Konstantin Kolesnik, CEO of Tetra Pak in the Arab region, said that Saudi Arabia’s focus on enhancing food security, local production, and diversifying the economy, in line with the goals of “Vision 2030,” has created promising investment opportunities in food manufacturing, processing, packaging, and recycling.
He added that the expansion of local production enhances the flexibility of supply chains and enables companies to meet the needs of the Saudi and regional markets, but investment decisions remain linked to the size of demand, economic feasibility and production capabilities. He pointed out that Tetra Pak has been operating in the Kingdom since 1980, and its facility in Jeddah produces cardboard containers to meet the needs of regional markets, in addition to its cooperation with local companies to modernize production, digital transformation, and sustainability.
Kolesnik explained that food and beverage companies face a major challenge, which is transforming innovative ideas that respond to consumer aspirations into products that can be manufactured, packaged, and produced on a commercial scale. Product success requires achieving a balance between taste, texture, nutritional value and price, in addition to the availability of ingredients, suitability of production lines, and food safety and packaging requirements.
He said that shifts in consumer preferences make it necessary for product development decisions to be based on market research and cooperation with producers, rather than following general trends alone. Consumers around the world are increasingly turning to products that meet their aspirations in the areas of health, wellness, comfort and sustainability, and give them new experiences, while continuing to prefer familiar options that they trust.
In the Middle East, these trends are emerging in parallel with great interest in food quality, safety, and availability at prices that reflect its value, according to Kolesnik. He said that Tetra Pak follows shifts in consumer preferences through research, analysis of market trends, and close work with food and beverage producers, with the aim of understanding the needs of the public and helping companies develop products that respond to them.
The company's Trendipedia reports combine its own research with external studies to provide clients with insights into changes in consumer behavior and help them make informed decisions about product development. But Kolesnik stressed the need to test trends in each market individually; Because the spread of a global trend does not necessarily mean the existence of a similar demand locally, and consumers’ declared interest in a product is not always reflected in actual purchasing decisions.
Test ideas
Kolesnik explained that developing a new product goes beyond the initial idea; A promising product needs to work on its recipe, taste, texture, nutritional value and price, taking into account the availability of ingredients, processing and packaging requirements and food safety. The capabilities of production lines and packaging options also affect the possibility of launching and expanding the product commercially.
Tetra Pak helps its customers test recipes and processing technologies in pilot production environments, through collaboration and product trials in its product development centers. This allows technical challenges to be detected early and adjustments made before moving to larger scale production. Kolesnik said that, during its participation in the Gulfood Manufacturing Exhibition, the company is showcasing its range of solutions that aim to help food producers transform their ideas into practical opportunities for developing new products.
Consumer research provides a way to understand priorities, identify unmet needs, and evaluate the feasibility and potential development of new ideas. Market analysis also helps to form a clearer picture of the performance of product categories, levels of competition, and emerging opportunities.
Tetra Pak relies on these analyzes to help its customers understand indicators and changes in consumer behavior and estimate their potential impact on product innovation. Next comes the stage of verifying the suitability of the results for a specific market and the nature of the product to be developed. Kolesnik believes that combining consumer research, market analysis, technical expertise, product trials, and processing and packaging techniques gives producers a more realistic basis for making their investment decisions.
Regarding modern technologies, he said that they allow production processes to be monitored and controlled with greater accuracy and consistency, which helps improve the quality and safety of products, in addition to revealing opportunities to increase operational efficiency. But he stressed the need to choose the technology that suits the nature of the product and the factory’s needs, rather than adopting it simply to keep pace with technological developments.
Tetra Pak offers food processing and automation solutions, including the Tetra Pak Factory OS platform, which helps customers manage production operations and make better use of operational data. These solutions, according to Kolesnik, aim to achieve a balance between consumer expectations and production requirements, taking into account the volume of productivity and the efficiency of using resources and costs.
Reducing waste and improving factory efficiency
Kolesnik pointed out that innovation in food processing can address deficiencies in various stages of production, from reducing product losses and downtime of production lines, to rationalizing the consumption of energy, water and chemicals. This can be achieved through developing equipment and designing production lines, improving processes and modernizing systems, in addition to using automation and advanced monitoring technologies.
He said that the first step is often to identify sources of waste in production processes, then choose appropriate solutions to address them. Tetra Pak provides specialized solutions and services in food processing to help customers improve performance and reduce waste, thus enhancing the efficiency of resource use and reducing operational costs. These solutions include improving the performance of existing equipment, raising the level of control in production processes, and benefiting from manufacturing by-products and converting them into value-added products, allowing better use of raw materials.
