Saudi Arabia Agriculture Market

Saudi Arabia agriculture market, valued at USD 18 Bn, is expanding through government strategies, tech adoption, and sustainable practices, aiming for enhanced food security and productivity by 2030.

Region:Middle East

Author(s):Rebecca

Product Code:KRAC0191

Pages:95

Published On:August 2025

About the Report

Base Year 2024

Saudi Arabia Agriculture Market Overview

  • The Saudi Arabia Agriculture Market is valued at USD 18 billion, based on a five-year historical analysis. This growth is primarily driven by increasing investments in agricultural technology, government initiatives to enhance food security, and a rising demand for locally produced food products. The market has seen a significant shift towards sustainable practices and modern farming techniques, including the adoption of greenhouse and vertical farming, precision agriculture, and smart irrigation systems, which have contributed to its expansion.
  • Key players in this market include Riyadh, Jeddah, and Dammam, which dominate due to their strategic locations, access to transportation networks, and proximity to major consumer bases. These cities are also home to several agricultural companies and research institutions that foster innovation and development in the sector, further solidifying their market leadership.
  • In 2023, the Saudi government implemented the National Agricultural Development Strategy, which aims to increase agricultural productivity and sustainability. This initiative includes investments of approximately USD 1 billion to support research and development in agriculture, promote water conservation techniques, and enhance the overall efficiency of the agricultural supply chain.
Saudi Arabia Agriculture Market Size

Saudi Arabia Agriculture Market Segmentation

By Type:The agriculture market in Saudi Arabia is segmented into cereals, fruits and vegetables, livestock, dairy products, aquaculture, organic products, and others. Cereals—particularly wheat, barley, sorghum, and maize—continue to dominate due to their essential role in food security and staple diets. The fruits and vegetables segment is expanding rapidly, driven by large-scale greenhouse adoption and the popularity of high-value crops such as dates, tomatoes, cucumbers, and melons. Livestock, dairy, and aquaculture remain significant, with poultry and dairy products being especially prominent. The increasing demand for healthy and organic food options has led to a rise in the production of certified organic products, appealing to health-conscious consumers.

Saudi Arabia Agriculture Market segmentation by Type.

By End-User:The end-user segmentation of the agriculture market includes retail consumers, the food processing industry, export markets, and government institutions. Retail consumers represent the largest segment, driven by population growth and evolving dietary preferences for fresh and locally sourced products. The food processing industry is also significant, requiring a steady supply of raw agricultural products to meet demand for processed foods. Export markets and government institutions play important roles in supporting sector growth and food security initiatives.

Saudi Arabia Agriculture Market segmentation by End-User.

Saudi Arabia Agriculture Market Competitive Landscape

The Saudi Arabia Agriculture 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), Tabuk Agricultural Development Company, Al-Jouf Agricultural Development Company, United Farmers Holding Company, Arabian Agricultural Services Company (ARASCO), Saudi Agricultural and Livestock Investment Company (SALIC), Al-Othaim Holding Company, Al-Jazeera Agricultural Company, Al-Muhaidib Group, Al-Babtain Group, Al-Safi Danone, Al-Rajhi Agricultural Investment Company, and Al-Khodari Sons 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

Tabuk Agricultural Development Company

1983

Tabuk, Saudi Arabia

Al-Jouf Agricultural Development Company

1988

Al-Jouf, Saudi Arabia

Company

Establishment Year

Headquarters

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

Revenue Growth Rate (Annual %)

Market Penetration Rate (% of national agricultural output or retail presence)

Customer Retention Rate (% repeat business, contract renewals)

Pricing Strategy (Premium, Value, Competitive, Subsidized)

Product Diversification Index (Number of distinct product categories)

Saudi Arabia Agriculture Market Industry Analysis

Growth Drivers

  • Increasing Demand for Food Security:The Saudi Arabian government has prioritized food security, with a target to increase local food production by 30% in future. This initiative is driven by a growing population, projected to reach 40 million in future, and rising consumer demand for locally sourced food. The government allocated SAR 1.5 billion (approximately USD 400 million) in future to enhance agricultural productivity, ensuring that food supply meets the needs of its citizens.
  • Government Investment in Agricultural Technology:In future, the Saudi government plans to invest SAR 2 billion (around USD 533 million) in agricultural technology to modernize farming practices. This investment aims to enhance efficiency and productivity through precision agriculture, which is expected to increase crop yields by 20%. The focus on technology adoption aligns with Vision 2030, which emphasizes innovation in the agricultural sector to reduce reliance on food imports.
  • Expansion of Irrigation Infrastructure:Saudi Arabia's irrigation infrastructure is set to expand significantly, with an investment of SAR 3 billion (approximately USD 800 million) planned in future. This expansion aims to increase irrigated land by 15%, addressing the challenges posed by water scarcity. Improved irrigation systems will enhance water efficiency, allowing farmers to cultivate more land and increase agricultural output, thereby supporting the country's food security goals.

