Report Overview

Saudi Arabia Agricultural Commodities Market – Industry Trends & Forecast Report, 2029

Saudi Arabia agricultural commodities market size is projected to grow at a CAGR of 4.85% during the forecast period between 2023 and 2029. The major factors driving the growth of Saudi Arabia agricultural commodities market are food security and self-sufficiency. The government has implemented various initiatives to reduce dependence on imports and boost domestic agricultural production. Also, there has been a shift towards sustainable farming practices, with increased investments in advanced technologies and irrigation systems. Another trend is the rising demand for organic and locally produced food, driven by consumers' growing health consciousness and preference for environmentally friendly products. Also, there has been a focus on the diversification of crops to reduce reliance on water-intensive crops and promote the cultivation of high-value crops. These trends collectively reflect the ongoing transformation and modernization of the agricultural sector in Saudi Arabia.

Saudi Arabia Agricultural Commodities Market - Overview

Agricultural commodities refer to various raw materials and products derived from farming and agricultural activities. They include crops such as wheat, corn, soybeans, rice, and coffee, as well as livestock and poultry products like beef, poultry, and dairy. Agricultural commodities play a crucial role in global food production, trade, and supply chains. They are traded in commodity markets worldwide, and their prices are influenced by factors such as weather conditions, government policies, supply and demand dynamics, and global economic trends. Agricultural commodities serve as essential resources for feeding populations, providing raw materials for various industries, and contributing to the overall economy.

Growth Drivers

Growing Domestic Demand

In recent years, Saudi Arabia's agricultural commodities market has experienced a significant growth spurt, fueled by a key driver – the rising domestic demand for fresh and high-quality produce. As the Kingdom continues to diversify its economy and reduce its dependence on oil, there has been a greater emphasis on developing a sustainable and self-sufficient agricultural sector. This has led to increased investments in modern farming techniques, advanced irrigation systems, and greenhouse technologies. Also, the government's initiatives promoting food security and encouraging local agricultural production have bolstered consumer confidence in homegrown products. Therefore, the agricultural commodities market in Saudi Arabia is thriving, driven by the ever-increasing demand for locally sourced and nutritious food.

Restraints

Supply Chain Restraints

In recent months, Saudi Arabia's agricultural commodities market has encountered significant supply chain restraints, impacting the availability and affordability of essential food items. The country heavily relies on imports to meet its agricultural needs, but disruptions in global transportation and logistical networks have led to delays and increased costs. The ongoing COVID-19 pandemic has exacerbated these challenges, with restrictions on international trade and labor shortages hampering the timely delivery of goods. Thus, consumers are experiencing higher prices for staple crops, such as wheat, rice, and vegetables. The Saudi Arabian government is working towards mitigating these restraints through strategic partnerships, investment in domestic agriculture, and diversification of sourcing channels to ensure food security for its population.

Impact of COVID-19 on the Saudi Arabia Agricultural Commodities Market

The COVID-19 pandemic significantly impacted Saudi Arabia agricultural commodities market. Restrictions on movement and trade disruptions led to challenges in the supply chain, affecting both domestic production and imports. The closure of restaurants and hotels resulted in reduced demand for certain agricultural products, while panic buying initially caused spikes in demand for staples. Farmers faced labor shortages due to travel restrictions, impacting harvesting and processing activities. The government implemented measures to stabilize the market, including providing financial support to farmers and implementing policies to ensure food security. Despite these challenges, the agricultural sector has shown resilience, with an increased focus on local production and efforts to diversify the supply chain.

Saudi Arabia Agricultural Commodities Market

Segmental Coverage

Saudi Arabia Agricultural Commodities Market – By Type

On the basis of type, Saudi Arabia agricultural commodities market is divided into Cereal Grains (Wheat, Corn, Barley, Oats, and Rough Rice), Oilseeds (Canola, Cotton, Palm Oil, and Soybeans), Meat (Feeder Cattle and Live Cattle), Dairy (Butter, Milk, Whey, and Cheese), Other Soft Commodities (Cocoa, Coffee, Frozen Concentrated Orange Juice, Sugar), and Miscellaneous Agricultural Commodities (Lumber, Rubber, and Wool). The Saudi Arabia agricultural commodities market is comprised of several segments, with the largest being the Cereal grains segment. Cereal grains play a crucial role in the country's agricultural economy, accounting for a significant portion of its agricultural production and trade. These grains include Wheat, Corn, Barley, Oats, and Rough Rice. Saudi Arabia heavily relies on imports to meet its domestic cereal grain demand due to limited arable land and water resources. The country aims to enhance food security by investing in the cultivation and production of cereal grains, ensuring a stable supply and reducing dependence on imports.

Saudi Arabia Agricultural Commodities Market – By End User

On the basis of end user, Saudi Arabia agricultural commodities market is divided into B2B and B2C segments. The B2B segment refers to business-to-business transactions, where agricultural commodities are traded between companies and organizations. This segment caters to large-scale agricultural operations, such as suppliers, distributors, and exporters, who trade commodities in bulk quantities. On the other hand, the B2C segment represents business-to-consumer transactions, where agricultural commodities are sold directly to individual consumers. This segment includes retail outlets, supermarkets, and farmers' markets, where consumers purchase agricultural products for personal consumption. The B2C segment caters to the local consumer market and plays a significant role in providing fresh produce and food products to the general public in Saudi Arabia.

