While the world pictures vast deserts, Saudi Arabia is writing a new narrative with its flourishing food industry, where innovative farming in arid landscapes is powering remarkable growth in everything from premium dates and dairy to greenhouse-grown vegetables and aquaculture.
Key Takeaways
- Saudi Arabia's food production index grew by 3.2% in 2022, driven by enhanced irrigation techniques in arid regions.
- In 2023, wheat production in Saudi Arabia reached 1.6 million metric tons, up from 1.4 million in 2022 due to improved hybrid seeds.
- Date production totaled 1.5 million metric tons in 2021, accounting for 17% of global supply from 32 million palm trees.
- The Saudi food market size reached USD 25.6 billion in 2023, projected to grow at 6.8% CAGR to 2030.
- Per capita food consumption in Saudi Arabia was 1,200 kg in 2022, highest in GCC region.
- Packaged food sales hit USD 12 billion in 2023, with snacks at 25% share.
- Saudi Arabia imported USD 15.2 billion worth of food products in 2022, mainly from EU and Brazil.
- Food imports grew 8% YoY to USD 16.5 billion in 2023, dairy at 20% share.
- Wheat imports totaled 3.1 million tons in 2022, valued at USD 1.2 billion from Australia.
- Almarai invested SAR 5 billion in 2023 for dairy expansion.
- Savola Group allocated USD 1.2 billion for food processing plants in 2022.
- PIF invested SAR 2.5 billion in agriculture tech startups in 2023.
- Food market projected to reach USD 38 billion by 2028 at 7.2% CAGR.
- Halal food market to grow to USD 45 billion by 2025 in KSA.
- Plant-based meat adoption rose 25% in 2023 among urban consumers.
Saudi Arabia's food industry grows rapidly through innovation and significant investment.
Consumption
- The Saudi food market size reached USD 25.6 billion in 2023, projected to grow at 6.8% CAGR to 2030.
- Per capita food consumption in Saudi Arabia was 1,200 kg in 2022, highest in GCC region.
- Packaged food sales hit USD 12 billion in 2023, with snacks at 25% share.
- Dairy consumption volume was 250 kg per capita in 2022, led by fresh milk.
- Poultry meat consumption reached 55 kg per capita in 2023, up 5% YoY.
- Soft drinks market value was USD 3.2 billion in 2022, with PepsiCo holding 40%.
- Bakery products consumption totaled 120 kg per capita in 2023.
- Confectionery sales volume hit 150,000 tons in 2022, chocolate at 60%.
- Ready-to-eat meals market grew to USD 1.5 billion in 2023, CAGR 8%.
- Fruit juice consumption was 25 liters per capita in 2022.
- Edible oils consumption reached 28 kg per capita in 2023, palm oil dominant.
- Frozen food sales value was USD 2.1 billion in 2022.
- Organic food market size hit USD 450 million in 2023, growing 12% annually.
- Halal-certified food consumption covers 100% of market, valued at USD 20 billion in 2022.
- Energy drinks consumption rose to 8 liters per capita in 2023.
- Processed meat products sales were USD 1.8 billion in 2022.
- Yogurt consumption volume stood at 40 kg per capita in 2023.
- Instant noodles market value reached USD 300 million in 2022.
- Plant-based food sales grew 15% to USD 200 million in 2023.
- Ice cream consumption was 12 liters per capita in 2022.
- Canned food market size was USD 1.2 billion in 2023.
- Bread consumption totaled 90 kg per capita annually in 2022.
- Functional beverages market hit USD 500 million in 2023.
- Cheese consumption reached 15 kg per capita in 2022.
- Snacks market value was USD 2.5 billion in 2023, chips leading.
- Pasta consumption volume hit 12 kg per capita in 2022.
- Baby food market size reached USD 400 million in 2023.
Consumption Interpretation
The Saudi appetite is colossal, constantly hungry, and unapologetically modern—marching toward a $25.6 billion future fueled by mountains of chicken, rivers of milk, a kingdom-sized bag of chips, and a side of surprisingly swift organic and plant-based growth.
Investments
- Almarai invested SAR 5 billion in 2023 for dairy expansion.
- Savola Group allocated USD 1.2 billion for food processing plants in 2022.
- PIF invested SAR 2.5 billion in agriculture tech startups in 2023.
- National Agricultural Development Company (NADEC) expanded with SAR 1 billion in 2022.
- FDI in food sector reached USD 800 million in 2023, 15% YoY growth.
- Tanmiah Foods raised SAR 750 million via IPO in 2022 for poultry.
- Vision 2030 allocated SAR 20 billion for food security projects by 2025.
- Aqua Ventures invested USD 300 million in aquaculture farms in 2023.
- Desert Farms secured SAR 500 million for camel dairy in 2022.
- SFIC invested USD 400 million in greenhouse tech in 2023.
- Private equity deals in food industry totaled USD 1.5 billion in 2022.
- Panda Retail expanded with SAR 2 billion food chain investments in 2023.
