Saudi Arabia Agriculture Industry Market

Saudi Arabia agriculture market, valued at USD 18 Bn, is growing due to government support, agri-tech adoption, and focus on food security amid water scarcity challenges.

Region:Middle East

Author(s):Shubham

Product Code:KRAD0803

Pages:95

Published On:August 2025

About the Report

Base Year 2024

Saudi Arabia Agriculture Industry Market Overview

  • The Saudi Arabia Agriculture Industry Market is valued at USD 18 billion, based on a five-year historical analysis. This growth is primarily driven by rising investments in agricultural technology, robust government initiatives to strengthen food security, and increasing consumer demand for locally sourced food products. The market has experienced a notable transition toward sustainable practices, precision agriculture, and advanced irrigation systems, which have accelerated its expansion.
  • Key contributors to this market include Riyadh, Jeddah, and Dammam, which lead due to their strategic locations, access to major transportation networks, and proximity to agricultural production zones. These cities benefit from substantial government investment in infrastructure and logistics, making them focal points for agricultural innovation and development.
  • The National Agricultural Development Strategy, issued by the Ministry of Environment, Water and Agriculture in 2023, aims to boost agricultural productivity and sustainability. This strategy includes a budget allocation of USD 1 billion for research and development in agricultural technologies, with a strong emphasis on water conservation, crop yield enhancement, and climate-resilient farming practices.
Saudi Arabia Agriculture Industry Market Size

Saudi Arabia Agriculture Industry Market Segmentation

By Type:The market is segmented into Food Crops/Cereals, Fruits, Vegetables, Oilseeds and Pulses, Livestock Farming, Aquaculture, Horticulture, Organic Farming, Agrochemicals, Agricultural Machinery & Equipment, and Others. Food Crops/Cereals and Livestock Farming are the leading segments, reflecting their critical role in national food security and meeting the dietary requirements of a growing population. The sector is increasingly adopting smart farming solutions, hydroponics, and greenhouse cultivation to optimize output and resource efficiency.

Saudi Arabia Agriculture Industry Market segmentation by Type.

By End-User:The market is segmented by end-users, including Retail Consumers, Food Processing Industry, Export Markets, and Government Institutions. The Food Processing Industry is the dominant segment, propelled by the rising demand for packaged and processed food products and the expansion of supply chain infrastructure to meet evolving consumer preferences. The sector is also supported by government policies encouraging value addition and export-oriented production.

Saudi Arabia Agriculture Industry Market segmentation by End-User.

Saudi Arabia Agriculture Industry Market Competitive Landscape

The Saudi Arabia Agriculture Industry Market is characterized by a dynamic mix of regional and international players. Leading participants such as Almarai Company, Savola Group, National Agricultural Development Company (NADEC), Saudi Agricultural and Livestock Investment Company (SALIC), Al-Faisaliah Group, United Farmers Holding Company, Al-Jouf Agricultural Development Company, Tabuk Agricultural Development Company, Arabian Agricultural Services Company (ARASCO), Al-Safi Danone, Al-Ahsa Development Company, Qassim Agricultural Development Company (QADCO), Al-Rajhi International for Investment, Wafrah for Industry and Development, Abdullah Al-Othaim Markets Company contribute to innovation, geographic expansion, and service delivery in this space.

Almarai Company

1977

Riyadh, Saudi Arabia

Savola Group

1979

Jeddah, Saudi Arabia

National Agricultural Development Company (NADEC)

1981

Riyadh, Saudi Arabia

Saudi Agricultural and Livestock Investment Company (SALIC)

2012

Riyadh, Saudi Arabia

Al-Faisaliah Group

1970

Riyadh, Saudi Arabia

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue (USD Million)

Revenue Growth Rate (%)

Market Share (%)

Geographic Presence (Regions/Provinces Covered)

