KSA Frozen Food Market Outlook to 2028

KSA Frozen Food Market Overview

• The Kingdom of Saudi Arabia (KSA) frozen food market has seen substantial growth, with a market size valued at USD 8 billion. The growth is driven by several factors, including a rising preference for convenience food due to the increasing number of dual-income households and a rapid urbanization rate. Additionally, advancements in cold chain infrastructure have allowed manufacturers and retailers to maintain high-quality frozen products, ensuring long shelf life and availability across the country. The market has also benefited from changing consumer habits, with busy lifestyles prompting the shift toward ready-to-cook and ready-to-eat frozen foods.
• The dominant regions in the KSA frozen food market include major cities like Riyadh, Jeddah, and Dammam. These cities boast large populations with higher disposable incomes, contributing to the demand for convenience foods. Moreover, these urban centers have better-developed cold chain logistics and retail infrastructure, enabling a wider and more consistent supply of frozen products. The growing influence of Western lifestyles and food preferences in these cities has also spurred the growth of this market, especially in frozen bakery products and ready meals.
• The Saudi Food and Drug Authority (SFDA) has strict guidelines for food safety and quality, particularly in the frozen food sector. Frozen food products must comply with hygiene standards, shelf life requirements, and proper labeling. According to the SFDA, over 400 frozen food products were inspected and certified for food safety in 2023, ensuring that they meet the Kingdoms high standards. The SFDA also requires strict adherence to storage temperature regulations, which helps maintain product quality and safety.

KSA Frozen Food Market Segmentation

By Product Type: The KSA frozen food market is segmented by product type into frozen vegetables, frozen meat and poultry, frozen seafood, frozen bakery products, and frozen ready meals. Among these, frozen meat and poultry have a dominant market share due to the high consumption of meat-based products in the region, driven by cultural preferences and a strong demand for halal-certified products.

By Distribution Channel: The KSA frozen food market is further segmented by distribution channels, which include supermarkets and hypermarkets, convenience stores, e-commerce platforms, and HoReCa (Hotels, Restaurants, and Catering). Supermarkets and hypermarkets dominate the distribution landscape, holding the largest share due to their wide product assortment and the trust consumers place in these large retailers for maintaining product quality and freshness.

KSA Frozen Food Market Competitive Landscape

The KSA frozen food market is characterized by the presence of both domestic and international players, with local companies leading due to their understanding of cultural preferences, specifically the importance of halal certification. Global brands are also making inroads, leveraging advanced technology and innovation in packaging and distribution. The competitive environment remains robust, driven by product diversification, marketing strategies, and expanding cold chain logistics.

KSA Frozen Food Industry Analysis

Growth Drivers

• Changing Consumer Preferences (Shift to Convenience Foods, Health-Conscious Choices): The shift in consumer behavior towards convenience foods in Saudi Arabia is largely driven by urbanization, busy lifestyles, and the increasing number of working women. Saudi Arabias urban population grew by 6.7 million between 2010 and 2022, reaching 36.4 million according to World Bank data, and urbanization is closely linked to the rising demand for convenient frozen foods.
• Population Growth and Urbanization: Saudi Arabia's population grew from 33.4 million in 2018 to over 36.4 million in 2023, and the majority resides in urban centers like Riyadh, Jeddah, and Dammam. This expanding urban population increases demand for frozen foods due to lifestyle shifts that favor convenience. According to IMF statistics, urban areas are experiencing rapid infrastructural development, supporting larger supermarkets and hypermarkets, which are pivotal for frozen food retail.
• Expansion of Cold Chain Infrastructure: Saudi Arabia has made substantial investments in cold chain infrastructure as part of its Vision 2030 initiative. The Ministry of Transport and Logistics Services is overseeing the development of integrated cold chain logistics to reduce food wastage and ensure the proper storage of frozen foods. This infrastructure expansion is evident from the growth of cold storage capacity in ports and urban centers, particularly in Jeddah and Dammam, where the capacity increased by 18% from 2020 to 2023, according to official government reports.

Market Challenges

• High Energy and Storage Costs: Cold storage and transportation of frozen foods require a significant amount of energy, and electricity costs in Saudi Arabia are relatively high. The Kingdoms industrial energy consumption rose to 295 TWh in 2023, with cold chain logistics being a major contributor. Energy expenses account for a large portion of operational costs, impacting profit margins for companies in the frozen food market.
• Stringent Food Safety and Quality Regulations: Saudi Arabia has some of the most stringent food safety regulations in the region. The Saudi Food and Drug Authority (SFDA) enforces rigorous guidelines for frozen food quality, including hygiene standards, labeling, and halal certification. Adherence to these regulations, particularly the requirement for halal compliance, increases operational costs for manufacturers and importers, which can slow down market entry for new players.

KSA Frozen Food Market Future Outlook

Over the next five years, the KSA frozen food market is expected to experience steady growth, driven by increased urbanization, expanding cold chain infrastructure, and evolving consumer preferences toward ready-to-eat and health-oriented frozen products. The continuous expansion of retail channels, including e-commerce, is set to further propel market growth. Moreover, the rising demand for halal-certified frozen products, alongside innovation in packaging, will play a crucial role in shaping the future of this market.

Market Opportunities

• Rising Demand for Halal Frozen Products: With the global halal food market expanding, there is significant growth potential for halal-certified frozen products in Saudi Arabia. The country, being the heart of the Islamic world, has a large demand for halal frozen meals, especially as the population diversifies with expatriates and tourists. The Kingdom's imports of halal frozen products have increased by 12% between 2021 and 2023, according to Saudi Customs data.
• Growth of E-commerce Channels for Frozen Food: The rise of e-commerce in Saudi Arabia, fueled by the rapid adoption of digital technologies, has created new avenues for the frozen food market. Online grocery platforms like Danube Online and Carrefour have reported a surge in frozen food sales. According to the Saudi Ministry of Commerce, online food sales grew by 28% from 2022 to 2023, and frozen food was one of the leading categories.