Saudi Arabia Red Meat Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Saudi Arabia Red Meat Market Analysis

The Saudi Arabia Red Meat Market size is estimated at 1.36 billion USD in 2025, and is expected to reach 1.52 billion USD by 2030, growing at a CAGR of 2.24% during the forecast period (2025-2030).

The Saudi Arabian red meat market industry is experiencing significant transformation driven by changing consumer preferences and technological advancements. The country's large expatriate population, accounting for 38% of the total population in 2022, has significantly influenced consumption patterns and product preferences. The government's National Industrial Development and Logistics Program (NIDLP) aims to establish specialized manufacturing clusters linking farmers, manufacturers, packaging plants, and retail companies to create a comprehensive ecosystem. This initiative demonstrates the country's commitment to reducing import dependency and strengthening domestic production capabilities through advanced technology adoption and infrastructure development.

The retail landscape for red meat distribution is evolving rapidly, particularly in the digital sphere, with Saudi Arabia achieving an impressive internet penetration rate of 97.9% in 2022. Major retailers are expanding their digital presence and implementing innovative solutions such as contactless delivery and improved packaging quality. Consumer spending in Saudi Arabia has shown positive momentum, increasing to USD 0.104 million in the first quarter of 2023, reflecting growing consumer confidence and purchasing power. The market has witnessed significant developments in cold chain logistics and storage facilities, enabling better preservation and distribution of meat products.

The industry is witnessing substantial developments in domestic production capabilities and international trade relationships. In February 2023, Saudi-based companies renewed their partnerships with international players like Tyson Foods Inc., recognizing potential growth opportunities across Saudi Arabia and the broader Middle East. Additionally, the country announced plans to import live animals from Western Australia after September 2023, demonstrating its commitment to diversifying supply sources and ensuring steady product availability. These strategic partnerships and trade agreements are reshaping the industry's supply chain dynamics.

The market is experiencing notable shifts in production patterns and sustainability initiatives. The livestock production index for Saudi Arabia reached 144.3 in 2021, growing at a rate of 7.1% with government support, indicating robust development in domestic production capabilities. Traditional meat sources are being complemented by alternative options, with domestic camel meat production reaching 108.7 tonnes in 2022, showcasing the market's adaptability to diverse consumer preferences. The industry is increasingly focusing on implementing sustainable practices and modern production techniques to meet growing demand while maintaining quality standards and ensuring food security.

Saudi Arabia Red Meat Market Trends

The government is providing various financial subsidies to encourage local production

• Of all the countries in the Middle East, Saudi Arabia accounted for a share of 3.60% in 2022 in terms of beef production.. The overall production of beef in Saudi Arabia decreased by 7.80% from 2017 to 2022. Hence, the production is likely to be boosted by various government initiatives and policies, such as government assistance to lower the cost of producing red meat in the Kingdom of Saudi Arabia through direct financial subsidies based on monthly production, interest-free loans, and rebates for the purchase of cattle equipment. Using more than 70% local content is required of caterers who provide food to government institutions (hospitals, schools, and universities). Easy access to labor, approval of foreign suppliers, and a streamlined licensing and permit process will allow for faster industry localization.
• Beef production is predicted to increase from 2023 to 2029 because consumers demand more premium beef, which is grass-fed and locally produced. Most Saudi Arabian consumers prefer fresh meat over frozen and processed forms. The market is seeing a relaxation of regulations, like an increase in the shelf life for chilled beef sold in Saudi Arabia by 50 days to the new standard of 120 days by the Saudi Food and Drug Authority.
• Out of the total meat produced in the country, beef accounted for only 2.26% in 2022. Private and government entities are taking various initiatives to uplift local production in the country. The partnership by Saudi Agricultural and Livestock Investment Co. (SALIC) with Brazil's Minerva Foods to set up a joint venture for the processing and export of beef is expected to enhance operating synergies, reduce risks, and contribute to an increase in the production of beef.

Initiatives to increase local production are expected to optimize the prices during the forecast period

• The overall price of beef in Saudi Arabia increased by 5.26% from 2016 to 2022. In 2022, the price per kg of beef was around USD 4, an increase of 0.96% from 2021. The price increase was mainly due to the implementation of value-added tax (VAT) in 2018. The introduction of value-added tax, along with rising inflation from 2019, led to an increase in the prices of beef and associated costs like production prices, feed prices, manufacturing prices, and export prices since 2019.
• The increase in food prices across different channels raised the consumer price index. With the VAT raised from 5% to 15%, transportation prices increased by 19.3% compared to the previous year. The Cabinet enacted Decision No. 599 to amend the Harmonized Tariff Schedule and increase customs duty rates, which increased the landing cost of beef, and the new tax rate of 7-25% levied on the prices resulted in a spike in 2021.
• Beef prices in 2022 increased because of an 11.5% rise in the wholesale price index (WPI) compared to the previous year. The number of live animals, like cattle, in Saudi Arabia also increased by 9%, and the associated costs, like producer prices, also soared to 151 base points compared to 2021. Due to increased local demand, the Saudi Food and Drug Authority (SFDA) lifted its suspension on Brazilian meat imports in 2021. Saudi Arabia is attracting foreign investors to boost local production, thus reducing the prices. Productivity-adjusted wages in the country do not include the annual recurring charge of USD 1.23/hour for a work permit, resident identity (iqama), and health insurance, which is likely to reduce the production charges for manufacturers.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Type

Beef Segment in Saudi Arabia Red Meat Market

Beef continues to dominate the Saudi Arabian meat market, commanding approximately 45% market share in 2024. The segment's strong position is primarily driven by the increasing demand for premium beef in Saudi Arabia, particularly grass-fed and locally produced varieties. Most Saudi Arabian consumers demonstrate a strong preference for fresh beef over frozen and processed forms, supported by recent regulatory changes such as the Saudi Food and Drug Authority's extension of shelf life for chilled beef to 120 days. The market has also benefited from various government initiatives and policies, including direct financial subsidies based on monthly production, interest-free loans, and rebates for cattle equipment purchases. Additionally, the requirement for government institution caterers to use more than 70% local content has further strengthened the beef segment's market position.

