Saudi Arabia Food & Beverage Market Size

Saudi Arabia Food & Beverage Market Analysis

The Saudi Arabia Food & Beverage Market size is estimated at USD 23.48 billion in 2024, and is expected to reach USD 27.83 billion by 2029, growing at a CAGR of 3.44% during the forecast period (2024-2029).

• The Saudi Arabian food and beverage market is undergoing remarkable growth, owing to the flourishing food and dairy industry and increasing consumption of food and beverage products, including milk and dairy products, in the country. Additionally, rising awareness of the benefits of milk and related products and the growing fitness trend are anticipated to drive the market during the forecast period.
• Local food producers and manufacturers are enjoying a boom in Saudi, and global firms are also benefiting from the outstanding potential. According to the current statistics of March 2023 by the National Committee of Dairy Producers in the Federation of Saudi Chambers (FSC), the volume of dairy consumption has recorded an increase during the holy month of Ramadan. Milk production in Saudi Arabia reached more than 7 million liters per day or more than 18 million bottles daily. The number of trucks that transport and distribute dairy products daily reached more than 10,000, while the number of retail stores that receive dairy products daily is 38,000.
• Moreover, the dairy alternatives segment also holds a wide scope for product development, pulling the significant attention of manufacturers to contribute to the market. As a result, food companies are increasingly investing in catering to the appeal of novel flavors and taste profiles. These days, milk substitutes, meat substitutes, or vegan products are becoming popular. They exist together with products in the market. These substitute products are appreciated by consumers due to animal welfare, environmental, and health-related reasons.
• Additionally, functional efficacy and high sustainability claims offered by plant-derived products are driving the market study. The growing intolerance toward lactose sugar, which is found in animal-derived dairy products, causes a desire for dairy replacements to maintain the body's nutrition level. The market examined is being driven by the growing demand for dairy substitutes among the millennial population.
• For instance, in June 2022, a research article on the 'Awareness of Lactose Intolerance Disorder in Saudi Arabian Population' stated that 104 (8.7%) of study participants reported having lactose intolerance disorder that began between the ages of 11 and 20 years for 41 (39.4%) and between the ages of 21 and 30 years for 36 (34.6%), while 18 (17.3%) experienced the disease during their first ten years of life. Regarding dairy product consumption, 811 (68.2%) of participants said they consume dairy or its derivatives daily. All these factors contribute to the growth of the market studied.