Market Challenges

  • Water Scarcity Issues:Water scarcity remains a critical challenge for Saudi Arabia's agriculture sector, with the country classified as one of the most water-scarce nations globally. In future, the total renewable water resources are estimated at only 2.5 billion cubic meters, significantly below the demand of 10 billion cubic meters. This scarcity limits agricultural expansion and increases competition for water resources, impacting crop production and sustainability.
  • High Production Costs:The agricultural sector in Saudi Arabia faces high production costs, primarily due to the reliance on imported seeds and fertilizers. In future, the average cost of production per hectare is projected to be SAR 20,000 (approximately USD 5,333), which is significantly higher than in neighboring countries. These elevated costs hinder profitability for local farmers and discourage investment in the sector, posing a challenge to achieving self-sufficiency in food production.

Saudi Arabia Agriculture Market Future Outlook

The future of the Saudi Arabian agriculture market appears promising, driven by technological advancements and a strong governmental focus on sustainability. The adoption of smart farming technologies is expected to revolutionize traditional practices, enhancing productivity and resource management. Additionally, the increasing emphasis on climate-resilient crops will help mitigate the impacts of climate change, ensuring food security. As the market evolves, collaboration between public and private sectors will be crucial in addressing challenges and seizing growth opportunities.

Market Opportunities

  • Adoption of Smart Farming Technologies:The integration of smart farming technologies, such as IoT and AI, presents a significant opportunity for the Saudi agriculture market. In future, investments in these technologies are expected to exceed SAR 1 billion (around USD 267 million), enhancing operational efficiency and crop management. This shift will enable farmers to optimize resource use and increase yields, contributing to food security.
  • Development of Sustainable Practices:There is a growing opportunity for the development of sustainable agricultural practices in Saudi Arabia. With the government promoting organic farming, the organic market is projected to reach SAR 500 million (approximately USD 133 million) in future. This trend not only meets consumer demand for healthier food options but also supports environmental sustainability, positioning Saudi Arabia as a leader in sustainable agriculture in the region.

Scope of the Report

SegmentSub-Segments
By Type

Cereals (Wheat, Barley, Sorghum, Maize)

Fruits and Vegetables (Dates, Tomatoes, Cucumbers, Melons, Citrus, Leafy Greens)

Livestock (Poultry, Sheep, Goats, Camels, Cattle)

Dairy Products (Milk, Cheese, Yogurt)

Aquaculture (Tilapia, Shrimp, Sea Bass)

Organic Products (Certified Organic Fruits, Vegetables, Dairy)

Others (Herbs, Spices, Honey)

By End-User

Retail Consumers

Food Processing Industry

Export Markets

Government Institutions

By Distribution Channel

Direct Sales

Wholesale Markets

Online Retail

Supermarkets and Hypermarkets

By Region

Central Region (Riyadh, Qassim)

Eastern Region (Dammam, Al-Ahsa)

Western Region (Jeddah, Makkah, Madinah)

Southern Region (Jizan, Asir, Najran)

By Farming Method

Conventional Farming

Organic Farming

Hydroponics

Aquaponics

By Crop Type

Grains (Wheat, Barley, Sorghum)

Pulses (Lentils, Chickpeas, Beans)

Oilseeds (Sunflower, Sesame)

Vegetables (Tomatoes, Cucumbers, Leafy Greens)

By Investment Source

Private Investments

Government Funding

Foreign Direct Investment (FDI)

Public-Private Partnerships (PPP)

Key Target Audience

Investors and Venture Capitalist Firms

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

Agricultural Producers and Farmers' Cooperatives

Food Processing Companies

Agri-tech Startups and Innovators

Supply Chain and Logistics Companies

Export and Import Agencies

Financial Institutions and Banks

Players Mentioned in the Report:

Almarai Company

Savola Group

National Agricultural Development Company (NADEC)

Tabuk Agricultural Development Company

Al-Jouf Agricultural Development Company

United Farmers Holding Company

Arabian Agricultural Services Company (ARASCO)

Saudi Agricultural and Livestock Investment Company (SALIC)

Al-Othaim Holding Company

Al-Jazeera Agricultural Company

Al-Muhaidib Group

Al-Babtain Group

Al-Safi Danone

Al-Rajhi Agricultural Investment Company

Al-Khodari Sons Company

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Saudi Arabia Agriculture Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Saudi Arabia Agriculture 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 Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Demand for Food Security
3.1.2 Government Investment in Agricultural Technology
3.1.3 Expansion of Irrigation Infrastructure
3.1.4 Rise in Organic Farming Practices

3.2 Market Challenges

3.2.1 Water Scarcity Issues
3.2.2 High Production Costs
3.2.3 Limited Agricultural Land
3.2.4 Dependence on Imported Food Products

3.3 Market Opportunities

3.3.1 Adoption of Smart Farming Technologies
3.3.2 Growth in Export Markets
3.3.3 Development of Sustainable Practices
3.3.4 Investment in Agricultural Research and Development

