|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
USD 8.67 Billion
|
|
CAGR
(2024-2029)
|
4.2%
|
|
Fastest
Growing Segment
|
Online
|
|
Largest
Market
|
Western
|
Market Overview
Saudi Arabia Frozen Food Market was valued at USD 8.67 billion in 2023 and is anticipated to project robust growth in the forecast
period with a CAGR of 4.2% through 2029. The Saudi Arabia frozen food market
has experienced remarkable growth and transformation over the years, driven by
changing consumer lifestyles, increased urbanization, and a growing appetite
for convenience. This market encompasses a wide range of frozen products,
including fruits and vegetables, meat and poultry, seafood, and ready-to-eat
meals.
Rapid urbanization and a shift in consumer
lifestyles have led to an increased demand for convenient and quick meal
solutions. Saudi households, especially in urban areas, are looking for
time-saving options that frozen food products provide. The fast-paced work
culture in Saudi Arabia has led to a rise in the number of dual-income
households. With limited time for meal preparation, frozen foods offer a
convenient solution for families. The growth of modern retail formats, such as
hypermarkets, supermarkets, and convenience stores, has expanded the
availability and accessibility of frozen food products. Saudi consumers can now
find a wide range of frozen options in their local stores. Saudi consumers
place a high value on food safety and quality. The frozen food industry has
adapted by implementing rigorous quality control and safety measures, assuring
consumers of the integrity of frozen products.
Frozen food, while growing in popularity, may face
some cultural resistance in Saudi Arabia, where fresh food is traditionally
preferred. Overcoming these cultural preferences is a challenge for the
industry. Maintaining the cold chain and ensuring the integrity of frozen
products during transportation can be challenging, especially in a country with
varying climates and long distances. The Saudi Food and Drug Authority (SFDA)
plays a pivotal role in regulating the frozen food industry. It sets standards
for food safety and quality, ensuring that products meet the necessary
requirements. Compliance with SFDA regulations is vital for companies operating
in the Saudi frozen food market.
There is a growing trend in Saudi Arabia toward
healthier frozen food options. This includes low-sodium, low-fat, and organic
frozen products to cater to health-conscious consumers.
The introduction of new and innovative frozen food
products, including those catering to specific dietary requirements and
regional tastes, presents significant opportunities for growth. E-commerce
platforms have become an essential distribution channel for frozen food
products, particularly during the COVID-19 pandemic. Leveraging e-commerce can
open up new avenues for market expansion.
In conclusion, the Saudi Arabia frozen food market
is thriving due to changing consumer lifestyles, a busy work culture, and an
expanding retail landscape. The industry continues to evolve to meet the needs
of Saudi consumers, offering convenience, quality, and safety in frozen food
products. With opportunities for health-focused and innovative offerings, the
frozen food market in Saudi Arabia is expected to continue its growth
trajectory in the years to come.
Key Market Drivers
Changing Consumer Lifestyles and Urbanization
One of the primary drivers of the growth in the
Saudi Arabia frozen food market is the changing lifestyles and urbanization
trends in the country. As Saudi Arabia undergoes rapid urbanization, with a
growing number of people residing in cities and metropolitan areas, consumer
habits and dietary preferences have evolved.
The urban lifestyle is often characterized by
increased work hours, longer commutes, and busier schedules. This has led to a
shift in consumer behavior, with more individuals and families seeking
convenient and time-saving food options. Frozen food products, such as
ready-to-eat meals, frozen fruits and vegetables, and frozen meats, align
perfectly with these demands.
Consumers in urban areas appreciate the convenience
and versatility that frozen foods offer. These products can be stored for
extended periods, allowing individuals to reduce the frequency of grocery
shopping while still having access to a variety of nutritious and flavorful
meal options. Frozen foods also address the need for portion control, reducing
food wastage and offering easy meal preparation solutions for busy individuals
and families.
Moreover, the desire for international and diverse
cuisines is prevalent in urban centers, and the frozen food market has
responded accordingly. Consumers can now find a wide array of frozen foods,
from traditional Saudi dishes to international favorites, making it easier to
enjoy global flavors in the comfort of their homes.
