Saudi bakeries seek cost-effective solutions
bakeries in Saudi Arabia are facing rising operating costs due to increases in the prices of oils, sugar, energy, diesel, packaging materials, plastic bags, and other expenses, which are squeezing profit margins. However, data indicates that Saudi Arabia's wheat imports increased by 9.6% over the past year, reaching 285,000 tons valued at 852 million riyals, sourced from multiple countries. The sector has also expanded with an increase in the number of commercial licenses, raising demand for raw materials and adding to the challenges of cost management. Despite this, the price of subsidized flour, which constitutes a large part of the market, remains stable. Bakery product prices are not solely dependent on wheat prices; they are also influenced by expenses for oils, energy, and packaging materials. Responding to these challenges, industry participants are focusing on improving efficiency, expanding the use of bulk flour, and adopting modern transportation techniques to reduce costs and stabilize the market despite the pressures from rising operational costs.
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