Other Meat Segment in Saudi Arabia Red Meat Market

The Other Meat segment, which includes primarily camel meat, is projected to experience the highest growth rate of approximately 3% during the forecast period 2024-2029. This growth is largely attributed to the increasing consumer preference for camel meat, which is considered a healthier alternative due to its lower content of short-chained unsaturated fats and higher moisture content compared to other red meats. The segment's expansion is further supported by the fact that Saudi Arabia is the largest producer of camel meat globally, accounting for more than 62% of global camel meat production. The growth is also driven by the increasing acceptance of camel meat in both traditional and modern cuisine, particularly through the on-trade channel, which accounts for more than 67% of the overall other meat sales.

Remaining Segments in Type Segmentation

The mutton segment represents a significant portion of the Saudi Arabian red meat market, driven by its deep-rooted cultural significance and widespread use in traditional cuisine. Mutton consumption is particularly high during religious festivals and celebrations, with fresh/chilled mutton being the predominant form consumed in the market. The segment benefits from both domestic production and imports, with the government providing various support measures including subsidies for fodder and fuel, interest-free loans, and other supporting services to enhance local production capabilities. The segment's performance is also influenced by the growing foodservice industry and the presence of a large expatriate population that regularly consumes mutton-based dishes.

Segment Analysis: Form

Fresh/Chilled Segment in Saudi Arabia Red Meat Market

The Fresh/Chilled segment dominates the Saudi Arabian red meat market, commanding approximately 48% market share in 2024. This significant market position is primarily driven by Saudi Arabian consumers' strong preference for fresh meat over other forms, as they associate freshness with higher quality and better taste. The segment's dominance is further strengthened by the extensive network of modern retail outlets with sophisticated refrigeration systems that maintain the meat's freshness. Additionally, cultural and religious factors play a crucial role, as consumers in Saudi Arabia tend to believe that locally produced fresh meat products meet higher Halal standards. The segment also benefits from government support through regulations that mandate high-efficiency refrigeration systems in retail outlets, ensuring proper storage and maintaining the quality of fresh/chilled meat products.

Processed Segment in Saudi Arabia Red Meat Market

The Processed segment is projected to be the fastest-growing segment in the Saudi Arabian red meat market during 2024-2029, with an expected growth rate of approximately 4%. This growth is primarily driven by the increasing demand for convenient, ready-to-eat meat products among the growing youth population and urban professionals. The segment's expansion is supported by innovations in processing technologies and packaging solutions that extend shelf life while maintaining product quality. Major companies like Americana Group and Sunbulah Group are actively expanding their production capacities to meet the rising demand for processed meat products. The growth is further accelerated by the increasing penetration of online food delivery services and the rising number of working professionals seeking convenient meal solutions.

Remaining Segments in Form Segmentation

The Frozen and Canned segments complete the Saudi Arabian red meat market's form segmentation. The Frozen segment serves as a crucial bridge between import-dependent supply chains and local consumption patterns, particularly catering to the foodservice industry including hotels, restaurants, and catering companies. The segment benefits from modern cold storage infrastructure and improved transportation facilities. Meanwhile, the Canned segment serves a niche market, primarily catering to consumers seeking longer shelf-life products and convenient storage solutions. Both segments are witnessing steady development supported by improvements in packaging technology, cold chain logistics, and changing consumer preferences toward convenience foods.

Segment Analysis: Distribution Channel

On-Trade Segment in Saudi Arabia Red Meat Market

The on-trade channel dominates the Saudi Arabian red meat market, commanding approximately 54% of the market share in 2024. This channel's prominence is largely attributed to Saudi Arabia's robust foodservice sector, particularly driven by the population's increasing preference for Western-style casual dining experiences. International cuisine constitutes about 21% of the Saudi Arabian foodservice market, while American cuisine accounts for roughly 16%. The segment's strength is further reinforced by the extensive presence of major food delivery platforms, with key players like Delivery Hero maintaining significant market control. The channel's success is also supported by the country's large expatriate population and growing tourist influx, who frequently utilize restaurants and foodservice establishments for their dining needs.

Off-Trade Segment in Saudi Arabia Red Meat Market

The off-trade channel is experiencing remarkable growth in the Saudi Arabian red meat market, projected to expand at approximately 4% CAGR during 2024-2029. This growth trajectory is primarily driven by the rapid digitalization of retail channels and the increasing adoption of online shopping platforms. Retailers are actively investing in digital sales channels, developing diverse online products and services to cater to evolving customer preferences. The segment's growth is further supported by the expansion of modern retail formats and the increasing penetration of e-commerce platforms. Major retailers are continuously enhancing their digital capabilities and implementing omnichannel strategies to provide seamless shopping experiences, while also maintaining traditional brick-and-mortar presence through supermarkets and convenience stores.

Distribution Channel Sub-segments in Off-Trade

Within the off-trade channel, several sub-segments play crucial roles in shaping the market dynamics. Supermarkets and hypermarkets serve as the primary retail format, offering extensive selections of fresh and processed meat products along with value-added services. Convenience stores cater to immediate consumption needs and provide accessibility in residential areas. The online channel is emerging as a significant force, revolutionizing meat retail through e-commerce platforms and delivery services. Other retail formats, including traditional butcher shops and specialty meat stores, continue to serve specific consumer segments with customized offerings and personalized service, maintaining their relevance in the market despite modern retail evolution.

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