DAMMAM, 16 February 2007 — Saudi Arabia is the processed food king of the region, according to a recent study by the Doha-based Gulf Organization for Industrial Consultancy.
While it may not be surprising that the largest country in the region is also the largest consumer of unhealthy, processed, sugary and fatty mass-produced food and beverages, the study also shows that the Kingdom is also ranked 15th in the world in terms of producing processed food items.
Saudi Arabia invested $325 million in the production of processed food, such as potato crisps, candy and biscuits in 2005, out of a total of $356 million in investment in that industry in the GCC.
Processed snack foods account for 23 percent of the total consumables market in the Gulf region, estimated to be worth $8.3 billion. The industry employs 265,000 workers in the Kingdom, while the Kingdom and the UAE consume 70 percent of the food and beverages in the region.
Potato chips accounted for half of the consumption of processed foods in the Gulf region, followed by popcorn. The region produces 13,690 tons of junk food each year for the domestic markets.
The study blames the influx of Western eating habits for the increasing consumption of processed foods (which is attributed to helping increase obesity and obesity-related illnesses). An increasing sedentary lifestyle and a decline in traditional eating habits that focus on fresh foods and commodities (unprocessed produce and grains) are also factors contributing to diet-related health problems. Young people, the study said, are most prone to consuming larger amounts of processed foods, which contain more sugars, fats and oils. This increasing domestic demand is helping spur more investments.
The report identified the increasing health concern of the people as a major threat to any further expansion of the industry in the region. Ministries of education in several countries have banned junk foods in schools.
The inordinate delay experienced at customs houses is another problem that affected the growth of the industry.
The study recommended the marketing of new products that contradict the prevailing bad reputation about junk foods and make them acceptable to the governments and consumers alike.
It also stressed the need for more effective marketing techniques to expand the market volume to exploit the full potentials of the region’s industrial establishments.
Special care for quality control and focus on intensive research and studies for more novel products are among other strategies recommended by the study.
