Summary

The Saudi Arabia fruits and vegetables market is projected to register a CAGR of 5.2% during the forecast period, 2021-2026.

As an impact of COVID-19, the economy of Saudi Arabia shrank by 7.0% in the second quarter of 2020. Although the retail sale of fruits and vegetables increased due to consumer preferences toward consuming healthy diets to boost immunity, the supply chain and production got disrupted in terms of export and import trade movements. The wholesale market of fruits and vegetables also got disrupted due to lesser demand from the bulk purchasers belonging to hotels, restaurants, and tourism industries.

The increasing presence of superstores and hypermarkets has increased access to high-quality fruits and vegetables for the Saudi population. As many of these retailers adopt strategies, including optimal pricing strategies, to capture the market, the demand among consumers is increasing. The urban population is gradually becoming brand conscious and aware of the origin and type of food consumed. Self-sufficiency in the food supply is one of the key focus areas of the Saudi Arabian government.

Key Market Trends

Aiming for Self-sufficiency in Vegetable Production

Adverse climatic conditions such as high temperatures and prolonged dry spells have meant that Saudi Arabia is highly dependent on the imports of fresh produce such as vegetables. In aiming for self-sufficiency in vegetable production, the Saudi Arabian government has been promoting technologies such as drip irrigation and protected cultivation. According to FAOSTAT, the fruit production in Saudi Arabia accounted for 2,223,631.0 metric ton in 2016, which increased by 43.7% and reached 3,195,046.0 metric ton in 2019. These initiatives are expected to reduce Saudi Arabia’s dependence on imports and boost domestic production in the country.

Dates Dominate the Fruit and Vegetable Trade

Dates are one of the most traded commodities in Saudi Arabia, and the country produces one-sixth of the dates grown all over the world. Although the country is a major exporter of dates, imports are also significant and necessary to meet the domestic demand. Yemen, the United Arab Emirates, Kuwait, and Turkey are the major export trade partners of Saudi dates. The region of Madina Tayyiba grows Ajwa dates, which are known for their luscious and fruity taste and fine texture. The demand for dates is considered to be inelastic to a degree because of the fruit's prominent role in the Ramadan fasting tradition and Islamic culture as a whole. Saudi traders stand to benefit from a growing international demand for dates, and the exports of dates are projected to rise during the forecast period.





Additional Benefits:

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

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