3.4 Market Trends

3.4.1 Shift Towards Vertical Farming
3.4.2 Increasing Use of Drones in Agriculture
3.4.3 Rise of Agritech Startups
3.4.4 Focus on Climate-Resilient Crops

3.5 Government Regulation

3.5.1 Agricultural Subsidy Programs
3.5.2 Import Tariffs on Agricultural Products
3.5.3 Water Usage Regulations
3.5.4 Standards for Organic Certification

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


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

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Saudi Arabia Agriculture Market Segmentation

8.1 By Type

8.1.1 Cereals (Wheat, Barley, Sorghum, Maize)
8.1.2 Fruits and Vegetables (Dates, Tomatoes, Cucumbers, Melons, Citrus, Leafy Greens)
8.1.3 Livestock (Poultry, Sheep, Goats, Camels, Cattle)
8.1.4 Dairy Products (Milk, Cheese, Yogurt)
8.1.5 Aquaculture (Tilapia, Shrimp, Sea Bass)
8.1.6 Organic Products (Certified Organic Fruits, Vegetables, Dairy)
8.1.7 Others (Herbs, Spices, Honey)

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 Markets
8.3.3 Online Retail
8.3.4 Supermarkets and Hypermarkets

8.4 By Region

8.4.1 Central Region (Riyadh, Qassim)
8.4.2 Eastern Region (Dammam, Al-Ahsa)
8.4.3 Western Region (Jeddah, Makkah, Madinah)
8.4.4 Southern Region (Jizan, Asir, Najran)

8.5 By Farming Method

8.5.1 Conventional Farming
8.5.2 Organic Farming
8.5.3 Hydroponics
8.5.4 Aquaponics

8.6 By Crop Type

8.6.1 Grains (Wheat, Barley, Sorghum)
8.6.2 Pulses (Lentils, Chickpeas, Beans)
8.6.3 Oilseeds (Sunflower, Sesame)
8.6.4 Vegetables (Tomatoes, Cucumbers, Leafy Greens)

8.7 By Investment Source

8.7.1 Private Investments
8.7.2 Government Funding
8.7.3 Foreign Direct Investment (FDI)
8.7.4 Public-Private Partnerships (PPP)

9. Saudi Arabia Agriculture 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 Growth Rate (Annual %)
9.2.4 Market Penetration Rate (% of national agricultural output or retail presence)
9.2.5 Customer Retention Rate (% repeat business, contract renewals)
9.2.6 Pricing Strategy (Premium, Value, Competitive, Subsidized)
9.2.7 Product Diversification Index (Number of distinct product categories)
9.2.8 Supply Chain Efficiency (Lead time, logistics cost as % of revenue)
9.2.9 Brand Recognition Score (Survey-based or digital presence metrics)
9.2.10 Innovation Index (R&D spend as % of revenue, patents filed, new product launches)

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 Tabuk Agricultural Development Company
9.5.5 Al-Jouf Agricultural Development Company
9.5.6 United Farmers Holding Company
9.5.7 Arabian Agricultural Services Company (ARASCO)
9.5.8 Saudi Agricultural and Livestock Investment Company (SALIC)
9.5.9 Al-Othaim Holding Company
9.5.10 Al-Jazeera Agricultural Company
9.5.11 Al-Muhaidib Group
9.5.12 Al-Babtain Group
9.5.13 Al-Safi Danone
9.5.14 Al-Rajhi Agricultural Investment Company
9.5.15 Al-Khodari Sons Company

10. Saudi Arabia Agriculture 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 Agricultural Infrastructure
10.2.2 Energy Consumption Patterns

10.3 Pain Point Analysis by End-User Category

10.3.1 Supply Chain Disruptions
10.3.2 Quality Control Issues

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Rates
10.4.2 Training and Support Needs

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of ROI
10.5.2 Potential for Scaling Solutions

11. Saudi Arabia Agriculture 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 Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs 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

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

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

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV

10.2 Greenfield

10.3 M&A

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


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 JVs

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 Activity Planning
15.2.2 Milestone 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 import/export 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 agricultural 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 the market 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 and pricing from local agricultural reports
  • Estimation of input costs, including seeds, fertilizers, and water resources
  • Calculation of market size based on production volume multiplied by average market prices

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating factors such as climate change, water availability, and technological advancements
  • Scenario modeling based on potential shifts in consumer demand and government policy changes
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Cereal Crop Producers100Farm Owners, Agricultural Managers
Fruit and Vegetable Growers90Horticulturists, Cooperative Leaders
Agricultural Equipment Suppliers50Sales Managers, Product Specialists
Agrochemical Distributors60Distribution Managers, Supply Chain Analysts
Government Agricultural Policy Makers40Policy Advisors, Regulatory Officials

Frequently Asked Questions

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

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

What are the key drivers of growth in the Saudi Arabia Agriculture Market?

Which cities are the main players in the Saudi Arabia Agriculture Market?

What initiatives has the Saudi government implemented to support agriculture?

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