Page 41 - AA 2024

Saudi Arabia

Saudi Arabia Poultry Meat Market Analysis

The Saudi Arabia Poultry Meat
Market size is estimated at 5.05 billion
USD in 2024, and is expected to reach
5.53 billion USD by 2029, growing at
a CAGR of 1.82% during the forecast
period (2024-2029).
The increasing inflation rates
and foodservice consumption are
fueling sales
• From 2019 to 2022, the market’s
overall growth rate was around 4.7%
in value, and the off-trade channel
recorded around 2.9% growth in value
from 2021 to 2022. The off-trade channel
sales were 5.9% higher than the on-
trade channel in 2022. The demand for
chicken parts has increased over the
past several years due to increased
tourism and the student population,
which mainly looks for affordable food The internet penetration rate for Saudi • The mortality rate of chicken meat
options. Processed poultry meat sales Arabia reached over 97.9% in 2022. has declined in the past five years by
are highest as these people live on around 8%, leading to an increase
a budget and have hectic lifestyles, in the production rate in poultry
which is boosting the sales. Saudi Arabia Poultry farms in Saudi Arabia. Government
Meat Market Trends
• However, in 2022, the on-trade intervention in production support,
channel’s sales observed a significant The production in the country is interest-free loans, and rebates on
growth of 12.89% from 2020 to 2022 expected to be boosted as a part of poultry equipment has reduced overall
due to supply chain disruptions. With a Vision 2030 production costs, thus increasing the
3.4% rise in inflation, a 2% rise in the number of poultry farms across the
price index, and a rise in VAT (value- • Saudi Arabia is the largest producer country. Owing to these factors, various
added tax) from 5% to 15% compared of poultry meat in the Middle East, international manufacturers are
to the previous year, poultry prices accounting for around 71% of the investing in the country. For instance, in
increased and availability decreased. region’s poultry production in 2022. 2022, local poultry company Tanmiah
Restaurants are opening at a slow pace, Poultry meat production gradually Food Company and MHP SE of Ukraine
and people are more concerned about increased by 51.6% from 2017 to entered into a new memorandum of
health, so they prefer to cook at home. 2022. Saudi Arabia’s self-sufficiency understanding, which offered the
in chicken meat climbed from 45% in potential to help raise the contribution
• In Saudi Arabia, the online channel 2016 to 68% in 2022. of domestic poultry production to
for poultry meat is projected to be the
fastest-growing off-trade distribution
channel, registering a CAGR value of
8.94% during the forecast period. The
increasing adoption of technology by
multiple stakeholders like customers,
supermarkets, convenience channels,
and B2C has resulted in consumers
shifting toward online channels. With
the increased penetration, more than
53% of consumers purchase frozen
poultry at least once a month. During
festival seasons like Ramadan, 76%
of consumers are likely to buy frozen
poultry more frequently. The increase
in production and cheaper frozen
poultry meat costs compared to other
channels are driving the market’s sales.

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