COUNTRY PROFILE
Discover more about the Saudi Arabian market including overviews about the retail, foodservice, and food processing sectors. Events, resources, and more are linked throughout the profile.
#1
largest economy in the Middle East and North Africa
40%
of Saudi Arabia’s GDP is based on oil production.
$470.3 Million
total of U.S. processed foods imports in 2024
USDA’s Office of Agricultural Affairs (OAA) in Riyadh, hereinafter referred to as “FAS Post Riyadh,” reports that there are plenty of opportunities for a wide range of new-to-market U.S. food products, especially healthier products aimed at a generation with more disposable income. Unfortunately, there are also significant impediments to trade, including burdensome export facility registration requirements along with numerous halal-related restrictions on meat and poultry. Despite these issues, U.S. food products are well-positioned to meet market demands.
The Kingdom of Saudi Arabia (KSA) is an active importer of U.S. processed foods and now the second largest market in the GCC-6 after United Arab Emirates (UAE) bringing in some US$453.9 million in 2023, a decrease of 15% from the prior year. In 2024, U.S. processed food exports grew 4% to US$470.3 million.
Top U.S. processed food exported to Saudi Arabia in 2024 included:
$25.1 Billion
estimated 2024 retail sales in the Saudi packaged food market.
70%
of the total food retail revenue is accounted for by eight large retail chains.
$36.8 Billion
estimated in sales of packaged food products by 2029
FAS Post Riyadh reports that the ongoing transformation of Saudi Arabia bodes well for the retail food sector. In 2023, the Saudi food retail market was estimated at more than US$51 billion and projected to increase by more than 5% annually in the coming years. Saudi consumers prefer U.S. agricultural products, and the U.S. is well-positioned to gain additional market share over the next several years.
The eight largest retail chains account for an estimated 70% of the total food retail revenue. In 2023, modern retail channels accounted for 60% of sales, while traditional channels made up the remaining 40%.
FAS Post Riyadh reports that currently, more consumers in Saudi Arabia are seeking out the following products: healthier lifestyle products (diet foods, organic, etc.), beef, poultry meat, beverage ingredients, non-alcoholic beer, tree nuts, dairy products, plant-based meats, fresh fruit and vegetables, processed fruits and vegetables, fruit and vegetable juices, honey, and snack foods
$30 Billion
Saudi Arabia’s foodservice market is valued at over
50%
Saudi’s foodservice market is expected to grow by 50% by 2030
FAS Post Riyadh reports that the Saudi hotel, restaurant, and institutional (HRI) sector is witnessing remarkable growth, fueled by urbanization, a surging population, rising disposable incomes, shifting social and cultural trends, and a thriving tourism industry. The Saudi foodservice market, currently valued at US$30 billion, is projected to grow by another US$15 billion by 2030. Although U.S. food products face strong competition in the local market, they are generally held in high regard.
FAS Post Riyadh reports that the Saudi HRI sector is constantly seeking suppliers for high quality and competitively priced of high value and intermediate food products such as dairy products, fresh fruit, fresh vegetables, red meats, condiments and sauces, beverage and other coffee shop ingredients baked frozen pastries, and frozen sandwich bread.
FAS Post Riyadh reports that Saudi Arabia is the largest economy in the Arab world and home to a growing food manufacturing and processing sector. In 2022, Saudi Arabia imported approximately US$3 billion worth of intermediate food products, mostly for further processing. U.S. suppliers provided around 11%, or US$317 million.
In general, the imported food ingredients market is extremely price sensitive due to stiff competition among supplying countries, and most local food processors seek suppliers that provide great quality products at the most competitive prices.
The following is a listing of food products and ingredients that have high export potential in the Saudi food processing market: poultry meat, beef, skimmed milk powder, full cream milk powder, block cheese, butter, milk protein concentrate, anhydrous milk fat (AMF), butter oil, and whey powder.
