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Sweet biscuit
Biscuits of Happiness aims to become the first choice for sweet lovers in the Kingdom, by offering distinctive sweet biscuits that combine high quality and unique flavors, with a focus on providing healthy options for the whole family.
“Happiness Biscuits” is a facility that specializes in producing a variety of sweet biscuits, where we focus on using natural and healthy ingredients. Available products include:
Chocolate biscuits: Rich and innovative flavors to suit all tastes.
Dried Fruit Biscuits: A blend of healthy fruits with a crunchy texture.
Sugar-free biscuits: A healthy option for those looking for suitable alternatives.
Study content
Demand analysis
Diverse diets: Growing health concerns combined with changing lifestyles have spurred diets that require healthy and varied snacks, including biscuits as a favorite choice among consumers.
Product innovations: The demand for biscuits is witnessing an upward trend due to product innovations and the use of high-quality ingredients.
Rising disposable income: Increasing disposable income of consumers and improving living standards, especially among the middle class population, is positively boosting the market growth of biscuits.
Changes in consumption pattern: The growing middle class in Saudi Arabia tends to consume diverse food products, including biscuits.
Diverse distribution channels: A general increase in the ease of availability of food items such as biscuits through supermarkets, hypermarkets, online platforms, and other distribution channels is positively impacting the demand among consumers.
Commercial infrastructure: The presence of a strong commercial infrastructure in the Kingdom facilitates widespread and rapid distribution and commercialization of products.
Project justification
Government support: The Saudi government provides significant support for industrial and food projects, including tax breaks, financial support, and encouragement of innovation.
Encouraging local investment: Government policies encourage local investment in the food industry to reduce dependence on imports and achieve self-sufficiency.
High demand during events: Festive periods and special occasions witness a significant increase in the consumption of biscuits, boosting the annual demand for the products.
Family celebrations: Social and cultural traditions encourage the consumption of biscuits during family gatherings and celebrations.
Diverse distribution channels: Availability of food products such as biscuits across supermarkets, hypermarkets, online platforms, and other distribution channels facilitates easy access to consumers.
Strong infrastructure: There is a strong commercial infrastructure in the Kingdom that helps in distributing and marketing the products effectively.
Rising disposable income: Rising consumer incomes and improved living standards, especially among the middle-class population, are boosting spending on premium food products such as biscuits.
Changes in consumption patterns: As income levels improve, consumers tend to consume more varied and high-quality snacks.
Financial indicators
Required capital: SAR 16 million.
Expected rate of return (ROI): 14%.
Fixed cost:
Includes factory construction costs, equipment, and basic fixtures.
Variable cost:
Includes raw materials (flour, sugar, butter, and other ingredients), energy cost, and labor associated with production.
Expected total return:
Based on the expected rate of return (14%), it is expected to generate annual revenue of at least SAR 2.24 million in the first year of operation.
Net Profit:
After deducting operating costs and taxes, net profit can be expected as a percentage of annual revenue, contributing to the recovery of the original capital and achieving sustainable profits in the coming years.
Capital payback time:
Based on the rate of return (14%), the original capital is expected to be recovered over a period of 6-7 years.
Expected growth:
Due to the continuous demand for sweet biscuit products in the market, the business can gradually grow by 5-10% per annum after the first years of operation.
Investment advantages
High return on investment: Due to the large and growing demand for food products, a high rate of return on investment can be achieved in this sector.
Market stability: The food industry in general, including biscuit production, is a stable industry in local and global markets.
Possibility of expansion: The project provides an opportunity for future expansion either by adding new products or by expanding production capacity to meet increased demand.
Government support for food industries: In many countries, including Saudi Arabia, there is government support for food industries, making it easier to obtain financing or tax breaks.
Growth in health awareness: Healthy biscuits can be produced that are low in sugar or preservative-free, attracting health-conscious consumers.
Potential for product diversification: Products can be expanded to include other types such as organic or gluten-free biscuits, further diversifying the market.
Features of the project
Constant demand: Sweet biscuits are a perennially popular consumer product, ensuring constant demand.
Variety of flavors: A variety of flavors can be produced to appeal to different customer segments.
Ease of distribution: The product is easy to transport and distribute and can be sold in various sales channels such as supermarkets and malls.
Expanding markets: Sweet biscuits can be exported to other markets in the region or globally, providing an opportunity for international growth.
Affordable production costs: With the use of efficient manufacturing techniques, production costs can be kept low while achieving good profit margins.
Packaging innovation: The product can be presented in attractive and consumer-friendly packaging that reinforces the brand.
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