From booming exports to soaring consumption, the Saudi food industry is a multi-billion dollar juggernaut transforming its plates and its economy at a remarkable pace.
Key Takeaways
- Saudi Arabia's food and beverage market was valued at USD 24.5 billion in 2023, projected to reach USD 35.2 billion by 2028 with a CAGR of 7.5%
- The packaged food segment in Saudi Arabia generated revenue of USD 12.3 billion in 2023, growing at 6.8% annually
- Saudi food service market size reached USD 15.7 billion in 2022, expected to grow to USD 22.1 billion by 2027 at 7.1% CAGR
- Saudi Arabia produced 1.2 million metric tons of wheat in 2022/23 season
- Local milk production reached 2.8 billion liters in 2023, covering 45% of demand
- Poultry meat production hit 1.6 million tons in 2023, up 3% from previous year
- Per capita food consumption in Saudi Arabia averaged 1,200 kg annually in 2022
- Annual dairy consumption per capita reached 180 liters in 2023
- Poultry meat consumption was 45 kg per capita in 2023, up from 42 kg in 2020
- Saudi food exports reached USD 2.1 billion in 2023, led by dates and dairy
- Food imports totaled USD 18.5 billion in 2023, 85% of total food needs
- Date exports volume was 320,000 tons in 2023
- FDI in Saudi food industry totaled USD 1.2 billion in 2023
- Vision 2030 allocated SAR 10 billion for food security projects by 2025
- Almarai invested SAR 2.5 billion in new dairy facilities in 2023
Saudi Arabia's rapidly growing food market is driven by strong local production and high consumption.
Consumption Patterns
- Per capita food consumption in Saudi Arabia averaged 1,200 kg annually in 2022
- Annual dairy consumption per capita reached 180 liters in 2023
- Poultry meat consumption was 45 kg per capita in 2023, up from 42 kg in 2020
- Soft drinks consumption totaled 150 liters per capita in 2022
- Bread and bakery products consumption averaged 90 kg per person yearly in 2023
- Fresh fruit intake was 120 kg per capita in 2022
- Sugar consumption reached 35 kg per capita annually in 2023
- Processed food consumption grew 6% YoY to 40% of total diet in 2023
- Halal-certified food demand accounted for 95% of total consumption in 2023
- Ready-to-eat meals consumption surged 12% in urban areas in 2023
- Per capita meat consumption averaged 55 kg in 2023
- Bottled water consumption was 200 liters per capita in 2023
- Coffee consumption grew to 3.5 kg per capita annually in 2023
- Tea intake averaged 1.2 kg per person in 2022
- Chocolate confectionery consumption was 4 kg per capita in 2023
- Yogurt consumption reached 25 liters per capita in 2023
- Pasta consumption totaled 12 kg per capita yearly in 2023
- Energy drinks consumption surged 15% to 20 liters per capita in 2023
Consumption Patterns Interpretation
The Saudis are enthusiastically fueling their modern lifestyle with a deeply traditional, halal-certified plate, where the sacred coffee pot shares the table with a worrying amount of sugar and a rapidly growing army of ready-to-eat meals.
Investments and Future Projections
- FDI in Saudi food industry totaled USD 1.2 billion in 2023
- Vision 2030 allocated SAR 10 billion for food security projects by 2025
- Almarai invested SAR 2.5 billion in new dairy facilities in 2023
- Number of food processing plants increased to 5,200 in 2023
- Government subsidies for local agriculture reached SAR 4.8 billion in 2023
- Projected CAGR for organic food market is 11.2% to 2028
- Savola Group planned SAR 3 billion investment in edible oils by 2025
- Food tech startups raised USD 250 million in 2023
- Food market projected to grow at 6.5% CAGR to USD 40 billion by 2030
- National Food Industries Co. invested SAR 1.5 billion in new plants in 2023
- Desert Control tech investment USD 50 million for agriculture in 2024-2028
- Food localization program aims for 50% local production by 2030
- SAR 7 billion allocated for fisheries development till 2025
- E-commerce food sales projected to reach 15% of market by 2027
- Tanmiah Foods expansion investment SAR 800 million for poultry
- Sustainable packaging investments USD 300 million by 2025
- AI in supply chain pilots funded SAR 500 million in 2023
Investments and Future Projections Interpretation
The Saudis are no longer just praying for rain; they're buying the cloud with billions in FDI, tech startups, and desert agriculture to ensure their future buffet is homegrown, high-tech, and deliciously secure.