Increasing Disposable Income and Affordability
The rising disposable income among Saudi consumers
has significantly contributed to the growth of the frozen food market. As the
economy has diversified and expanded, households have experienced increased
income levels, allowing them to explore a wider range of food choices,
including frozen products.
Frozen foods offer an attractive value proposition
for consumers. They are often priced competitively, making them an affordable
alternative to dining out or ordering takeout. Consumers can enjoy
restaurant-quality meals at home, without the associated costs of eating at a
restaurant. This affordability is particularly appealing to young professionals
and families looking to balance quality with cost-effectiveness.
The affordability of frozen food also extends to
its ability to reduce food waste. By allowing consumers to use only the
required amount of frozen food and store the rest for later, it helps in
managing household budgets and minimizing food expenditure.
As a result, the frozen food market has seen robust
sales growth in Saudi Arabia, with consumers viewing these products as a
practical and cost-effective solution for their daily food needs.
Expanding Retail Distribution Channels
The availability and accessibility of frozen food
products have significantly expanded in Saudi Arabia due to the increasing
number of retail distribution channels. Traditionally, frozen foods were
primarily found in large supermarkets and hypermarkets. However, the market has
evolved, and frozen foods can now be easily found in various retail outlets,
including convenience stores, neighborhood markets, and even online platforms.
The emergence of small and mid-sized grocery stores
and convenience outlets, which are strategically located to serve urban and
suburban areas, has made it more convenient for consumers to access frozen food
products. These smaller retail establishments are preferred by consumers who
seek a quick and hassle-free shopping experience.
Furthermore, the growth of e-commerce and online
grocery delivery services has had a profound impact on the frozen food market.
Consumers can now order a wide range of frozen products online, and these goods
are promptly delivered to their doorsteps. This convenience factor has
significantly expanded the reach of frozen food products to consumers who may
not have easy access to physical stores, such as those in remote or less
densely populated areas.
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Key Market Challenges
Cultural and Dietary Preferences
Saudi Arabia has a unique culinary culture deeply
rooted in traditional Middle Eastern and Islamic dietary preferences. While the
frozen food market offers a wide variety of products, aligning with these
preferences can be challenging. Traditional Saudi cuisine primarily relies on
fresh, local ingredients, and many Saudi households continue to prepare meals
from scratch. There is a cultural preference for fresh foods, such as fruits,
vegetables, and meats, which can make it difficult for frozen food products to
gain widespread acceptance.
The challenge for frozen food manufacturers is to
cater to local tastes while also maintaining the convenience and long shelf
life that frozen products offer. Additionally, there are dietary restrictions
during Islamic religious periods, such as Ramadan, which impact the consumption
of frozen foods. These cultural and dietary factors require adaptation and
innovation in product offerings to better align with the local market.
Supply Chain and Distribution Challenges
Maintaining a reliable and efficient cold supply
chain is a critical challenge in the frozen food industry. The extreme heat of
the Saudi climate can pose difficulties in the transportation and storage of
frozen products. Ensuring that frozen goods remain at the required low
temperatures throughout the distribution process is essential to prevent
spoilage.
Moreover, the vast geographical size of the country
and the dispersion of the population can create distribution challenges. Remote
areas may have limited access to frozen food products, which can result in
unequal market penetration. Distributors and retailers need to invest in
advanced cold storage and transportation facilities to overcome these
logistical challenges.
Quality and Food Safety Standards
Consumers in Saudi Arabia place a premium on food
safety and quality. Given the nature of frozen foods, maintaining quality and
safety throughout the supply chain is crucial. Importantly, consumers need to
trust that the frozen food they purchase is not only convenient but also safe
and nutritious.
Ensuring compliance with strict quality and safety
standards is a significant challenge for the frozen food industry. It involves
adhering to Saudi Arabia's regulatory requirements and international food
safety standards. Manufacturers and distributors need to invest in stringent
quality control measures, including product testing, temperature monitoring,
and proper labeling. Meeting these high standards can be resource-intensive and
may require ongoing investments in infrastructure and training to remain competitive
in the market.
Key Market Trends
Health and Convenience Converge
One prominent trend in the Saudi Arabian frozen
food market is the increasing convergence of health and convenience. Consumers
are becoming more health-conscious and seeking frozen food options that not
only offer the convenience of quick and easy preparation but also align with
their dietary preferences and wellness goals.