- Baladna Qatar partnered with SAR 1 billion for dairy imports/processing in 2022.
- Rise invested USD 200 million in plant-based foods in 2023.
- FMCG sector attracted SAR 10 billion local investments in 2022.
- Nuepla raised SAR 300 million for sustainable packaging in food in 2023.
- Agtech startups received USD 150 million VC funding in 2022.
- Saudi Coffee Company invested SAR 800 million in roasting plants 2023.
- Halal Food Council certified 500 new exporters with SAR 200 million support in 2022.
- Modern Mills invested SAR 1.5 billion in flour mills expansion 2023.
Investments Interpretation
While the nation's massive financial appetite may be focused on everything from giga-projects to glitzy tourism, this cascade of capital into dairy, dates, and decaffeinated beans reveals that Saudi Arabia's most serious business is ensuring its own pantry is future-proofed and full.
Production
- Saudi Arabia's food production index grew by 3.2% in 2022, driven by enhanced irrigation techniques in arid regions.
- In 2023, wheat production in Saudi Arabia reached 1.6 million metric tons, up from 1.4 million in 2022 due to improved hybrid seeds.
- Date production totaled 1.5 million metric tons in 2021, accounting for 17% of global supply from 32 million palm trees.
- Poultry meat production hit 1.2 million tons in 2022, with Almarai leading at 450,000 tons annually.
- Milk production volume was 2.8 billion liters in 2022, supported by 1.2 million dairy cows across modern farms.
- Vegetable production increased to 4.1 million tons in 2023, with tomatoes leading at 1.2 million tons via hydroponics.
- Saudi Arabia harvested 450,000 tons of barley in 2022 for animal feed, reducing import dependency by 15%.
- Fruit production reached 3.2 million tons in 2021, including 800,000 tons of citrus from Al-Ahsa region.
- Egg production stood at 4.5 billion units in 2022, with a per capita consumption of 165 eggs.
- Red meat production from livestock was 320,000 tons in 2023, primarily sheep and goats in Najd areas.
- Aquaculture output grew to 25,000 tons in 2022, focusing on seabass and shrimp in Red Sea farms.
- Olive oil production hit 12,000 tons in 2023 from 10 million trees, aiming for self-sufficiency.
- Honey production from apiaries reached 8,000 tons in 2022, with Sidr honey as premium export.
- Saffron cultivation expanded to 500 hectares in 2023, yielding 150 kg annually in Taif.
- Greenhouse vegetable output was 2.5 million tons in 2022, using desert-controlled environment agriculture.
- Maize production for feed reached 120,000 tons in 2023, supplemented by local biotech varieties.
- Almond production began at 5,000 tons in 2022 from new orchards in Riyadh region.
- Quail and rabbit meat production totaled 15,000 tons in 2023 for niche markets.
- Medicinal herb production like black seed reached 10,000 tons in 2022.
- Potato output was 650,000 tons in 2023, with Hofuf as key hub.
- Onion production stood at 450,000 tons in 2022, reducing imports by 20%.
- Cucumber yields hit 800,000 tons in 2023 from protected farming.
- Pomegranate production reached 120,000 tons in 2022.
- Goat milk production was 300 million liters in 2023.
- Camel milk output totaled 250 million liters in 2022 from 1.5 million camels.
- Beef production from local breeds was 180,000 tons in 2023.
- Watermelon production hit 900,000 tons in 2022.
- Grape production reached 250,000 tons in 2023, mostly table grapes.
- Mango output was 80,000 tons in 2022 from Jazan.
- Sorghum production for feed stood at 50,000 tons in 2023.
Production Interpretation
Saudi Arabia is proving that you can, in fact, make a desert bloom, not just with water but with a flood of data, innovation, and ambition, cultivating everything from high-tech tomatoes to export-grade honey to reduce its dependence on imports one cleverly irrigated field at a time.
Trade
- Saudi Arabia imported USD 15.2 billion worth of food products in 2022, mainly from EU and Brazil.
- Food imports grew 8% YoY to USD 16.5 billion in 2023, dairy at 20% share.
- Wheat imports totaled 3.1 million tons in 2022, valued at USD 1.2 billion from Australia.
- Poultry imports reached 800,000 tons in 2023, Brazil supplying 60%.
- Dairy product imports were USD 2.8 billion in 2022, milk powder leading.
- Edible oil imports hit 1.5 million tons in 2023, palm oil 70%.
- Sugar imports stood at 2.2 million tons in 2022, from Brazil and Thailand.
- Food exports from Saudi Arabia reached USD 2.1 billion in 2023, dates at 40%.
- Date exports totaled 350,000 tons in 2022 to India and UAE.
- Live animal exports were 5 million heads in 2023, sheep to GCC.
- Fruit exports hit USD 500 million in 2022, citrus to Europe.
- Poultry meat exports reached 50,000 tons in 2023 to Jordan.
- Mineral water exports grew to 200 million liters in 2022.
