Saudi Arabia, with over 65% share, is the largest producer of meat among the GCC countries, followed by Kuwait (14%). Unlike many other GCC nations, Saudi Arabia has a significant quantity of domestic meat production, though not enough to meet the domestic demand. Regarding consumption, Saudi Arabia continues to lead with over 47% share of the total meat consumption by GCC countries; the United Arab Emirates stands second with a share of 29% due to the high tourist-inflow. As of 2015, the edible meat industry in the Saudi Arabia region was valued at USD XX.XX billion and is expected to grow at a CAGR of X% for the next five years.
Owing to the support from Saudi Arabia government, the food manufacturing and processing sector has grown fast over the past few years. The government has offered support in the form of direct subsidies for select food production equipment, duty-free imports of raw supplies, interest-free loans and highly subsided benefits.
Growing population (both domestic and expat) is another factor responsible for the increased consumption. Urbanization and growing popularity of retail format, together, are enhancing the consumption of processed food, milk and meat. Strong economic growth leading to higher protein consumption, growing number of domestic, as well as, expat population, coupled with rising preference for red meat (both sheep and bovine meat) are driving the meat market in the region.
Restraints and Challenges
As the region has a high Islamic population, the biggest constraints for the market in the region are strict quality checks and phytosanitary norms, along with Halal requirements. Processes, such as stunning and automated mechanical slaughter, do not accommodate for Halal procedures, making these methods of slaughter unsuitable for the region. Meat processing companies must be very careful in their selection of meat and non-meat ingredients. In addition to the already existing constraints, classification of red meat and processed meat as, possibly, carcinogenic foods by the WHO is reducing the consumption of these products in certain sections of the educated population.
Due to its location and lack of natural resources necessary for livestock production, most of Saudi Arabia’s edible meat is imported, to meet its domestic demand. Saudi Arabia aims to close this gap and achieve self-sufficiency, which is part of its food security plan. Currently, Saudi Arabia can meet only 56% of its edible meat demand, i.e., chicken, beef, goat and sheep, with domestic supplies. With several projects, underway, the production capacity is expected to double by 2020. Major poultry companies have already done so with the support of the government. Hence there are a lot of opportunities in the country regarding trade, food processing and infrastructure requirements. As many importers in this region import live animals, there exist great opportunities for setting up slaughter houses and processing plants in the region.
- Saudi Arabia had banned raw beef imports from the US (February 2012) and Brazil (December 2012), due to cases of mad cow disease (Bovine spongiform encephalopathy). This has benefitted the Australian and Indian beef export market. Australian beef export has witnessed a high growth, post-2011, thereby, increasing the market share from 4% in 2010 to 9% in 2015. KSA is the major importer of Australian beef, followed by UAE and Kuwait. Moreover, the demand for premium products, like Angus beef from Australia, has increased. However, speculation of a possible lift of the ban on Brazilian meat export this year, along with the lift of the ban on French beef export is forcing Australia to sign a free-trade agreement with various GCC nations, to secure its export.
- Saudi Arabia lifted a 15-year ban on beef imports from France, which has provided exporters some relief from the crushing pressure on meat prices, due to the Russian Embargo. After obtaining ‘negligible risk’ status for bovine spongiform encephalopathy from the World Organisation for Animal Health, the KSA government has agreed to import meat from France.
About the Market
- PESTLE Analysis (Overview): Macro market factors pertinent to this region.
- Market Definition: Main, as well as, associated/ancillary components constituting the market.
- Key Findings of the Study: Top headlines about market trends & numbers.
- Market Dynamics:
o Drivers: What are the key factors driving growth in the market?
o Restraints: Most relevant threats and restraints which hinder the growth of the market?
o Opportunities: Sectors of high return or quick turn around on investment?
o Market Concentration: Porter’s 5 Forces Analysis quantified by a comprehensive list of parameters.
- Chain Analysis:
o Market Share Analysis: Top players in the market (by value and volume)..
o Company Profiles: Pertinent details about leading, high growth, and innovation-motivated stakeholders with contact, operations, product/service offerings, financials and strategies & insights
1.1 Definition of the Market
1.2 Research Approach and Methodology
1.2.2 Research Design
1.2.3 Study Phases
1.3 Scope of the Report
1.4 Regional Analysis
1.4.1 PESTLE Analysis
1.4.2 Analysis of Ease of Doing Business
2. Market Dynamics
2.4 Market Demand Analysis
2.4.1 Identification of Target Sub-segments (Demand Estimation)
2.4.2 Socio-Economic Segmentation of Potential Consumers
2.4.3 Spending Patterns
2.5 Porter's Five Forces Analysis
2.5.1 Bargaining Power of Suppliers
2.5.2 Bargaining Power of Buyers
2.5.3 Threat of New Entrants
2.5.4 Threat of Substitute Products
2.5.5 Degree of Competition
3. Market Segmentation
3.1 By Meat Type
220.127.116.11 Market Size (USD Million)
18.104.22.168 Domestic Production Overview
22.214.171.124 Domestic Consumption Overview
126.96.36.199 Import Value & Volume
188.8.131.52 Export Value & Volume
184.108.40.206 Market Size (USD Million)
220.127.116.11 Domestic Production Overview
18.104.22.168 Domestic Consumption Overview
22.214.171.124 Import Value & Volume
126.96.36.199 Export Value & Volume
3.1.3 Goat and Lamb
188.8.131.52 Market Size (USD Million)
184.108.40.206 Domestic Production Overview
220.127.116.11 Domestic Consumption Overview
18.104.22.168 Import Value & Volume
22.214.171.124 Export Value & Volume
3.2 By Product Type
3.2.1 Processed Meat
126.96.36.199 Market Size (USD Million)
188.8.131.52 Domestic Production Overview
184.108.40.206 Domestic Consumption Overview
220.127.116.11 Import Value & Volume
18.104.22.168 Export Value & Volume
3.2.2 Uncured Meat
22.214.171.124 Market Size (USD Million)
126.96.36.199 Domestic Production Overview
188.8.131.52 Domestic Consumption Overview
184.108.40.206 Import Value & Volume
220.127.116.11 Export Value & Volume
4. Market Entry
4.1 Market Entry: The Strategy
4.2 Types of Entry Modes, by Market Entry Objectives
5. Competition Analysis
5.1 Local Supply Ecosystem
5.2 Market Share of Major Stakeholders
5.3 Strategies Adopted, Recent Events
6. Supply Chain Analysis
7. Trade (Import-Export Analysis)
7.1 Distribution Network & Retail Analysis
8. Processing & Packaging Ecosystem