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“Transformation in Saudi F&B sector primarily driven by Vision 2030”
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Monday, 04 August, 2025, 08 : 00 AM [IST]
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 Saudi Arabia’s food and beverage sector is undergoing a major transformation as Vision 2030 propels the kingdom toward self-sufficiency, innovation, and sustainable growth. With strong policy support, technology-driven solutions, and shifting consumer preferences, the F&B industry is now attracting unprecedented investments. From high-tech vertical farms to clean-label snacking, Saudi Arabia is reshaping how food is produced, processed, and consumed. The focus is sharply on health, convenience, and digitisation. In an exclusive email interaction with Abhitash Singh, Amit Dutta, director, Agri-Foods and Nutrition Growth Advisory at Frost & Sullivan, shares deep insights into what’s fuelling this evolution. Excerpts:
What are the key drivers behind Saudi Arabia’s F&B transformation?
The transformation in Saudi Arabia’s food and beverage sector is primarily driven by Vision 2030, which is steering significant investments across the entire industry. The government is addressing long-standing food security concerns while also fostering a strong ecosystem through agritech and food-tech innovation. A range of incentives, such as encouraging local manufacturing under the "Made in Saudi" initiative, import substitution policies, subsidised industrial land, tax benefits, and low-interest loans via the Saudi Industrial Development Fund (SIDF), are playing a crucial role in reshaping the F&B landscape.
Which investment hotspots are emerging under Vision 2030?
Under Vision 2030, investment activity is expanding across both upstream and downstream value chains. Notable growth is being observed in food processing and value addition, aligned with the kingdom’s goals for food self-sufficiency and local production. Additionally, agritech and foodtech innovations are receiving strong traction. The cold chain infrastructure is emerging as a major investment hotspot, with market potential projected to reach US$2.33 billion by 2028. Health and wellness-related food segments, including functional, gluten-free, and clean-label products, are also witnessing robust investor interest.
How are Saudi consumers redefining healthy eating?
Healthy eating is no longer a fringe movement in Saudi Arabia—it has become a mainstream priority. The health and wellness segment in the F&B market is currently valued at around US$4-5 billion and is expected to nearly double to US$9 billion by 2030, growing at a CAGR of approximately 10%. Consumers, especially younger Saudis and professionals, are actively seeking functional, organic, and clean-label products. These include high-protein options, sugar-free alternatives, fortified foods, and items free from gluten or preservatives, all driven by a rising awareness of overall well-being.
What role does convenience play in today’s food choices?
Convenience is becoming a decisive factor in food consumption patterns, particularly due to increasing urbanisation and the rise of dual-income households. There is growing demand for ready-to-cook (RTC) and ready-to-eat (RTE) products, especially breakfast items and healthy snacks. Ready-to-drink (RTD) beverages such as coffee, tea, and smoothies are gaining shelf space across retail channels. In workplaces, smart vending machines are enhancing access to nutritious food options. Even ingredients like olive and canola oils are being viewed as convenient and healthy staples.
How are brands balancing health and indulgence in product offerings?
Brands in Saudi Arabia are finding creative ways to merge indulgence with health. The growing demand for "guilt-free indulgence" is being met through premium chocolates, non-dairy beverages, and high-fibre baked goods. With millennials comprising nearly 40% of the kingdom’s population, there is a clear shift towards premium snacking that offers both taste and nutrition. Moreover, consumers are increasingly valuing multi-layered packaging and ingredient transparency, which are becoming key differentiators in product choice.
What agritech innovations are gaining the most traction in the kingdom?
Saudi Arabia is rapidly embracing advanced agritech solutions to overcome its arid climate and boost agricultural productivity. Innovations such as controlled environment agriculture, smart greenhouses, hydroponics, aeroponics, and vertical farming are gaining traction. Technologies like AI-driven precision farming, agriculture robotics, drone-based crop monitoring, water-efficient irrigation systems, and integrated crop and pest management are helping the kingdom modernise its farming systems and achieve long-term sustainability.
Can you share an example of a successful vertical farming project?
Yes, several government-backed pilot projects in vertical farming are currently being implemented in Saudi Arabia. These farms operate in controlled greenhouse environments and use a combination of drip irrigation, solar power, and data-driven yield monitoring. These projects form a vital part of the kingdom’s broader SAR 70 billion commitment to transforming its agricultural sector through smart and sustainable farming practices.
How is Saudi Arabia tackling food security challenges?
Saudi Arabia is taking bold, strategic steps to reduce its dependence on food imports and build a resilient, self-reliant food ecosystem. Vision 2030 is at the core of this movement, encouraging both public and private investments in agritech and food-tech innovation. The progress in self-sufficiency is notable, with the country now producing 129% of its dairy, 127% of its eggs, 71% of its poultry, and 61% of its red meat requirements. Additionally, institutions like the Agricultural Development Fund are aligning financing with national food security targets. The government is also focusing on boosting poultry consumption, expanding fisheries, and scaling vertical and greenhouse farms.
What F&B categories are expected to grow the fastest in the coming years?
In 2023, the food and beverage market in Saudi Arabia was valued at approximately US$28 to 30 billion. Categories such as meat and poultry, dairy, cereals, fruits and vegetables, bakery, beverages, and convenience foods (RTE/RTC) are among the fastest-growing segments. Seafood is also seeing strong growth, largely due to its increasing popularity in the foodservice sector. The government’s investment of US$24 billion in environment, water, and agriculture is aimed at boosting domestic production by at least 60%, further accelerating the growth of these categories.
How is technology shaping the future of Saudi’s food industry?
Technology is becoming integral to every part of the food value chain in Saudi Arabia. From farming to delivery, innovations are enhancing productivity, sustainability, and consumer experience. Digital food delivery platforms are driving the F&B industry's digital transformation. Artificial intelligence and machine learning are optimising supply chains by reducing waste and improving efficiency. Automation and robotics are being used not only in production but also in food delivery and customer service, creating a smarter, more seamless experience for the modern consumer.
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