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Frozen fruits and vegetables
The project to establish a frozen fruit and vegetable production facility aims to meet the growing demand in the local market for frozen food products. By adopting the latest processing and freezing technologies, the facility will ensure that the nutritional value and natural flavor of the products are preserved. The facility will also focus on using fresh, local ingredients, further supporting local farmers and reducing reliance on imports. The facility will offer a variety of products including frozen fruits and vegetables, catering to different consumer segments, including individuals, families and restaurants.
Study content
Rationale for choosing the project
The local market is witnessing an increase in demand for frozen fruits and vegetables as consumers prefer fresh products with high quality and convenience in preparation.
Growing health awareness and the desire to eat fresh, nutrient-rich foods is driving demand for frozen fruits and vegetables as a healthy and convenient option.
Investing in diverse regions such as Sharqiya, Asir, Makkah, and Al Jouf can contribute to meeting the needs of the local market and enhancing the geographical spread of the products.
The project will ensure the use of advanced technologies to freeze the products, preserving their quality, flavor, and nutritional value.
By emphasizing the use of local ingredients, the project contributes to supporting farmers and boosting the local economy.
The project can provide opportunities to expand production to include new varieties of fruits and vegetables, enhancing the diversity of products.
The project will contribute to enhancing food security by providing nutritious and affordable food products.
The project will provide many direct and indirect employment opportunities, contributing to improving the standard of living in the local community.
Demand analysis
Consumer preference for fast food: Modern lifestyle and the need for quick and convenient foods is boosting demand for frozen products.
Increased health awareness: Awareness of the importance of eating fruits and vegetables is increasing, which contributes to increased consumption of these products, especially if they are frozen to preserve their nutritional value
Meeting a variety of needs: Frozen fruits and vegetables can be used in a wide range of dishes, making them an attractive option for consumers, both at home and in restaurants.
Minimize waste: Freezing fruits and vegetables minimizes crop losses, improving the efficiency of the food supply chain.
Financial indicators
Required capital: SAR 16 million
Return on Investment (ROI): 10%
Investment advantages
Sustained market growth: Demand for frozen fruits and vegetables is increasing both in the domestic and international market due to changing food consumption patterns and increasing awareness of maintaining proper nutrition.
Domestic market strength: With the population growth in the Kingdom, the demand for frozen food is increasing, providing a sustainable market for the project.
Export opportunities: Having a large export market can contribute to increased revenues, especially to Gulf countries and other countries in the MENA region.
Government incentives: Government incentives may be available to support agricultural and industrial projects in Saudi Arabia, increasing the attractiveness of the project to investors.
Diverse customer segments: Frozen products can be directed to several sectors including households, restaurants, hotels, and retail stores, contributing to the sustainability of revenues.
Features of the project
Meeting market needs: The project provides high-quality food products that are compatible with the needs of the local and global market, especially in seasonal periods or areas that lack the availability of fresh fruits and vegetables.
Long shelf life: Frozen fruits and vegetables have a longer shelf life compared to fresh products, making them easier to store and providing greater flexibility in distribution.
Variety of products: The project is able to offer a variety of frozen products, which enhances its appeal to customers in different sectors such as wholesalers, factories, and retail outlets.
High returns: The project is expected to achieve a sustainable profit due to the high and growing demand for frozen fruits and vegetables, especially in the local and international markets.
Availability of raw materials: Saudi Arabia has a suitable climate for growing many types of fruits and vegetables that can be processed and frozen locally, reducing transportation costs and providing raw materials at competitive prices.
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