Market Forecast By Product (Fresh Food, Frozen Food, Food Cupboard, Beverages, Cleaning & Household, Others), By Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Departmental Stores & Clubs, Online) And Competitive Landscape
Product Code: ETC216939 | Publication Date: Aug 2022 | Updated Date: May 2025 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 | |
As per 6Wresearch, the Saudi Arabia food and grocery retail market is experiencing steady growth, with a forecast to increase between 2025 and 2031, at a CAGR of 5.6%. This growth is driven by changing consumer preferences and rising disposable incomes.
Report Name | Saudi Arabia Food & Grocery Retail Market |
Forecast period | 2025-2031 |
CAGR | 5.6% |
Growing Sector | Food |
The Saudi Arabia Food & Grocery Retail Market report thoroughly covers the market by products , and Distribution Channel. The report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high-growth areas, and market drivers to help stakeholders align their strategies with current and future market dynamics.
The Saudi Arabia Food & Grocery Retail Market is witnessing a massive growth, influenced by several factor such as, consumer preferences increasing, rapid urbanization, and rising population growth. The market dynamic forces are formed by the deployment of modern retail formats like, supermarkets, hypermarkets, and e-commerce platforms, along with traditional grocery stores. Additionally, fast paced change in lifestyles and a rise in the focus on convenience have been fuelling the demand for ready-to-eat and packaged food products.
The Saudi Arabia Food & Grocery Retail Market is anticipated to grow at a CAGR of 5.6%. during the forecast period 2025-2031. The Saudi Arabia food and grocery retail market growth has been proliferating tremendously influenced by several factors. One of the significant drivers is rising population rate, predominantly young consumers rate looking for convenience and variety in their food preferences. Another major driver proliferating the market growth is rapid urbanization as more people have moved to cities, resulting in a surge in the demand for organized grocery stores and modern retail stores. Furthermore, a surge in the income levels and a change in the dietary habits have been boozing the premium and imported food products consumption rate. Government initiatives promoting local food production, coupled with technological advancements in e-commerce and delivery services, are also contributing to the Saudi Arabia Food & Grocery Retail Market growth.
The food and grocery retail market in Saudi Arabia is experiencing dynamic growth driven by changing consumer preferences, urbanization, and rising disposable incomes. There is a notable shift towards healthier food options, organic products, and convenience-oriented purchases as consumers prioritize well-being and fast-paced lifestyles. Additionally, the rapid expansion of e-commerce and online delivery platforms has revolutionized how groceries are purchased, offering greater accessibility and convenience.
The food and grocery retail market in Saudi Arabia offers significant investment opportunities for both local and international players. The government's focus on economic diversification under Vision 2030 has provided a supportive framework for foreign investments and the development of the retail sector. Investors can tap into emerging areas such as organic and premium food products, digital grocery platforms, and logistics infrastructure to meet the growing demand for convenience and quality.
The Saudi Arabia food and grocery retail market is highly competitive and features a mix of local and international players. Prominent names include Almarai, Panda Retail, Tamimi Markets, and Carrefour. Additionally, e-commerce platforms such as Nana Direct and HungerStation have emerged as critical players, catering to the growing demand for online grocery shopping. Partnerships between international and local companies have also fostered the adoption of innovative practices, further intensifying competition within the sector.
The Saudi government plays a vital role in shaping the food and grocery retail market through its regulatory framework. Compliance with Saudi Food and Drug Authority (SFDA) standards ensures safe, high-quality products for consumers. Additionally, Vision 2030 initiatives support increased localization, sustainability, and innovation in the retail sector. Policies encouraging foreign direct investment (FDI) and fair competition have opened new opportunities for global players to operate in Saudi Arabia.
The Saudi Arabia food and grocery retail market is poised for significant growth driven by evolving consumer preferences and technological integration. Digital transformation, powered by artificial intelligence and data analytics, is expected to enhance efficiency in supply chain operations and personalized shopping experiences. The demand for health-conscious and sustainable products continues to grow, prompting retailers to innovate in organic, plant-based, and eco-friendly offerings. Mega projects under Vision 2030, including smart cities and expanded urban development, will further bolster the sector, creating new avenues for business expansion and consumer engagement.
