Grocery Segment Will Continue to Lead the Retail Market in Saudi Arabia Through 2020, Reports Technavio

LONDON--()--According to the latest market study released by Technavio, the retail market in Saudi Arabia is expected to grow at a CAGR of 7.45% during the forecast period.

This research report titled ‘Retail Market in Saudi Arabia 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.

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Based on product, the report categorizes the retail market in Saudi Arabia into the following products:

  • Grocery
  • Apparel and footwear
  • Consumer electronics
  • Beauty and personal care
  • Home improvement

Additional Insights: Top Four Factors Driving the Retail Market in Saudi Arabia

The top three revenue contributing segments to the retail market in Saudi Arabia are illustrated below.

Grocery market in Saudi Arabia

The grocery sector contributed the largest in terms of sales in 2015, holding over 40% of the retail market in Saudi Arabia. The country’s retail food market continues to grow, with several leading Saudi and international retailers expanding operations, while combating stiff competition and changing consumer preferences. In 2013, the number of food retail outlets in Saudi Arabia was 40,435 stores, an increase of 15% from 2012.

The population of Saudi Arabia, which was approximately 30.89 million in 2014 and is expected to reach 40 million by 2025, will help boost demand for food imports, as Saudi Arabia relies mostly on foreign suppliers to satisfy about 80% of its food consumption needs. In 2013, Saudi Arabia’s total food and agricultural product imports rose by 8% to reach USD 19 billion. Food products accounted for about 92% of the total imports at USD 17.5 billion, with processed food products’ share accounting for 46% of the total food and agricultural imports.

Apparel and footwear market in Saudi Arabia

The apparel and footwear market in Saudi Arabia is another key segment in the retail sector. Products of the high-end segment of the apparel market is mostly imported from Europe and the US, which are in great demand from the Saudi population, owing to their high disposable income and willingness to pay for premium products. The apparel market in Saudi Arabia also tends to follow a seasonal trend, which is in line with the Saudi religious holidays and summer breaks, when apparel shopping reaches its peak.

The penetration of televisions and the internet, the growing preference for outdoor travel, and an increasing women workforce contribute to the evolving and changing lifestyles of today's Saudi Arabian population. Changing habits and lifestyles, especially among younger generations, is fueling the demand for Western-style clothing. “Many consumers in the country are brand conscious and look for new product lines of reputed brands. As a result, American brand names like Guess, GAP, and XOXO are registering an increase in sales,” says Poonam Saini, a lead analyst at Technavio for research on retail goods and services.

Consumer electronics market in Saudi Arabia

Consumer electronics is another important segment of the market and is poised for growth during the forecast period. Saudi Arabia registered a growth in the demand for electronic goods over the last few years. In line with the rising disposable income of the population and their growing interest in the latest technological gadgets, the demand for and sales of the latest models of mobile phones, tablets, laptops, and televisions, increased considerably.

“Axiom Telecom was one of the top retailers in the market with a share of 6%-7% in 2015. The company, which offers mobile phones, smartphones, tablets, and related accessories, benefits from its high number of outlets spreading across the country. The company is also active in digital retailing, offering attractive deals on smartphones and tablets,” says Poonam.

The top vendors highlighted by Technavio’s research analysts in this report are:

  • Alhokair Fashion Retail (Fawaz Al Hokair Group)
  • Al Othaim
  • Jarir
  • Savola
  • Saudi Marketing Company (FARM Superstores)
  • United Electronics (eXtra)

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

According to the latest market study released by Technavio, the retail market in Saudi Arabia is expected to grow at a CAGR of 7.45% during the forecast period.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com