KSA Meat Market Outlook to 2028

KSA Meat Market Overview

• In 2023. The KSA Meat market was estimated at USD 4.85 Bn driven primarily by the rising demand for high-quality meat products and increasing population. The growing preference for protein-rich diets, influenced by health and fitness trends, further propels market growth. The expansion of retail chains and the food service industry also contribute to the market size, enhancing the availability and accessibility of meat products.
• Key players in the KSA meat market include Almarai, Tanmiah Food Company, and Al-Watania Poultry. These companies dominate the market through extensive product portfolios, strong distribution networks, and continuous product innovation. Almarai, known for its dairy and meat products, remains a leader due to its established brand reputation and commitment to quality.
• Riyadh and Jeddah are the dominant cities in the KSA meat market, accounting for the highest market shares. Riyadh, as the capital city, has a substantial population with a high purchasing power, driving demand for premium meat products. Jeddah, being a major commercial hub and port city, benefits from a robust distribution network and accessibility to imported meat products.
• In April 2023, Almarai announced an investment of SAR 250 million in expanding its meat processing facility in Riyadh, aiming to increase production capacity by 30%. This expansion is part of Almarai's strategic plan to meet the growing domestic demand for processed meat products and enhance its market presence.

KSA Meat Market Segmentation

The KSA Meat market is segmented by various factors like product, distribution channel, and region.

• By Product Type: The KSA meat market is segmented by product type into poultry, beef, and lamb. In 2023, poultry held a dominant market share due to its affordability, availability, and versatility in various cuisines. Poultry products are widely consumed across different segments of the population, and the increasing demand for processed poultry items like nuggets and sausages further strengthens this segment.
• By Distribution Channel: The market is segmented by distribution channel into supermarkets/hypermarkets, online retail, and specialty stores. Supermarkets and hypermarkets dominated the distribution channel with an important market share in 2023. These outlets offer a wide variety of meat products, ensuring freshness and quality, and provide consumers with the convenience of one-stop shopping, contributing to their dominance.
• By Region: The KSA meat market is segmented by region into north, south, east, and west. In 2023, the Western region dominated the market share due to its strategic location and commercial importance. The Western region's robust infrastructure and higher population density contribute to its leading position in the market.

KSA Meat Market Competitive Landscape

• Tanmiah Food Company: In July 2022, Tyson Foods and Tanmiah Food Company signed a strategic partnership agreement. Tyson Foods acquired a 15% equity stake in Tanmiah subsidiary Agriculture Development Company (ADC) and a 60% equity stake in Supreme Foods Processing Company (SFPC). Tyson Foods and Tanmiah committed to jointly invest to expand the processing capacity of SFPC, aiming to double its production capacity in further processed products.
• Almunajem Foods: In 2021, Almunajem Foods expanded its meat processing factory located in Jeddah. This expansion increased the factory's capacity by 20,000 metric tons per annum, bringing the total capacity to 45,000 metric tons. This move is designed to meet the rising demand for its meat products and to localize the production of some items that were previously imported

KSA Meat Market Analysis

KSA Meat Market Growth Drivers

• Rising Health Consciousness: The KSA meat market is experiencing growth due to an increasing health consciousness among consumers. In 2024, a substantial portion of the population is shifting towards protein-rich diets to enhance their health and fitness. This trend is supported by a survey conducted by the Saudi Health Council, which found that majority of Saudis are actively seeking high-protein diets, directly driving the demand for various meat products.
• Expansion of Retail Chains: The proliferation of supermarkets and hypermarkets in Saudi Arabia contributes to the growth of the meat market. In KSA, more than 10 retail chains are operating, additionally, Data from the Ministry of Commerce and Investment indicates that the number of large retail outlets has increase exceptionally from 2022 to 2024, making meat products more accessible to a broader consumer base and enhancing sales through improved availability and convenience.
• Increased Meat Production Capacity: Local meat production capacity is expanding, supported by substantial investments from key players. Tanmiah Food Company has increased its meat production capacity substantially in 2024 through the establishment of new processing facilities. This increase in local production not only meets the rising domestic demand but also reduces reliance on imports, ensuring a steady supply of fresh meat products in the market.

KSA Meat Market Challenges

• Supply Chain Disruptions: The KSA meat market faces challenges due to supply chain disruptions, which affect the timely delivery and quality of meat products. In 2023, logistic issues caused by geopolitical tensions and transportation delays led to a 10% increase in operational costs for meat producers, according to the Saudi Logistics and Supply Chain Association. These disruptions impact the market by causing price fluctuations and affecting the availability of meat products.
• Regulatory Compliance: Ensuring compliance with stringent food safety and halal certification regulations poses an important challenge for meat producers. In 2024, the Saudi Food and Drug Authority reported that of a small portion of meat processing facilities faced penalties due to non-compliance with hygiene and halal standards. This regulatory scrutiny increases operational costs and necessitates continuous investment in quality assurance processes.

KSA Meat Market Government Initiatives

• National Transformation Program 2023: The National Transformation Program was launched in 2016 as part of Saudi Arabia's Vision 2030. It aims to develop infrastructure and enhance various sectors, including agriculture and food security. The program encompasses a range of strategic objectives designed to improve the business environment and support economic diversification.
• Support for Sustainable Practices: In 2024, the Ministry of Environment, Water, and Agriculture introduced incentives for meat producers to adopt sustainable practices. These incentives include subsidies for implementing water-saving technologies and reducing carbon footprints. The goal is to align the meat industry with the Kingdoms Vision 2030 sustainability targets.

KSA Meat Future Market Outlook

The KSA meat market is poised for remarkable growth, driven by technological advancements in meat processing, expansion of meat export markets, and shift towards sustainable and ethical meat production.

Future Market Trends

• Technological Advancements in Meat Processing: The market is expected to benefit from technological advancements in meat processing over the next five years. By 2028, the integration of AI and automation in meat processing facilities will significantly enhance production efficiency and product quality. According to the Saudi Ministry of Industry and Mineral Resources, these technologies will reduce operational costs and increase output substantially driving market growth.
• Expansion of Meat Export Markets: The future of this market will be shaped by the expansion of export opportunities. The Saudi Export Development Authority projects that by 2028, meat exports will grow remarkably, driven by increasing demand in neighboring GCC countries and Asia. This expansion will be facilitated by government trade agreements and investments in improving meat processing standards to meet international quality requirements.