To address this trend, frozen food manufacturers
are introducing healthier product offerings. This includes a focus on lower
sodium and reduced fat options, as well as products that cater to specific
dietary requirements, such as gluten-free, organic, and vegan. Healthier frozen
food choices are becoming more widely available, allowing consumers to enjoy
the convenience of frozen meals without compromising on their nutrition.
Additionally, the use of cleaner and more
transparent ingredient lists is on the rise. Consumers are increasingly looking
for frozen foods that contain recognizable, natural ingredients and minimal
additives or preservatives. This shift towards healthier, cleaner frozen food
options is expected to continue, driven by the growing awareness of the
importance of balanced nutrition and the demand for convenient meal solutions
that support overall well-being.
Diversification of Ethnic and International Cuisine
The Saudi Arabian population is culturally diverse,
with a significant expatriate community hailing from various countries. This
cultural diversity has fueled a growing demand for a wide variety of ethnic and
international cuisines in the frozen food market.
Manufacturers are responding to this trend by
expanding their product lines to include a broader array of global flavors and
dishes. Frozen meals and snacks inspired by cuisines from Asia, Europe, the
Middle East, and the Americas are gaining popularity. Consumers can now find
everything from frozen Italian pasta dishes to traditional Middle Eastern
appetizers, providing a convenient way to enjoy international flavors without
the need for extensive preparation.
This diversification of offerings extends to
appetizers, side dishes, and desserts, allowing consumers to explore and savor
different culinary traditions in the comfort of their homes. The trend towards
ethnically diverse frozen food options reflects the multicultural nature of
Saudi Arabia and the desire for convenient meal choices that cater to a range
of tastes and preferences.
Sustainability and Eco-Friendly Packaging
Sustainability is a global trend that has made its
mark on the Saudi Arabian frozen food market. Consumers are increasingly
concerned about the environmental impact of their food choices, and this
awareness is driving a demand for eco-friendly and sustainable packaging
solutions.
Manufacturers are responding by adopting more
sustainable packaging practices, such as reducing plastic usage, using
recyclable materials, and implementing responsible sourcing of packaging
materials. Additionally, there is a growing emphasis on reducing food waste
through portion-controlled and resealable packaging, ensuring that consumers
can use only what they need and keep the rest for later.
The sustainable trend extends to the sourcing and
production of frozen food. Consumers are looking for products that are sourced
and manufactured with respect for the environment and local communities. This
includes a preference for brands that emphasize ethical and sustainable
practices in their supply chains, such as responsible fishing or
environmentally friendly farming methods.
Moreover, the traceability of ingredients and
transparent labeling is gaining importance. Consumers want to know where their
food comes from and how it was produced, with some brands providing detailed
information about the sourcing and production of their frozen products.
Segmental Insights
Type Insights
Ready-to-eat (RTE) products have established a
significant presence in the Saudi Arabia frozen food market, reflecting
changing consumer lifestyles, dietary preferences, and the convenience factor.
This sector has seen remarkable growth in recent years, driven by several
factors that contribute to the prominence of RTE products within the Saudi
frozen food market.
One of the key drivers of RTE's prominence in the
Saudi Arabia frozen food market is the shifting lifestyle of consumers. As more
Saudi households have two income earners and busier daily routines, there is a
growing demand for convenient meal options. RTE products, which are pre-cooked
and require minimal preparation, align perfectly with the need for quick and
hassle-free meals.
Saudi Arabia's cultural and religious practices
influence dietary habits. During Ramadan, for instance, there is a tradition of
consuming specific foods to break the fast. RTE products cater to these
traditions by providing ready-to-serve options, making them an essential
component of the Saudi diet during this period.
The quality and taste of RTE frozen food have
improved significantly over the years. Consumers have come to trust that these
products can provide a convenient yet satisfying dining experience. The
advancements in food processing and packaging technology have allowed for the
preservation of taste and texture, ensuring that RTE items meet consumers'
culinary expectations.
The frozen food industry has evolved to address
consumers' concerns about nutrition. Many RTE products now feature healthier
ingredient profiles, reduced sodium content, and better labeling to help
consumers make informed choices. This shift towards healthier RTE options has
attracted health-conscious consumers.
