Agriculture Market In Saudi Arabia Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Saudi Arabia Agriculture Market Analysis

The Saudi Arabia Agriculture Market size is estimated at USD 19.75 billion in 2025, and is expected to reach USD 25.44 billion by 2030, at a CAGR of 5.2% during the forecast period (2025-2030).

Saudi Arabia's agricultural sector is undergoing a significant transformation driven by substantial government investments and technological advancements. The Ministry of Environment, Water, and Agriculture demonstrated its commitment to agricultural development by allocating USD 104.7 billion in 2023 for the development of 3,300 water projects, marking a crucial step toward modernizing the sector's infrastructure. This investment reflects the government's broader strategy to enhance agricultural sustainability and food security through improved agricultural irrigation systems. The initiative has catalyzed the adoption of advanced irrigation technologies and sustainable farming practices, particularly in regions facing water scarcity challenges. These developments have attracted significant private sector participation, leading to increased investment in agricultural technology and infrastructure development.

The country has witnessed a remarkable shift toward controlled environment agriculture, particularly greenhouse production, to overcome its challenging climatic conditions. Modern greenhouse facilities are being equipped with sophisticated climate control systems, automated irrigation, and monitoring technologies to optimize crop yields while conserving resources. This transition has enabled year-round production of various crops that were previously difficult to cultivate in Saudi Arabia's arid climate. The adoption of these high-tech farming practices has significantly improved crop yields and quality while reducing water consumption and environmental impact. These advancements have particularly benefited the production of high-value crops and vegetables, contributing to increased domestic food production.

Saudi Arabia has emerged as a significant player in the global dates market, showcasing its agricultural capabilities in specialty crop production. In 2022, the country achieved a remarkable milestone by becoming the world's leading date exporter, with exports reaching USD 341.5 million and a volume of 321.1 thousand metric tons. This success demonstrates the country's ability to leverage its natural advantages and agricultural expertise in specific crop segments. The date industry has become a model for other agricultural sectors, incorporating modern processing facilities, quality control measures, and efficient supply chain management systems. The success in date production and export has encouraged investment in other fruit crops, leading to diversification of the agricultural sector.

The country's agricultural trade relationships have evolved significantly, with strategic partnerships being formed with key global suppliers. In 2022, Italy emerged as a crucial partner in the fruit trade, supplying 69,731 metric tons of apples, representing 37.6% of Saudi Arabia's total apple imports. Similarly, the United States and Egypt have become vital partners in the strawberry trade, collectively accounting for 72% of Saudi Arabia's strawberry imports in 2022. These international partnerships have been instrumental in ensuring year-round availability of fresh produce while complementing domestic production. The government has implemented various measures to streamline agricultural imports and exports, including modernizing port facilities and establishing advanced cold chain infrastructure to maintain product quality throughout the supply chain.

Saudi Arabia Agriculture Market Trends

Government Support and Vision 2030 Initiatives

The Saudi Arabian government's strong commitment to agricultural development through Vision 2030 has emerged as a crucial driver for the agriculture market. In January 2023, the Kingdom approved a significant expansion plan in the plant resources sector with investments exceeding USD 1.06 billion, specifically aimed at increasing domestic vegetable production and greenhouse capacity to over 1 million metric tons annually by 2025. This substantial investment demonstrates the government's dedication to achieving food security and reducing import dependency, creating a favorable environment for agricultural growth and innovation.

The government has implemented various supportive policies and financial assistance programs to promote agricultural development and achieve self-sufficiency in key commodities. For instance, the General Food Security Authority (GFSA), an agency of the Saudi Ministry of Environment, Water, and Agriculture, offered to purchase up to 1.5 million tons of locally produced wheat annually in 2023. Additionally, the government's focus on the palm and date sector, which contributes approximately 12% to the agricultural gross product and 0.4% to the non-oil gross product, has resulted in Saudi Arabia becoming the global leader in date exports, with shipments reaching 321.1 thousand metric tons across 113 countries in 2022.