Market Overview
- Saudi Arabia's food and beverage market was valued at USD 24.5 billion in 2023, projected to reach USD 35.2 billion by 2028 with a CAGR of 7.5%
- The packaged food segment in Saudi Arabia generated revenue of USD 12.3 billion in 2023, growing at 6.8% annually
- Saudi food service market size reached USD 15.7 billion in 2022, expected to grow to USD 22.1 billion by 2027 at 7.1% CAGR
- Overall food market in KSA expanded by 5.2% YoY in 2023, driven by population growth and urbanization
- Dairy products market in Saudi Arabia valued at USD 4.2 billion in 2023, with 8% growth forecast
- Bakery products sector generated SAR 18.5 billion in revenue in 2022
- Confectionery market size in KSA was USD 1.8 billion in 2023
- Saudi meat processing market reached USD 3.1 billion in 2023
- Poultry market value stood at USD 2.9 billion in 2022, growing 4.5% annually
- Saudi fruits and vegetables market valued at USD 5.6 billion in 2023
- Saudi Arabia's food market revenue grew 4.8% YoY to USD 25.1 billion in 2023 Q4
- Non-alcoholic beverages segment valued at USD 5.4 billion in 2023
- Instant noodles market size was USD 320 million in 2023
- Edible oils market reached SAR 12 billion in 2022
- Snacks market generated USD 2.1 billion revenue in 2023
- Rice market value stood at USD 1.5 billion in 2023
- Saudi food retail market size was USD 30 billion in 2023
- Frozen food sales increased 9% to USD 1.8 billion in 2023
Market Overview Interpretation
The Saudi food industry is a meticulously plated feast of relentless growth, where every sector from the humble instant noodle to the grand dairy aisle is expanding with a voracious appetite that suggests the nation isn't just eating, but strategically building an edible economy.
Production Statistics
- Saudi Arabia produced 1.2 million metric tons of wheat in 2022/23 season
- Local milk production reached 2.8 billion liters in 2023, covering 45% of demand
- Poultry meat production hit 1.6 million tons in 2023, up 3% from previous year
- Date production totaled 1.5 million metric tons in 2022, making KSA top global producer
- Red meat production was 450,000 tons in 2023
- Aquaculture output reached 120,000 tons of fish in 2023
- Tomato production amounted to 850,000 tons in 2022 greenhouse season
- Saudi sugar beet production was 300,000 tons in 2022/23
- Olive oil production increased to 25,000 tons in 2023
- Egg production totaled 4.2 billion units in 2023
- Saudi wheat production fell to 800,000 tons in 2023/24 due to water scarcity
- Local poultry production capacity utilization was 92% in 2023
- Fresh milk output from cooperatives reached 1.1 billion liters in 2023
- Barley production totaled 250,000 tons in 2022/23
- Greenhouse vegetable production hit 2.1 million tons in 2023
- Honey production was 120,000 tons in 2023
- Citrus fruit production reached 1.2 million tons in 2022
- Maize production stood at 180,000 tons in 2023
- Almond production increased to 15,000 tons in 2023
Production Statistics Interpretation
While the desert may be better known for its oil, Saudi Arabia's dinner plate tells a more diverse story of wheat fluctuating with the water table, mountains of dates and rivers of milk striving for self-sufficiency, and a whole lot of chickens running very efficiently at 92% capacity.
Trade and Exports
- Saudi food exports reached USD 2.1 billion in 2023, led by dates and dairy
- Food imports totaled USD 18.5 billion in 2023, 85% of total food needs
- Date exports volume was 320,000 tons in 2023
- Dairy exports grew to USD 450 million in 2023
- Poultry exports reached 150,000 tons to GCC countries in 2023
- Food import from UAE was USD 3.2 billion in 2023
- Live animal imports for slaughter totaled 4.5 million heads in 2023 Hajj season
- Fruit imports value hit USD 2.8 billion, mainly apples and bananas, in 2023
- Vegetable imports reached USD 1.9 billion in 2023
- Saudi agricultural exports grew 8% to USD 2.5 billion in 2023
- Imports of wheat reached 3.5 million tons in 2023
- Dairy imports valued at USD 1.2 billion in 2023, mainly from New Zealand
- Lamb imports for Eid totaled 2.8 million heads in 2023
- Palm oil imports were 1.1 million tons in 2023
- Soybean imports reached 2.2 million tons for animal feed in 2023
- Frozen fish imports totaled USD 800 million in 2023
- Rice imports volume was 1.3 million tons in 2023
Trade and Exports Interpretation
The Kingdom’s gourmet strategy appears to be a tale of two tables: it proudly exports its dates and dairy as luxury staples while its own plate remains overwhelmingly filled by a massive global shopping list, revealing a delicious but deep-seated dependency.
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