1111
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
• Retail Landscape and Key Distribution Channels
• 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%
Artisanal Ice Cream 5.5 4.8%
Saudi Arabia’s Ice Cream market, On-trade (Millions of Kg), 2014, broken down by category
Market Volume 2014 (Kg Million)CAGR
2014–2019
Artisanal Ice Cream 26.8 4.7%
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
Take-home and Bulk Ice Cream
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
Impulse Ice Cream - Single Serve
Take-home and Bulk 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)
Off-trade On-trade Annual Growth (%)
0%
2%
4%
6%
8%
0
100
200
300
400
500
20092010201120122013201420152016201720182019
Valu
e (
US
$ M
illio
n)
Off-trade On-trade Annual Growth (%)
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)
Off-trade On-trade Annual Growth (%)
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)
Off-trade On-trade Annual Growth (%)
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)
Off-trade On-trade Annual Growth (%)
161616
The Impulse Ice Cream - Single Serve category will gain maximum market share in value terms during 2014-2019
Winners Losers
Impulse Ice Cream - Single
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%
On-trade On-trade 82.0% -0.2%
Take-home and Bulk
Ice Cream
Off-trade Dairy-Based 69.5% 0.1%
Off-trade Water-Based 13.8% 0.0%
On-trade On-trade 16.7% -0.1%
191919
Table of Contents
• Country Context
• Market overview
• Retail Landscape and Key Distribution Channels
• 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
Hypermarkets & Supermarkets
Food & Drinks Specialists
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%
Hypermarkets & Supermarkets
Convenience Stores
On-trade
Food & Drinks Specialists
Others82%
18%
On-trade
Food & Drinks Specialists
58%
17%
17%
5%3%
Hypermarkets & Supermarkets
Convenience Stores
On-trade
Food & Drinks Specialists
Others
232323
Table of Contents
• Country Context
• Market Overview
• Retail Landscape and Key Distribution Channels
• 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%
Impulse Ice Cream - Single Serve
Take-home and Bulk Ice Cream
Artisanal Ice Cream
Flexible Packaging Paper & Board Rigid Plastics
58%32%
9%1% Bag/Sachet
Tub
Wrapper
Box
67%
22%
100% 100%
11%
Impulse Ice Cream - Single Serve
Take-home and Bulk Ice Cream
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
Impulse Ice Cream - Single Serve
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%
Impulse Ice Cream - Single Serve
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
• Retail Landscape and Key Distribution Channels
• 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
Leading brands - market share
Take- home and Bulk Ice Cream – Brand share
Leading brands - market 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%
Impulse Ice Cream - Single Serve
BrandShare of category,
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%
Take-home and Bulk Ice Cream
BrandShare of category,
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
• Retail Landscape and Key Distribution Channels
• 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
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 (%)
Impulse Ice Cream - Single
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%
Take-home and Bulk Ice
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
Appendix – Sector Overview
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
Appendix – Sector Overview
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
Off-trade Dairy-Based 64.4% 64.3%
Off-trade Water-Based 19.8% 20.0%
On-trade On-trade 15.8% 15.7%
Artisanal Ice Cream
Off-trade Artisanal Ice Cream 18.0% 18.1%
On-trade On-trade 82.0% 81.9%
Take-home and Bulk
Ice Cream
Off-trade Dairy-Based 69.5% 69.6%
Off-trade Water-Based 13.8% 13.8%
On-trade On-trade 16.7% 16.7%
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.
Impulse Ice Cream - Single
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.
Take-home and Bulk Ice
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
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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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