Competitive Landscape

Major players in the Saudi Arabia agricultural commodities market include Almarai, Savola Group, Abdullah Abdulghani & Bros., Arabian Agricultural Services Company (ARASCO), National Agricultural Development Company (NADEC), Saudi Agricultural and Livestock Investment Company (SALIC), United Farmers Holding Company, Al Rajhi International for Investment, Al Dahra Agricultural Company, and Al Othaim Holding. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In August 2022 - At a workshop hosted by the Ministry of Environment, Water, and Agriculture, the Kingdom of Saudi Arabia announced it plans to increase its production of dragon fruit. Dragon fruit is a highly prized commodity and uses less water than other crops.

Scope of the Report

By Type

1. Cereal Grains

• Wheat

• Corn

• Barley

• Oats

• Rough Rice

2. Oilseeds

• Canola

• Cotton

• Palm oil

• Soybeans

3. Meat

• Feeder Cattle

• Live Cattle

4. Dairy

• Butter

• Milk

• Whey

• Cheese

5. Other Soft Commodities

• Cocoa

• Coffee

• Frozen Concentrated Orange Juice

• Sugar

6. Miscellaneous Agricultural Commodities

• Lumber

• Rubber

• Wool

By End User

• B2B

• B2C

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Agricultural Commodities Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing Population and Changing Consumer Taste and Preferences
         2. High Dependence on Agricultural Production for Economic Growth
      2. Restraints
         1. Use of Outdated Agricultural Methods
      3. Opportunity
         1. High Dependence on Agriculture for Survival
         2. Growing Demand for Processed Foods
      4. Challenges
         1. Negative Impact of the COVID-19
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Agricultural Commodities Market Overview
   1. Market Size & Forecast by Value, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Cereal Grains
            1. Wheat
            2. Corn
            3. Barley
            4. Oats
            5. Rough Rice
         2. Oilseeds
            1. Canola
            2. Cotton
            3. Palm oil
            4. Soybeans
         3. Meat
            1. Feeder Cattle
            2. Live Cattle
         4. Dairy
            1. Butter
            2. Milk
            3. Whey
            4. Cheese
         5. Other Soft Commodities
            1. Cocoa
            2. Coffee
            3. Frozen Concentrated Orange Juice
            4. Sugar
         6. Miscellaneous Agricultural Commodities
            1. Lumber
            2. Rubber
            3. Wool
      2. By End User
         1. B2B
         2. B2C
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Agricultural Commodities Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia Agricultural Commodities Market
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook and SWOT Analysis)
   1. Almarai
   2. Savola Group
   3. Abdullah Abdulghani & Bros.
   4. Arabian Agricultural Services Company (ARASCO)
   5. National Agricultural Development Company (NADEC)
   6. Saudi Agricultural and Livestock Investment Company (SALIC)
   7. United Farmers Holding Company
   8. Al Rajhi International for Investment
   9. Al Dahra Agricultural Company
   10. Al Othaim Holding
   11. Other prominent players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumptions & Limitations

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1 Saudi Arabia Agricultural Commodities Market Segmentation

Figure 2 Saudi Arabia Agricultural Commodities Market Value Chain Analysis

Figure 3 Company Market Share Analysis, 2022

Figure 4 Saudi Arabia Agricultural Commodities Market Size, By Value (USD Billion), 2019−2029

Figure 5 Saudi Arabia Agricultural Commodities Market Share, By Type, By Value, 2019−2029

Figure 6 Saudi Arabia Agricultural Commodities Market Share, By End user, By Value, 2019−2029

List of Tables

Table 1      Saudi Arabia Agricultural Commodities Market Size, By Type, By Value, 2019−2029

Table 2      Saudi Arabia Agricultural Commodities Market Size, By End user, By Value, 2019−2029

Table 3      Almarai Company Overview

Table 4      Almarai Financial Overview

Table 5      Savola Group Company Overview

Table 6      Savola Group Financial Overview

Table 7      Abdullah Abdulghani & Bros. Company Overview

Table 8      Abdullah Abdulghani & Bros. Financial Overview

Table 9      Arabian Agricultural Services Company (ARASCO) Company Overview

Table 10    Arabian Agricultural Services Company (ARASCO) Financial Overview

Table 11    National Agricultural Development Company (NADEC) Company Overview

Table 12    National Agricultural Development Company (NADEC) Financial Overview

Table 13    Saudi Agricultural and Livestock Investment Company (SALIC) Company Overview

Table 14    Saudi Agricultural and Livestock Investment Company (SALIC) Financial Overview

Table 15    United Farmers Holding Company Overview

Table 16    United Farmers Holding Company Financial Overview

Table 17    Al Rajhi International for Investment Company Overview

Table 18    Al Rajhi International for Investment Financial Overview

Table 19    Al Dahra Agricultural Company: Company Overview

Table 20    Al Dahra Agricultural Company Financial Overview

Table 21    Al Othaim Holding Company Overview

Table 22    Al Othaim Holding Financial Overview