The Saudi Arabian fruits and vegetables market is projected to register a CAGR of 4.5% during the forecast period, 2022-2027. Office of Agricultural Affairs (OAA) in Riyadh reports that Saudi Arabia was a significant market for US food and agricultural products, with direct US exports of USD 1.2 billion in 2020, a decline of 7%, despite some issues related to COVID-19 and lower oil prices in Saudi that depressed overall sales. Although the retail sale of fruits and vegetables increased due to consumer preferences toward consuming healthy diets to boost immunity, the supply chain and production got disrupted in terms of export and import trade movements. The wholesale market of fruits and vegetables also got disrupted due to lesser demand from the bulk purchasers belonging to hotels, restaurants, and tourism industries.
With increasing urbanization and higher disposable incomes in the country, along with increased awareness about healthy diets, people are shifting toward healthier diet plans, which include fresh fruits and vegetables. Saudi Arabia is mostly self-sufficient in terms of vegetable yield. However, regarding fruits, the country has to rely on imports from other countries to cater to domestic demand.
Dates and watermelons are the most widely produced fruits while potatoes and tomatoes are the most widely produced vegetables in Saudi Arabia. Consumers and processors highly depend on fruits and vegetables for sustainability in Saudi. Demand for fruit and vegetable products in Saudi Arabia is anticipated to continue growing, supported by the country’s rich oil-based economy, Increased westernization and disposable income of Saudi households, and rapidly expanding retail trade, stimulating the consumption.
The increasing presence of superstores and hypermarkets has increased access to high-quality fruits and vegetables for the Saudi population. As many of these retailers adopt strategies, including optimal pricing strategies, to capture the market, the demand among consumers is increasing. The urban population is gradually becoming brand conscious and aware of the origin and type of food consumed. Self-sufficiency in the food supply is one of the key focus areas of the Saudi Arabian government.
Adverse climatic conditions such as high temperatures and prolonged dry spells have meant that Saudi Arabia is highly dependent on the imports of fresh produce such as vegetables. In aiming for self-sufficiency in vegetable production, the Saudi Arabian government has been promoting technologies such as drip irrigation and protected cultivation. According to FAOSTAT, fruit production in Saudi Arabia accounted for 2,370,735.0 metric tons in 2017 and reached 2,913,925.0 metric tons in 2020. These initiatives are expected to reduce Saudi Arabia’s dependence on imports and boost domestic production in the country.
As reported by the Ministry of Commerce, Saudi Arabia’s production of fruits witnessed a jump of 194% in six years, reaching 2.7 million metric tons by the end of 2020. This is compared to 930,000 tons six years ago. Dates come on top of the list of Saudi fruits. The Kingdom ranked second in the world in the production of dates, with 1.5 million metric tons in 2020.
In May 2019, The Saudi Agricultural and Livestock Investment Co. (SALIC) invested in Hummingbird Technologies, an advanced crop analytics company that is indulged in generating high-resolution maps by using artificial intelligence, satellite imagery, and drone technology that can give farmers early detection of crop stress, disease, weed issues, and early yield prediction. Such initiatives are likely to help the country to be productive and drive the market further.
Dates are one of the most traded commodities in Saudi Arabia, and the country produces one-sixth of the dates grown all over the world. Although the country is a major exporter of dates, imports are also significant and necessary to meet the domestic demand. United Arab Emirates, Kuwait, Yemen, Morocco, and Turkey are the major export trade partners of Saudi dates. The region of Madina Tayyiba grows Ajwa dates, which are known for their luscious and fruity taste and fine texture. The demand for dates is considered to be inelastic to a degree because of the fruit's prominent role in the Ramadan fasting tradition and Islamic culture as a whole. Saudi traders stand to benefit from a growing international demand for dates, and the exports of dates are projected to rise during the forecast period.
Further, As Kingdom's Vision 2030 aims to invest especially in food and agricultural crops and has sought to make the dates sector one of the most important sectors that attract national investments. In 2021, Saudi Arabia launched a global electronic platform for dates as a way to introduce international investors to the different types of fruit being produced in the country.
