Snacks
This project aims to establish a snack food production facility in the Kingdom of Saudi Arabia to meet the growing demand for healthy and varied snacks in the local market. The project involves the development, manufacturing and packaging of low-calorie and nutritious snacks.
Study content
Demand analysis
Health awareness and the trend towards healthy eating: The Saudi market is witnessing an increase in awareness of the importance of healthy eating and the positive health effects of healthy food choices. This is driving consumers to choose snacks that are rich in healthy ingredients and low in calories.
Fast-paced lifestyle: Due to busy lifestyles and more people working, there is a growing demand for fast foods that are quickly and easily available to fulfill fast food needs.
Increased disposable income: The disposable income of households in Saudi Arabia is expected to increase, boosting consumption of snacks as a quick and nutritious option for the whole family.
Increasing number of restaurants and hotels: As the number of restaurants and hotels in Saudi Arabia increases, the demand for food products such as snacks to cater to the needs of visitors and locals alike increases.
Advances in food technology and innovation: Technological advances in the food industry make it easier to produce healthier and more durable snacks, attracting consumers to these new and innovative options.
Government support for local food industries: The Saudi government is providing significant support to boost the local food industry, encouraging investment in the sector and facilitating production and distribution.
Rationale for choosing the project
Growing demand: The Saudi market is witnessing an increase in demand for snacks due to health concerns such as obesity, which is driving consumers to choose healthy and low-calorie options.
Lifestyle changes: The demand for ready-to-eat foods is increasing as a result of lifestyle changes and an increase in the number of working people, which is boosting the demand for ready-to-eat snacks.
Increased disposable income: Population growth is expected to be accompanied by an increase in disposable income, boosting consumption of snacks as a fast and nutritious meal option.
Evolving consumer awareness: The trend towards organic and healthy snacks is indicative of evolving consumer awareness, opening up opportunities to introduce innovative products and cater to diverse demand.
Financial indicators
Required capital: SAR 5 million
Expected rate of return 18%
Expected revenue: Revenues in the early years of the project are expected to achieve sustainable growth as a result of the high demand for snacks in the market.
Profitability: With an expected rate of return of 18%, the business will be able to generate good profits within a relatively short period of time.
Capital payback period: The capital is expected to be recovered within 4-5 years from startup, depending on actual sales performance and target market size.
Profit margins: Snacks have high margins due to the relatively low cost of manufacturing with significant scalability.
Investment advantages
High demand for products:
Snacks are one of the most consumed products in the Saudi Arabian market, thanks to the fast-paced lifestyle and increased awareness of the need to snack between meals.
Local market stability:
The Saudi market is relatively economically stable, which enhances the stability of demand for consumer goods such as snacks.
Regional and international market expansion:
There are great possibilities for exporting products to other countries in the region or even to foreign markets thanks to the ability to manufacture products that comply with international standards.
Utilize modern production techniques:
The project can utilize advanced manufacturing techniques, which reduces production costs and increases scalability.
Good financing opportunities:
Due to the high demand for food products in the market, the project can obtain financing from banks or investors at the lowest cost, which contributes to accelerating growth and expansion.
Features of the project
Variety of products:
The project can include a variety of snacks that cater to different tastes, such as healthy snacks, crackers, nuts, candy, and other products.
Scalability:
The snacks project is one of the projects that can be easily expanded, both in terms of product variety and geographical expansion.
High profitability:
Consumer products such as snacks have good profit margins, as the cost can be controlled while achieving high sales.
Easy distribution and marketing:
Snacks can be easily distributed through various sales channels such as shops, supermarkets, and online sales, making it easy to reach the target audience.
Quick response to market changes:
The project allows for quick adaptation to new trends in the market, such as the trend towards healthy snacks or preservative-free products.
Economic sustainability:
Thanks to the constant demand for snacks, the project can provide sustainable revenue and ensure its long-term viability.