Product Portfolio Breadth

Saudi Arabia Agriculture Industry Market Industry Analysis

Growth Drivers

  • Increasing Demand for Food Security:The Saudi government aims to achieve 30% self-sufficiency in food production in future, driven by a population of over 36 million. The food import bill is estimated to be approximately $22 billion, highlighting the urgent need for local agricultural production. This demand is further fueled by rising consumer awareness regarding food quality and safety, prompting investments in domestic agriculture to ensure food security and reduce dependency on imports.
  • Government Initiatives and Investments:The Saudi government has allocated over $1.2 billion for agricultural development initiatives in future, focusing on enhancing productivity and sustainability. Programs such as the National Agricultural Development Fund aim to support farmers through loans and grants. Additionally, the Vision 2030 framework emphasizes diversification of the economy, with agriculture being a key sector for investment, thus driving growth and innovation in the industry.
  • Technological Advancements in Agriculture:The adoption of advanced technologies, including precision farming and hydroponics, is transforming the agricultural landscape in Saudi Arabia. Investments in agri-tech are reported to exceed $600 million, driven by startups and established companies. These technologies enhance crop yields and resource efficiency, addressing challenges such as water scarcity and soil degradation, thereby supporting sustainable agricultural practices and increasing overall productivity.

Market Challenges

  • Water Scarcity:Water scarcity remains a critical challenge for the Saudi agriculture sector, with the country classified as one of the most water-scarce nations globally. Per capita water availability is reported to be around 90 cubic meters, significantly below the global average of 1,700 cubic meters. This scarcity limits agricultural expansion and necessitates the adoption of water-efficient practices and technologies to sustain crop production.
  • High Production Costs:The high cost of agricultural inputs, including seeds, fertilizers, and machinery, poses a significant challenge for farmers in Saudi Arabia. The average cost of production per hectare is estimated to be around $1,300, which is substantially higher than in neighboring countries. This financial burden can deter investment in modern farming techniques and limit the competitiveness of local agricultural products in both domestic and international markets.

Saudi Arabia Agriculture Industry Market Future Outlook

The future of the Saudi agriculture industry appears promising, driven by ongoing government support and technological innovations. As the nation strives for food security, investments in sustainable practices and agri-tech are expected to increase. The rise of vertical farming and smart agriculture solutions will likely enhance productivity while addressing environmental concerns. Furthermore, the growing trend of organic farming will cater to health-conscious consumers, creating new market segments and opportunities for local producers.

Market Opportunities

  • Organic Farming Growth:The organic farming sector in Saudi Arabia is projected to grow significantly, with an estimated market value of $1.2 billion in future. This growth is driven by increasing consumer demand for organic products, which are perceived as healthier and more sustainable. Farmers adopting organic practices can benefit from premium pricing and access to niche markets, enhancing their profitability and sustainability.
  • Investment in Agri-tech Startups:The agri-tech startup ecosystem in Saudi Arabia is gaining momentum, with investments expected to reach $350 million in future. This influx of capital is fostering innovation in areas such as precision agriculture, biotechnology, and sustainable farming solutions. By supporting these startups, the agriculture sector can enhance productivity, reduce costs, and improve resilience against climate change, ultimately driving long-term growth.

Scope of the Report

SegmentSub-Segments
By Type

Food Crops/Cereals

Fruits

Vegetables

Oilseeds and Pulses

Livestock Farming

Aquaculture

Horticulture

Organic Farming

Agrochemicals

Agricultural Machinery & Equipment

Others

By End-User

Retail Consumers

Food Processing Industry

Export Markets

Government Institutions

By Distribution Channel

Direct Sales

Wholesale Distributors

Online Retail

Farmers' Markets

By Product Category

Fresh Produce

Processed Foods

Dairy Products

Meat Products

By Farming Method

Conventional Farming

Organic Farming

Hydroponics

Aquaponics

Greenhouse/Controlled-Environment Agriculture

By Investment Type

Private Investments

Government Funding

Foreign Direct Investment

By Policy Support

Subsidies

Tax Incentives

Research Grants

Training Programs

Export Support Programs

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Environment, Water and Agriculture)

