Saudi Arabia edible meat market is anticipated to grow at a CAGR of 5.5% during the forecast period (2020 - 2025).
- Key factors driving the growth of the edible meat market in Saudi Arabia are the increase in tourism, robust economic growth, changing consumer trends, and advanced technologies.
- Strong economic growth leading to higher protein consumption, a growing domestic as well as expat population, coupled with the rising preference for red meat (both sheep and bovine meat) are some of the other factors driving the meat market in the country.
Key Market Trends
Increase In Demand For Rte Meat Products
Convenience is the key factor driving the growth of RTE meat consumption in the country, with increasing disposable income and a rise in the number of working women. With technological innovations in the food industry, the range of convenience food has expanded to chilled, frozen, portion-controlled, shelf-stable, microwave-able, prepared-mixes, and others. The perceived credibility of Saudi manufacturers of Halal food, especially for meat and their products has helped the expansion of food processing facilities in the Kingdom. Most Saudi consumers tend to believe that locally produced meat products meet higher Halal standards than imported products from non-Muslim countries. While most poultry meat consumption is in the form of whole broilers, demand for processed chicken meat has been rising due to increased demand by fast food restaurants and ready-to-cook poultry meals by singles and working couples.
Poultry Holds A Major Share
In Saudi Arabia, chicken is considered a necessity. Studies suggest that implied income elasticities indicate that beef, lamb and fish are considered to beluxuries, while chicken is a necessity. Saudis consumers prefer locally produced fresh chicken meat. More than 80 percent of local chicken meat is sold chilled. Many poultry producers have switched their chicken meat production lines from frozen to chilled products for its higher profit margins. They are higher partly because chilling saves freezing and cold storage charges. Consumers, particularly Saudis, do not mind paying as much as 50 percent more for fresh\chilled domestic chicken meat over frozen imported chicken meat.
Saudi Arabia edible meat market is fragmented and comprises regional and international competitors. The market is dominated by players, like BRF S.A, Almarai Food Company, Herfy Foods, Al Watania and other players. Additionally, with high prominence of processed beef and poultry products, especially due to their rising demand among the double-income families, there has been a steady growth in the market.
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