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

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

The Saudi Arabia Ready Meals Market size is expected to grow from USD 20.21 million in 2023 to USD 26.32 million by 2028, at a CAGR of 5.43% during the forecast period (2023-2028).

In recent years, ready-to-eat food has evolved into one of the most diverse segments of the ready-meal industry. On-the-go eating options with organic food products offered by manufacturers for consumers are one of the emerging trends in the country as they offer everything from frozen sweets to appetizers and meals. Consumers are showing interest in consuming organic frozen-ready meals as they are free of microbiological and fungal contamination. The nutritional and health benefits provided by organic frozen ready meals have led to the demand for products in the country.

The GCC population is booming, and the middle-class population has been expanding rapidly over the years, driven by a sizeable number of expatriates who account for 52% of the country's population. According to the World Bank, Saudi Arabia has a significant population in the Middle Eastern region, with over 36 million residents in 2021, growing at an annual rate of 2.0%. According to the General Authority for Statistics (GASTAT), children and youth, around 67% of Saudi's population in 2020, are influenced by global consumer trends, driving the demand for international food and foreign cuisines through HRI and packaged formats in retail. This factor is boosting the country's ready meals market.

While the continuous influx of expatriates from different geographies may introduce diverse cuisines in the region, growing awareness of healthy eating habits may boost the demand for organic ingredients-infused ready meals in the country.

Saudi Arabia Ready Meals Market Trends

Increasing Demand for Convenience Food Products and Emergence of Hectic Lifestyle Attributes

Convenience food requires minimum or no further preparation before consumption. This category includes canned food, packaged food or meals, frozen food, preserved food, and instant products. Frozen food holds a huge share in this segment. The increasing number of women entering the workforce in Saudi Arabia and changing lifestyles are likely to drive the Saudi Arabian market for ready meals over the forecast period. The growth of convenience retail in emerging economies is widening access to frozen food products. Across Saudi Arabia, this trend may penetrate in a later phase as consumers start to understand the versatility of products and link the same with convenience.

A diverse urban landscape is driving the demand for convenient, ready-to-eat, processed, preserved, and frozen foods in the country, which are shelf-stable and do not require refrigeration. Rio Mare remained the leading brand in providing shelf-stable ready meals due to its strong presence and widely recognized products. Shelf-stable ready meals have been gaining popularity in recent years, especially since 2018, after the launch of Goody Tuna Meals, high-quality tuna meals available in convenient, ready-to-eat pots.

Households' demand for convenience foods is being influenced by rising disposable income. The number of quick-service restaurants is rapidly rising worldwide, driving the demand for convenience meals. Thus, consumer inclination toward convenience food items may help boost the market for ready meals in the Saudi Arabian region. On the other hand, increasing government efforts to reduce the risk of nutrition-related ailments, such as obesity and overweight, diabetes, hypertension, anemia, and vitamin D deficiency, may influence the changing consumption patterns. These concerns may also influence the per capita spending in certain food categories, thus assisting the growth of nutrition-based ready meals over the coming years.

Online Retail Stores are Fueling the Growth of Ready Meals

The increasing utilization of online retail stores has been driven by the rapid growth of take-home or takeaway eating options across the country to satisfy the demand for ready-meal or semi-prepared breakfast, lunch, or dinner.

Consumers benefit from online meal delivery services since they can browse various foods and cuisines while in their homes, offices, or other convenient locations. Users ordering online can find information about their food and compare its price and quality from different outlets. Online meal delivery services also provide an advantage to customers to get access to feedback from previous customers, multiple promotional offers, and schemes that help them choose a pocket-friendly ready-meal option. Increasing internet penetration among the population across the country is also boosting the demand for online food ordering services.

In online retail channels, customers have various payment options, like e-wallet payment and cash on delivery (CoD). Customers can also minimize their spending over meals by opting for offers and schemes through multiple payment options. The users of online meal delivery services may enjoy hassle-free food while saving time and energy, which is a key factor driving the market in the country.

The Saudi government is supporting economic growth by funding meal delivery services for the growth of businesses and employment in Saudi Arabia related to meal delivery. For example, in September 2021, the Communications and Information Technology Commission (CITC) and the Social Development Bank signed a cooperation agreement to finance self-employed individuals by allowing them to acquire private automobiles to operate as couriers in delivery apps. Thus, such initiatives might help provide hassle-free ready-meal options for consumers at their doorsteps, driving the market.

Saudi Arabia Ready Meals Industry Overview

Some of the major companies operating in the market are Sunbulah Group, JBS Foods SA (Seara Foods), Almunajem Foods, Almarai Company, and Al Watania, as these companies have extensive product portfolios and have gained recognition in the local market. Due to the increased demand for ready meals in the country, companies are constantly strategizing toward expansion, which will likely increase production capacity. This expansion is likely to improve the final product, so the supply remains in sync with the increasing demand. The increasing demand for ready meals and high economies of scale resulted in the emergence of private-label ready-to-eat meals on the shelves through various promotional offers and discounts, thus increasing market competitiveness. Likewise, in the market studied, companies compete on different factors, including product offerings, ingredients, quality, taste, flavors, price, functionality, size, packaging, and marketing activities, to gain a competitive advantage in the market.

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