Saudi Arabia Ice Cream Market, By Flavor (Mango, Chocolate, Vanilla, Others), By Category (Impulse Ice Cream, Take-Home Ice Cream, Artisanal Ice Cream), By Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Ice Cream Parlors, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia Ice Cream Market was valued at USD 648.28 Million in 2024 and is expected to reach USD 1017.37 Million by 2030 with a CAGR of 7.8% during the forecast period. The Saudi Arabia ice cream market has witnessed significant growth over the years, driven by increasing consumer demand for diverse and premium ice cream products. The market is segmented by flavor, category, distribution channel, and region. Popular flavors such as mango, chocolate, and vanilla dominate the market, catering to the traditional taste preferences of consumers, while innovative and exotic flavors are gaining traction among younger demographics. The market is further categorized into impulse ice cream, take-home ice cream, and artisanal ice cream, with each segment experiencing growth due to changing consumer lifestyles and rising disposable incomes. Impulse ice cream remains a favorite for on-the-go consumption, while take-home ice cream is preferred for family gatherings and convenience. Artisanal ice cream, known for its premium quality and unique flavors, is increasingly popular among affluent consumers. Distribution channels such as supermarkets and hypermarkets, convenience stores, ice cream parlors, and online platforms play a crucial role in market expansion, with online sales witnessing a surge due to the growing e-commerce trend. Geographically, the market is divided into Western, Northern & Central, Eastern, and Southern regions, with the Western region leading in terms of market share due to higher urbanization and consumer spending. Key growth factors include the hot climate, which drives year-round demand, the influence of Western food culture, and the introduction of healthier options such as low-fat and sugar-free ice creams. The National Center for Meteorology reported that temperatures in Saudi Arabia regularly exceed 45°C (113°F) during peak summer, driving higher consumption of cold desserts. The market is highly competitive, with both international and local players striving to innovate and capture consumer interest. Overall, the Saudi Arabia ice cream market is poised for robust growth, supported by evolving consumer preferences and expanding distribution networks.

Key Market Drivers

Rising Disposable Income and Changing Consumer Preferences

Saudi Arabia has witnessed a steady increase in disposable income levels, particularly among the younger population, which constitutes a significant portion of the country's demographics. With higher purchasing power, consumers are increasingly inclined toward premium and indulgent food products, including ice cream. The demand for innovative and exotic flavors, such as mango, chocolate, and vanilla, as well as artisanal and gourmet ice cream, has surged. According to the General Authority for Statistics (GASTAT) in Saudi Arabia, the average household expenditure on food and beverages increased by 4.5% in 2022, reflecting higher disposable incomes. Additionally, the growing influence of Western culture and the desire for diverse culinary experiences have led to a shift in consumer preferences toward high-quality, premium ice cream products. This trend is further supported by the willingness of consumers to pay a premium for unique and luxurious ice cream offerings.

Expansion of Retail and Distribution Channels

The rapid expansion of modern retail formats, such as supermarkets, hypermarkets, and convenience stores, has significantly contributed to the growth of the ice cream market in Saudi Arabia. These retail channels provide easy access to a wide variety of ice cream products, including impulse, take-home, and artisanal categories. Moreover, the increasing penetration of e-commerce platforms has made ice cream more accessible to consumers, even in remote areas. Online distribution channels have gained traction, especially during the COVID-19 pandemic, as consumers turned to home delivery services for their favorite treats. The convenience of online shopping, coupled with aggressive marketing strategies and promotional offers by ice cream brands, has further boosted market growth.

Innovation in Product Offerings and Health-Conscious Trends

The Saudi Arabian ice cream market is experiencing a wave of innovation, with manufacturers introducing new flavors, formats, and healthier options to cater to evolving consumer demands. The growing health consciousness among consumers has led to the development of low-fat, sugar-free, and organic ice cream variants. Additionally, the introduction of plant-based and lactose-free ice cream options has attracted health-conscious consumers and those with dietary restrictions. The Saudi Food and Drug Authority (SFDA) reported a 15% annual increase in the demand for healthier dessert options, including plant-based and sugar-free ice cream, as of 2023. The market has also seen a rise in demand for artisanal and handcrafted ice cream, which is perceived as a premium and healthier alternative to mass-produced products. These innovations are not only attracting new consumers but also encouraging repeat purchases, thereby driving market growth. 

