Saudi Arabia Artisanal Cakes Market to Hit Valuation of USD 2,070.7 Million by 2032 | Social Media is Acting as Catalyst, Says Astute Analytica

Saudi Arabia’s market for artisanal cakes is expected to grow significantly due to the country’s deep-rooted celebration culture, youthful, trend-conscious population, and growing prosperity. Moreover, factors such as culinary sensations, Instagram-worthy foods, and personalization adding more fuel to the demand. The usage of premium, natural ingredients and sugar substitutes is driven by health consciousness.

New Delhi, Feb. 29, 2024 (GLOBE NEWSWIRE) — Saudi Arabia artisanal cakes market is projected to surpass the market valuation of US$ 2,070.7 million by 2032 from US$ 969.3 million in 2023 at a CAGR of 8.8% during the forecast period 2024-2032.

Saudi Arabia’s artisanal cakes market is on the rise, with demand soaring. Moving from mass-produced offerings to artisanal cakes, several factors are driving these newfound tastes for the handcrafted goods. Today, disposable income in Saudi Arabia has grown significantly, giving consumers more purchasing power and allowing them to splurge on premium experiences such as artisanal cakes. In addition, visually appealing baked goods are heavily populating on the social media platforms like Instagram and Pinterest. This exposure entices buyers with unique sweet treats that look just as good as they taste. Apart from this, consumers in the country are increasingly appreciating quality ingredients and skill for having better flavors, fresher ingredients, and more intricate designs than their mass-produced alternatives.

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In a world increasingly seeking customized and handcrafted goods over those churned out in factories, Saudi Arabia is playing catch-up. The industry will also be driven by special occasions—birthdays or weddings where a unique centerpiece is required—and increased interest in health-conscious eating habits that may necessitate dietary restrictions or organic ingredients. At present Saudi Arabia’s artisanal cakes market is split between home-based bakers and larger patisseries. This mix of competition has birthed innovation and raised standards across the board. Two significant advancements include new flavor combinations using local produce or fusion cuisine ideas and improved 3D-printing/food-grade sculpting tools for cake design.

While much progress has been made already, analysts at Astute Analytica says that this sector is likely to witness even more growth thanks to a young demographic, growing number of cities, and increasing internet usage for inspiration or guidance on how to become skilled bakers themselves. Moreover, individuals celebrating milestones (such as graduations), corporations hosting events (like product launches) and high-end restaurants all make up major customers bases who could benefit from bespoke creations like these cakes.

  • 60% of Saudi consumers express a willingness to pay a premium for customized products.
  • Over 82% of Saudi Arabia’s population are active social media users.
  • The number of home-based food businesses in Saudi Arabia has witnessed a 50% increase in the past three years.
  • Vegan and gluten-free artisanal cake searches in Saudi Arabia have grown by 200% year-on-year.

Key Findings in Saudi Arabia Artisanal Cakes Market

Market Forecast (2032) US$ 2,070.7 Million
CAGR 8.8%
By Size Large Cakes (58.0%)
By Flavor Chocolate (25.8%)
By Occasion Birthday (35.7%)
By Channel Offline (64.0%)
By Cities Riyadh (29.6%)
Top Trends
  • Hyper-personalization of cake designs
  • Fusion flavors with local ingredients
  • Demand for “Instagrammable” cakes
Top Drivers
  • Rising affluence and celebratory spending
  • Social media fueled desire for uniqueness
  • Growing health-consciousness influencing ingredients
Top Challenges
  • Sourcing high-quality, specialized ingredients
  • Shortage of skilled bakers in niche areas
  • Maintaining quality with increased demand

Growing Health-Consciousness Influencing Ingredients

Saudi Arabia is facing a health crisis, with 35% of the people in the country being classified as obese and 30% of adults having diabetes. These diseases, which are linked to lifestyles, occur because Saudi population is becoming more sedentary while consuming processed foods packed with unhealthy fats and sugar. As a result of this growing awareness about health, consumers are turning away from traditional cakes and looking for alternatives that taste good and allow them to maintain their well-being.

One way this trend is manifesting itself is through an increased demand for sugar substitutes in artisanal cakes market. In just one year, searches for “sugar-free” or “low-sugar” offerings have grown by over a quarter. Artisanal bakers are already beginning to experiment with natural sweeteners like dates (a fruit that’s native to Saudi Arabia), honey and stevia to reduce refined sugars. The desire for grains and nutritious flours like whole wheat flour, almond flour, and coconut flour is also rising. These ingredients add fiber, protein, and healthy fats to cakes; 40% of artisanal bakers have said they want to start using these healthier alternatives too. Bakers have even started slipping “superfoods,” such as chia seeds, flaxseeds, berries and beetroot into their products – consumer interest in these types of ingredients has risen by 15% over two years.

Health-conscious consumers still want indulgent treats but are increasingly gravitating towards smaller portion sizes — sales growth for mini-cakes has hit 20% growth in Saudi Arabia’s artisanal cakes market. With their cravings stuck between wanting something delicious yet wholesome, artisanal cake bakers need to strike a balance so they can please everyone’s palate while still meeting dietary restrictions for diabetes patients or those who are gluten-intolerant or vegan. Expensive premium ingredients that have proven health benefits could justify a higher price tag since nearly one-third (30%) of Saudi consumers would be willing to pay more for healthier options, according to a YouGov survey. Furthermore, bakers could build trust with customers by being transparent and educating them about the nutritional benefits of alternative ingredients.

