Saudi Arabia Ready Meals Market

Saudi Arabia Ready Meals Market Overview

• The Saudi Arabia Ready Meals Market is valued at USD 1.9 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for convenience foods, urbanization, and a busy lifestyle among consumers. The rise in disposable income, proliferation of online food delivery platforms, and changing dietary preferences have also contributed to the market's expansion, as more consumers opt for ready-to-eat meals that save time and effort in meal preparation.
• Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their large populations and urbanization rates. These cities have a higher concentration of retail outlets and food service establishments, making them prime locations for ready meal distribution. Additionally, the growing expatriate population in these urban centers has led to an increased demand for diverse meal options, further driving market growth.
• In 2023, the Saudi government implemented regulations to enhance food safety standards in the ready meals sector. This includes mandatory labeling requirements for nutritional information and ingredient transparency, aimed at protecting consumer health and promoting informed choices. The initiative is part of a broader strategy to improve food quality and safety across the food supply chain in the Kingdom.

Saudi Arabia Ready Meals Market Segmentation

By Type:The ready meals market can be segmented into various types, including frozen, chilled, ambient (shelf-stable), dried, meal kits, ethnic cuisine meals, organic meals, and others. Among these, frozen ready meals have gained significant traction due to their long shelf life, convenience, and suitability for busy lifestyles. Chilled ready meals are also popular, particularly among health-conscious consumers seeking fresher options. The demand for meal kits has surged as consumers look for easy-to-prepare meals that offer a cooking experience, while ambient and dried meals appeal to those prioritizing shelf stability and portability.

By Product:The product segmentation includes meat-based meals, poultry-based meals, seafood-based meals, vegetarian/vegan meals, pizza, parathas & tortilla wraps, biryani, cup noodles, prepared salads, burgers, and others. Meat-based meals dominate the market due to their popularity among consumers, while vegetarian and vegan options are gaining traction as more people adopt plant-based diets. The convenience of ready-to-eat pizza and biryani also contributes to their strong market presence. Additionally, demand for healthier and more diverse options, including ethnic and organic meals, is rising as consumers seek variety and nutritional value.

Saudi Arabia Ready Meals Market Competitive Landscape

The Saudi Arabia Ready Meals Market is characterized by a dynamic mix of regional and international players. Leading participants such as Almarai Company, Savola Group, Americana Group, Nestlé Saudi Arabia, Al Kabeer Group ME, Almunajem Foods, Sunbulah Group, Siwar Foods, Seara Foods (JBS Foods SA), Nutrition and Diet Center Frozen Ready Meals, Al-Watania Poultry, Al-Othaim Food Company, Nadec, Al-Jazeera Foods, Al-Baik Food Systems contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Ready Meals Market Industry Analysis

Growth Drivers

• Increasing Urbanization:Urbanization in Saudi Arabia is accelerating, with the urban population projected to reach approximately 30.6 million, up from 34 million in 2021. This shift is driving demand for ready meals as urban dwellers seek convenient food options that fit their fast-paced lifestyles. The urbanization rate is expected to exceed 84% in future, creating a larger consumer base for ready meals, particularly among working professionals and young families who prioritize convenience.
• Busy Lifestyles of Consumers:The average working hours in Saudi Arabia are around 48 hours per week, leading to increased demand for ready meals. As more individuals juggle work and family responsibilities, the need for quick meal solutions has surged. In future, it is estimated that 60% of households will rely on ready meals at least once a week, reflecting a significant shift towards convenience-driven food choices that cater to busy lifestyles.
• Rising Disposable Incomes:Saudi Arabia's GDP per capita is projected to reach approximately $29,000 in future, indicating a rise in disposable incomes. This increase allows consumers to spend more on convenience foods, including ready meals. As disposable income rises, consumers are more willing to invest in higher-quality ready meal options, driving market growth. The trend is particularly evident among the younger population, who prioritize quality and convenience in their food choices.

Market Challenges

• High Competition in the Market:The Saudi ready meals market is characterized by intense competition, with over 50 local and international brands vying for market share. This saturation leads to price wars and challenges in brand differentiation. In future, it is expected that the top five brands will hold only 30% of the market share, indicating a fragmented landscape where new entrants struggle to establish a foothold amidst established players.
• Consumer Perception of Ready Meals:Despite the growing demand, many consumers in Saudi Arabia still perceive ready meals as unhealthy or inferior to home-cooked meals. Approximately 40% of consumers express concerns about preservatives and artificial ingredients in ready meals. This perception poses a challenge for brands aiming to penetrate the market, as they must invest in marketing strategies that emphasize quality, health benefits, and transparency in ingredient sourcing to change consumer attitudes.

Saudi Arabia Ready Meals Market Future Outlook

The future of the Saudi Arabia ready meals market appears promising, driven by evolving consumer preferences and technological advancements. As urbanization continues, the demand for convenient meal solutions will likely increase, particularly among younger demographics. Additionally, the introduction of healthier options and sustainable packaging will cater to the growing health-conscious consumer base. Companies that leverage e-commerce and food delivery services will be well-positioned to capitalize on these trends, enhancing accessibility and convenience for consumers.

Market Opportunities

• Expansion of E-commerce Platforms:The rise of e-commerce in Saudi Arabia, with online retail sales projected to reach approximately $13 billion in future, presents a significant opportunity for ready meal brands. By establishing a strong online presence, companies can tap into a broader consumer base, offering convenience and accessibility that aligns with modern shopping habits, particularly among tech-savvy younger consumers.
• Introduction of Healthier Options:With 60% of consumers expressing interest in healthier ready meal options, brands that innovate by offering organic, low-calorie, or plant-based meals can capture a growing segment of health-conscious consumers. This trend is expected to drive sales, as more individuals prioritize nutrition and wellness in their food choices, creating a lucrative market for health-oriented ready meal products.