15 Jun, 2016, Navi Mumbai, India: Marketreportsonsaudiarabia.com presents a new report on “Saudi Arabia Food and Drink Report” There are plans to implement a tax on energy drinks and soft drinks to combat high consumption of unhealthy foods.
We have a positive outlook on Saudi Arabia's food and drink industry, despite the short-term economic headwinds. Due to sustained household spending and a large consumer base, the Saudi Arabian market will encourage investment from foreign and domestic industry players. We believe that Saudi Arabia will remain one of the region's most attractive markets over our forecast period to 2020, despite plans to introduce an indirect tax in 2017, aiming to offset the decline in oil revenues.
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■ Saudi Arabia's favorable demographics will boost food sales, as the country benefits from a large consumer base and high per capita food consumption.
■ There are plans to implement a tax on energy drinks and soft drinks to combat high consumption of unhealthy foods.
■ We believe that formal retailing will take more market share from independents, which will give long term growth opportunities in the Saudi Arabian market.