Saudi Arabia Food and Beverage Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)

Saudi Arabia's Food & Beverage Market is segmented by Product type (Dairy & Dairy Alternatives Products, Confectionery, Beverages, Bakery, Snacks, Meat, Poultry Seafood & Meat Substitutes, Breakfast Cereals, and Ready Meals) and By Distribution Channel. The report offers the market size in value terms in USD for all the abovementioned segments.

Saudi Arabia Food and Beverage Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)

Saudi Arabia Food & Beverage Market Size

Saudi Arabia Food & Beverage Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Market Size (2024) USD 23.48 Billion
Market Size (2029) USD 27.83 Billion
CAGR (2024 - 2029) 3.44 %
Market Concentration Low

Major Players

Saudi Arabia Food & Beverage Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Saudi Arabia Food & Beverage Market with other markets in Food & Beverage Industry

Beverages

Food

Food Ingredients and Food Additives

Food Supplements

Saudi Arabia Food & Beverage Market Analysis

The Saudi Arabia Food & Beverage Market size is estimated at USD 23.48 billion in 2024, and is expected to reach USD 27.83 billion by 2029, growing at a CAGR of 3.44% during the forecast period (2024-2029).

  • The Saudi Arabian food and beverage market is undergoing remarkable growth, owing to the flourishing food and dairy industry and increasing consumption of food and beverage products, including milk and dairy products, in the country. Additionally, rising awareness of the benefits of milk and related products and the growing fitness trend are anticipated to drive the market during the forecast period.
  • Local food producers and manufacturers are enjoying a boom in Saudi, and global firms are also benefiting from the outstanding potential. According to the current statistics of March 2023 by the National Committee of Dairy Producers in the Federation of Saudi Chambers (FSC), the volume of dairy consumption has recorded an increase during the holy month of Ramadan. Milk production in Saudi Arabia reached more than 7 million liters per day or more than 18 million bottles daily. The number of trucks that transport and distribute dairy products daily reached more than 10,000, while the number of retail stores that receive dairy products daily is 38,000.
  • Moreover, the dairy alternatives segment also holds a wide scope for product development, pulling the significant attention of manufacturers to contribute to the market. As a result, food companies are increasingly investing in catering to the appeal of novel flavors and taste profiles. These days, milk substitutes, meat substitutes, or vegan products are becoming popular. They exist together with products in the market. These substitute products are appreciated by consumers due to animal welfare, environmental, and health-related reasons.
  • Additionally, functional efficacy and high sustainability claims offered by plant-derived products are driving the market study. The growing intolerance toward lactose sugar, which is found in animal-derived dairy products, causes a desire for dairy replacements to maintain the body's nutrition level. The market examined is being driven by the growing demand for dairy substitutes among the millennial population.
  • For instance, in June 2022, a research article on the 'Awareness of Lactose Intolerance Disorder in Saudi Arabian Population' stated that 104 (8.7%) of study participants reported having lactose intolerance disorder that began between the ages of 11 and 20 years for 41 (39.4%) and between the ages of 21 and 30 years for 36 (34.6%), while 18 (17.3%) experienced the disease during their first ten years of life. Regarding dairy product consumption, 811 (68.2%) of participants said they consume dairy or its derivatives daily. All these factors contribute to the growth of the market studied.

Saudi Arabia Food & Beverage Industry Overview

The food and beverage market in Saudi Arabia is highly competitive. Local players are emerging to cater to the demand for dairy products and other food and beverage products in the country. Some of the major companies are Almarai Company, SADAFCO, National Agriculture Development Company (NADEC), Nestle S.A, Tanmiah Food Company, The Kellogg Company, and others. 

The major players are focusing on introducing new and innovative products in the market to cater to the interests of the consumers. Additionally, the companies are following strategies that include the provision of products through e-commerce (own website and third parties) websites to facilitate a larger targeted audience. Moreover, to gain a competitive advantage, the key players try to differentiate their offerings and compete on different factors, including product offerings, flavor, price, quality, packaging format, and marketing activities.

