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Breakfast Cereals

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Breakfast Cereals

INVESTMENT OPPORTUNITY SCORECARD


FOOD PROCESSING

Sept 2021
FOOD PROCESSING
Breakfast Cereals
OPPORTUNITY’S DESCRIPTION: Opportunity to establish a facility to produce all forms of pre-packaged cereals

DEMAND INVESTMENT OVERVIEW


KSA MARKET SIZE, USD MN INVESTMENT HIGHLIGHTS VALUE PROPOSITION
329.0  Scope – factory for breakfast cereals focusing on:  High dependency upon imports raises prospect of significant import-substitution
324.8 opportunities within KSA food industry
6.8%  Pre-packaged cereals whether hot or cold
320.6  KSA’s strategic location and favorable trade agreements (eg: GAFTA) offers
316.4  Producing porridge oats, oatmeal and
potential for local manufacturers to serve emerging markets like Africa and
312.1
prepackaged cereal/milk kits
South Asia as well as matured markets like Europe
307.9
 Opportunity to leverage recent FDI measures to motivate private sector
participation in KSA food industry

2014 2015 2016 2017 2018 2019

KEY DEMAND DRIVERS MARKET OVERVIEW


 One of the major demand drivers for breakfast cereals is
that Breakfast cereals have not traditionally been a part of MARKET READINESS AND COMPETITOR ANALYSIS GLOBAL TRENDS
the daily routine in the typical Saudi Arabian household.  Top five players are all multinationals, and they collectively  The global breakfast cereals market is expected to grow
However, with the household dynamic changing to women controlled nearly 62% of the total breakfast cereal market share from USD 40.9 billion in 2020 and reach USD 49.7 billion
entering the workforce, there is a shortage of time in the in 2016. Although dominated by the top two companies, Saudi by 2027, growing at a CAGR of 2.8% forecast period
morning spent in the kitchen. In addition, cereals are fast Arabia breakfast cereal market still has many small players that 2020-2027.
becoming an ideal choice for the growing number of health-
account for 20% of the remaining market share  Breakfast cereals are considered healthy as they are
conscious people who are short of time.
fortified with vitamins, minerals and commonly used
 Rising awareness of the consumers regarding the healthy grains such as barley, oats, rice, corn and wheat.
and balanced food requirement. COMPETITOR ANALYSIS
 Due to their ease of preparation and nutritional content,
these products have gained prominence in the infant
industry.

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Sources entity: MISA
DEFINITIONS
# SCORECARD SECTION DEFINITIONS
Size of market in value/volume in KSA and/or Region (MENA/GCC) covering future projections based on available estimates
1 Market size
from published /government sources
2 Demand drivers A select number of factors that will influence future demand for the related product/service
An overview of key financial metrics summarizing the investment opportunity along with the expected return based on the
3 Investment highlights
suggested investment size

4 Value proposition Summary of key differentiators that position KSA as a strategic choice over other regional/global peers

5 Market readiness An overview of KSA market structure, market maturity and level of participation by local and global players

6 Competitor analysis List of the local & international players manufacturing the underlying product in Saudi Arabia and their market share

7 Global trends Latest business developments within the sector/product category

Ease of scaling the business across the value chain or into new adjacent products or geographies that would maximize the
8 Scalability and localization
opportunity’s investment returns and the ability and potential to locally manufacture the product and its components
An overview of the countries from which Saudi Arabia is importing the product and their value/volume and share in total
9 Import dependency
imports
10 Value chain analysis The process or activities that would potentially need to be carried out to deliver the underlying product or service
Government institutions, organizations, and/or authorities that participate or influence the market for the underlying
11 Key stakeholders
product/service

12 Enablers Factors that enable investment in the underlying opportunity

Key factors that position KSA as a competitive destination for investment in the region. Productivity adjusted wages do not
13 Cost of doing business in KSA include cost of $1.23/hour towards annual recurring charges including work permit, resident identity (iqama) and health
insurance

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DISCLAIMER

• This report must be used only to access information, and • The content of this report must not be construed as an
the information must not to be construed, under any implied promise or guarantee for profit or limited loss
circumstances, explicitly or implicitly, as an offer to sell or express or implied by or from MISA or any of its officers,
a solicitation to buy or sell or trade in any opportunity directors, employees and affiliates. All mentioned
herein mentioned. investments in this report are subject to risk, which should
be considered prior to making any investment decisions
• Ministry of Investment (MISA) has no undertaking to
update these materials after the date, with the • MISA shall have no liability whatsoever to any third party,
understanding that such information may become and hereby any third party waives any rights and claims it
outdated or inaccurate. may have at any time against MISA with regard to this
report, any services or other materials, including the
• Mentioned information in this report is obtained from
accuracy or completeness thereof.
reliable sources but its accuracy and reliability are in no
way guaranteed. No guarantee of any kind is tacit or
explicit when projections of future conditions are
attempted. MISA has used public/or confidential data and
assumptions and has not independently verified the data
and assumptions used in the analyses. Changes in
underlying data or operating assumptions will clearly
impact the analyses and conclusions.
• The financial evaluations, projected market and financial
information, and conclusions contained in these materials
are based upon standard methodologies, are not definitive
projections, and are not guaranteed by MISA

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CONNECT WITH US FOR MORE DETAILS:
Industrial@misa.gov.sa

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