09 Jan 2024
Feast on the Future: The Evolution and Potential of Saudi Arabia's Food Sector
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Saudi Arabia's food sector is a dynamic landscape, shaped by its distinctive geographical location, enriched socio-cultural tapestry, and robust economic position. As globalization blurs borders, a strong wave of localization is gripping industries worldwide post COVID-19, and the Saudi Arabian food industry is no exception.
As globalization blurs borders, a strong wave of localization is gripping industries worldwide post COVID-19, and the Saudi Arabian food industry is no exception. With a transformative horizon ahead, the nation is gearing up for an unparalleled investment boom, as outlined by Minister of Industry and Mineral Resources, Bandar Alkhorayef, forecasting an inflow of $20 billion by 2035.
Key Highlights:
- The projected investment is primed to invigorate several sectors, with the poultry, dairy, bakery, sweets, beverages, and juices sectors standing out as primary beneficiaries.
- Aiming for excellence, these investments aspire to augment the worth of the Kingdom's agricultural output, paving the way for distinctive competitive edges.
- Saudi Arabia's strategic vision is evident, with the National Industry Strategy striving to boost agricultural exports from a commendable $3.7 billion in 2022 to a staggering $10.9 billion by 2035.
- The Vision 2030 framework, a beacon of the Kingdom's future aspirations, integrates with the National Industrial Strategy, shedding light on the essentials of food security and a diversified economic canvas.
- The industry's pulse is marked by groundbreaking initiatives such as Almarai's ambitious $1.2 billion poultry production expansion, Seara Arabia Food Industries Co.'s $120 million venture, and SALIC's investment in National Aquaculture Group to acquire 42.4% stake.
- Further enriching the landscape is a $133 million venture in the canned tuna segment, which promises to be a job engine, to create 4,000 employment opportunities.
- Charting growth, the food sector, which stood at a substantial $41 billion in 2019, is forecasted to touch a monumental $57 billion by 2030, riding on an annual growth trajectory of 3%.
- Anchoring this growth is the Kingdom's populace, marked by a 1.4% upswing in food and beverage spending coupled with a 1.73% surge in population.
As we delve deeper into this industry analysis, these pivotal highlights serve as our guideposts, illuminating the intricacies of a sector ripe with potential and poised for transformation.
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