Technological Advancements in Agriculture

The adoption of advanced agricultural technology has become a significant driver in transforming Saudi Arabia's agricultural landscape, particularly in overcoming the challenges posed by its arid climate. The implementation of innovative solutions such as vertical farming, hydroponics, and computer-controlled irrigation systems has revolutionized crop production efficiency. For instance, in tomato cultivation, commercial greenhouses utilizing targeted and computer-controlled watering systems have achieved remarkable improvements in water efficiency, reducing water usage to 400 liters per kilogram of tomatoes, while increasing yield potential from 15-25 kilograms to 80 kilograms per square meter in low- and mid-tech greenhouses.

The government's promotion of modern farming techniques, including drip irrigation and protected cultivation, has led to significant improvements in crop yields and resource efficiency. These technological advancements have particularly benefited the production of vegetables and fruits in controlled environments, enabling year-round cultivation despite challenging climatic conditions. The success of these technologies is evident in the increased production of various crops, with regions like Al-Sulaybiya becoming known for premium quality fruit production, supplying over 20,000 metric tons of various grape varieties nationwide through advanced farming methods.

Rising Health Consciousness and Changing Consumer Preferences

The increasing health awareness among Saudi Arabian consumers, particularly the millennial population, has emerged as a significant driver for the agriculture market. This demographic shift has led to a growing preference for fresh produce and organic products, with consumers becoming more conscious about their dietary choices. The Saudi Food and Drug Authority's (SFDA) launch of healthy food regulations in 2018, aligned with Vision 2030, has further reinforced this trend by encouraging the consumption of natural sugars from fruits rather than added sugars, directly impacting agricultural product demand.

The evolution of consumer preferences has also led to increased demand for diverse agricultural products, particularly in the fruits and vegetables segment. Saudi consumers are increasingly willing to pay premium prices for high-quality produce, such as blueberries and organic products, reflecting a broader shift toward healthier lifestyle choices. This trend is particularly evident in the rising popularity of fruit-based beverages and health-conscious food options, with strawberry juices and shakes becoming among the country's most consumed beverages due to their perceived health benefits, including anti-inflammatory properties.

Segment Analysis: By Food Crops/Cereals

Food Crops/Cereals Segment in Saudi Arabia Agriculture Market

The food crops/cereals segment dominates the Saudi Arabian agriculture market, with wheat and barley being the major grains in terms of both production and consumption. According to SAGO (Saudi Arabian Grains Organization), all wheat, both imported and locally grown, is exclusively used for milling for human consumption in the country, with wheat mostly consumed in the form of flat (pita) bread, local hamburger buns, and other Western-style bread. The segment's prominence is further reinforced by the Saudi government's strategic focus on grain production, as evidenced by the General Food Security Authority's (GFSA) initiative in 2023 to purchase up to 1.5 million tons of locally produced wheat annually. Additionally, barley produced domestically is mainly utilized in specialty food items, particularly in traditional Saudi dishes during the fasting month of Ramadan, while imported barley is primarily used for animal feed. The integration of crop farming practices and farm management techniques has further enhanced the efficiency and output of this segment.

Growth Trajectory of Food Crops/Cereals in Saudi Arabia Agriculture Market

The food crops/cereals segment is experiencing robust growth in the Saudi Arabian market, projected to expand at approximately 5% from 2024 to 2029. This growth is primarily driven by the expanding population, westernization of diets, and the increase in Hajj and Umrah visitors. The segment's growth is further supported by changing consumer preferences, as Saudi consumers become more health-conscious, with an increasing number of people buying whole grain and organic food products. Various health food brands and chains, from quick-service establishments to full-scale restaurants, are entering the Saudi market, which is anticipated to boost the consumption of whole grains and millet in the country. The government's supportive policies and initiatives for domestic grain production are also contributing significantly to this segment's growth trajectory. The adoption of advanced agricultural inputs and agricultural chemicals is playing a crucial role in enhancing productivity and sustainability.

Remaining Segments in Food Crops/Cereals Market

Beyond wheat and barley, the Saudi Arabian food crops/cereals market includes other important grains such as sorghum, maize, and millets. These grains play a vital role in the country's agricultural landscape, with maize primarily being used for feed purposes in the livestock industry. The government's focus on diversifying grain production and promoting sustainable farming practices has led to increased attention on these alternative crops. Additionally, the rising trend of health consciousness among Saudi consumers has sparked interest in ancient grains and alternative cereals, leading to their gradual integration into the mainstream market. These segments are particularly benefiting from the country's efforts to modernize its agricultural sector and achieve greater food security.

