The Kingdom of Saudi Arabia’s food industry sector is witnessing rapid growth, making it one of the key drivers of the national economy and the industrial sector most directly related to food security and sustainability. In 2024, the sector’s size amounted to about SAR 166.1 billion, with a growth rate of 9.2%, compared to the year before, representing 10% of the total manufacturing industry in the Kingdom. This reflects the significance of this sector as a vital development and investment pillar.

Numerous important factors have contributed to this robust performance, including a steady population increase, growing numbers of guests, hajis, and tourists, as well as improved household incomes and increased spending on food and beverages, along with significant government support and industrial infrastructure expansion. The sector has also demonstrated remarkable flexibility in adapting to global economic changes, benefiting from shifts in consumer behavior, technological advancements, and growing investment partnerships.

By 2030, the sector is estimated to continue growing to reach SAR 247 billion ($65.9 billion), at a compound annual growth rate (CAGR) of 6.8%, reflecting the promising opportunities in the Saudi market under the Kingdom’s Vision 2030.

The sector key opportunities include expanding the Saudization of the food industry and increasing local content, a step that is a significant pillar for supporting domestic supply chains and enhancing food security. Moreover, the shift in consumption patterns and the rise in nutritional awareness among large segments of society present an opportunity to develop healthy and innovative products that respond to changing consumer preferences.
 

This is in addition to the anticipated boom in demand associated with hosting giant international events such as Riyadh Expo 2030 and the FIFA World Cup 2034, which shall fuel a broad economic momentum that will increase food and beverage (F&B) consumption in the tourism and hospitality sectors. Furthermore, expanding exports to the Gulf and international markets presents an opportunity to expand the scope of commercial access for Saudi products, capitalizing on their reliability and high quality. Finally, the growing trend toward digital transformation, the adoption of smart manufacturing technologies, and the expansion of e-commerce promote operational efficiency and open new horizons for reaching consumers in more flexible and innovative ways.

While the sector abounds with opportunities, it also faces challenges related to heavy reliance on food imports, limited local resources, and waste rates, in addition to the requirement to create more effective risk and crisis management systems. To overcome these challenges, the government has launched various stimulus packages, including long-term industrial financing, customs exemptions, export support, and streamlining regulatory procedures, with the aim of building a more attractive and enabling investment environment.

This report is an effort to monitor the sector’s present status, forecast its future, and offer an analytical perspective that supports decision-makers and investors in mapping out their strategic directions in this vital field.