Saudi Arabia food consumption net value is about USD 113 billion for 2016. Saudi is the largest consumer of food products, among the GCC countries. The fruit market in Saudi Arabia reached XXX thousand metric tons in 2016 and is expected to reach XXX thousand metric tons by 2022. The Saudi Arabia vegetable market reached XXX thousand metric tons in 2016 and expected to reach XXX thousand metric tons by 2022. The increasing market for fruits and vegetables in Saudi Arabia is attributed to the growing disposable incomes of the people and the increasing health concerns of the Saudi population.
The conditions in Saudi Arabia are unfavorable for the cultivation of most fruits and vegetables, with only 1.67% of arable land in the total land available. Saudi Arabia has the highest production of fruits and vegetables among all the GCC countries. The country was the largest producer in the GCC region, due to its favorable government policies for domestic production of fruits and vegetables. Due to the growing consumption of fruits and vegetables, Saudi Arabia tried to boost its agricultural output by increasing productivity so that nation could be self–sufficient. The country could not continue with this level of production due to the scarcity of water resources. This again increased the GCC countries’ reliance on import of fruits and vegetables. Due to the scarcity of water, the GCC countries’ domestic production can never satisfy its domestic consumption. To avoid complete reliance on fruits and vegetable imports the Saudi government has formulated policies that encourage farmers to grow crops that require low water, over crops that consume more water.
Agriculture accounts for 85% of the water consumption in the country. Most of the water utilized for the cultivation of fruits and vegetables is drawn from ground water resources and desalination plants. Water from these plants is highly subsidized; hence, the government plans to diversify the type of crops grown in the region to those that consume less water.
The Saudi government is encouraging agricultural companies to invest in foreign countries that have comparative advantage in producing certain crops and re-export their products back to Saudi Arabia. The crops targeted by this initiative include wheat, rice, barley, yellow corn, soybeans, and green forage. The Saudi government is providing financial incentives to encourage Saudi investors to take part in this food security initiative and invest overseas.
Market Segmentation - By Fresh Fruits and Vegetables
The agricultural market in Iran is segmented by type of products into fruits and vegetables. These are sub-segmented into onions, potatoes, tomatoes, garlic, cauliflower, cucumber, cabbage, beans, eggplant, lemons, apples, bananas, oranges, grapes, strawberry, watermelon, grapefruit, dates, and olives.
About the Market