Food - Saudi Arabia

Saudi Arabia

Revenue in the Food market amounts to US$55.00bn in 2024. The market is expected to grow annually by 3.99% (CAGR 2024-2029).
The market's largest segment is the segment Bread & Cereal Products with a market volume of US$10.11bn in 2024.
In global comparison, most revenue is generated in China (US$1,601bn in 2024).
In relation to total population figures, per person revenues of US$1,619.00 are generated in 2024.
In the Food market, 1.4% of total revenue will be generated through online sales by 2024.
In the Food market, volume is expected to amount to 18.28bn kg by 2029. The Food market is expected to show a volume growth of 2.3% in 2025.
The average volume per person in the Food market is expected to amount to 486.20kg in 2024.

Key regions: United States, Canada, China, India, South Korea

Definition:

The food market covers all edible products that are bought and consumed for nutrient-based purposes. The market includes both fresh and processed foods.

Structure:

The market consists of 13 different markets:

The Dairy products & Eggs market covers animal products, such as milk, eggs and products made from mammal’s milk and non-animal products, such as milk substitutes. This market is divided into six subsegments that include milk, milk substitutes, yogurt, cheese, eggs and other dairy products and eggs.
The Meat market covers animal products, such as pork, poultry, and free-from meat products, such as meat substitutes. This market is divided into three submarkets: fresh meat, processed meat, and meat substitutes.
The Fish & Seafood market covers products made from fish and seafood. This market is divided into three submarkets: fresh fish, fresh seafood, and processed fish & seafood.
Fruits & Nuts cover edible fruits and nuts. This market is divided into three submarkets: fresh fruits, processed & frozen fruits, and nuts.
The Vegetables market covers edible plants. This market is divided into two submarkets: fresh vegetables, processed & frozen vegetables.
The Bread & Cereal products market covers baked goods made from dough. Dough is made using flour, water, a leavening agent, and other optional ingredients. This market also covers products made from cereals that are usually used as part of a main meal. This market is divided into five submarkets: bread, pasta, rice, breakfast cereals and other cereal products.
The Oils and Fats market covers both edible oils and fats made from animals and plants. This market is divided into four submarkets: butter, margarine, edible oils, and other oils & fats.
The Sauces and Spices market covers additional ingredients used during the food preparation process and is divided into three submarkets: tomato ketchup, other sauces, and spices & culinary herbs.
The Convenience food market covers prepared food and meals that require little effort to prepare. This market is divided into two subsegments, soups and ready-to-eat meals.
The Spreads and Sweeteners market covers spreads and ingredients added to food or beverages to give it a sweet flavor. This market is divided into two subsegments, spreads and sweeteners.
The Confectionery & Snacks market covers sweet, savory, and salty food. This market is divided into two subsegments, confectionery and snacks.
The Baby food market covers food that is only meant to be consumed by babies and small children.
The Pet food market covers food that is intended for pet use only.

Additional Information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per unit (unit refers to kilogram), and sales channels. The market encompasses retail sales through both online and offline sales channels to private end customers (B2C). The market only covers at-home consumption; out-of-home consumption is not included. The out-of-home revenue data is only shown as a separate box at the market level.

For more information on the displayed data, click the info button on the right side of each box.

Market

Region

Region comparison

Currency

Analyst Opinion

The Food market in Saudi Arabia has been witnessing slow growth due to various factors such as changing consumer preferences, increasing competition among sub-markets, and regulations on imported food products. Despite the negligible growth rate, the market continues to be driven by the demand for convenience food, healthy eating options, and the rising trend of online food delivery services. However, challenges such as food safety concerns and supply chain disruptions may impact the market's growth in the future.

Customer preferences: The rise of health-consciousness among consumers in Saudi Arabia has led to a growing demand for healthier food options. This trend is driven by a shift towards a more health-conscious lifestyle, with a focus on nutrition and well-being. As a result, there has been an increase in the availability of organic and natural food products in the market, catering to the preferences of this growing segment of health-conscious consumers. This shift is also influenced by the cultural importance placed on traditional and natural food sources in Saudi Arabian cuisine.

Trends in the market: In Saudi Arabia, The Food market is experiencing a surge in demand for healthy and organic food products. This trend is driven by an increasing awareness among consumers about the importance of a healthy diet and the potential health benefits of organic food. The trajectory of this trend is expected to continue upwards as more consumers prioritize their health and seek out healthier food options. This trend is significant for industry stakeholders as it presents opportunities for growth and diversification in the market. It also highlights the need for companies to adapt and innovate their product offerings to meet the changing preferences of consumers. Additionally, this trend has potential implications for the economy, as the demand for organic food products could lead to the growth of domestic organic farming and reduce reliance on imports.

Local special circumstances: In Saudi Arabia, The Food market is heavily influenced by the country's cultural and religious norms. Islamic dietary laws, which prohibit the consumption of pork and alcohol, have a significant impact on the types of food available in the market. Moreover, the country's hot and arid climate poses challenges for the production and distribution of fresh produce, leading to a reliance on imported goods. Additionally, government regulations and subsidies play a crucial role in shaping The Food market, with measures implemented to promote local food production and reduce reliance on imports.

Underlying macroeconomic factors: The Food market in Saudi Arabia is heavily influenced by macroeconomic factors such as the country's overall economic health, government policies, and global economic trends. With the growing population and changing dietary preferences, the demand for food products is increasing, which is driving the growth of the market. In addition, the government's initiatives to promote food security and reduce food waste are also contributing to market growth. However, the market is facing challenges due to the impact of the COVID-19 pandemic and fluctuations in oil prices, which affect the country's economy. Despite these challenges, the increasing investments in the food industry and the rise in disposable income are expected to drive market growth in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.