Saudi Arabia Poultry Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023-2028)

Saudi Arabia Poultry Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023-2028)

The Saudi Arabia Poultry Market is valued at USD 6,644.0 million during the current year and is projected to grow at a CAGR of 4.11% during the forecast period.

The Saudi Arabia Poultry Market is flourishing and providing various opportunities for potential market entrants due to the heavy poultry meat consumption by the heavily concentrated Muslim population in the country and beyond. The market studied witnessed significant growth due to increasing tourism, the booming food service industry, changing consumer trends, and advanced retail distribution networks.

Further, the increase in the demand for animal protein, along with the increasing preference for low-fat and high-protein diets among consumers, led to a remarkable increase in the consumption of poultry meat and eggs in the country. With the growing demand for convenience and storage, the market has witnessed a significant demand for processed eggs. Due to technological advancements, processed eggs are more efficiently treated and pasteurized, assure safety, reduced risk of contamination, and extended shelf life.

Furthermore, Saudi Arabia has a significant domestic poultry meat production capacity, but not enough to meet the domestic demand. According to United States Department of Agriculture (USDA), the percentage exceeded 60%, with a production volume of 930.000 metric tons in 2020. Due to such factors, the Government of Saudi Arabia is focusing on establishing strategic measures to increase local production, thereby driving market growth.

Saudi Arabia has one of the highest consumption levels in the Middle Eastern region. The rising preference for a high-protein and low-fat diet, along with the escalating demand for animal protein, is increasing the consumption of poultry products, such as eggs and meat, in the country. The country significantly depends on imports to meet consumer demand for poultry meat and products. According to Saudi Arabia's customs data, it imported approximately 652,283 MT of chicken meat and products in 2021.

The country is engaged in multiple trade deals and establishing new bonds with major poultry-meat-producing countries to meet rising consumer demand for high-quality meat. Furthermore, the Saudi government has taken various initiatives to boost production in the country over the past few years. According to official data from the Saudi Ministry of Environment, Water, and Agriculture (MEWA), poultry production in Saudi Arabia in 2021 stood at 910,000 MT. It reached a 60% self-sufficiency level in 2020, compared with 612 thousand tons and 40% in 2016, which is considered remarkable growth. The ministry confirmed that the growth was mainly due to its efforts in overseeing agricultural production projects. Thus, favorable government initiatives and significant investments are set to augment market growth during the forecast period.

Saudi Arabian consumers have witnessed a gradual transformation in consumption patterns due to their evolving lifestyles. An increase in the number of working women in the country, coupled with a growing preference for convenient, ready-to-eat, and ready-to-cook products, has resulted in utilizing more packaged food products, including broiler meat. These products are easy to prepare and can be stored in home refrigerators for prolonged periods. The food service channel in the country has been actively purchasing broiler meat in fresh, chilled, and frozen formats, as per the demand. Packaged forms have also found wide applications in the industry due to the high demand for non-vegetarian snacks and processed fast foods.

Further, due to the rising market demand, leading players are increasingly investing in the broiler meat segment to consolidate their market shares. For instance, in October 2020, Cherkizovo Group, Russia’s largest meat producer, entered the Saudi Arabian poultry market to export halal-certified boneless broiler chicken meat. There is a steady demand among the country's meat processors and food service providers. Therefore, the growing investment into the broiler meat segment by the manufacturers is driving its demand in the market studied during the forecast period.

The Saudi Arabia Poultry Market stands to be highly competitive in nature, with cut-throat competition among the market players to increase their share in the studied market. In terms of market share, the market is dominated by players such as Al-Watania Poultry, Almarai Co., Americana Group Inc., Sunbulah Group, and Tanmiah Food Group, among others. Al-Watania Poultry stands to be one of the leading market players with its strategic partnerships to enhance its consumer base and presence in the region. For instance, in November 2021, Al Watania Poultry and Americana Group partnered to develop local content in the poultry sector and provide markets with fresh, high-quality, and reliable products. Further, the market players are increasing their spending on marketing and research, and development and are expanding their capacity to maintain their place in the market.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support