E-commerce has rapidly transformed the grocery retail sector in Saudi Arabia, providing consumers with convenient and time-efficient options to shop for essentials. The proliferation of digital platforms, coupled with the increasing penetration of smartphones and internet services, has significantly boosted online grocery shopping. Retailers are investing heavily in user-friendly mobile apps, seamless payment systems, and efficient delivery networks to cater to the growing demand.
Consumer behavior in the Saudi food and grocery market is undergoing a notable shift, driven by a younger, tech-savvy population and changing lifestyle patterns. There is growing interest in health and wellness, with consumers prioritizing organic, locally-sourced, and high-quality food products. Convenience has also become a key factor, with increasing demand for ready-to-eat meals and quick delivery options.
The report offers a comprehensive study of the following market segments and their leading categories
According to Ashutosh, Senior Research Analyst at 6Wresearch, Fresh food emerges as the leading product category in the Saudi Arabia food and grocery retail market. With a strong preference for fresh produce, meats, and dairy products among consumers, this segment consistently accounts for a significant share of the market.
Supermarkets and hypermarkets dominate as the primary distribution channel in the Saudi Arabia food and grocery retail market. These outlets provide consumers with a wide variety of products under one roof, ensuring both convenience and accessibility.
The Marketreport covers a detailed analysis of the following market segments
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 Saudi Arabia Food & Grocery Retail Market Overview |
3.1 Saudi Arabia Country Macro Economic Indicators |
3.2 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, 2021 & 2031F |
3.3 Saudi Arabia Food & Grocery Retail Market - Industry Life Cycle |
3.4 Saudi Arabia Food & Grocery Retail Market - Porter's Five Forces |
3.5 Saudi Arabia Food & Grocery Retail Market Revenues & Volume Share, By Product, 2021 & 2031F |
3.6 Saudi Arabia Food & Grocery Retail Market Revenues & Volume Share, By Distribution Channel, 2021 & 2031F |
4 Saudi Arabia Food & Grocery Retail Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 Saudi Arabia Food & Grocery Retail Market Trends |
6 Saudi Arabia Food & Grocery Retail Market, By Types |
6.1 Saudi Arabia Food & Grocery Retail Market, By Product |
6.1.1 Overview and Analysis |
6.1.2 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Product, 2021-2031F |
6.1.3 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Fresh Food, 2021-2031F |
6.1.4 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Frozen Food, 2021-2031F |
6.1.5 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Food Cupboard, 2021-2031F |
6.1.6 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Beverages, 2021-2031F |
6.1.7 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Cleaning & Household, 2021-2031F |
6.1.8 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Others, 2021-2031F |
6.2 Saudi Arabia Food & Grocery Retail Market, By Distribution Channel |
6.2.1 Overview and Analysis |
6.2.2 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Supermarkets & Hypermarkets, 2021-2031F |
6.2.3 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Convenience Stores, 2021-2031F |
6.2.4 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Departmental Stores & Clubs, 2021-2031F |
6.2.5 Saudi Arabia Food & Grocery Retail Market Revenues & Volume, By Online, 2021-2031F |
7 Saudi Arabia Food & Grocery Retail Market Import-Export Trade Statistics |
7.1 Saudi Arabia Food & Grocery Retail Market Export to Major Countries |
7.2 Saudi Arabia Food & Grocery Retail Market Imports from Major Countries |
8 Saudi Arabia Food & Grocery Retail Market Key Performance Indicators |
9 Saudi Arabia Food & Grocery Retail Market - Opportunity Assessment |
9.1 Saudi Arabia Food & Grocery Retail Market Opportunity Assessment, By Product, 2021 & 2031F |
9.2 Saudi Arabia Food & Grocery Retail Market Opportunity Assessment, By Distribution Channel, 2021 & 2031F |
10 Saudi Arabia Food & Grocery Retail Market - Competitive Landscape |
10.1 Saudi Arabia Food & Grocery Retail Market Revenue Share, By Companies, 2024 |
10.2 Saudi Arabia Food & Grocery Retail Market Competitive Benchmarking, By Operating and Technical Parameters |
11 Company Profiles |
12 Recommendations |
13 Disclaimer |