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Key Market Challenges

Health Consciousness and Dietary Shifts

One of the most significant challenges for the ice cream market in Saudi Arabia is the growing health consciousness among consumers. With increasing awareness of lifestyle diseases such as obesity and diabetes, many consumers are shifting toward healthier eating habits. Ice cream, often perceived as a high-calorie, sugar-laden indulgence, faces scrutiny from health-conscious individuals. This trend is further amplified by government initiatives promoting healthier lifestyles and the rise of fitness culture. As a result, demand for traditional ice cream products may decline, pushing manufacturers to innovate with low-sugar, low-fat, and plant-based alternatives. However, developing such products while maintaining taste and texture remains a challenge, as consumers are unwilling to compromise on flavor.

Seasonality and Climate Dependency

The ice cream market in Saudi Arabia is highly dependent on seasonal demand, with consumption peaking during the hot summer months. The extreme desert climate, characterized by scorching temperatures, drives demand for cold desserts. However, during cooler months, sales often experience a significant dip. This seasonality creates challenges for manufacturers and retailers in maintaining consistent revenue streams and managing inventory. Additionally, the reliance on weather conditions makes the market vulnerable to fluctuations in demand, impacting profitability. Companies must invest in innovative marketing strategies and product diversification to encourage year-round consumption, such as introducing warm-weather-themed products or promoting ice cream as a versatile dessert for all occasions.

Intense Competition and Price Sensitivity

The Saudi Arabian ice cream market is highly competitive, with both international and local players vying for market share. The presence of well-established brands, coupled with the entry of new players, has led to price wars, making the market increasingly price-sensitive. Consumers in Saudi Arabia are becoming more value-conscious, seeking affordable options without compromising on quality. This puts pressure on manufacturers to balance cost-efficiency with product quality, which can be challenging given the rising costs of raw materials, packaging, and logistics. Additionally, the growing popularity of private-label and artisanal ice cream products further intensifies competition, forcing traditional brands to innovate and differentiate their offerings to retain market share.

Key Market Trends

Rising Popularity of Artisanal and Gourmet Ice Cream

One of the most notable trends in the Saudi Arabian ice cream market is the growing demand for artisanal and gourmet ice cream. Consumers are increasingly seeking unique, high-quality, and handcrafted ice cream experiences that offer a departure from traditional mass-produced options. Artisanal ice cream, often made with natural ingredients, exotic flavors, and innovative combinations, is gaining traction among affluent and discerning consumers. This trend is fueled by the desire for premiumization and the perception that artisanal products are healthier and more authentic. Ice cream parlors and specialty stores are capitalizing on this trend by offering customizable options, seasonal flavors, and visually appealing presentations that cater to the Instagram-savvy younger generation.

Increasing Demand for Plant-Based and Health-Conscious Options

As health and wellness awareness grows among Saudi consumers, there is a rising demand for healthier ice cream alternatives. Plant-based ice cream, made from non-dairy ingredients such as almond milk, coconut milk, and oat milk, is gaining popularity, particularly among lactose-intolerant individuals and those adopting vegan or vegetarian lifestyles. Additionally, low-calorie, sugar-free, and functional ice cream variants fortified with vitamins, probiotics, and protein are becoming increasingly sought after. This trend aligns with the global shift toward healthier eating habits and reflects the growing influence of international food trends in the Saudi market. Manufacturers are responding by innovating and expanding their product portfolios to include healthier options that cater to this niche but rapidly growing segment.

Integration of Technology and Digitalization

The integration of technology into the ice cream market is another key trend shaping the industry. From production to distribution and marketing, technology is playing a pivotal role in enhancing efficiency and consumer engagement. For instance, advanced freezing and storage technologies are enabling manufacturers to improve product quality and shelf life. On the consumer side, digital platforms and e-commerce channels are revolutionizing the way ice cream is purchased and consumed. Online delivery services, mobile apps, and social media marketing are becoming essential tools for ice cream brands to reach a wider audience. Additionally, some companies are leveraging augmented reality (AR) and virtual reality (VR) to create immersive brand experiences, while others are using data analytics to understand consumer preferences and tailor their offerings accordingly.

