Saudi Arabia: The Rise of the Future Global Food Capital

Saudi Arabia: The Rise of the Future Global Food Capital

Saudi Arabia: The Rise of the Future Global Food Capital

The GCC's appetite for quality and variety in food and beverage has sparked a booming market that is now set to reach an impressive $135.5 billion this year. At the heart of it all is Saudi Arabia, boasting a vibrant F&B sector currently valued at $28 billion and projections indicating a steady growth of 3.44% annually over the next six years .

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This rapid expansion is not just a story of numbers, but of transformation and opportunity. As Saudi Arabia stays on course to become the future food capital of the world, we take a closer look at the forces driving this boom. From pioneering government initiatives, the rise of new culinary hotspots, the strategic moves of major players and how you, too, can make your mark in this thriving industry.

Strategic Investments Fuel Saudi’s Diverse Dining Landscape

The ambitious transformation of Saudi Arabia's economic and social landscape is marked by strategic investments that are reshaping the nation. In 2023, the Kingdom's Quality of Life Programme concluded over $200 million in deals across various sectors to enhance the wellbeing of communities. This initiative spurred the growth of diverse dining experiences, from trendy eateries and food trucks to pop-up dining in emerging tourist spots like AlUla.

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In 2023, Saudi Arabia saw an $11.2 billion investment in tourism, emphasising enriching visitor experiences. This was supported by projects like Qiddiya and Neom, along with agreements with prestigious hospitality brands like JW Marriott and The W, aiming to attract 70 million visitors annually.


●????? Surge in tourism driving demand for diverse F&B services and options

●????? Government investments in agriculture and food production to support this demand:

●????? $20 billion National Agricultural Transformation Programme

●????? $50 million investment in the Saudi Food Safety Technology Programme

●????? $1.75 billion dedicated to enhancing food manufacturing in the Kingdom

●????? Aim to meet increased demand and progress towards greater self-sufficiency in the F&B sector


Demand for Dairy, Organic Products & Ready Meals Grows

As this mega transformation takes shape, the F&B sector is brimming with endless possibilities. Milk and dairy industry booming due to health trends. Daily production exceeds 7 million litres. 38,000 retail outlets served, sparking chances. This creates opportunities for product innovation and improved supply chain efficiency.

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Increasingly health-conscious consumers with rising disposable incomes are also showing a marked preference for organic products, opening the door for both local and international enterprises to tap into the market with high-quality offerings.

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Rapid urbanisation is another catalyst for change. With over 80% of Saudi’s population living in cities . The demand for packaged foods and ready meals continues to grow, providing fertile ground for companies to bring innovative processing and packaging solutions to the market.


Furthermore, the Kingdom's expanding expatriate community is reshaping the culinary landscape, increasing demands for diverse global cuisines from Michelin-starred restaurants to fast-food chains. This presents culinary entrepreneurs and established brands with ample opportunity to cater to the diverse preferences of the Kingdom’s population.


F&B Industry Titans Make Big Moves

These significant economic opportunities are further highlighted by some of the biggest F&B players making their move amidst this boom.?


Solidifying its market leadership in the region is leading dairy giant Almarai as it acquired International Dairy and Juice Limited by purchasing the remaining share of its joint venture with PepsiCo for $68 million in 2023.


This period of growth is also driving major companies such as SADAFCO, NADEC, Nestle S.A, and The Kellogg Company to innovate by tailoring new products to cater to local tastes and broadening their reach via advanced e-commerce solutions.


A strategic shift towards enhancing local manufacturing is also evident, with international dairy conglomerate Arla Foods increasing its local production capacity by 40% and Saudi Arabia’s First Milling Company successfully raising $266 million through its initial public offering .


2023 also marked a pivotal year for sustainable practices within the sector, with another industry titan, IFFCO Group, not only launching Thryve , its first plant-based meat brand, but also joining forces with Tetra Pak to advance sustainable manufacturing in the Kingdom.


Unlock Value & Thrive at The Saudi Food Show


There's no doubt the rise of Saudi’s new food economy is here with no signs of slowing down. And for those who are looking to tap into this thriving billion-dollar industry — whether by expanding market reach, pioneering innovations, or forging strategic partnerships — The Saudi Food Show stands as the premier platform to make your mark.

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From 21 - 23 May 2024, over 1,000 companies showcasing more than 100,000 brands will converge with thousands of local and international trade buyers eager to pursue their next big venture.

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Mark your calendars and ensure your participation in the Kingdom’s largest F&B sourcing event by registering on our website today .





Mahmoud Girah

Sales and Marketing Manager Assistant @ Diyar Alghadeer | Business Development | Relationship Management | Driving Sales Growth through strategic planning and innovative solutions.

6 个月

In reality, the Kingdom of Saudi Arabia has demonstrated its exceptional ability to progress and develop in a remarkably short period of time, in addition to its upcoming plans for the growth of its economy as a whole and the increase of non-oil income in particular. This presents a great opportunity for investment and expansion, and enhances investor confidence in the Saudi Arabian market. Saudi Food Exhibitions are at the forefront, offering significant opportunities for networking, collaboration, and technological advancement. Saudi Food Manufacturing Exhibition serves as a prime example of its diversity, with a wide range of exhibitors from various nationalities, including prominent companies from the United Arab Emirates. In conclusion, the Kingdom of Saudi Arabia is currently a great opportunity for dreamers, and Saudi Food Exhibitions are among the key means to achieve these dreams.

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