Saudi Arabia Red Meat Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Saudi Arabia Red Meat Market is segmented by Type (Beef and Mutton), by Product Type (Fresh, Chilled, and Frozen), and Distribution Channel (On-Trade and Off-Trade). The report offers market size and forecast of red meat in value (USD million) for all the above segments.

Market Snapshot

saudi arabia red meat market
Study Period: 2016 -2027
Base Year: 2021
CAGR: 1.41 %

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Market Overview

Saudi Arabia's Red Meat Market is projected to witness a CAGR of 1.41% during the forecast period (2022-2027).

The COVID-19 pandemic has adversely impacted the red meat market in Saudi Arabia. With the announcement of the lockdown, there was a sudden slowdown in the imports of frozen meat and food commodities which had been one of the key challenges faced by the nation at the time of lockdown. However, the region's Slaughterhouses Directorate launched an online initiative, "Your Meat to Your House Door", which provides service based on using WhatsApp for taking orders on meat needs and deliveries. Amidst the COVID-19 pandemic, frozen meat sales are predicted to be driven by frozen variants across the country owing to the associated convenience in handling, storing, and preparing.

Saudi Arabia's red meat market is flourishing and provides various opportunities for potential market entrants because of the heavy meat consumption by the heavily concentrated Muslim population in the region. The new generation, along with the working-class population, requires frozen meat and ready-to-eat or ready-to-cook food with proper nutrients and an exclusive taste. However, several local and regional manufacturers are launching the latest products with a huge amount of nutrients and different taste variations, which can offer traction for consumers of Saudi Arabia.

  • Most of the consumers in this country tend to believe that locally produced frozen meat items meet higher Halal standards than imported frozen meat products from non-Muslim countries, which offers growth opportunities for the local RTE manufacturers in the nation. Also, the strong performance of the retail sector, along with a rapid increase in the number of large retail chains, including hypermarkets and supermarkets, has boosted the demand for frozen meat, including red meat, across the country.

Scope of the report

Red meat can be categorized as any type of meat that derives from mammalian muscle. This consists of lamb, beef, goat, pork, veal, and mutton. The Saudi Arabia Red Meat market is segmented by type into beef and mutton, and by product type into fresh, chilled and frozen. The study also includes on-trade and retail sales of the product through supermarkets/hypermarkets, specialty stores, online retail, and other retail channels. The report offers the market size and forecast of red meat in value (USD million) for all the above segments.

Type
Beef
Mutton
Product Type
Fresh
Chilled
Frozen
Distribution Channel
On-Trade
Off-Trade
Supermarket/Hypermarket
Specialty Stores
Online Retail
Other Distribution Channels

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Key Market Trends

Frozen Meat Recorded Fastest Growth Rate

Ease of incorporation and longer shelf life are the major characteristics supplementing the frozen meat market. There is a growing trend of food traceability and rising demand for convenience food products across the country. In Saudi Arabia, the growing number of working people and their habit of dining out has led to increased demand for convenient processed red meat, which has consequently fuelled the demand for RTE red meat in fast-food restaurants. Thus, this factor aims to quickly cater high-quality food to their customers. Moreover, the perceived credibility of Saudi manufacturers of Halal food, especially for frozen meat and meat products, has helped the expansion of food processing facilities in the country. Furthermore, imported lamb is predominantly marketed through the retail sector in the Middle East, including Saudi Arabia. Frozen or chilled lamb meat, including leg, shoulder, and carcasses, witnessed the strongest appeal among consumers in the country. In Saudi Arabia, consumers mostly purchase lamb from hypermarkets, butchers, and from traditional markets. However, the main marketing influences for processed meat products on Saudi consumers have been through in-store displays or leaflets, word of mouth, or television advertisements.

top meat distributor ksa

Favorable Government Initiatives Accelerates the Market

Red meat is a mandatory food among all other food items in Saudi Arabian consumers' diet, and a major share of the country's revenue generates from both domestic meat production and importing meat. The government of Saudi Arabia provides interest-free loans and rebates on the purchase of certain cattle equipment. Catering contracts or serving food to government institutions (hospitals, schools, universities) are mandated to use more than 70% local content, which is further expected to boost production, which, in turn, is driving the red meat market growth in the country. Consumers in the country are most likely to purchase fresh meats through these retailers owing to their conventional tendency and positive perception of cost-effectiveness and trusted source of meat. Moreover, the high propensity of slaughterhouses to vertically integrate as specialty store retailers further boost the respective segment sales. Furthermore, the country has very high Halal standards set by SFDA, which makes its food products attractive to Muslim countries. KSA achieved a considerable percentage of self-sufficiency in the red meat sector in 2020.

 beef in saudi arabia

Competitive Landscape

Saudi Arabia's red meat market is highly fragmented owing to numerous dominant and small key players involved in the sector. Moreover, owing to high import practices in the country, foreign players, majorly from India, China, and other European countries, claim a substantial share in the market. Key players such as Laboon Food Production Co., Al-Munajem Cold Stores Company, Americana Group, Inc., Al-Kabeer Group ME, and Tanmiah Food Group are focusing on online distribution channels for branding their products in order to expand their geographical reach and increase their customer base.

Recent Developments

  • In 2021, a Pakistan-based meat processing company, The Organic Meat Company Ltd, declared to have received a USD Million 1 agreement with Saudi Arabia for supplying frozen meat. The company has set up this deal to expand its business operations in Saudi Arabian markets by selling frozen meat products.
  • In 2021, SALIC announced the news of its merger with Minerva Foods factories in order to establish a firm known as Minerva Foods Australia. SALIC, which possesses 35% of the company, has the capability of producing annually one mone million livestock and aims to manufacture and promote red meat (sheep meat) globally and more specifically in the regions of the Gulf and the Middle East.
  • In 2020, BRF announced its acquisitions with Joody Al Sharqiya, which is a Saudi Arabia-based meat production company that manufacture marinated and breaded cuts, hamburgers, and other red meat commodities. This acquisition was made to expand its presence in the Middle East regions and to meet consumer demand by selling red meat products.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products and Services

      5. 4.3.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Beef

      2. 5.1.2 Mutton

    2. 5.2 Product Type

      1. 5.2.1 Fresh

      2. 5.2.2 Chilled

      3. 5.2.3 Frozen

    3. 5.3 Distribution Channel

      1. 5.3.1 On-Trade

      2. 5.3.2 Off-Trade

        1. 5.3.2.1 Supermarket/Hypermarket

        2. 5.3.2.2 Specialty Stores

        3. 5.3.2.3 Online Retail

        4. 5.3.2.4 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Key Strategies Adopted

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Laboon Food Production Co.

      2. 6.4.2 Al-Munajem Cold Stores Company

      3. 6.4.3 Americana Group, Inc.

      4. 6.4.4 Al-Kabeer Group ME

      5. 6.4.5 Tanmiah Food Group

      6. 6.4.6 Chopped

      7. 6.4.7 Sunbulah Group

      8. 6.4.8 Organic Meat Company Ltd.

      9. 6.4.9 Yousif H Al Shihab Trading Est

      10. 6.4.10 BRF SA

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Saudi Arabia Red Meat Market market is studied from 2016 - 2027.

The Saudi Arabia Red Meat Market is growing at a CAGR of 1.41% over the next 5 years.

Laboon Food Production Co., Al-Munajem Cold Stores Company, Americana Group, Inc., Al-Kabeer Group ME, Tanmiah Food Group are the major companies operating in Saudi Arabia Red Meat Market.

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