This product will be delivered within 2 business days.
With increasing urbanization and higher disposable incomes in the country, along with increased awareness about healthy diets, people are shifting toward healthier diet plans, which include fresh fruits and vegetables. Saudi Arabia is mostly self-sufficient in terms of vegetable yield. However, regarding fruits, the country has to rely on imports from other countries to cater to domestic demand.
Dates and watermelons are the most widely produced fruits while potatoes and tomatoes are the most widely produced vegetables in Saudi Arabia. Consumers and processors highly depend on fruits and vegetables for sustainability in Saudi. Demand for fruit and vegetable products in Saudi Arabia is anticipated to continue growing, supported by the country’s rich oil-based economy, Increased westernization and disposable income of Saudi households, and rapidly expanding retail trade, stimulating the consumption.
The increasing presence of superstores and hypermarkets has increased access to high-quality fruits and vegetables for the Saudi population. As many of these retailers adopt strategies, including optimal pricing strategies, to capture the market, the demand among consumers is increasing. The urban population is gradually becoming brand conscious and aware of the origin and type of food consumed. Self-sufficiency in the food supply is one of the key focus areas of the Saudi Arabian government.
Key Market Trends
Aiming for Self-sufficiency in Fruits and Vegetable Production
Adverse climatic conditions such as high temperatures and prolonged dry spells have meant that Saudi Arabia is highly dependent on the imports of fresh produce such as vegetables. In aiming for self-sufficiency in vegetable production, the Saudi Arabian government has been promoting technologies such as drip irrigation and protected cultivation. According to FAOSTAT, fruit production in Saudi Arabia accounted for 2,370,735.0 metric tons in 2017 and reached 2,913,925.0 metric tons in 2020. These initiatives are expected to reduce Saudi Arabia’s dependence on imports and boost domestic production in the country.
As reported by the Ministry of Commerce, Saudi Arabia’s production of fruits witnessed a jump of 194% in six years, reaching 2.7 million metric tons by the end of 2020. This is compared to 930,000 tons six years ago. Dates come on top of the list of Saudi fruits. The Kingdom ranked second in the world in the production of dates, with 1.5 million metric tons in 2020.
In May 2019, The Saudi Agricultural and Livestock Investment Co. (SALIC) invested in Hummingbird Technologies, an advanced crop analytics company that is indulged in generating high-resolution maps by using artificial intelligence, satellite imagery, and drone technology that can give farmers early detection of crop stress, disease, weed issues, and early yield prediction. Such initiatives are likely to help the country to be productive and drive the market further.
Dates Dominate the Fruit and Vegetable Trade
Dates are one of the most traded commodities in Saudi Arabia, and the country produces one-sixth of the dates grown all over the world. Although the country is a major exporter of dates, imports are also significant and necessary to meet the domestic demand. United Arab Emirates, Kuwait, Yemen, Morocco, and Turkey are the major export trade partners of Saudi dates. The region of Madina Tayyiba grows Ajwa dates, which are known for their luscious and fruity taste and fine texture. The demand for dates is considered to be inelastic to a degree because of the fruit's prominent role in the Ramadan fasting tradition and Islamic culture as a whole. Saudi traders stand to benefit from a growing international demand for dates, and the exports of dates are projected to rise during the forecast period.
Further, As Kingdom's Vision 2030 aims to invest especially in food and agricultural crops and has sought to make the dates sector one of the most important sectors that attract national investments. In 2021, Saudi Arabia launched a global electronic platform for dates as a way to introduce international investors to the different types of fruit being produced in the country.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION (Production Analysis by Volume, Consumption Analysis by Value and Volume, Import Analysis by Value and Volume, and Export Analysis by Value and Volume)
6 PRICES AND INTERNATIONAL TRADE
7 REGIONAL ANALYSIS
8 COMPETITIVE ANALYSIS
Methodology
LOADING...
