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Rationale for choosing the project
Health and nutrition improvements: Increased demand for sauces and condiments as a result of the industry’s strategic shift toward enhancing the health, flavor, and nutrition aspects of products.
Restaurants and hotels: Expanding consumption of sauces, gravies, and condiments in food sectors such as restaurants and hotels is driving the demand for these products.
Emphasis will be placed on the use of natural and high-quality ingredients in the manufacture of sauces and condiments, which enhances product differentiation and increases consumer confidence.
The project provides a variety of sauces and condiments, such as hot sauces, classic sauces, broths, and local spices, catering to the needs of different market segments.
The use of local ingredients enhances the sustainability of the project and supports the local economy, contributing to the promotion of local agriculture.
The project can develop new products based on market trends and consumer needs, such as developing healthy or preservative-free sauces.
Multiple marketing strategies can be adopted, such as partnerships with restaurants and supermarkets, and the use of digital means to enhance brand awareness.
As the demand for sauces and condiments increases, the company is expected to make good profits through its sales, enhancing the financial viability of the project.
Demand analysis
Diversity of consumption: The Eastern Province is witnessing a great diversity in food consumption, which enhances the opportunities to market various sauces and condiments in this market.
Tourism and Hospitality: Makkah, thanks to religious and hospitality tourism, is witnessing increased consumption of diverse foods, including sauces and spices.
Growing local demand: Al Jouf is witnessing an increase in local demand for ready-made food products, including sauces and spices as essential ingredients in cooking.
Export opportunities: There is expected to be a growing demand for Saudi sauces and spices in regional markets, providing lucrative export opportunities.
Increased cultural diversity: As the Kingdom becomes more culturally diverse, the demand for diverse sauces and spices that reflect different cuisines, such as Italian, Asian, and Mexican, is increasing.
Increased household use: The coronavirus pandemic has increased household use of cooking, resulting in higher demand for essential ingredients such as sauces and condiments.
Financial indicators
Capital: SAR 20 million.
Expected rate of return: 15%.
Expected returns: With a 15% rate of return, good financial returns can be achieved in the early years of operation, reflecting the project’s stability and profitability.
Net Profit: The annual profit is expected to be around SAR 3 million (15% of capital).
Capital Cycle: The project will achieve capital recovery over a period of 5 to 6 years.
Profitability: With a high rate of return, the project shows the potential to generate attractive profits relative to costs.
Investment advantages
Constant demand: There is an ongoing demand for sauces, gravies, and condiments in local and regional markets due to the growing demand for prepared foods and restaurants.
Diverse markets: Products can be marketed to local consumers, supermarkets, restaurants, and even international markets.
Capitalize on population growth: With a growing population in the Kingdom and the region, demand for canned and frozen food products, including sauces and condiments, is on the rise.
Government support: The food industry in Saudi Arabia is receiving significant support from the government as part of plans to develop local industries.
High profit margins: The project is able to achieve high profit margins due to low operational costs compared to other industries.
Features of the project
Consumer staples: Sauces, gravies, and condiments are staples in Arab and international cuisines, fueling continued demand.
Product variety: A variety of sauces and condiments can be produced to meet the needs of different markets such as hot, sweet, and spicy sauces.
Ease of distribution: Products with a long shelf life and easy storage simplify distribution and marketing.
Export potential: With the increasing appetite of global markets for canned food products and condiments, the market can be expanded to include new markets in the GCC and globally.
Local availability of raw materials: Local ingredients can be utilized, which reduces costs and increases the chance of delivering high-quality products at a reasonable cost.
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