The Saudi market for Fruits, Nuts, and Vegetables is valued at $8.3 billion. Growing at a CAGR of 6 percent, the market is expected to reach over $11.
As you know, the global food and beverage market is expected to grow due to a rising population and income. Saudi Arabia, whose share of the global sector is $40 billion, aims to grow its food processing activities in segments with competitive advantages such as dates, dairy, and confectionery products. Currently, imports meet a significant amount of consumption whereas import and re-export activities are somewhat limited. Meat and poultry, dairy, fruits, and confectionery products account for the majority of imports.
The Saudi market for Dairy is valued at $4.7 billion. Growing at a CAGR of 6 percent, the market is expected to reach over $6.4 billion by 2021. The dairy segment is among the Kingdom’s established manufacturing platforms. Local manufacturers have developed significant expertise in terms of efficiency and the manufacturing process. In addition, the Kingdom also possesses developed distribution networks as well as state-of-the-art technologies. Considering these factors Saudi Arabia possess a significant comparative advantage in this segment to increase local and regional market share.
The Saudi market for Fruits, Nuts, and Vegetables is valued at $8.3 billion. Growing at a CAGR of 6 percent, the market is expected to reach over $11.54 billion by 2021.
Despite certain challenges related to logistics and natural resources, Saudi Arabia’s date production can overcome them and scale, particularly by focusing on higher value-added products while also improving packaging standards. Another avenue for development would be through low-value high-volume date exports to Islamic countries across the Middle East and North Africa, Asia, and Sub-Saharan African regions.
Source: U.S-Saudi Arabian Business Council