The Saudi frozen food market offers a wide range of
RTE products, including frozen meals, snacks, appetizers, and desserts. This
diversity caters to different dietary preferences, from traditional Saudi
cuisine to international flavors, providing something for everyone.
Frozen RTE products often offer cost-effective
alternatives to dining out or ordering takeout. Saudi consumers appreciate the
ability to enjoy restaurant-quality meals without the expense, which has
further contributed to the success of this market segment.
RTE frozen products are readily available in
various retail outlets, including supermarkets, hypermarkets, and convenience
stores across Saudi Arabia. This accessibility makes it convenient for
consumers to purchase these items and stock up on their favorite RTE options.
The freezing process is an effective method for
preserving food, ensuring that RTE products have a longer shelf life. Consumers
appreciate the ability to store these items for an extended period without
compromising food safety or quality.
Food manufacturers continually innovate and
introduce new RTE products to capture the attention of consumers. These
innovations include premium, exotic, or fusion flavors, catering to changing
taste preferences and attracting a broader customer base.
Sales Channel Insights
Online platforms have undeniably secured a
significant share in the Saudi Arabia frozen food market, revolutionizing the
way consumers purchase and access a wide variety of frozen food products. This
transformation is driven by several key factors that have made online shopping
for frozen foods increasingly popular in the kingdom.
Online shopping offers unparalleled convenience for
consumers in Saudi Arabia. With a few clicks, shoppers can access a diverse
range of frozen food products, from frozen vegetables and fruits to
ready-to-eat meals, all from the comfort of their homes. This convenience has
significantly contributed to the growth of the online frozen food market.
Online platforms provide a vast selection of frozen
food products, including options that may not be readily available in
traditional brick-and-mortar stores. This variety appeals to consumers seeking
diverse options for their culinary needs, from international cuisines to
dietary-specific products.
Delivery services have become an integral part of
the online shopping experience in Saudi Arabia. Online retailers and delivery
companies ensure that frozen foods are handled and transported under controlled
conditions to maintain their quality. This convenience-driven approach has
further boosted the online frozen food market.
Online platforms offer the flexibility to buy
frozen foods in bulk, which is appealing to larger families or businesses. This
option allows consumers to stock up on essentials without the hassle of
carrying heavy loads or navigating crowded supermarkets.
The fast-paced lifestyle of many Saudi residents
often leaves little time for grocery shopping. Online shopping for frozen foods
saves time by eliminating the need to physically visit stores, wait in lines,
and commute, making it a practical choice for busy individuals and families.
Online platforms provide detailed product
information and customer reviews. This transparency allows consumers to make
informed decisions when selecting frozen food products, ensuring they meet
their preferences and dietary requirements.
Online retailers frequently offer promotions,
discounts, and exclusive deals on frozen food items. These cost-saving
opportunities are attractive to price-conscious consumers, encouraging them to
explore online options.
The COVID-19 pandemic accelerated the adoption of
online shopping for frozen foods in Saudi Arabia. Lockdowns, social distancing
measures, and health concerns prompted more consumers to turn to e-commerce for
their grocery needs. This shift in consumer behavior is expected to persist,
further solidifying the online market's share in the frozen food sector.
The Saudi government has promoted e-commerce and
digital transformation as part of its Vision 2030 plan. These initiatives have
improved the overall digital infrastructure and created a favorable environment
for online businesses, including those in the frozen food sector.
With the growth of e-commerce, consumers in Saudi
Arabia have gained trust in online retailers and their ability to deliver
high-quality frozen food products. This trust has played a pivotal role in the
adoption of online shopping for frozen foods.
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Regional Insights
The Western region of Saudi Arabia plays a pivotal
role in the country's frozen food market, contributing significantly to the
growth and development of this rapidly expanding sector. Several factors have
led to the Western region's prominence in the Saudi Arabian frozen food market,
reflecting the changing dietary habits and preferences of the region's
residents.
The Western region, including major cities such as
Jeddah and Mecca, is strategically located as a major entry point for imported
frozen food products. Its proximity to Red Sea ports and international trade
routes makes it a natural hub for the import and distribution of frozen goods.
The infrastructure, including cold storage facilities and transportation
networks, has developed in response to the growing demand for frozen foods.