Chocolate Flavor Dominates: Why Saudi Arabia Craves Artisanal Chocolate Cakes

Chocolate’s dominion in Saudi Arabia’s artisanal cakes market is twofold: it has a universal appeal and, more than that, it adapts with evolving consumer tastes. The classic flavor is favored by most demographics — data shows that over 70% of Saudis have a strong preference for chocolate desserts. Also, in Saudi Arabia’s celebratory culture, where nearly a 35% of families host at least one major gathering per month, the associated luxury and indulgence of chocolate-infused cakes propel them into fame.

However, beyond its fundamental appeal, chocolate also boasts versatility. From dark (preferred by almost 40% of Saudi chocolate consumers) to light milk, there’s something for every palate. Bakers masterfully pair these flavors with a range of ingredients — from local spices to exotic fruits — to create innovative taste sensations that delight Saudi consumers who crave novelty (over 65% actively seek out unconventional flavors). Additionally, the photogenic quality of chocolate lets bakers design eye-catching works that feed social media-driven word-of-mouth marketing machines like Instagram (which drives nearly four-fifths of new artisanal cake discoveries). In line with this, the Saudi Arabia artisanal cakes market is witnessing a growth potential in targeting trendsetting young people — about 63% of Saudis are under age 30 — who want new experiences across all meal times. Additionally, millennial and Gen Z buyers’ recent interest in healthy eating may open doors for sugar alternatives and organic ingredients. Therefore, as the market matures and demand grows for personalized designs produced at scale with efficiency, chocolate flavor may likely retain their seat on top shelf in the years to come.

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Riyadh City Becomes the Most Lucrative Artisanal Cakes Market in Saudi Arabia

Riyadh’s artisanal cakes market is the largest and most lucrative in Saudi Arabia for a number of reasons. The city’s large concentration of high-income households means there is a greater amount of disposable income to be spent on premium, luxury products like artisanal cakes. For instance, average household income is 20% higher in Riyadh than the national average. The cosmopolitan nature of the city with its significant expatriate community also means that people have different tastes and are more open to trying new food experiences, with over 60% of Riyadh residents actively seeking out these novel culinary offerings.  

Riyadh’s culture is another driving force behind the demand for artisanal cakes. With frequent social gatherings such as weddings and corporate events, there will always be a need for personalized cakes. In fact, almost 40% of Riyadh households host at least one major celebration every year making artisanal cakes highly sought after in this city. It’s also worth noting that food-related posts make up over 25% of all content shared by Riyadh residents on Instagram so it’s not hard to imagine how much free advertising a bakery might get from just one well-made cake getting posted. Finally, Riyadh maintains the highest concentration of bakeries and patisseries across Saudi Arabia artisanal cakes market, meaning consumers have access to many options which puts pressure on businesses to offer innovative and quality products. It is estimated that there are more than 200 established artisanal bakeries in Riyadh, plus many smaller businesses. The pricing of these cakes can vary greatly depending on the size and complexity but it’s not uncommon for a single cake to cost anywhere from 200 SAR to upwards of 1000 SAR.

As per Astute Analytica, young professionals are some key spenders with approximately 35% of purchases coming from individuals under the age of 35 in the city. Families celebrating birthdays or anniversaries and those who need something special for religious holidays are more likely buyers. As it turns out, about 20% of sales go towards businesses buying them as gifts for clients or employees too.

Saudi Arabia Artisanal Cakes Market Key Players

  • Artisanal/ Unpackaged Cake Companies
    • Almarai
    • Bakery & Company
    • Bashaer Makkah Bakery
    • Caramel Jeddah
    • Diplomacy
    • Easy Bakery
    • Eco Bakery
    • Eric Kayser
    • Helen’s Bakery
    • Jareer
    • Katherine’s
    • La Lorraine Bakery Group
    • Lavivane
    • Lilou Artisan Patisserie
    • Madeline
    • Magnolia Bakery
    • MOD Patisserie
    • Munch Bakery
    • Saadedin Pastry
    • Sanabel Al Salam
    • SugarMoo Desserts
    • Top Taste
    • Wooden Bakery
    • Other prominent players
  • Packaged Cake Companies
    • Almarai
    • Deemah – United Food Industries Corp Ltd.
    • General Mills Inc.
    • Mondelez International Inc
    • National Food Company – Americana Cake
    • Pladis Global
    • Sunbulah Group.
    • SwitzGroup

Key Segmentation:

By Size

  • Regular
  • Large

By Flavour

  • Vanilla
  • Chocolate
  • Fruit
  • Nuts
  • Others

By Occasion

  • Birthday
  • Wedding
  • Anniversary
  • Special Occasion
  • Others

By Distribution Channel

  • Online
  • Offline

By Cities

  • Riyadh
  • Jeddah
  • Dammam
  • Mecca
  • Madinah
  • Rest of Saudi Arabia

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About Astute Analytica

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