Saudi Arabia Food & Beverage Market Leaders

  1. Almarai Co. Ltd.

  2. Saudia Dairy & Foodstuff Company (SADAFCO)

  3. National Agricultural Development Company (NADEC)

  4. Nestlé S.A.

  5. Tanmiah Food Company

  6. *Disclaimer: Major Players sorted in no particular order
Saudi Arabia Food & Beverage Market Concentration
Need More Details on Market Players and Competiters?
Download PDF

Saudi Arabia Food & Beverage Market News

  • February 2023: Saudi Arabian dairy company Almarai acquired full ownership of International Dairy and Juice Limited by purchasing the remaining share of its joint venture with PepsiCo for SAR 255 million (USD 68 million).
  • March 2022: Arla Foods, the dairy company behind brands like Puck, Lurpak, The Three Cows, Starbucks ready-to-drink, and Kraft in Saudi Arabia, expanded its local production capacity, leading to a 40% increase in local production throughout the Kingdom.
  • March 2022: Rabwi Al Rawabi signed a lease agreement with Kizad, part of AD Ports Group, to establish a production unit worth AED 650 million (USD 177 million) in Abu Dhabi. This initiative, featuring a dairy farm with 10,000 cows, aims to meet rising consumer demand and enhance Al Rawabi's export endeavors across the broader Gulf Cooperation Council (GCC) region.

Saudi Arabia Food & Beverage Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definitions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Drivers
    • 4.1.1 Rising Demand for Clean Label Food & Beverage Products
    • 4.1.2 Rising Demand for Dairy Products
  • 4.2 Market Restraints
    • 4.2.1 Presence of Preservatives in Ready Meals may Hamper the Market Growth
  • 4.3 Porter's Five Forces Analysis
    • 4.3.1 Bargaining Power of Suppliers
    • 4.3.2 Bargaining Power of Buyers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 Product Type
    • 5.1.1 Dairy and Dairy Alternative Products
    • 5.1.1.1 Dairy Products
    • 5.1.1.1.1 Butter
    • 5.1.1.1.2 Cheese
    • 5.1.1.1.3 Cream
    • 5.1.1.1.4 Dairy Desserts
    • 5.1.1.1.5 Milk
    • 5.1.1.1.6 Sour Milk Drinks
    • 5.1.1.1.7 Yogurt
    • 5.1.1.2 Dairy Alternatives
    • 5.1.2 Confectionery
    • 5.1.2.1 Chocolate Confectionary
    • 5.1.2.2 Sugar Confectionery
    • 5.1.2.3 Snack Bar
    • 5.1.2.3.1 Cereal Bars
    • 5.1.2.3.2 Protein/Energy Bars
    • 5.1.2.3.3 Fruit & Nut Bars
    • 5.1.3 Beverage
    • 5.1.3.1 Alcoholic Beverages
    • 5.1.3.2 Non-Alcoholic Beverages
    • 5.1.4 Bakery
    • 5.1.4.1 Cakes and Pastries
    • 5.1.4.2 Biscuits
    • 5.1.4.3 Bread
    • 5.1.4.4 Morning Goods
    • 5.1.4.5 Other Bakery Products
    • 5.1.5 Snacks
    • 5.1.6 Meat, Poultry, Seafood, and Meat Substitute
    • 5.1.6.1 Meat
    • 5.1.6.2 Poultry
    • 5.1.6.3 Seafood
    • 5.1.6.4 Meat Substitute
    • 5.1.7 Breakfast Cereals
    • 5.1.8 Ready Meals
  • 5.2 Distribution Channel
    • 5.2.1 Supermarkets/Hypermarkets
    • 5.2.2 Convenience Stores
    • 5.2.3 Speciality Stores
    • 5.2.4 Online Retail Stores
    • 5.2.5 Other Distribution Channels

