Market Overview
Riyadh is the center of a $1.108 Trillion economy, the largest in the MENA region with Agricultural sector investments of over $70 Billion by 2030...
The agricultural sector is a major contributor to GDP…
The Agricultural and Food Industries sectors are one of the most important contributors in the development of the national economy in the Kingdom of Saudi Arabia and meeting Vision 2030 goals, and has a major role in achieving food security. The agricultural contribution to GDP amounted to about US$ 19.37 billion in 2022.
Major expansion is underway in multiple segments
- Aquaculture production jumped by 183% during the past 5 years from 30,000 tons to 85,000 tons.
- During the same period, broiler chickens’ production grew to over 60% of domestic demand.
- Greenhouse’s production increased by 58% from 257,000 tons to about 407,000 tons.
- Organic food farming increased by 18% to 52.800 tons during the same period.
Saudi Arabia had the Fastest Growing Economy amongst G20 countries in 2022 and GDP $1.108 Trillion. Saudi to maintain its GDP over $1 Trillion in 2024... ...
$70 Billion
Agri Investments by 2030...
Saudi Arabia is home to a growing food production, manufacturing and processing sector. The sector benefits from population and income growth, life-style changes, government support, and favorable trade agreements. Investments in the sector is expected to reach $70 Billion by the end of 2030, which is up from $44 Billion since 2016.
38%
Agricultural GDP Growth 2022…
Saudi Arabia’s agricultural gross domestic product witnessed over 38% growth in 2022 to reach $26.6 Billion. With new government investments and plans to develop local agricultural assets, growth is expected to continue.
$28.8 Billion
Food & Beverage Market Growth...
The Saudi Arabian food & beverage market led by agri food was valued at $28.8 Billion in 2023 and is projected to register a CAGR of 3.22% during the next five years. Similarly, the food and beverages packaging market will grow at 3.5% during the same period. The specialist market is flourishing owing to an increasing demand for convenience food by shifting demographics and rapid urbanization.
$15.70 Billion
Agri Food Market + $6.88B of Imports...
The local agri food market is projected to amount to $15.70 Billion in 2023. An annual growth rate of 3.56% is expected (CAGR 2023-2028), resulting in a value of $18.70 Billion by 2028. The import value in the Agriculture market is projected to amount to $6.88 Billion in 2023. An annual growth rate of 5.29% is expected (CAGR 2023–2028).
$17.3 Billion
Saudi Poultry Market Expansion…
The Saudi Arabian poultry market was valued at $17.3 Billion for the current year and is projected to register a CAGR of 4.11% over the next five years. The poultry sector in Saudi Arabia is one of the largest and fastest growing due to the large consumption of poultry. The growth also presents opportunities to provide feeds, packaging and processing equipment, veterinary and logistics services needed for the sector’s growth.
$1 Billion
Egg Market Expansion…
Saudi Arabia is self-sufficient in the production of eggs. $1 Billion in egg production will be reached by 2025 with production growth annually by 3.95% (CAGR 2023-2028). The surplus of egg production is exported mainly to GCC countries. Opportunities for feeds, poultry houses, health services, processing and packing as well as cold-chain logistics are driving sector expansion.
4.5 Million
Livestock Heads Growth…
Saudi Arabia’s livestock production is expected to reach 4.5 million heads by 2026. Due to agricultural investments in livestock rearing coupled with new technologies, significant growth opportunities exist in livestock farming, feeds, equipment, veterinary services, farm buildings and more are required for the expansion.
$3.46 Billion
Animal Feed Market Opportunities…
Saudi Arabia’s animal feed market was valued at $2.4 Billion in 2020 and is anticipated to grow at a CAGR of 5.31% to reach $3.46 Billion by 2027. This is due to the increasing agricultural development and investment in meat and poultry production coupled with evergrowing consumer demand for meat products.
$2.3 Billion
Cold Chain Market Expansion…
The cold chain logistics market size is expected to grow from $1.36 Billion in 2023 to $2.33 Billion by 2028, at a CAGR of 11.39% during the forecast period (2023-2028). The acceleration of the smart food logistics market dominates the cold chain sector. Rising domestic consumption of fresh food imports and exports has ushered in a rapidly growing cold chain logistics market that relies on smart technologies in transport management and distribution of temperature-controlled products.
500%
Projected Sector Growth for
Aquaculture Products and Services…
With the predicted fish production increase of 500% by 2025, new opportunities to service the aquaculture sector are accelerating. With the increasing export of Saudi fish that will add nearly $1 Billion to the economy, the expansion of fish production requires an increase in aquatic health services, fish farming equipment, packaging and processing systems, and cold-chain logistics services.
17.4% Projected Growth
Creates Fastest and Largest Market in the Region for Organic Foods...
Saudi Arabia is the largest natural and organic foods market in the Middle East valued at $54.2 Million. Projections anticipate a market growth of 17.4% to 2026. The organic food market growth is driven by rising disposable income and government support towards organic farming as well as growing consumer preferences toward chemical free food.
$201.8 Million
Veterinary Medicine Market Growth
Assured…
Saudi Arabia’s veterinary medicine market is expected to grow at a CAGR of 5.00% in the forecast period (2023-2027), to reach $201.80 Million by 2027. The growth presents room in the market for new business entrants as well as expansion opportunities for current providers. The full services of animal health are in growing demand as the sector desires the latest know how and further sophistication.
Top 10 in Consumption
Kingdom's Coffee Consumers Spend
Annually more than $266 Million…
Saudi Arabia sits in the Top 10 of coffee consuming nations, globally. The Kingdom imports 70,000- 90,000 tons of coffee every year and produces another 800 tonnes locally. Whilst significant business opportunities exist in the coffee import market, the government’s plan to plant 1.2 Million coffee trees by 2026 presents new opportunities for coffee farm machinery and equipment suppliers and coffee processing and packaging solution providers.
