KSA Starter Culture Market Outlook to 2028

KSA Starter Culture Market Overview

The KSA starter culture market has experienced notable growth, this is reflected by global starter culture market was valued at USD 1.1 Bn in 2023. This growth is driven by rising health consciousness among consumers. Moreover, advancements in biotechnology and the growing adoption of starter cultures in various food and beverage industries have significantly contributed to market expansion.

The key players in the KSA starter culture market include Hansen Holding A/S, Du Pont de Nemours, DSM Food Specialties, Kerry Group and Sacco System. These companies dominate the market due to their extensive product portfolios, strong distribution networks, and continuous investments in research and development.

A major challenge faced by the KSA starter culture market is the high cost of production and the need for continuous innovation. In 2023, production costs for high-quality starter cultures increased, impacting the profit margins of manufacturers. The challenge is exacerbated by the need to meet stringent regulatory standards, which requires substantial investments in research and development.

The eastern region, including Riyadh, dominates the KSA starter culture market in 2023. This dominance is attributed to the region's high population density, advanced infrastructure, and the presence of major food processing companies. Riyadh's strategic location and well-established distribution networks further enhance its market leadership.

KSA Starter Culture Market Segmentation

The KSA Starter Culture Market can be segmented based on several factors:

By Product Type: KSA Starter Culture market segmentation by product type is divided into the bacterial culture, yeast culture, mould culture and others. In 2023, bacterial culture with a dominant share. This leadership is driven by increasing demand for natural food additives, advancements in biotechnology enhancing bacterial strains, and growing consumer preference for healthier and sustainable food processing solutions.

By End User: KSA Starter Culture market segmentation by end user is divided into food & beverages, dietary supplements and animal feed. In 2023, the food and beverages segment dominated the market. The extensive use of starter cultures in dairy products, beverages, and fermented foods drives the growth of this segment.

By Region: KSA Starter Culture market segmentation by region is divided into north, south, east and west. In 2023, The eastern region's well-developed infrastructure and the presence of major food processing companies drive its market dominance.

KSA Starter Culture Market Competitive Landscape

Company

Establishment Year

Headquarters

Chr. Hansen Holding A/S

1874

Hørsholm, Denmark

Du Pont de Nemours, Inc.

1802

Wilmington, USA

DSM Food Specialties

1902

Heerlen, Netherlands

Kerry Group

1972

Tralee, Ireland

Sacco System

1934

Cadorago, Italy

Hansen's New Product Launch: In 2023, Chr. Hansen launched a new range of dairy starter cultures, notably the YOFLEX yogurt cultures. This new product line is designed to meet the evolving needs of dairy producers, particularly in the yogurt segment, by providing a variety of cultures that enhance flavor, texture, and overall product quality.

DSM's Vegan Starter Cultures: In 2023, DSM Food Specialties launched a new range of vegan starter cultures as part of their Plant Power Toolkit, specifically designed for plant-based fermented products. This toolkit includes four new starter cultures aimed at enhancing the taste, texture, and health properties of vegan dairy alternatives, such as yogurt and other fermented products.

KSA Starter Culture Industry Analysis

KSA Starter Culture Market Growth Drivers:

Growing Popularity of Probiotics: Probiotic products are gaining popularity in KSA due to their health benefits. The market for probiotic supplements alone saw an increase of 50 million units in 2023. This growing consumer interest in probiotics is significantly driving the starter culture market.

Rise in Processed Meat Products: The processed meat sector in KSA is also contributing to the growth of the starter culture market. In 2023, the production of fermented meat products such as sausages reached 120,000 tons, supporting the demand for starter cultures specifically designed for meat processing.

Increasing Demand for Fermented Dairy Products: The demand for fermented dairy products like yogurt and cheese is significantly rising in the KSA market. In 2023, the consumption of yogurt increased, driven by growing health awareness and the preference for probiotic-rich foods. This trend is expected to continue, with an estimated increase.

KSA Starter Culture Market Challenges:

High Production Costs: The production costs for high-quality starter cultures have increased significantly. Posing a challenge for manufacturers. The high costs are attributed to the need for sophisticated technology and stringent quality control measures.

Competition from International Players: The presence of established international players in the KSA market poses a significant challenge for local manufacturers. In 2023, international companies accounted majority of the market value, overshadowing local firms. This competition is expected to intensify in 2024 as more international players enter the market.

KSA Starter Culture Market Government Initiatives:

Food Innovation and Safety Initiative: In 2023, the Saudi government launched the Food Innovation and Safety Initiative. This initiative aims to promote innovation in food technology and ensure the safety of food products. In 2024, the initiative will continue to support research and development projects related to starter cultures.

Import Substitution Policy: To reduce dependency on imports, the Saudi government introduced an import substitution policy in 2023. The policy includes incentives for local manufacturers to produce starter cultures domestically. This policy will continue to support local production in 2024, aiming to decrease the import value significantly.

KSA Starter Culture Future Market Outlook

The KSA Starter Culture Market is expected to show significant growth driven by increasing urbanization, rising disposable incomes, and growing awareness about the health benefits of fermented foods. Additionally, the expansion of the dairy and beverage industries and the increasing investments in food technology innovations will further propel the market.

Future Market Trends

Rising Adoption of Functional Foods: Over the next five years, the adoption of functional foods incorporating starter cultures is expected to rise significantly. The market for functional foods is projected to grow, driven by the increasing consumer focus on health and wellness.

Technological Advancements in Fermentation: Technological advancements in fermentation processes are anticipated to revolutionize the starter culture market. By 2028, new fermentation technologies are expected to reduce production costs, making high-quality starter cultures more accessible to manufacturers.
Please Note: It will take 5-7 business days to complete the report upon order confirmation