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Food production

Bakery and pastries feasibility study

Latest regulatory change: 2025 · reviewed 2026-11-05

An automatic or semi-automatic bakery producing bread and pastries for direct sale and for shops.

  • SAR 500Regulated price per tonne of flour in 45 kg bags[2]
  • 1 gSalt limit per 100 g of bread[1]
  • 18 monthsCompliance period for bakeries[3]

Latest regulatory and market changes

  1. 2019The Saudi Food and Drug Authority (SFDA) required bread producers to keep salt at no more than 1 gram per 100 grams of finished product.[1]
  2. 2024The board of the General Food Security Authority (GFSA) decided to allow flour exports with full recovery of the subsidy value, while the regulated price stayed at SAR 500 per tonne for 45 kg bags.[2]
  3. 2025The Ministry of Municipalities issued requirements for bakeries and sweet shops with an 18-month compliance period, requiring calorie display and disclosure of 14 allergens.[3]

Why now

  • Flour bags of 1 to 10 kg are not price-regulated; the regulated product is the 45 kg bag.[2]
  • The wheat subsidy differential is fixed at SAR 320 per tonne until 12 July 2025, and may then be raised gradually or in a single step.[2]
  • The new requirements set about 150 m² for a semi-automatic bakery and give existing bakeries a period to comply.[3]

3.44 million tonnesOf flour sold by the mills, out of production of 3.47 million tonnes in 2023.[2]

The idea and business model

A bakery producing various breads, pastries and savoury pies daily for sale in-store and for supply to grocery shops and restaurants. Revenue depends on daily output, unit price and the product mix between low-margin bread and higher-margin pastries.

Model: Production and sales

Project economics

Revenue formula

Units produced per day×Average unit price×Operating days

Sales channels

  • Direct sales in-store
  • Supply to grocery shops and restaurants
  • Orders and occasions

Largest cost items

  • Flour, butter and ingredients
  • Salaries
  • Gas and electricity
  • Rent and ovens

Decisive indicators we measure

  • Material cost per unit
  • Daily waste rate
  • Pastry share of sales
  • Oven capacity utilisation

Relevant authorities

  • Ministry of Municipalities and Housing (MoMAH) via Balady: bakery licence and bakery and sweet shop requirements
  • Saudi Food and Drug Authority (SFDA): salt limit in bread and production requirements
  • General Food Security Authority (GFSA): regulation of subsidised flour and its price
  • Civil Defence: fire safety for ovens and gas
  • Ministry of Commerce: Commercial Registration (CR)

What needs your attention

  • Any increase in the wheat subsidy differential feeds through to flour cost.
  • Existing bakeries have a fixed period to adapt their site and fit-out.
  • Bread is low-margin, so the pastry mix determines profitability.

What a Bakery and pastries study calculates for you

  • Oven capacity in units per hour
  • Unit cost at current flour prices
  • Optimal bread and pastry mix
  • Supply contracts with shops
  • Cost of complying with the bakery requirements

Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.

Sources

Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.

  1. الغذاء والدواء تلزم مصانع المخابز بحد أعلى للملح في الخبزهيئة الغذاء والدواء · 2019-04
  2. سماح السعودية بتصدير الدقيق: استرداد كامل لقيمة الدعم وشروط تحمي السوق محلياًالاقتصادية · 2024-11
  3. 18 شهراً مهلة للمخابز لتصحيح أوضاعها وإلزام بكشف مسببات الحساسيةعكاظ · 2025-12

Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.