The chips and snacks factory

Request for study

Feasibility study for a chips and snacks factory: it is a factory for producing potato chips (chips) and snacks in various sizes of (15 grams, 18 grams, 26 grams, 135 grams, 150 grams, 185 grams, and 190 grams, as well as jumbo sizes).

Capital

Rate of return

Recovery period Third year

Project description

Project description

Feasibility study for a chips and snacks factory: it is a factory for producing potato chips (chips) and snacks in various sizes of (15 grams, 18 grams, 26 grams, 135 grams, 150 grams, 185 grams, and 190 grams, as well as jumbo sizes). <Potato chips (crisps) are considered important and essential snacks that cannot be overlooked, and they are made using potatoes.<Where it is peeled and cut into thin slices and small pieces, then the frying process takes place, after which some preservatives, spices, and flavor enhancers are added. <Potato chips are considered products that are consumed on a daily basis and are in high demand, particularly among children and youth. The manufacturer targets various sectors, such as supermarkets, hypermarkets, and wholesale and retail stores.<The demand for the factory’s products is characterized by growth and continuity due to the increase in population as well as the rising rates of food consumption from economically viable projects.

Project services

Project services

  • 15-gram bags of Chipsy.
  • Chips bags weighing 18 grams.
  • Chips bags weighing 26grams.
  • Chips bags weighing 135grams.
  • Chips bags weighing 150 grams.
  • Chips bags weighing 185 grams.
  • Chips bags weighing 190 grams.
  • Jumbo bags.
  • Popcorn.
Why Mashroo3k ?

Why Mashroo3k ?

  • Mashroo3k has over 11 years of experience in preparing feasibility studies, conducting market research, and providing comprehensive consulting services.
  • Mashroo3k has offices in 7 international branches, located in Saudi Arabia, the UAE, Egypt, Qatar, Oman, Yemen, and Iraq, in addition to its agents in China, Singapore, and other countries.
    Having delivered over 7,000 feasibility studies, Mashroo3k has helped thousands of clients achieve their investment goals.
  • Mashroo3k’s services are accredited and trusted by all financial institutions and funding entities across the Middle East.
  • The company’s geographic reach spans 35 countries across all continents.
  • Mashroo3k holds membership in over 100 prestigious international organizations specializing in market research and business management.
  • Its team consists of 350 consultants with deep expertise in promising economic sectors, ensuring tailored solutions and strategies that meet clients’ needs.
  • Mashroo3k is partnered with more than 10,200 suppliers across 22 countries, providing logistical support for projects, including production lines, raw materials, machinery, and equipment.
  • With an extensive database, Mashroo3k enhances the accuracy of its forecasts and analyses, strengthening its risk management capabilities.
  • Project Features
  • Study Contents
  • Sector indicators
  • The Project as an Investment Opportunity
مؤشرات القطاع

 

Producing potato chips by utilizing the available resources in the Hail region, which is one of the important agricultural areas with an abundance of raw materials (potatoes).
Creating new investment opportunities with good returns.
Achieving a good return for the project owner.
Employing the workforce and improving their economic and social standards.
Generating strong cash flows and added economic value.
Optimal utilization of the project’s resources and assets.
Achieving a high level of quality.
Maintaining competitive pricing to enable the project to capture its targeted market share.
Contributing to meeting the growing demand for potato chips.
Using the latest technologies in potato chip manufacturing and training the workforce to use them.

Executive summary

  • About the project
  • Financial indicators
  • Justifications for establishing the project
  • Government investment incentives in the project field
  • Target markets
  • Indicators and final results of the project

Study project services/products

  • Project Description and All Its Products/Services.
  • Project Advantages and Production Requirements.

Market Size Analysis

  • Understanding Distribution Channels.
  • Consumer Behavior, Preferences, and Habits.
  • Competitors’ Products or Services, and Their Strengths and Weaknesses.
  • Market Nature and Characteristics.
  • Demand Size for the Product or Service Offered.
  • Available Market Share of the Target Market.
  • The Optimal Marketing Method.

Risk Assessment

  • Risk Identification.
  • Impact of Risks on the Project.
  • Risk Mitigation Methods

Technical study

  • A detailed description of the project’s products, expected production capacity, and determination of investment costs.
  • Determining the required electricity and water capacity.
  • Determining the project’s labor requirements.
  • Determining the project’s requirements.
  • Calculating construction and building costs.
  • Calculating the total capital
  • Determining the annual operating costs.
  • Determining the amount of working capital.