Segmental Insights

Flavor Insights

The flavor segment is a critical driver of the ice cream market in Saudi Arabia, with traditional flavors like mango, chocolate, and vanilla continuing to dominate consumer preferences. These flavors appeal to a broad demographic, including families and younger consumers, due to their universal appeal and familiarity. However, the market is also witnessing a growing demand for innovative and exotic flavors, such as pistachio, matcha, and salted caramel, particularly among millennials and Gen Z consumers who seek unique and Instagram-worthy experiences. Additionally, the introduction of healthier options, such as fruit-based and low-sugar ice creams, is gaining traction as consumers become more health-conscious. While chocolate and vanilla remain the leading flavors due to their timeless popularity, mango and other fruit-based flavors emerge as the fastest-growing segment, driven by the demand for refreshing and tropical tastes that align with the region's hot climate.

Category Insights

The ice cream market in Saudi Arabia is categorized into impulse ice cream, take-home ice cream, and artisanal ice cream. Impulse ice cream, which includes single-serve products like cones, sticks, and cups, is the leading segment due to its convenience and affordability. This category caters to on-the-go consumers, particularly in urban areas, and is heavily marketed toward children and young adults. Take-home ice cream, which includes larger packs and tubs, is also a significant segment, driven by family consumption and the growing trend of at-home entertainment.

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Regional Insights

The Saudi Arabia ice cream market is divided into Western, Northern & Central, Eastern, and Southern regions. The Western region, which includes major cities like Jeddah and Mecca, is the leading segment due to its high urbanization rate, large expatriate population, and strong consumer spending power. This region benefits from a well-developed retail infrastructure and a high concentration of ice cream parlors and cafes. The Northern & Central region, which includes Riyadh, is also a significant contributor to the market, driven by the capital city's affluent population and thriving food culture. The Eastern region, home to cities like Dammam and Al Khobar, is experiencing steady growth due to increasing economic activities and a growing expatriate community. The Southern region, while smaller in market share, is the fastest-growing segment, supported by rising disposable incomes and the expansion of retail networks in cities like Abha and Jizan. The hot climate across all regions ensures year-round demand for ice cream, making it a staple treat for consumers.

Recent Developments

• In July 2024, National Supreme Company for Ice Cream Products, a prominent manufacturer in Jeddah, achieved ISO 22000:2018 certification from SGS. This certification underscores the company's commitment to international food safety standards and aligns with the Saudi Food and Drug Authority's requirements.
• Glace Ice Cream, a leading brand of Mohammad Riaz and Partners LLC, announced plans to enter the Saudi Arabian market in 2025. Known for exceptional flavors and high-quality ingredients, this expansion aims to cater to the growing demand for premium ice cream products in the region.
• Sawani, launched by the Public Investment Fund in January 2023 as part of the Saudi Vision 2030 initiative, expanded its retail presence by opening two new stores in Jeddah and Makkah in February 2024. This move is part of Sawani's strategy to diversify the Saudi economy and promote local products, including ice cream offerings.
• In August 2024, Alesayi Beverage Corporation partnered with SIG to introduce new products in the HoReCa (Hotel, Restaurant, and Café) sector. Utilizing SIG's advanced aseptic bag-in-box filling system, Alesayi aims to diversify its product portfolio, potentially including innovative ice cream offerings.

Key Market Players

• Saudia Dairy & Foodstuff Co. Ltd (SADAFCO)
•  IFFCO Group
•  Saudi Ice Cream Factory Ltd
•  Baskin-Robins Saudi Arabia
•  Mars Saudi Arabia Ltd.
•  Batterjee Foodstuffs Factory
•  Arabian Food & Dairy Factories (FADECO) Co.
•  General Mills Inc.
•  Cone Zone Co.
•  Unilever Group.

Report Scope:

In this report, the Saudi Arabia ice cream market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Saudi Arabia Ice Cream Market, By Flavor:

o   Mango

o   Chocolate

o   Vanilla

o   Others

• Saudi Arabia Ice Cream Market, By Category:

o   Impulse Ice Cream

o   Take-Home Ice Cream

o   Artisanal Ice Cream

• Saudi Arabia Ice Cream Market, By Distribution Channel:

o   Supermarkets and Hypermarkets

o   Convenience Stores

o   Ice Cream Parlors

o   Online

o   Others

• Saudi Arabia Ice Cream Market, By Region:

o   Western

o   Northern & Central

o   Eastern

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia ice cream market.

Available Customizations:

Saudi Arabia ice cream market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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