In the packaging industry, efforts to reduce emissions and costs include reducing the environmental impact of the materials used, increasing the efficiency of the use of resources in manufacturing, developing systems for collecting and recycling containers, and designing containers that can be dealt with after their use ends. Kolesnik stressed that these efforts should take into account the essential role of packaging in protecting food, maintaining its quality, and ensuring its safe distribution.
Tetra Pak helps food and beverage producers study packaging solutions that balance product protection, resource efficiency, and reducing environmental impact. An example mentioned by Kolesnik is the “Tetrakart” solution, which uses cardboard containers intended for food that can be preserved for long periods without refrigeration. He explained that evaluating the environmental performance of this type of packaging must be done by comparing it to other options, based on equivalent studies to evaluate the life cycle of the products.
Consumers' willingness to pay additional prices for more sustainable products varies from one person to another. Kolesnik pointed out that sustainability has become an influential factor in purchasing decisions, citing a study conducted by Tetra Pak in Saudi Arabia in 2024, which showed that 64 percent of survey participants expressed their concern about environmental issues, pollution, and food waste. He said that the results confirm the importance of understanding consumer expectations in local markets, and achieving a balance between environmental considerations, appropriate prices, and product quality.
Plant products and functional foods
In his assessment of the opportunities for plant-based products and functional foods, Kolesnik said that the two sectors offer promising opportunities for growth, but it is important not to treat either of them as one homogeneous market. Plant products differ in terms of their ingredients, categories, taste, prices, and occasions for consumption, while functional foods include various products that respond to different nutritional needs, from protein and fiber to products associated with certain lifestyles or age stages.
He added that rising investments and consumer interest alone do not guarantee sustainable demand. Commercial success is linked to repeat purchases, competitive prices, and the product’s ability to meet consumers’ aspirations in terms of taste, nutritional value, and ease of consumption. In the long term, growth opportunities depend on meeting real needs and providing a satisfying experience at an affordable price.
Therefore, producers need to focus on taste, texture, nutritional value claims, product formulation and presentation, as well as test new ideas with target groups. Kolesnik said that Tetra Pak supports its customers in these areas through specialized expertise in food ingredients and their applications, product development solutions and processing technologies, to help them explore opportunities and evaluate the possibility of converting them into scalable and productive products.
He touched on fermentation techniques for biomass production and microfermentation, as emerging technologies in the new food sector, which seeks to diversify food sources and develop more sustainable production methods. These technologies provide opportunities for companies wishing to enter a rapidly growing market, but their economic feasibility depends on the applications used, production costs, consumer acceptance, and the ability to expand production while maintaining stability of operations and quality of outputs.
He pointed out that government investments can play a pivotal role in supporting emerging innovations and helping them advance, especially in light of global efforts to enhance food security and develop production systems capable of adapting to climate change. But moving from technology development to commercial production poses challenges; These methods rely on the use of microorganisms to produce foods and their components, such as alternative proteins, which requires verifying production efficiency and understanding the characteristics of microorganisms, their behavior and their effect on the final product, as well as determining appropriate equipment and compliance with regulatory requirements.
To support companies working in this field, Tetra Pak established a center for developing new food technologies in the city of Karlshamn, Sweden. The center provides capabilities to develop fermentation processes and conduct experiments that help expand the scope of production and verify the efficiency of technologies, enabling companies to evaluate technical feasibility and address challenges before moving to commercial production.
Saudi market opportunities
Kolesnik said that Saudi Arabia’s focus on enhancing food security, local production, and diversifying the economy, in line with the goals of “Vision 2030,” has created investment opportunities in food manufacturing, processing, packaging, and recycling. The expansion of local production contributes to enhancing the flexibility of supply chains and helps companies meet the needs of the Saudi and regional markets.
But he explained that investment decisions remain linked to the size of consumer demand, the economic feasibility of product categories, production capabilities, and the specific needs of each company. Tetra Pak has had a presence in the Kingdom since 1980, and its facility in Jeddah produces cardboard containers to meet the needs of regional markets.
The company continues to work with food and beverage producers in the Kingdom on initiatives to modernize operations, raise operational efficiency, and improve resource management. An example of this is its cooperation with Al Rabie Company, which was announced in 2025 and extends for several years, and aims to modernize the company’s production facilities through digital transformation, developing technologies, and adopting sustainability initiatives.
Regarding the impact of geopolitical tensions, supply chain disruptions, and the high costs of raw materials and shipping, Kolesnik said that they have increased the state of uncertainty facing food and packaging companies, whether in securing raw materials or managing logistical operations and planning production, as a result of their impact on the availability of raw materials and final products, their costs, and their transportation.
He added that monitoring supply chains and monitoring their performance helps companies assess potential risks and respond to them more quickly. Ensuring continuity of operations in regional markets requires close coordination with customers and partners, effective planning, and studying alternative options to secure raw materials and logistics services when needed.
