A Strategic View of Consumer Segmentation

Healthy & Tasty KSA for Health Solutions

❖ Introduction:

Last year, oil prices deteriorated and as a result so

did the Saudi Arabian economic growth and its
consumer expenditure.

But does that mean fewer opportunities in the

Saudi Arabia market?

No, most definitely not… at least when it comes to

the food and drink sector. In fact, the change in the
way consumers spend money, the altered
preferences in the food and drink sector as
well as the governmental plans and
reforms have created many untapped
opportunities in this market, which is often
seen as complex and difficult to navigate.

While there has been declining sales

growth in the food sector in the recent
years as per the graph below, Euromonitor
forecasts that the sales growth of
packaged food will increase mainly due to
unique product development by
companies.

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 ❖ Young consumers are driving the healthy lifestyle trend.

The healthy lifestyle trend is being driven by young

consumers Young Saudi consumers are increasingly
drawn to healthier lifestyles due to the widespread
nature of social media and the exposure to
international trends through different influences. The
young, modern generation in the country (70% of the
Saudi population is under 30 years of age) is inclined
towards a westernized approach to eating and
healthier nutrition.

❖ Food and beverage landscape

The food and beverage market in Saudi Arabia has changed considerably in recent years,
with consumers making more conscious decisions when it comes to healthy eating.
According to Euromonitor, the health and wellness (H&W) sector is expected to reach
17.8 billion SAR (4.7 billion USD) by 2024.

Like neighboring country UAE, KSA has high obesity and diabetes rates. The
government, as part of the Saudi Vision 2030 plan, has financed a variety of projects
with a focus on improving health and wellness across the region.

During the Coronavirus pandemic, around 50% of consumers have become more
mindful of what they eat and drink, with many eating more balanced meals. This
increased awareness has been helped by ongoing promotional activities from health and
wellness brands, seeing consumers staying away from sugary and fatty products.

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 • Geographic Segmentation

• Asia • Saudi Arabia • Riyadh , Jeddah & AL

•Asia is the largest continent on
Earth. It covers 9% of the
Earth's total surface area (or
30% of its land area), and has
the longest coastline, at 62,800
kilometres (39,022 mi)
•The Kingdom of Saudi Arabia
lies at the furthermost part of
southwestern Asia. It is
bordered by the Arabian Gulf,
Khobar
•Geographic position on the
continent: the Northeast,
Southwest, West, Southeast,
and Midwest. Riyadh , Jeddah &
AL Khobar ( Major Cities )

World
Country Cities
Region

• Al-'Oloya & • Urban

Sulaymaniyah & Al-
nuzha -North Al
Khobar, West Al
Khobar- Al-Faysaliya
•Areas with high population
density and high social level
•According to the Ministry of
Municipal and Rural Affairs
approximately 82.1 % of the
total population lives in urban
areas whereas 17.9 % live in
rural areas.

Districts Density

• Desert & semi-arid climate • English – Arabic

•Saudi Arabia is characterized by a desert
climate, with the exception of the
southwestern part of the country, which
exhibits a semi-arid climate. Summers in
the central region are extremely hot and
dry, ranging from 27°C to 43°C in the
inland areas and 27°C to 38°C in coastal
areas.
•The official language of Saudi Arabia is
Arabic which is used in business and other
communication purposes. English is also
widely spoken and is taught as a compulsory
second language in schools.

Climate Language

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 • Demographic Segmentation

• 20-45 • Estimated to be • Saudi – Foreign • Affluent-Upper

approximately middle
SAR 10,000 per
month.

Age Income Nationality Social class

• Male, Female • 1-2,3-4,5+ • Married (With

or Without
Kids),
Unmarried

Gender Family Size Life Cycle

❖ Demographics of Saudi Arabia in 2024:

Saudi Arabia, the fourth-largest state in the Arab world, has experienced significant
population growth over the past 40 years. This surge is attributed to improved living
conditions and expanding economic opportunities. Notably, most Saudis prefer settling
in major cities like Riyadh, Jeddah, and Al-Khobar, drawn by the charm of career
prospects and a vibrant urban lifestyle.

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 ❖ Gender Split:
According to General Authority for Statistics research, the population distribution in
Saudi Arabia in 2024 indicates 21.51 million males, constituting 57.39%, and 15.96
million females, representing 42.61%. Although we see a significant gender disparity in
the above statistics, Saudi Vision 2030 is a helpful initiative towards reducing this gap.

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 ❖ Psychographic Segmentation
Regarding psychographic factors, previous studies have segmented customers
according to the quality they perceive and their lifestyles, behaviors, pastimes, and views
revealed in the Saudi market study that the total variety of products and the service
requested by customers was reflective of their lifestyles using different factors, such as:
(Lifestyle, Personality and social class) .
Lifestyle

Personality

social class
• Healthy nutrition • Extraverted • Conservative
• Ideal weight, • Observant • Traditional
• Restorative sleep • Sensitive • Open-minded
• Healthy life • Thinker
• Stay away from obesity

Strategic goals for health transformation

in Kingdom of Saudi Arabia

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 ❖ Behavioral Segmentation
Behavioral segmentation is a tool used by
marketers to divide customers into groups. Each
group has specific behavioral patterns, which
make it easier to send targeted marketing
materials to them. The main examples of
behavioral segmentation include usage and
purchase behavior, time-based and occasion-
based, benefit-driven, and customer loyalty.

Occasions Benefits User Status Loyalty Readiness

•Social events •Better mood •Active users Stutes Stage
• Gym Classes •loss Weight •Satisfied •Aware
•Work Meals •Reducing the customers •Informed
risk of Obesity •Interested
diseases
•Perfect &
Satisfying
Meals
•Good taste

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 ❖ Conclusion:
As mentioned in some different studies about the Saudi market, including what was
mentioned about the multiplicity of social and intellectual classes and other criteria,
the Saudi market is very promising and still wants more products and competitors,
as the demand is high and there is a constant need for companies to develop and
maintain quality and compete on price and maintain loyalty and satisfy the needs and
desires of customers. These are among the challenges facing Healthy & Tasty
Company. Accordingly, according to our study of this market, we see the success of
this business sector.

❖ References:

• https://bolstglobal.com/portfolio-items/health-food-opportunities-in-saudi-arabia/
• https://www.globalmediainsight.com/blog/saudi-arabia-population-statistics/
• https://zeotap.com/blog/types-of-behavioural-segmentation/
• https://www.researchgate.net/figure/Strategic-goals-for-health-transformation-in-Kingdom-of-
Saudi-Arabia_fig1_365812732
• https://netcorecloud.com/blog/behavioral-segmentation/
• https://www.stats.gov.sa/ar
• https://open.data.gov.sa/ar/home
• https://www.who.int/europe/news-room/fact-sheets/item/a-healthy-lifestyle---who-
recommendations
• Psychographic Factors Influence Saudi Consumer’s Service Quality in Hypermarket , Othman
Yeop Abdullah Graduate School of Business University Utara Malaysia. 2014.

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