Saudi Arabia Poultry Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Saudi Arabia Poultry Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Saudi Arabia poultry market was valued at USD 17.328 billion for the current year and is projected to register a CAGR of 4.11% over the next five years.

Key Highlights

• The poultry sector in Saudi Arabia is one of the largest and fastest growing due to the large consumption of animal-based foods, especially poultry meat, in the country. Poultry production in Saudi Arabia jumped from 900,000 MT in 2020 to 910,000 MT in 2021, based on official data released by the Saudi Ministry of Environment, Water and Agriculture (MEWA).
• Although this accounted for more than half the domestic consumption, more is needed to meet domestic demand. Therefore, there is significant government support for the industry led by the MEWA, such as raising the percentage of investment in the industry in cooperation with the private sector.
• A recent deal led to the planned investment of USD 4.5 billion into the industry until 2025. Besides this, under Vision 2030, the Saudi government encourages foreign companies to invest in the Saudi market, especially poultry farms. It also offers 100% ownership to local producers and direct access to production-based subsidies to local poultry farmers. Furthermore, leading companies in the country are strategically expanding their customer base and market share.
• For instance, in 2022, Almarai, one of the most prominent Saudi dairy farms and the third largest chicken meat producer, announced a massive poultry expansion plan at US$ 1.8 billion, doubling its poultry production over the next five years. Thus, government interventions and company expansion plans are among the key factors anticipated to boost the growth of the poultry market in Saudi Arabia in the following years.

Saudi Arabia Poultry Market Trends

Demand for Processed Poultry Drives the Market

• Increasing disposable incomes, a rising percentage of the working population, and the growing preference for animal-based diets are primary factors driving the growth of processed and poultry meat consumption in the country. The increasing number of food outlets further impels market growth.
• Due to technological innovations in the food processing industry, poultry products are available in different formats, from chilled and frozen through shelf-stable and microwaveable to prepared mixes. As these products are ready-to-eat and convenient to cook, the increasing consumer spending on processed food products with high nutritional value due to busy lifestyles and changing dietary patterns bolsters market growth.
• The rapid growth of take-home or takeaway eating options driven by the rising penetration of online retail channels nationwide is fueling market growth. Furthermore, major players, like Al Kabeer Group ME and Almarai Company, offer a wide assortment of halal-certified ready-to-eat and ready-to-cook poultry products that can be prepared quickly, encompassing samosas, spring rolls, nuggets, fillets, kababs, sausages, and burger patties.
• Apart from this, the rising trend of premiumization, the launch of innovative processed poultry meat products, and increased focus on hyper-branding and modern retailing are some significant factors expected to positively influence the demand for poultry products in Saudi Arabia during the forecast period.

Broiler Meat is the Most Preferred Choice Amongst a Large Section of the Population

• Changing dietary patterns due to the busy lifestyles of working people in the country and a growing preference for ready-to-eat and convenient products have increased demand for packaged food products, including broiler meat. These products are readily available in various formats, from fresh to chilled and frozen, are easy to prepare, and can be refrigerated for prolonged periods.
• Amongst all the formats, fresh broiler meat is widely preferred in the country due to increased health consciousness and preference for high nutritional animal-based foods among a large section of the country’s population. Compared to processed meat, fresh meat is usually low in unhealthy fats and contains all the amino acids. It also provides several health benefits, such as improving overall heart health, reducing inflammation, boosting energy levels, and helping with weight loss.
• The increasing prevalence of chronic health conditions further drives the market growth. Besides this, local market players focus on partnerships with global players to expand their product reach.
• For instance, in 2022, Tamiah Foods and Tyson Foods signed a partnership agreement wherein Tyson Foods acquired 15% stakes in Agriculture Development Company, a subsidiary of Tamiah. Therefore, increasing investments by market players are expected to drive the demand for broiler meat during the forecast period.

Saudi Arabia Poultry Industry Overview

The Saudi Arabian poultry market is highly competitive, with market players like Al-Watania Poultry, Almarai Co., Americana Group Inc., Sunbulah Group, and Tanmiah Food Group. Al-Watania Poultry. These players are entering into strategic partnerships to enhance their consumer base and presence in the country.

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. Furthermore, the players are increasing their spending on marketing and R&D and expanding their capacities to maintain their positions in the market.

Additional Benefits:

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