Manufacturers and Producers

Distributors and Retailers

Agricultural Cooperatives

Technology Providers

Industry Associations (e.g., Saudi Arabian Agricultural Association)

Financial Institutions

Players Mentioned in the Report:

Almarai Company

Savola Group

National Agricultural Development Company (NADEC)

Saudi Agricultural and Livestock Investment Company (SALIC)

Al-Faisaliah Group

United Farmers Holding Company

Al-Jouf Agricultural Development Company

Tabuk Agricultural Development Company

Arabian Agricultural Services Company (ARASCO)

Al-Safi Danone

Al-Ahsa Development Company

Qassim Agricultural Development Company (QADCO)

Al-Rajhi International for Investment

Wafrah for Industry and Development

Abdullah Al-Othaim Markets Company

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Saudi Arabia Agriculture Industry Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Saudi Arabia Agriculture Industry Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Saudi Arabia Agriculture Industry Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Demand for Food Security
3.1.2 Government Initiatives and Investments
3.1.3 Technological Advancements in Agriculture
3.1.4 Climate Adaptation Strategies

3.2 Market Challenges

3.2.1 Water Scarcity
3.2.2 Soil Degradation
3.2.3 High Production Costs
3.2.4 Limited Access to Modern Technology

3.3 Market Opportunities

3.3.1 Organic Farming Growth
3.3.2 Export Potential of Agricultural Products
3.3.3 Investment in Agri-tech Startups
3.3.4 Sustainable Farming Practices

3.4 Market Trends

3.4.1 Rise of Vertical Farming
3.4.2 Increased Use of Drones and IoT
3.4.3 Shift Towards Sustainable Practices
3.4.4 Growth of E-commerce in Agriculture

3.5 Government Regulation

3.5.1 Agricultural Subsidies
3.5.2 Import Tariffs on Agricultural Products
3.5.3 Environmental Regulations
3.5.4 Food Safety Standards

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Saudi Arabia Agriculture Industry Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Saudi Arabia Agriculture Industry Market Segmentation

8.1 By Type

8.1.1 Food Crops/Cereals
8.1.2 Fruits
8.1.3 Vegetables
8.1.4 Oilseeds and Pulses
8.1.5 Livestock Farming
8.1.6 Aquaculture
8.1.7 Horticulture
8.1.8 Organic Farming
8.1.9 Agrochemicals
8.1.10 Agricultural Machinery & Equipment
8.1.11 Others

8.2 By End-User

8.2.1 Retail Consumers
8.2.2 Food Processing Industry
8.2.3 Export Markets
8.2.4 Government Institutions

8.3 By Distribution Channel

8.3.1 Direct Sales
8.3.2 Wholesale Distributors
8.3.3 Online Retail
8.3.4 Farmers' Markets

8.4 By Product Category

8.4.1 Fresh Produce
8.4.2 Processed Foods
8.4.3 Dairy Products
8.4.4 Meat Products

8.5 By Farming Method

8.5.1 Conventional Farming
8.5.2 Organic Farming
8.5.3 Hydroponics
8.5.4 Aquaponics
8.5.5 Greenhouse/Controlled-Environment Agriculture

8.6 By Investment Type

8.6.1 Private Investments
8.6.2 Government Funding
8.6.3 Foreign Direct Investment

8.7 By Policy Support

8.7.1 Subsidies
8.7.2 Tax Incentives
8.7.3 Research Grants
8.7.4 Training Programs
8.7.5 Export Support Programs

9. Saudi Arabia Agriculture Industry Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue (USD Million)
9.2.4 Revenue Growth Rate (%)
9.2.5 Market Share (%)
9.2.6 Geographic Presence (Regions/Provinces Covered)
9.2.7 Product Portfolio Breadth
9.2.8 R&D Investment (% of Revenue)
9.2.9 Supply Chain Efficiency (Lead Time, Distribution Reach)
9.2.10 Sustainability Initiatives (Water Use, Emissions, Certifications)
9.2.11 Digitalization/Technology Adoption Index
9.2.12 Customer Segments Served
9.2.13 Export Ratio (% of Revenue from Exports)
9.2.14 Brand Recognition Score
9.2.15 Innovation Index