He stressed that supporting the continuity and reliability of customer operations is Tetra Pak's top priority, noting that the company benefits from its global network and cooperates with customers and partners to manage risks associated with supply chains, ensure the continuity of operational operations and adapt to rapid changes in the markets.
“Souq 7,” an open, multi-use shopping destination in the city of Jeddah developed by Azad Real Estate, won the Special Jury Award in the Urban Revitalization category at the MAPEC 2026 Exhibition Awards, setting a precedent for it to be the first Saudi project to win such an international award, which was presented in the French city of Cannes in front of the elite of the commercial real estate and retail sector in the world.
The MAPIC exhibition, which has been held annually in the month of November in Cannes, France since 1995, is one of the most prominent global events in the commercial and retail real estate sector. It brings together about 4,000 developers, investors, retailers and city leaders from nearly 75 countries.
Its awards honor the most inspiring projects and concepts in the sector as judged by the judging panel, while the Urban Revitalization category celebrates the revitalization of urban areas in which the retail sector plays a pivotal role.
Winning the Special Jury Prize places both “Souq 7” and the urban revitalization of the retail sector in Saudi Arabia in a prominent position on the international scene.
For nearly 50 years, the project site has hosted Prince Miteb Markets, which constituted an address for valuable deals in Jeddah. “Azad Properties” rebuilt it in the same location and for the same purpose. The area extends over an area of 720,000 square metres, and includes 114 buildings distributed over seven specialized areas and about 3,500 commercial units. It celebrated its grand opening in December 2025.
What distinguishes “Souq 7” at the international level is its integrated model. There are rarely destinations around the world that combine daily shopping for food, fashion, electronics, furniture, building materials, and automobile trade, along with restaurants, hospitality, entertainment, sports, and offices, in one open area designed in the style of traditional markets.
The urban revitalization was based on a clear approach: preserving the value that the people of Jeddah loved, adding diversity, and creating a modern experience, including shaded streets, a central park, frequent buses linking all seven regions, the “Souq 7” application, and various events throughout the year. The facades inspired by Rawashin, which were designed in cooperation with an elite group of consultants, add an authentic character that links the destination to the identity of the Saudi city of Jeddah.
Behind this achievement is a unique, innovative and successful concept; It is unique in its ability to attract diverse groups of merchants, families and youth to one open destination, each of whom has his own motivation for visiting.
It is innovative in its layout and operating mechanism. Starting from the areas designed according to the shopper’s intended purpose, and the architecture that reflects the nature of the products and activities in the area, passing through three paths for independent merchants, major tenants and investors to enter “Souq 7”, all the way to a technical structure that includes more than 4 thousand cameras within a television surveillance system supported by artificial intelligence, smart poles, digital guidance systems, and the “Souq 7” application. It is also successful; As 93 percent of its rental space was rented by the time of the grand opening, “Souk 7” became part of daily life in Jeddah in less than a year.
Azad Real Estate invested 1.5 billion riyals in the project, providing 420,000 square meters of total rental space and an estimated 24,000 direct and indirect jobs.
Since its grand opening, Souq 7 has received more than 10 million visitors. Future plans include establishing a hotel and offices within the destination, while the project will contribute to driving improvement across the 5 million square meters of surrounding land.
Ayman Al-Barti, CEO of Azad Real Estate, said: “This award belongs to Jeddah. For nearly 50 years, people have come to this market in search of value and the joy of discovery. We have maintained the authentic spirit of the market and set new standards around it, with greater diversity and a modern experience for the entire community. “Receiving this recognition from the MAPEC jury on the global stage demonstrates the ability of this model of urban revitalization to inspire other cities beyond the borders of the Kingdom of Saudi Arabia.”
Majid Al Qathmi, Chief Operating Officer of Azad Properties, participated in the MAPIC Urban Regeneration Summit, with a presentation on the progress of Souq 7, in front of an international audience of developers, investors and retailers. Al-Qathmi placed the project experience in the context of the growth of the Saudi economy, noting that the wholesale and retail trade, restaurants and hotels sectors contribute 12.3 percent of the gross domestic product, in conjunction with the growing demand for value. 46 percent of shoppers in the Kingdom seek stores with reasonable prices.
He explained how the Souq 7 project responded to this demand through its promise of value, diversity, and experience across its seven regions, and the extended impact the project had on the surrounding community. He concluded his presentation by saying: “For us, urban revitalization means: giving the place a future to grow with its community.”
The “MAPIC” International Award crowns the “Souk 7” project’s achievements and leadership as an exceptional model in the retail and urban revitalization sector. This international recognition reflects the project’s success in reinventing commercial open spaces in style