6. COMPETITIVE LANDSCAPE

  • 6.1 Most Adopted Strategies
  • 6.2 Market Share Analysis
  • 6.3 Company Profiles
    • 6.3.1 Almarai Co. Ltd.
    • 6.3.2 Al-Watania Poultry
    • 6.3.3 Almunajem Foods
    • 6.3.4 Saudia Dairy and Foodstuff Company (SADAFCO)
    • 6.3.5 Al Rabie Saudi Foods Co. Ltd.
    • 6.3.6 Tanmiah Food Company
    • 6.3.7 Arabian Agricultural Services Company (ARASCO)
    • 6.3.8 ALBAIK Food Systems Company S.A. (Aquat Food Industries Company)
    • 6.3.9 PepsiCo Inc.(Saudi Snack Foods Company Limited)
    • 6.3.10 Al Othman Agricultural Products And Processing Co (Nada Dairy)
    • 6.3.11 Nestle S.A.
    • 6.3.12 National Agricultural Development Company (NADEC)
    • 6.3.13 The Kellogg Company
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Saudi Arabia Food & Beverage Industry Segmentation

Food is any nutrient-rich material consumed to sustain life and growth, whereas beverage is any potable liquid, especially one other than water, such as tea, coffee, or any dairy products like milk.

The market scope encompasses product types and distribution channels. Regarding product types, the market is divided into dairy & dairy alternatives products, confectionery, beverages, bakery, snacks, meat, poultry, seafood & meat substitutes, breakfast cereals, and ready meals. The dairy and dairy alternative segment is further categorized into dairy products and dairy alternatives. Confectionery includes chocolate confectionery, sugar confectionery, and snack bars (cereal bars, protein/energy bars, and fruit & nut bars), while beverage consists of alcoholic beverages and non-alcoholic beverages. The bakery segment comprises cakes and pastries, biscuits, bread, morning goods, and other product types (frozen baked products).

The market sizing has been done in value terms in USD for all the abovementioned segments.

Product Type Dairy and Dairy Alternative Products Dairy Products Butter
Cheese
Cream
Dairy Desserts
Milk
Sour Milk Drinks
Yogurt
Product Type Dairy and Dairy Alternative Products Dairy Alternatives
Product Type Confectionery Chocolate Confectionary
Sugar Confectionery
Snack Bar Cereal Bars
Protein/Energy Bars
Fruit & Nut Bars
Product Type Beverage Alcoholic Beverages
Non-Alcoholic Beverages
Product Type Bakery Cakes and Pastries
Biscuits
Bread
Morning Goods
Other Bakery Products
Product Type Snacks
Meat, Poultry, Seafood, and Meat Substitute Meat
Poultry
Seafood
Meat Substitute
Breakfast Cereals
Ready Meals
Distribution Channel Supermarkets/Hypermarkets
Convenience Stores
Speciality Stores
Online Retail Stores
Other Distribution Channels
Need A Different Region or Segment?
Customize Now

Saudi Arabia Food & Beverage Market Research Faqs

How big is the Saudi Arabia Food & Beverage Market?

The Saudi Arabia Food & Beverage Market size is expected to reach USD 23.48 billion in 2024 and grow at a CAGR of 3.44% to reach USD 27.83 billion by 2029.

What is the current Saudi Arabia Food & Beverage Market size?

In 2024, the Saudi Arabia Food & Beverage Market size is expected to reach USD 23.48 billion.

Who are the key players in Saudi Arabia Food & Beverage Market?

Almarai Co. Ltd., Saudia Dairy & Foodstuff Company (SADAFCO), National Agricultural Development Company (NADEC), Nestlé S.A. and Tanmiah Food Company are the major companies operating in the Saudi Arabia Food & Beverage Market.

What years does this Saudi Arabia Food & Beverage Market cover, and what was the market size in 2023?

In 2023, the Saudi Arabia Food & Beverage Market size was estimated at USD 22.70 billion. The report covers the Saudi Arabia Food & Beverage Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Food & Beverage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Saudi Arabia Food & Beverage Industry Report

Statistics for the 2024 Saudi Arabia Food & Beverage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Food & Beverage analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.