14 Hrs
Source:
الاقتصادية
Saudi bakeries seek cost-saving solutions
Bakery shops in Saudi Arabia are facing increasing pressures from rising operational costs due to higher prices of essential inputs such as oils, sugar, energy, diesel, and packaging materials, all of which impact profit margins. Amid growing demand for baked goods and pastries, establishments are turning to improve production efficiency, with bulk flour usage emerging as a means to cut costs, reduce manual processes, and achieve workforce savings while enhancing cleanliness and production safety. Despite these challenges, Saudi Arabia's flour imports increased by 9.6% last year, reaching around 285,000 tons valued at 852 million riyals, with continued reliance on diverse sources such as Turkey, Italy, and the UAE. Additionally, the move towards privatization of the milling sector has promoted competition and improved services. While bakery activity and retail chains are expanding, the rising costs are particularly impacting small bakeries, which face difficulties in managing expenses and challenges related to product quality and price competitiveness.
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