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Almarai Company
9.5.2 Savola Group
9.5.3 National Agricultural Development Company (NADEC)
9.5.4 Saudi Agricultural and Livestock Investment Company (SALIC)
9.5.5 Al-Faisaliah Group
9.5.6 United Farmers Holding Company
9.5.7 Al-Jouf Agricultural Development Company
9.5.8 Tabuk Agricultural Development Company
9.5.9 Arabian Agricultural Services Company (ARASCO)
9.5.10 Al-Safi Danone
9.5.11 Al-Ahsa Development Company
9.5.12 Qassim Agricultural Development Company (QADCO)
9.5.13 Al-Rajhi International for Investment
9.5.14 Wafrah for Industry and Development
9.5.15 Abdullah Al-Othaim Markets Company

10. Saudi Arabia Agriculture Industry Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Environment, Water and Agriculture
10.1.2 Ministry of Commerce
10.1.3 Ministry of Finance

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Irrigation Systems
10.2.2 Funding for Agricultural Research
10.2.3 Expenditure on Sustainable Practices

10.3 Pain Point Analysis by End-User Category

10.3.1 Farmers
10.3.2 Distributors
10.3.3 Retailers

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Rates
10.4.2 Training and Support Needs
10.4.3 Financial Readiness

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 ROI Measurement Techniques
10.5.2 Case Studies of Successful Implementations
10.5.3 Future Use Case Opportunities

11. Saudi Arabia Agriculture Industry Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Framework


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging Strategies

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of agricultural production statistics from the Saudi Ministry of Environment, Water and Agriculture
  • Review of market reports and publications from the Food and Agriculture Organization (FAO)
  • Examination of trade data and export-import statistics from the Saudi Arabian General Authority for Statistics

Primary Research

  • Interviews with agricultural experts and agronomists specializing in Saudi Arabia's crop production
  • Surveys with farmers and agricultural cooperatives to gather insights on current practices and challenges
  • Focus group discussions with stakeholders in the supply chain, including distributors and retailers

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including government reports and industry publications
  • Triangulation of qualitative insights from interviews with quantitative data from surveys
  • Sanity checks through expert panel reviews to ensure the reliability of the data collected

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total agricultural output based on national GDP contributions from the agriculture sector
  • Segmentation of market size by crop types, including cereals, fruits, and vegetables
  • Incorporation of government initiatives aimed at increasing agricultural productivity and sustainability

Bottom-up Modeling

  • Collection of data on farm-level production volumes from key agricultural regions in Saudi Arabia
  • Estimation of market value based on average prices of major crops and livestock
  • Analysis of input costs, including seeds, fertilizers, and water resources, to determine profitability

Forecasting & Scenario Analysis

  • Development of growth projections based on historical trends and future agricultural policies
  • Scenario analysis considering factors such as climate change impacts and technological advancements in farming
  • Creation of baseline, optimistic, and pessimistic forecasts through 2030 to account for market volatility

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Cereal Crop Producers100Farm Owners, Agricultural Managers
Fruit and Vegetable Growers90Horticulturists, Cooperative Leaders
Livestock Farmers80Livestock Managers, Veterinary Experts
Agricultural Equipment Suppliers60Sales Representatives, Product Managers
Agri-tech Innovators40Research Scientists, Technology Developers

Frequently Asked Questions

What is the current value of the Saudi Arabia Agriculture Industry Market?

The Saudi Arabia Agriculture Industry Market is valued at approximately USD 18 billion, reflecting significant growth driven by investments in agricultural technology, government initiatives for food security, and increasing consumer demand for locally sourced food products.

What are the key growth drivers for the agriculture sector in Saudi Arabia?

Which cities are the main contributors to the Saudi agriculture market?

What is the National Agricultural Development Strategy?

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