Saudi Arabian Poultry Market

Saudi Arabian Poultry Market Overview

• The Saudi Arabian Poultry Market is valued at USD 19 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer demand for protein-rich diets, coupled with a growing population and urbanization trends. The market has seen a significant rise in poultry consumption, particularly chicken, as it is considered a staple protein source in the region.
• Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their large populations and urban infrastructure. These cities serve as major distribution hubs, facilitating the supply chain for poultry products. Additionally, the presence of numerous processing facilities and retail outlets in these urban centers further enhances their market dominance.
• In 2023, the Saudi government implemented a new regulation aimed at enhancing food safety standards in the poultry sector. This regulation mandates that all poultry products must undergo rigorous health inspections and comply with specific hygiene protocols before reaching consumers. The initiative is part of a broader strategy to ensure food security and improve public health outcomes in the Kingdom.

Saudi Arabian Poultry Market Segmentation

By Type:The poultry market can be segmented into various types, including Broilers, Layers (Table Eggs), Turkeys, Ducks, Quail, Organic/Free-range Poultry, Processed Chicken (nuggets, marinated, canned), and Others. Among these, Broilers are the most dominant segment due to their high demand in both retail and foodservice sectors. The increasing preference for chicken as a primary protein source, coupled with the convenience of processed chicken products, drives this segment's growth.

By End-User:The end-user segmentation includes Household/Retail, Foodservice (HORECA, QSRs, Catering), Institutional Buyers (schools, hospitals, camps), and Industrial/Processors. The Household/Retail segment is the largest due to the increasing consumption of poultry products in homes. The trend towards convenience foods and ready-to-cook options has further bolstered this segment's growth, as families seek quick meal solutions.

Saudi Arabian Poultry Market Competitive Landscape

The Saudi Arabian Poultry Market is characterized by a dynamic mix of regional and international players. Leading participants such as Al-Watania Poultry (Al-Watania Poultry Co.), Almarai Company (Poultry & EVYD/Al-Youm brand), Fakieh Poultry Farms Co., Tanmiah Food Company, Al Ajlan Poultry (Ajlan & Bros Holding – agriculture), Al Dabbagh Group – Supreme Foods Processing Co., Al Kabeer Group ME, Radwa Food Production Co. (Radwa Poultry), Al-Jazira Poultry Farm, Al-Safa Poultry Co., Arabian Farms (Arabian Farms Development Co.), Al Youm Poultry (Brand of Almarai), Almunajem Foods, BRF Sadia (BRF Türkiye/BRF GCC – KSA operations), Al Salam Poultry Co. contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabian Poultry Market Industry Analysis

Growth Drivers

• Increasing Demand for Poultry Products:The Saudi Arabian poultry market is experiencing a surge in demand, with consumption reaching approximately 1.6 million tons in future. This growth is driven by a population of over 36 million, which is projected to increase by 1.5% annually. Additionally, the average per capita poultry consumption is around 45 kg, significantly higher than the global average of 33 kg, indicating a robust domestic appetite for poultry products.
• Government Support and Subsidies:The Saudi government has committed over SAR 1.2 billion (approximately USD 320 million) in subsidies to enhance local poultry production. This initiative aims to reduce reliance on imports, which accounted for 30% of the market in future. Furthermore, the government’s Vision 2030 plan emphasizes food security, encouraging investments in poultry infrastructure and technology, thereby fostering industry growth.
• Rising Health Consciousness Among Consumers:With a growing awareness of health and nutrition, Saudi consumers are increasingly opting for poultry as a lean protein source. The market for organic poultry products has seen a 22% increase in demand over the past year, reflecting a shift towards healthier eating habits. This trend is supported by the World Health Organization's recommendations for increased protein intake, further driving poultry consumption in the region.

Market Challenges

• Competition from Imported Poultry:The Saudi poultry market faces significant competition from imported products, which constituted 30% of total consumption in future. Countries like Brazil and the United States dominate the import market, offering lower prices due to economies of scale. This competition pressures local producers to enhance their pricing strategies and quality standards to retain market share amidst rising consumer preferences for imported poultry.
• Regulatory Compliance Costs:Compliance with stringent food safety and quality regulations imposes substantial costs on local poultry producers. In future, regulatory compliance expenses accounted for approximately 16% of total production costs. These costs are expected to rise as the government enforces stricter standards to ensure food safety, which may hinder the profitability of smaller producers and limit their ability to compete effectively in the market.

Saudi Arabian Poultry Market Future Outlook

The Saudi Arabian poultry market is poised for significant transformation, driven by technological advancements and a shift towards sustainable practices. As consumer preferences evolve, the demand for organic and locally sourced poultry products is expected to rise, aligning with global health trends. Additionally, the government's ongoing investments in poultry infrastructure will likely enhance production efficiency and food security, positioning the market for robust growth in the coming years. The integration of e-commerce platforms will further facilitate access to poultry products, catering to the tech-savvy consumer base.

Market Opportunities

• Growth in Organic Poultry Products:The increasing consumer preference for organic poultry presents a lucrative opportunity for producers. The organic poultry segment is projected to grow by 27% annually, driven by health-conscious consumers seeking antibiotic-free and hormone-free options. This trend aligns with global shifts towards sustainable agriculture, providing local producers with a competitive edge in the market.
• Technological Advancements in Farming:The adoption of advanced farming technologies, such as automation and data analytics, offers significant opportunities for efficiency improvements. Investments in smart farming solutions can reduce operational costs by up to 22%, enhancing productivity. This technological shift not only supports local producers in meeting rising demand but also positions them favorably against international competitors.