Saudi Arabia edible oils market is projected to witness a CAGR of 6.01% during the forecast period 2024-2031, growing from USD 1.31 billion in 2023 to USD 2.09 billion in 2031.
Factors such as expansion of food service industry and increasing number of travelers to the country is driving the market growth of the edible oils in Saudi Arabia.
Furthermore, factors such as increasing population and rapid urbanization in Saudi Arabia is further augmenting the market growth of edible oils in Saudi Arabia. The market growth is driven by the rise in the population of Saudi Arabia. According to the estimates of the World Bank, in 2023, the population of Saudi Arabia showed 1.5% growth than 2022, while in 2022 the population grew by 1.3%.
The increasing government support and their initiates to enhance food security and agricultural sector is boosting the production of edible oils in Saudi Arabia, which is resulting in the greater availability of the edible oils in cheaper prices. This further drives the demand for edible oils in the country.
Many organic products already conform to halal standards, thus offering a basis for meeting the dietary and ethical requirements for the diet of Muslims in Saudi Arabia. Various manufacturers of edible oils are incorporating cutting-edge technology to develop superior quality olive oil. In December 2023, Jouf governor inaugurated state-of-art organic olive oil fazctory in the region. The farm and the factory uses 100% modern organic farming methods and cutting-edge irrigation to produce high-quality olive oil.
The greater trend followed by the market is healthier eating patterns, wherein the nutritional value and associated health benefits are primary concerns consumers have while choosing food. Cholesterol-free oils form a part of this trend. As most processed foods are rich in unhealthy fats, there is an increasing demand for healthy edible oils to balance the diets.
Manufacturing and retail companies advertise cholesterol-free oils, touting their health benefits. Consequently, due to effective campaigns, consumers have become more aware about its benefits. The different types of cholesterol-free oils available in the retail stores across the region, such as olive oil, canola oil, and sunflower oil, makes it easier for consumers to consume the oil due to easy availability.
Increasing Pilgrimage in Mecca is Acting as a Catalyst
The increasing pilgrimage visits in Mecca is driving the growth for edible oils in Saudi Arabia. Millions of pilgrims visit Mecca every year. As per the data of General Authority of Statistics of the Kingdom of Saudi Arabia, provided in August 2024, the total number of pilgrims in 2023 from abroad in Mecca were 1,660,915 people which was 90% of the total pilgrims who went for Hajj Visit in Saudi Arabia.
Read More: https://www.marketsandata.com/industry-reports/saudi-arabia-edible-oils-market
The huge volume of the visiting population increases food services, including street vendors, restaurants, and catering services, which significantly rely on edible oils.
The hospitality industry, hotels and restaurants, increases its activities to accommodate the huge influx of pilgrims. Edible oils are used in the preparation of various traditional Saudi dishes, local Levantine, and other international cuisines. Since street foods are widely consumed by the pilgrims, there is a greater intake of edible oils. Most conventional road foods are deep-fried or prepared with a considerable quantity of oil. Besides, large catering services for the pilgrim groups and the events associated with the season could be taken as a factor responsible for the increase in the demand. To cater the growing demand for edible oil, Saudi Arabia has imported around 1.05 million Metric Tons of palm oil in 2022.
Organic Edible Oils to Gain Traction in the Region
Organic edible oils are gaining popularity as they do not contain synthetic pesticides or chemicals, with the rising health consciousness in Saudi among consumers, organic edible oils are preferred. Organic oils contain natural nutrients and flavors, hence contributing to health wellness.
Organic farming methods are perceived as sustainable and eco-friendly. This appeals to consumers who are becoming more conscious and concerned about the environment. There is more assurance of safety from the organic certification process, making organic products to be more attractive to consumers who are more concerned with food safety.
Organic agriculture is increasingly becoming a trend in Saudi Arabia which is driving the growth of organic edible oils. The market growth is supported by the availability of land for organic agriculture for the farmers. According to the data provided by the General Authority for Statistics of the Kingdom of Saudi Arabia, the total area of organic agriculture in Saudi Arabia was 19,119 hectares in 2022.
Healthier Versions of Edible Oil to Drive the Market Growth
The health organizations are regulating the formulation of edible oils and are taking steps to eliminate the trans-fatty acids from the edible oils, with growing awareness of heart diseases and associated health problems. Consumers are more conscious about the food, including edible oils consume by them. In January 2024, World Health Organization awarded Saudi Arabia for progress in the elimination of industrially produced trans-fatty acids (iTFA) in the edible oils. The country has been following the maximum limit allowed by WHO which is 2 grams of iTFA per 100 grams of total fats in all foods including edible oils.
Cholesterol-free oils are perceived to be a much healthier option, reducing the risk associated with cardiovascular diseases. The increasing prevalence of lifestyle diseases such as obesity, diabetes, and hypertension in Saudi Arabia has influenced consumers to opt for better and healthier alternatives for cooking. Cholesterol-free oils fit into the dietary regime of patients suffering from these diseases, driving the growth for healthier versions of edible oils.
Consumers are increasingly opting for preventive health measures, like foods that contribute to health in the long run, appealing to the consumers.
Future Market Scenario (2024 – 2031F)
The edible oils market has been witnessing expansion in the historical period and is expected to witness a higher growth rate in the forecast period due to the increase in the private labeling of edible oils in the country. Retailers are increasingly offering their own branded oils, which appeal to price-sensitive consumers by being more affordable than other MNC brands while maintaining quality. This strategy allows retailers to create exclusive products tailored to local preferences and dietary trends, such as healthier oil options or specialty blends.
The rise of supermarket chains and large retailers in Saudi Arabia has further driven the expansion of private labels, meeting the growing demand for diverse, high-quality, and cost-effective edible oils. This trend reflects a greater shift of consumers towards private labels, driven by consumer demand for value and variety.
Report Scope
“Saudi Arabia Edible Oils Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Saudi Arabia edible oils market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
Contact
Mr. Vivek Gupta
5741 Cleveland street,
Suite 120, VA beach, VA, USA 23462
Tel: +1 (757) 343-3258
Email: info@marketsandata.com
Website: https://www.marketsandata.com