PepsiCo is set to open its first innovation hub in Saudi Arabia in 2025, located in Riyadh’s King Abdullah Financial District (KAFD). This initiative is part of the company’s broader strategy to tailor its products to local tastes and support the Kingdom’s Vision 2030 goals.middleeast.pepsico.com
The new research and development facility aims to develop food and beverage offerings that resonate with Arab consumers, reflecting PepsiCo’s commitment to understanding and catering to regional preferences. This move follows the company’s significant investments in the Middle East, including a $55 million expansion to enhance its capabilities in the region. Arab News+1Arab News+1
PepsiCo’s presence in Saudi Arabia is substantial, with close to 9,000 employees and collaborations with local partners. The company has also invested over SAR 200 million (approximately $53.3 million) in its snacks facility in Dammam to meet growing local and export demand. middleeast.pepsico.comJust Food+5Gulfood 2025+5Food Business Africa+5
By establishing this innovation hub, PepsiCo aims to foster a culture of innovation and development, aligning with its ‘Proudly Saudi’ initiative launched in 2021, which showcases its contributions to empowering Saudis and supporting the Kingdom’s Vision 2030. middleeast.pepsico.com
PepsiCo to Open Saudi Research & Development Center for Arab Tastes
Key Details:
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Location: Riyadh, Saudi Arabia
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Focus: Developing food and beverage products tailored to Middle Eastern/Arab consumer preferences.
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Investment: Part of PepsiCo’s broader expansion in the region.
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Goal: Innovate in snacks (e.g., Lay’s, Cheetos) and beverages (Pepsi, 7UP) with localized flavors and healthier options.
Why Saudi Arabia?
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Market Growth: Saudi Arabia is a top PepsiCo market, with high demand for snacks and beverages.
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Localization Strategy: Adapting to Arab tastes (e.g., spicy, tangy, or traditional flavors like za’atar, sumac).
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Vision 2030 Alignment: Supports Saudi Arabia’s push for foreign investment and tech-driven food innovation.
Expected Innovations
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New Snack Flavors: Regional twists on Lay’s, Doritos, and Cheetos.
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Health-Conscious Options: Reduced-sugar drinks, baked (not fried) chips.
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Ramadan & Festive Products: Seasonal offerings for Middle Eastern holidays.
Competitive Context
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Rivalry with Coca-Cola: Both companies are aggressively targeting Middle Eastern markets.
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Local Brands: Competing with Saudi snack makers like Almarai and Americana.
Sources & Keywords for Further Research
External Links:
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Official Announcement (If Available):
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Saudi Vision 2030 & Food Sector:
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Gulf Food Industry Trends: