Saudi Arabia Red Meat Market Outlook to 2030

Saudi Arabia Red Meat Market Overview

• The Saudi Arabia red meat market is a substantial component of the country's food industry, driven by both local production and imports. The market is valued at 1.20 billion, according to recent reports. This valuation is primarily driven by increasing disposable income, cultural preferences, and the growth of organized retail sectors in the region. Saudi Arabia's Vision 2030, with its emphasis on boosting local food production, further enhances the growth of the red meat market. Local production is supported by initiatives such as subsidies and investment in agritech, but imports still play a significant role due to the high demand.
• The red meat market in Saudi Arabia is primarily dominated by major cities such as Riyadh, Jeddah, and Dammam. These cities not only serve as consumption hubs due to their large urban populations but also benefit from advanced cold chain infrastructure and organized retail formats. Jeddah's strategic location as a port city also makes it a crucial point for imports, particularly of frozen and processed red meat. Riyadh, being the capital and economic center, drives significant demand through its high-income consumers and the thriving foodservice industry.
• Under Saudi Vision 2030, the government has introduced several policies to support agricultural diversification and food security. The 2024 regulations prioritize local meat production, with specific incentives for livestock farmers, including subsidies and tax breaks. The Agricultural Development Fund has played a critical role in financing sustainable farming projects that align with the kingdoms broader economic diversification goals. These policies aim to reduce the countrys reliance on imported meat and enhance the self-sufficiency of the domestic red meat sector.

Saudi Arabia Red Meat Market Segmentation

The Saudi Arabia red meat market is segmented by meat type and by distribution channel.

• By Meat Type: The Saudi Arabia red meat market is segmented by meat type into beef, mutton, and goat meat. Among these, beef holds the dominant share in the market, accounting for around 45% of the total market. The preference for beef is largely attributed to its widespread use in foodservice industries, such as hotels and restaurants, and its popularity among consumers in urban areas. Beef's versatility in different cuisines and its appeal to a diverse consumer base further cement its leading position. The growing demand for premium cuts of beef and organic beef is also contributing to this segments growth.
• By Distribution Channel: The market is segmented by distribution channel into supermarkets/hypermarkets, specialty meat stores, and online retail. Supermarkets and hypermarkets dominate the distribution channel, with a market share of 55% in 2023. This is primarily because of the convenience they offer, as well as the assurance of meat quality and freshness, which are important factors for Saudi consumers. Additionally, the rise of large retail chains has made it easier for consumers to access a wide variety of fresh and frozen red meat products, contributing to the dominance of this distribution channel.

Saudi Arabia Red Meat Market Competitive Landscape

The Saudi Arabia red meat market is characterized by a combination of local and international players. The market is dominated by key domestic players like Almarai and Tanmiah, as well as international firms like BRF Sadia and Hormel Foods. These companies maintain a competitive edge through their extensive distribution networks, investments in advanced farming and processing technologies, and the ability to meet the growing demand for premium and halal-certified products. The competitive landscape is also influenced by strong government support for local meat producers as part of the Saudi Vision 2030, which aims to reduce import dependency.

Saudi Arabia Red Meat Industry Analysis

Growth Drivers

• Rising Disposable Income (per capita income growth): Saudi Arabia's red meat market is supported by a steady increase in disposable income, with the country's gross national income (GNI) per capita reaching USD 25,000 in 2024. This growth has allowed consumers to allocate more resources to higher-quality protein sources like red meat. The Saudi economy has remained strong due to high oil revenues, creating wealth that supports consumer spending habits, especially in the food and beverage sector. Higher disposable income levels also reflect in urban households' increasing consumption of beef and lamb as primary protein sources.
• Cultural Preference for Meat-Based Diet (food habits): Saudi Arabia has one of the highest meat consumption rates in the Gulf region, with red meat deeply embedded in the local diet. On average, a Saudi consumer eats over 50 kilograms of meat annually, with a significant portion coming from beef and lamb. Cultural and religious practices, such as celebrations and social gatherings, emphasize the importance of meat in meals. The demand is expected to be stable due to the country's preference for meat-heavy dishes like Mandi, making red meat consumption a consistent part of the local food culture.
• Population Growth and Urbanization (demographics): Saudi Arabias population has grown to over 36 million in 2024, with more than 84% living in urban areas, significantly increasing the demand for red meat in cities like Riyadh, Jeddah, and Dammam. Urbanization has transformed food consumption patterns, with urban households preferring convenient, high-protein foods like beef and lamb. Additionally, the influx of expatriates from meat-eating cultures has further driven the demand for red meat, adding to the growth in the market. The populations growth trajectory and urban lifestyle contribute to higher meat consumption per capita. Source: Saudi General Authority for Statistics, 2024.

Market Challenges

• High Production Costs (input costs like feed and water): Red meat production in Saudi Arabia faces high input costs, particularly for feed and water, as the country imports over 80% of its livestock feed. Water scarcity further escalates production costs, with the country relying on energy-intensive desalination processes for agriculture. In 2024, the average cost of meat production in Saudi Arabia remained high compared to global standards, making local products less competitive against imported alternatives. This challenge constrains the profitability of local farmers and reduces the affordability of red meat for consumers. Source: Saudi Ministry of Environment, Water, and Agriculture, 2024
• Supply Chain Inefficiencies (cold chain logistics): Saudi Arabias red meat supply chain faces inefficiencies, particularly in cold chain logistics. The country's infrastructure for cold storage and transportation remains underdeveloped, leading to higher food waste and increased operational costs. As of 2024, an estimated 20% of perishable goods, including red meat, are lost during transportation due to inadequate cold chain management. This inefficiency limits the reach of high-quality red meat to remote areas, thereby curbing market growth and leading to higher consumer prices

Saudi Arabia Red Meat Market Future Outlook

Over the next five years, the Saudi Arabia red meat market is expected to experience steady growth driven by the increasing consumer preference for premium meat products and the expansion of foodservice industries. The government's emphasis on enhancing local food security through investments in agriculture and livestock farming will further contribute to the growth of the domestic meat sector. Furthermore, the rising demand for organic and halal-certified red meat, as well as the development of more efficient supply chains, will open new opportunities for both local and international market players.

Market Opportunities

• Investment in Modern Farming Techniques (agritech investments): There is significant potential for agritech investment in Saudi Arabia, particularly in the red meat sector. Government-led initiatives like the National Transformation Program have attracted foreign investment in modern farming techniques, including automated feeding systems, livestock monitoring, and water-saving technologies. In 2024, the government allocated SAR 5 billion for agricultural technology projects aimed at improving the efficiency and sustainability of meat production. These investments are expected to reduce production costs and improve the quality of locally produced red meat. Source: Saudi Vision 2030, 2024
• Growth of Organic and Halal Meat Segments (premium segments): The organic and halal meat segments are growing rapidly in Saudi Arabia. In 2024, the demand for premium meat products increased by 15%, driven by higher consumer awareness of health and religious considerations. Organic meat, free from synthetic inputs, has gained popularity among health-conscious consumers, while halal certification ensures compliance with religious dietary laws, making it a critical factor for many buyers. These segments provide opportunities for local producers to tap into higher-margin products and distinguish themselves from international competitors.