According to the report published by Mordor Intelligence, the Fruit & Vegetable Market in Saudi Arabia has shown a modest growth. The vegetable market is anticipated to witness a CAGR of 4.7%, while the fruit market recorded a CAGR of 4.1% during the forecast period, 2018-2023.
Among the GCC countries, Saudi Arabia is the largest consumer of food products, accounting for around 60% of consumption in the region. The Saudi Arabian economy is experiencing huge growth in the fruit and vegetable market due to rapidly growing population, changing consumption patterns as well as increasing number of tourist inflow in the country.
The report provides a detailed analysis on agriculture in Saudi Arabia, broadly segmented into fruits and vegetables. These are sub segmented into onion, potato, tomato, garlic, cauliflower, beans, lemon, apple, banana, grapefruit, grapes, strawberry, watermelon, dates, and olives. The market size, production volume, consumption volume along with import & export value and volume, are also accounted for in the report. To examine the competitiveness in the industry, Porter’s five forces analysis is executed. A regional analysis has also been carried out, which includes PESTLE analysis, a supply chain analysis of the segments, and the government policies reflecting current regulations and the regulatory environment in the country.
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In terms of export volume, onions exports are expected to grow from 141.0 metric ton in 2017 to 246.5 metric ton by 2023, registering a CAGR of 9.9% during the forecast period. However, in terms of import volumes, bananas witnessed highest CAGR of 8%, followed by watermelon, recording a CAGR of 7.5%, during the forecast period.
Saudi Arabia Fruits and Vegetable Market Dynamics
Increasing shift toward healthy dietary plans, push towards water conservation, and using advance irrigation technology for cultivation, strong retail chain networks, and considerable growth of supermarket and hypermarket chains are the fruit & vegetable market driving forces in Saudi Arabia. However, there are certain factors restraining the growth of the market which include high market entry cost, severe weather conditions restraining production and price volatility of fruit & vegetable in the market.
The increasing presence of superstores and hypermarkets has increased the access to high-quality fruits and vegetables for the Saudi population. Panda Retail Company, Al Muhaidib Group, Watania, Saudi Grains and Fodder Holdings Co. LLC, and Savola are the key players in the Saudi fruit & vegetable market. Panda, a subsidiary of Savola Group is the leading grocery retail chain in Saudi Arabia, with more than 40 years in the market. Ahmed Mohamed Saleh Baeshen & Co, Ahmed Mohammed Basumbul, Ahmed Hasan Humaidi Trading Est, Abdulrasheed Badrah Corp., Abdulrahman & Mohammed A. Aziz Alshalan are the other market leaders in the country.