Segment Analysis: By Fruits

Dates Segment in Saudi Arabia Agriculture Market

Dates represent the largest fruit segment in Saudi Arabia's agriculture market, demonstrating the country's dominant position as one of the world's leading date producers. The segment's strength is reinforced by Saudi Arabia's strategic focus on date production and trade, exemplified by the country's digital trade initiatives and specialized date cultivation zones. The extensive network of date palm plantations across regions like Al-Qassim and Al-Ahsa contributes significantly to the segment's market leadership. Saudi Arabia has established sophisticated processing facilities and storage infrastructure specifically for dates, enabling year-round supply to both domestic and international markets. The segment's prominence is further enhanced by the cultural significance of dates in Saudi Arabian society and their importance during religious occasions like Ramadan.

Grapes Segment in Saudi Arabia Agriculture Market

The grapes segment is experiencing remarkable growth in Saudi Arabia's agriculture market, driven by increasing adoption of advanced cultivation techniques and favorable growing conditions in specific regions. The Al-Sulaybiya region has emerged as a premier grape-producing area, supplying over 20,000 metric tons of various grape varieties nationwide. The segment's growth is supported by the rising demand for different grape varieties, particularly red grapes with large seeded sweet-tasting berries. The expansion of grape cultivation is further bolstered by the implementation of modern farming technologies and irrigation systems, enabling year-round production. The segment's development is also supported by increasing consumer preference for fresh table grapes and their derivatives in the domestic market.

Remaining Segments in Fruits Market

The other fruit segments in Saudi Arabia's agriculture market include watermelons, figs, peaches, mangoes, and papaya, each contributing to the market's diversity and growth. These segments benefit from the country's investment in greenhouse technology and modern farming techniques, particularly in regions like Jizan, which specializes in tropical fruit production. The government's recent investment of USD 1 billion in greenhouse production has created new opportunities for these fruit segments. Additionally, the development of specialized growing zones and the adoption of water-efficient cultivation methods have enhanced the production capabilities of these segments, making them increasingly important components of Saudi Arabia's fruit market.

Segment Analysis: By Vegetables

Tomato Segment in Saudi Arabia Agriculture Market

Tomatoes represent the dominant segment in Saudi Arabia's vegetable market, driven by extensive greenhouse farming initiatives and technological advancements in cultivation methods. The segment has witnessed remarkable growth through the implementation of computer-controlled watering systems and targeted irrigation techniques developed in collaboration with Wageningen University & Research's Greenhouse Horticulture Business Unit. These advanced cultivation methods have dramatically improved yields, with producers now achieving approximately 80 kilograms per square meter in low- and mid-tech greenhouses compared to traditional yields of 15-25 kilograms. The segment's growth is further supported by tomatoes being an essential ingredient in Saudi cuisines, making them the second most consumed vegetable in the country. The government's strong focus on promoting indoor farming of tomatoes, coupled with their superior performance in indoor conditions compared to other vegetables, has established tomatoes as a strategic crop in Saudi Arabia's agricultural landscape.

Remaining Segments in Vegetable Market

The Saudi Arabian vegetable market encompasses several other important segments, including potatoes, onions, cucumbers, cabbages, okra, pumpkins, squash, and garlic. These vegetables are primarily cultivated in key agricultural regions such as Riyadh, Buraidah, Al-Qassim region, Al-Ahsa, and Jizan. Potatoes have emerged as one of the most commonly cultivated vegetables in the Kingdom, with significant consumption in various forms, including French fries and potato chips, through diverse distribution channels. Onions and garlic maintain a steady market presence due to their essential role in traditional Saudi cuisine. The cultivation of cucumbers, cabbages, and other vegetables has been supported by government initiatives promoting drip irrigation and protected cultivation methods. Additionally, vegetables like cauliflower, beans, and eggplant contribute to the market's diversity, meeting both domestic consumption needs and export demands to neighboring countries. The integration of commercial farming practices and farm management strategies has been pivotal in enhancing the productivity and sustainability of these segments.