The Food Sector of Saudi Arabia - Research Paper Example

There is also scope for seeing a wider and diverse range of products apart from the available food products. With average annual sales of 3.5 billion dollars, this sector offers a lot of insights as well as opportunities for strategic marketing. The growth of the food industry in Arab can be seen from the fact that more and more international food organizations are launching their products and services in Saudi Arabia. This can be attributed to the changing food habits of the overall population, increasing demand for diversity in food, etc.

The island of oil has seen a gradual shift in the food habits of Arab populations. With the rise in economy and increasing percentage of younger populations, the overall choice and taste for food has changed. More and more population is now opting for outside food outlets, such as restaurants and hotels. As women entrepreneurs and workers are increasing in numbers, home cooked food is being replaced by ordered food. The overall preference of Arab population is shifting towards eating out. This can be seen from the increasing marketing strategies adopted by Arab restaurants.

The overall food and drinks purchased by restaurants in Saudi Arabia have seen a 12 percent year on year increase. As more and more people are opting out, the restaurants are also increasing their overall range of food products. Restaurants and hotels in Saudi Arabia have also categorized their food and beverages department according to the target population. Different menus and cuisines are prepared and served for locals as well as tourists in the restaurants. Thus, it can be said that food industry has become a burgeoning sector in Saudi Arabia, provided it is supported by proper marketing and branding activities.

However, it is also important to highlight the negative effects of such a change in food preferences. Though outside food is becoming popular as a result of factor such as time saved, convenience, variety etc, it is also true that the overall quality of food is getting compromised. As a result, health concerns among general population are on the rise. Recent government reports have suggested that there has been a rise in obesity and diabetes, basically arising from irregular and unhealthy eating habits.

Researchers have also shown that average percentage of obese children have increased in the past five years. Now all of the above facts pose a serious threat on the general health of the Arab population. Thus, it has been important for the government as well as the organizations to educate society in terms of healthy food and healthy lifestyle. Like other organizations in the food sector in Arab, Arzaq also faces few challenges and concerns in terms of marketing its food products. It can be seen that Saudi Arabia has become a hub for international food.

Thus, in order to expand its customer base and gain market share as well as brand recognition, Arzaq will have to opt for strategic marketing activities.