KSA Red Meat Market Outlook to 2030

KSA Red Meat Market Overview

• The KSA red meat market is valued at USD 1.3 billion, based on a five-year historical analysis, supported by increasing demand for protein-rich diets, population growth, and government-led initiatives to enhance domestic meat production. The market is witnessing growth driven by changing consumer preferences for higher-quality meat, coupled with rising disposable incomes. The demand for red meat, including beef, lamb, and mutton, is surging as the Kingdom seeks to reduce its reliance on imported meat products.

• Major urban areas such as Riyadh, Jeddah, and Dammam are leading the growth of this market due to higher population density, increased disposable incomes, and a growing preference for premium meat cuts. In contrast, rural areas are showing steady growth in demand for affordable meat products as the government promotes self-sufficiency and supports local meat producers.
• The Saudi Arabian government, under Vision 2030, has implemented initiatives to increase domestic meat production and reduce import dependency. In 2024, the Ministry of Environment, Water, and Agriculture launched programs to support local farmers, providing subsidies and improved breeding techniques to enhance livestock quality. These programs are expected to boost local red meat production by over 20% by 2028.

KSA Red Meat Market Segmentation

• By Meat Type: The market is segmented by type of meat into beef, lamb, and mutton. Beef dominates the market due to its popularity among consumers and increasing demand in urban areas. Lamb and mutton are also significant contributors, particularly in traditional meals and during religious festivities like Eid. The demand for premium beef cuts is on the rise, especially among the upper-middle-class population, while lamb and mutton consumption remains strong in rural regions.

• By Distribution Channel: The market is segmented by distribution channel into supermarkets & hypermarkets, specialty meat shops, online platforms, and traditional butcheries. Supermarkets & hypermarkets are the largest distribution channel, with chains like Carrefour and Lulu Hypermarket offering a wide variety of imported and domestic red meat products. Online platforms are gaining traction, especially in urban areas, as consumers shift towards e-commerce for convenience and a wider selection of meat products.

KSA Red Meat Market Competitive Landscape

The KSA red meat market is highly competitive, with several domestic and international players providing a wide range of meat products. Key players include Almarai, National Agricultural Development Company (NADEC), and Almunajem Foods. These companies are continuously expanding their product portfolios to meet the growing demand for both fresh and processed meat products in the Kingdom. Investments in modern slaughterhouses, sustainable farming practices, and partnerships with international suppliers are common strategies employed by these players to strengthen their market presence.

KSA Red Meat Industry Analysis

Growth Drivers

• Rise in Disposable Income and Changing Consumption Patterns: The Kingdom of Saudi Arabia (KSA) has witnessed a steady rise in disposable income, reaching SAR 85,000 per household annually in 2023, according to the Saudi General Authority for Statistics. This increase, alongside changing dietary preferences, has led to a higher per capita meat consumption rate of 52 kilograms per year in 2024, showing a growing demand for red meat. Saudi Arabias shift towards a more urban lifestyle is driving these consumption changes, with urban areas like Riyadh and Jeddah experiencing particularly high demand for premium meat products.
• Government Support for Local Meat Production: The Saudi government has made substantial efforts to boost local meat production as part of its Vision 2030 plan. This includes SAR 6.3 billion in subsidies for livestock breeding programs aimed at increasing self-sufficiency in red meat production. Initiatives under the Agricultural Development Fund (ADF) have supported the establishment of 50+ breeding facilities across the country. Additionally, Vision 2030's emphasis on food security is pushing the development of modern farms and breeding technologies to reduce dependence on meat imports.
• Population Growth and Increased Demand for Protein-Rich Diets: Saudi Arabias population is expected to grow to 37.2 million by the end of 2024, according to the World Bank, with urbanization rates exceeding 84%. This growth, combined with a demand for protein-rich diets, is a major driver of the red meat market in KSA. The nation's urban population, which forms 80% of the total, has shifted towards a protein-heavy diet, further bolstering red meat consumption. These demographic changes contribute to a steadily growing demand for meat, particularly among younger populations.

Market Challenges

• High Dependence on Meat Imports: Despite government efforts to boost local production, Saudi Arabia remains highly dependent on imported red meat, with nearly 70% of beef and lamb imported from countries like Australia, Brazil, and India. Fluctuations in global meat prices and supply chain disruptions pose significant challenges to market stability. The government is working to reduce this dependency through investments in local production, but significant gaps remain.
• Environmental Concerns and Sustainability Issues: The livestock industry in Saudi Arabia faces criticism for its environmental impact, particularly in terms of water consumption and greenhouse gas emissions. Addressing these concerns is crucial, as the government pushes for more sustainable farming practices. The implementation of stricter environmental regulations is expected to increase operational costs for local producers. The Ministry of Environment, Water, and Agriculture is implementing stricter regulations to mitigate these environmental impacts, particularly concerning water use and emissions control.

KSA Red Meat Market Future Outlook

The KSA red meat market is expected to experience robust growth over the next five years, driven by increasing consumer demand for premium meat products, government initiatives to boost local production, and the growing middle-class population. The adoption of sustainable farming practices and technological advancements in meat processing are expected to further enhance market growth.

Future Market Opportunities

• Growth in Online Meat Sales: The rise of e-commerce in Saudi Arabia is presenting new opportunities for meat producers and distributors. In 2024, online platforms accounted for a major portion of total meat sales, and this figure is expected to grow as consumers increasingly turn to digital channels for grocery shopping. Online meat delivery services are particularly popular among younger consumers in urban areas, providing a convenient way to purchase fresh and frozen meat products.
• Expansion of Organic and Halal Meat Products: There is growing consumer interest in organic and Halal-certified meat products, particularly among health-conscious individuals and religiously observant consumers. In 2024, sales of organic red meat grew substantially with increasing demand for products that meet strict Halal and organic farming standards. This presents a significant opportunity for producers to cater to a niche but expanding market segment.