The Western region is home to a diverse population,
including both Saudi nationals and expatriates from various cultural
backgrounds. This diverse demographic landscape has created a demand for a wide
variety of frozen food products that cater to different culinary traditions and
tastes. Frozen foods provide a convenient way to access familiar dishes and
ingredients from around the world.
The Western region, with its proximity to the holy
cities of Mecca and Medina, experiences a significant influx of tourists and
pilgrims throughout the year. This high volume of visitors fuels the demand for
frozen foods in the hospitality sector, including hotels, restaurants, and
catering services. Frozen food products are an efficient and reliable solution
for serving large numbers of guests, maintaining quality, and reducing food
waste.
As urbanization and changing lifestyles become more
prevalent in Saudi Arabia, convenience plays a crucial role in food
consumption. Frozen food products offer a hassle-free and time-saving option
for busy individuals and families. They eliminate the need for extensive meal
preparation and reduce the time spent in the kitchen, making them a popular
choice for those seeking convenience.
The Western region offers a diverse range of frozen
food products, including frozen fruits and vegetables, meat and poultry,
seafood, ready-to-eat meals, and desserts. This diversity caters to different
dietary preferences, whether they be for traditional Saudi dishes,
international cuisine, or specialized dietary requirements.
The Western region is home to numerous retail and
supermarket chains, providing a wide distribution network for frozen food
products. These stores stock an extensive selection of frozen items, making it
convenient for consumers to access a variety of options for their daily meals
and special occasions.
The Western region adheres to high health and
safety standards, ensuring the quality and safety of frozen food products. This
commitment to food safety and hygiene gives consumers confidence in the
products they purchase, promoting the continued growth of the frozen food
market.
Recent Developments
- In 2022, Seara, a renowned Brazilian food brand, is
set to bring the joy of cooking to homes and kitchens in Saudi Arabia. With a
strong presence in over 150 countries, Seara is a part of JBS, a global leader
in protein-based food. Seara is proud to introduce its complete halal
portfolio, consisting of 120 frozen food products, including frozen whole
chickens, chicken parts, breaded chicken, chicken and beef burgers, minced
meats, sausages, meatballs, frozen vegetables, seafood, and fruits.
- In 2022, Siwar Food will be launching a new line of
frozen meals and desserts. This convenient product line, featuring rice and
pasta dishes, will be available for purchase online, in retail stores, and
through "Chef in a Box" vending machines, all at a competitive price
of SAR 20. These vending machines have been strategically placed in key
locations throughout Riyadh, including universities, hospitals, and workplaces.
Key Market Players
- The Savola Group
- Sunbulah Group
- Kuwait Food Company (Americana Group)
- Halwani Brothers Co., Ltd
- Al Karamah Dough Production Co.
- General Mills Inc.
- Nestle S.A.
- McCain Foods Limited
- Americana Group, Inc.
- Unilever PLC
|
By Type
|
By Category
|
By Sales Channel
|
By Region
|
- Frozen Poultry
- Red Meat & Seafood
- Frozen Snacks
- Frozen Fruits & Vegetables
- Frozen Meals
- Others
|
- Ready-to-Cook
- Ready-to-Eat
- Others
|
- Supermarkets/Hypermarkets
- Departmental Stores
- Baqala Stores
- Online
- Others
|
- Western
- Northern & Central
- Eastern
- Southern
|
Report Scope:
In this report, the Saudi Arabia frozen food market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Saudi Arabia Frozen Food Market, By Type:
o Frozen Poultry
o Red Meat & Seafood
o Frozen Snacks
o Frozen Fruits & Vegetables
o Frozen Meals
o Others
- Saudi Arabia Frozen Food Market, By Category:
o Ready-to-Cook
o Ready-to-Eat
o Others
- Saudi Arabia Frozen Food Market, By Sales Channel:
o Supermarkets/Hypermarkets
o Departmental Stores
o Baqala Stores
o Online
o Others
- Saudi Arabia Frozen Food Market, By Region:
o Western
o Northern & Central
o Eastern
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the Saudi
Arabia Frozen Food market.
Available Customizations:
Saudi Arabia Frozen Food Market report with
the given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Saudi Arabia Frozen Food Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]