- Frozen food imports were USD 1.1 billion in 2023 from India.
- Vegetable imports totaled 1.8 million tons in 2022, potatoes from Egypt.
- Confectionery imports hit USD 800 million in 2023.
- Seafood imports reached 250,000 tons in 2022, shrimp from India.
- Processed meat imports were 150,000 tons in 2023 from EU.
- Rice imports stood at 1.3 million tons in 2022 from Pakistan.
- Juice imports totaled USD 400 million in 2023.
- Pasta imports hit 200,000 tons in 2022 from Turkey.
- Baby food imports were USD 250 million in 2023.
- Organic product imports reached USD 300 million in 2022.
Trade Interpretation
While Saudi Arabia's dinner plate is a globe-trotting feast of imported essentials and treats, its own export basket, though growing, remains a modest but proud selection of dates, livestock, and water, highlighting a strategic dependence on foreign food security alongside niche agricultural triumphs.
Trends
- Food market projected to reach USD 38 billion by 2028 at 7.2% CAGR.
- Halal food market to grow to USD 45 billion by 2025 in KSA.
- Plant-based meat adoption rose 25% in 2023 among urban consumers.
- E-commerce food sales surged 40% to USD 4 billion in 2023.
- Sustainability focus: 60% consumers prefer eco-friendly packaging in 2023.
- Health foods market to expand at 10% CAGR to 2030.
- Ready-to-cook meals demand up 30% post-COVID in 2023.
- Local sourcing increased to 45% in retail by 2023.
- Premium food segment grew 12% in 2022.
- Food tech investments projected to hit USD 2 billion by 2025.
- Zero-sugar beverages sales up 18% in 2023.
- Urban farming initiatives cover 10,000 hectares by 2023.
- Vegan product launches doubled to 150 in 2022.
- Food waste reduction programs cut 20% losses in 2023.
- AI in supply chain adopted by 40% major firms in 2023.
- Functional foods market to reach USD 1 billion by 2027.
- Home delivery food services grew 35% to USD 3 billion in 2023.
- Organic farming area expanded 15% to 50,000 hectares in 2023.
Trends Interpretation
Saudi Arabia's food industry is no longer just about feeding a nation, but a sophisticated and hungry engine of change, where tradition meets tech, wellness wars with waste, and every click for a plant-based meal delivered in eco-friendly packaging fuels a multi-billion-dollar revolution in how the Kingdom eats.
Sources & References
- Reference 1FAOfao.orgVisit source
- Reference 2STATISTAstatista.comVisit source
- Reference 3APPSapps.fas.usda.govVisit source
- Reference 4MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 5FASfas.usda.govVisit source
- Reference 6KNOBSTONEknobstone.comVisit source
- Reference 7OLIVEOILTIMESoliveoiltimes.comVisit source
- Reference 8RESEARCHANDMARKETSresearchandmarkets.comVisit source
- Reference 9NUTFRUITnutfruit.orgVisit source
- Reference 10POULTRYWORLDpoultryworld.netVisit source
- Reference 11NCBIncbi.nlm.nih.govVisit source
- Reference 12GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 13EUROMONITOReuromonitor.comVisit source
- Reference 14GLOBALHALALHUBglobalhalalhub.comVisit source
- Reference 15OECoec.worldVisit source
- Reference 16GLOBALORGANICTRADEglobalorganictrade.comVisit source
- Reference 17ALMARAIalmarai.comVisit source
- Reference 18SAVOLAsavola.comVisit source
- Reference 19PIFpif.gov.saVisit source
- Reference 20NADECnadec.comVisit source
- Reference 21SAGIAsagia.gov.saVisit source
- Reference 22TANMIAHtanmiah.comVisit source
- Reference 23VISION2030vision2030.gov.saVisit source
- Reference 24AQUAVENTURESaquaventures.com.saVisit source
- Reference 25DESERTFARMSdesertfarms.com.saVisit source
- Reference 26SFICAsfica.comVisit source
- Reference 27MAGNITTmagnitt.comVisit source
- Reference 28PANDARETAILpandaretail.comVisit source
- Reference 29BALADNAbaladna.comVisit source
- Reference 30RISEGROUPrisegroup.comVisit source
- Reference 31ARGAAMargaam.comVisit source
- Reference 32NUEPLAnuepla.comVisit source
- Reference 33WAMDAwamda.comVisit source
- Reference 34SAUDICOFFEEsaudicoffee.comVisit source
- Reference 35SFDAsfda.gov.saVisit source
- Reference 36MODERNMILLSmodernmills.com.saVisit source
- Reference 37STATEOFHALALstateofhalal.comVisit source
- Reference 38NIELSENnielsen.comVisit source
- Reference 39MOENVmoenv.gov.saVisit source
- Reference 40INNOVAMARKETINSIGHTSinnovamarketinsights.comVisit source
- Reference 41SAUDIGREENINITIATIVEsaudigreeninitiative.orgVisit source
- Reference 42MCKINSEYmckinsey.comVisit source