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Breakfast cereals
The project aims to establish a facility specialized in the production and packaging of all forms of ready-to-breakfast cereals in the Qassim region, Saudi Arabia. The project will focus on offering healthy and nutritious products to meet the growing demand for breakfast cereals as part of the daily diet of Saudis. With changes in lifestyles and increased health awareness, cereals have become a favorite choice for people looking for quick and nutritious meals. The facility will cater to local and regional markets while expanding to offer high-quality products at competitive prices.
Study content
Rationale for choosing the project
Relevance to a changing market: Changing lifestyles and increased reliance on fast and nutritious meals are driving the importance of this project.
Sustained demand: With a growing population and rising health awareness, the demand for ready-made cereal products will continue to grow.
Export opportunities: The project has the potential to expand to neighboring Gulf markets, boosting revenue and opening up new opportunities for growth.
Supporting the local economy: The project will contribute to the local economy by creating jobs and boosting the productivity of the Kingdom’s food sector.
Demand analysis
Changing lifestyles: Breakfast cereals have never been an essential part of the daily dietary routine in Saudi households. But with more women entering the workforce and busier lifestyles, these products have become an ideal and quick option for healthy and nutritious meals.
Increased consumer awareness of health: There is a growing trend towards healthy and balanced food choices among the population, which is boosting the demand for nutrient-rich cereals. This trend is coupled with the growing demand for breakfast cereals as an easy-to-prepare snack.
Population growth: With the growing population in Saudi Arabia, especially the youth who are inclined towards quick and nutritious food options, the demand for ready-to-eat cereal products will rise.
Regional market expansion: The growing demand for cereal products is not only locally but also regionally in neighboring Gulf countries that are experiencing similar growth in demographic and dietary changes.
Financial indicators
Capital: SAR 10 million
The capital required for the project will be SAR 10 million, which will cover production costs, infrastructure, equipment, and marketing.
Return on Investment (ROI): 11% – 13%
The ROI is expected to be between 11% and 13% per year, based on the market study and product demand projections.
Expected annual return:
With a capitalization of SAR 10 million, the expected annual return will be between SAR 1.1 million and SAR 1.3 million.
Payback period:
The payback period is expected to be 5 to 6 years, as the original capital can be recovered based on the planned annual returns.
Investment advantages
Rising domestic and international demand:
Continued demand for breakfast cereals in local and global markets ensures continued profitability.
Potential for expansion:
The project can easily expand into new markets both locally and internationally thanks to the high flexibility in production and distribution.
Market stability:
The market is not significantly affected by economic fluctuations, as breakfast cereals remain a staple in the diet.
Opportunities for strategic partnerships:
Partnerships can be established with major food distribution companies, enhancing the project’s ability to reach multiple markets.
Potential for innovation:
There is room for innovation in breakfast cereal products, in terms of flavors and nutritional properties that meet the needs of healthy consumers.
Features of the project
A staple food product:
Breakfast cereal is a staple food product that is very popular across all age groups.
Product variety:
A variety of flavors and healthy options can be offered to meet the needs of different demographics.
Ease of distribution:
Cereal products are easy to distribute and easily accessible through supermarkets and online stores.
Sustainable market:
The market continues to expand due to population growth and changes in lifestyles that emphasize fast and healthy foods.
Healthy specifications:
Demand for healthy, high-quality products that support proper nutrition is increasing, making the product more competitive in the market.
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