Page 40 - AA 2025 Year Book Summary
P. 40

Saudi Arabia





       Saudi Arabia Fruits and Vegetables Market Analysis

        The Saudi Arabia Fruits And Vegetables Market size is
       estimated at USD 8.51 billion in 2025, and is expected to
       reach USD 10.76 billion by 2030, at a CAGR of 4.8% during
       the forecast period (2025-2030).
        The Saudi Arabian fruits and vegetables market is ex-
       periencing significant transformation driven by the gov-
       ernment’s  ambitious  food  security  initiatives  and tech-
       nological advancements in agriculture. The shift toward
       greenhouse production has revolutionized the cultivation
       landscape,  enabling  year-round  production  of  various
       crops despite challenging climatic conditions. The adop-
       tion  of  modern  farming  techniques,  including  vertical
       farming and controlled environment agriculture, has par-
       ticularly benefited the production of crops like tomatoes,   varieties. The implementation of precision agriculture
       cucumbers,  and  peppers.  This  technological  integration   technologies, including smart irrigation systems and soil
       has led to improved yield efficiency and quality of agri-  monitoring devices, is helping optimize resource utiliza-
       cultural products, with Jordan emerging as a key trading   tion while maintaining production quality. These initiatives
       partner, supplying approximately 69.5% of the country’s   are complemented by strategic partnerships with interna-
       cucumber imports.                                     tional agricultural technology providers, fostering innova-
        Consumer preferences in Saudi Arabia are increasingly   tion in sustainable farming practices and supporting the
       gravitating  toward  healthier  dietary  choices,  influenced   country’s long-term food security objectives.
       by rising urbanization and greater health consciousness.   Saudi Arabia Fruits and Vegetables Market Trends
       The growing awareness about organic fruits and vegeta-  Technological Integration and Modern Farming Prac-
       bles and food origin has created a robust demand for lo-  tices
       cally grown fresh produce, despite their premium pricing   The Saudi Arabian fruits and vegetables market is ex-
       compared to imported alternatives. This shift is particularly   periencing significant transformation through the integra-
       evident in the dates segment, where consumption reached   tion of advanced agricultural technologies and modern
       approximately 1.37 million metric tons in 2021, highlight-  farming practices. The government’s commitment to ag-
       ing the strong domestic market for traditional and healthy   ricultural  innovation  is  evident  through  its  January  2023
       produce. The trend extends beyond dates to encompass   announcement of a USD 1 billion investment specifically
       a  wider  range  of  fruits  and  vegetables,  with  consumers   targeted  at  boosting  greenhouse  produce.  This  substan-
       showing increased interest in organic and pesticide-free   tial investment, planned in cooperation with relevant au-
       options.                                              thorities and private sector companies, demonstrates the
        The retail landscape for fruits and vegetables in Saudi   country’s dedication to modernizing its agricultural sector
       Arabia is undergoing substantial modernization, charac-  through the implementation of cutting-edge technologies
       terized by the expansion of supermarket chains and hy-  and sustainable farming practices.
       permarkets. These modern retail formats are implement-  The adoption of drone technology has emerged as a
       ing sophisticated supply chain management systems and   revolutionary force in transforming traditional agricultural
       quality control measures to ensure consistent product   installations,  particularly  in  protected  houses.  These  ad-
       quality and availability. The retail sector’s evolution has   vanced systems are capable of creating detailed 3D maps
       been accompanied by the emergence of online grocery   for  early  soil  analysis,  facilitating  precise  seed  planting
       platforms and digital marketplaces, providing consumers   planning, and collecting crucial data for managing plant
       with convenient access to fresh food. Major retailers are in-  irrigation and nitrogen levels in previously uncultivable
       creasingly partnering with local farmers and international   land. The economic impact of this technological integra-
       suppliers to maintain a steady supply of both traditional   tion is substantial, with drone seeding demonstrating an
       and exotic agricultural produce.                      impressive 85% reduction in operational costs. Further-
        Agricultural sustainability and water conservation have   more,  the  success  of  these  modern  farming  practices  is
       become central themes in Saudi Arabia’s fruit and veg-  evidenced by the notable increase in tomato production,
       etable sector development. The country is actively pro-  which saw a more than 10% rise in 2022 compared to 2020,
       moting  water-efficient  farming  techniques  and  investing   directly attributed to the development of greenhouse and
       in research and development for drought-resistant crop   vertical farming initiatives.
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