes. Includes low-fat dairy- and oil-based products (other than frozen yogurt).

Water-Based

Water-based frozen desserts intended for consumption in the home, as opposed to an impulse

purchase for immediate consumption. Includes multi-serve sorbet/sherbert tubs and ice lollies e.g.

Calippo

Segment definitions


404040

Channel Definition

Hypermarkets &

Supermarkets

Hypermarkets/mass merchandisers include all sales through retailers with floor area over 2,500 sq m that carry full

lines of both grocery and general merchandise (e.g. Wal-Mart). Supermarkets include all sales through retailers with

a floor area of 300 sq. m. -2,500 sq. m. that offer a wide, departmentalized range of groceries, and may carry some

general merchandise lines (e.g. Sainsbury's, Kroger). It also includes hard grocery discounters such as Wal-Mart.

Convenience

Stores

Includes all sales through stores of an area generally less than 300 sq m, that specialize in a limited range of food &

grocery products designed primarily for consumers with top-up shopping needs. Also includes sales in retail outlets

attached to gas stations, where fuel is the main revenue driver, kiosks, and newsstands. This also includes small

independent retailers, particularly those present in countries such as China and India.

Food & Drinks

Specialists

Includes bakers, butchers, delicatessens, drinks specialists, fishmongers, greengrocers, Food & drinks only stores,

and single category stores (e.g. stores selling only cheese, or only olives, or only honey, or only Confectionery

products) Example: Amul Ice Cream shops In India.

On-trade

Sales through consumer foodservice outlets include cafés/bars, FSR (full-service restaurants), fast food, self-service

cafeterias and street stalls/kiosks. Sales to semi captive foodservice outlets are also which include the outlets located

in leisure, travel and retail environments.

Other Retailers

Includes “Dollar Stores”, Variety Stores & General Merchandise Retailers, Cash & Carries & Warehouse Clubs,

Department Stores, Drug stores & Pharmacies, eRetailers, Vending Machines and other generalist retail channels not

included in the categories above (e.g. market traders, charity stores, student union stores, direct sales, and Duty Free

shops).

Channel definitions


414141

This report features data derived from market data.

Market Data

In order to create the data for all reports in this series and ensure their robustness, a comprehensive and empirically robust research

methodology has been adopted. This combines both a large-scale program of industry research with the results of extensive primary

industry interviewing and calling. Furthermore, all definitions are standardized across products and countries to ensure comparability.

The two main research methods, secondary research and primary research (the program of interviewing industry contacts), are brought

together and because both sets of research processes have been designed in conjunction with each other they can be combined and

consolidated into the final, integrated data sets.

The secondary research process involves covering publicly available sources, trade associations, specialist databases, company annual

reports, and industry publications. Primary research involves a major program of interviewing leading industry executives for each category

covered in each country – all with local country experts; typically brand, product and marketing managers for major brands within each

country. These processes help analysts in capturing both qualitative and quantitative information about the market.

The final stage of the process is the triangulation of inputs obtained from all the research methods with the analyst’s own understanding of

the market in order to finalize the data. Once the data is finalized, it goes through various top level quality checks prior to publishing.

Methodology

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