Financial study

  • Total investment costs required for the project.
  • Organizing cash flow statements, income statements, and the balance sheet for the first ten years of operation.
  • Determine the expected annual revenues of the project in light of the specified operational capacities
  • The optimal financing structure for the project in light of investors’ capabilities and financing conditions.
  • The project’s financial indicators and sensitivity analysis.

Organizational and administrative study

  • Project workforce.
  • Organizational structure.
  • Job responsibilities.
المشروع كفرصة استثمارية

The Gulf Cooperation Council (GCC) countries comprise just 0.7% of the world’s population; however, they account for 3% of global spending on processed food and beverages—amounting to USD 102 billion out of a total USD 3.4 trillion. This highlights the region’s exceptionally high per capita food consumption, surpassing the global average.
This is unsurprising upon closer examination: the GCC population now exceeds 58 million people, with approximately 56.3% falling within the 25–54 age bracket—a vital and dynamic demographic that forms the backbone of the food industry market due to its youthfulness and vitality.

Saudi Arabia alone accounts for approximately 59.7% of the GCC’s total population and captures more than 53% of the food and beverage market share in the region. Accordingly, Mashroo3k Company has compiled key indicators of this vital market in the Kingdom, based on the latest available statistics:

  • By the end of Q2 2021, the number of food product factories was estimated at 916, with an additional 249 factories under construction.

  • The number of beverage factories stood at 209, with 71 more under construction.

  • Food product factories represented 11.1% of the total 8,258 operational factories in Saudi Arabia, while beverage factories accounted for 2.5%.

  • The Saudi food and beverage market was valued at SAR 168.8 billion.

  • By the end of 2021, food consumption reached SAR 221 billion, marking a 6% growth rate.

  • According to global reports, Saudi Arabia’s food consumption was valued at USD 70 billion—equivalent to 60% of the total food consumption across the Gulf region.

  • The fast-food market in Saudi Arabia is projected to reach USD 4.5 billion within the next three years.

  • The organic, healthy, and specialty food market is valued at USD 27 billion, while the halal food market stands at USD 6 billion.

  • Saudi Arabia imports approximately USD 14.5 billion worth of food and beverages annually.

  • In 2020, operating expenses for food and beverage service activities were estimated at SAR 34,032.10 million, up from SAR 30,069.23 million in 2018.

  • Operating revenues for food and beverage service activities reached SAR 61,557.77 million in 2020, up from SAR 54,866.87 million in 2018.

  • By 2027, operating expenses for food and beverage service activities are expected to reach SAR 52,489.34 million, while operating revenues are forecast to climb to SAR 92,084.64 million.

  • Total operating revenues for the food product manufacturing sector in Saudi Arabia are projected to reach SAR 128,540.573 million by 2027.

Global Food Sector Overview:

  • According to UNICEF, the global malnutrition rate rose to 9.8% in 2021.

  • Between 702 million and 828 million people are suffering from hunger worldwide.

  • The global food market generates approximately USD 8.66 trillion in revenue.

  • About 7.8% of global food market revenue is expected to be generated through online sales.

  • Total global production of primary crops amounts to 9.4 billion tons.

  • Total global production of red and white meats is 337 million tons.

  • Total global fruit production is 883 million tons.

  • Total global vegetable production is 1,128 million tons.

  • Total global vegetable oil production is 201 million tons.

  • Total global dairy production stands at 883 million tons.

  • Total global egg production amounts to 83 million tons.

مؤشرات المشروع
  • The fast-food market in Saudi Arabia is expected to reach USD 4.5 billion within the next three years.

  • The organic, healthy, and specialty food market in the Kingdom has reached USD 27 billion, while the halal food market is valued at USD 6 billion.

  • Saudi Arabia’s imports of food and beverage products are estimated at approximately USD 14.5 billion annually.

  • In 2020, operating expenses for food and beverage service activities were estimated at SAR 34,032.10 million, compared to SAR 30,069.23 million in 2018.

  • Operating revenues for food and beverage service activities reached SAR 61,557.77 million in 2020, up from SAR 54,866.87 million in 2018.

  • By 2027, operating expenses for food and beverage service activities are expected to reach SAR 52,489.34 million, while operating revenues are projected to reach SAR 92,084.64 million.

  • The total projected operating revenues for the food product manufacturing sector in Saudi Arabia are expected to reach SAR 128,540.573 million by 2027.


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