Saudi Arabia Organic Food Market is projected to increase at 14.8% CAGR during 2019-2026 | size, Share & Forecast

Saudi Arabia Organic Food Market

The Saudi Arabia Organic Food Market is estimated to grow at a CAGR of 14.8% over the forecast period (2019-2026).

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The factors driving growth of the Saudi Arabia Organic Food Market includes Government initiatives promoting the production of organic food items, rising awareness about the harmful effects of chemicals present in the food items, growing prevalence of lifestyle related diseases and improvements in the living standards. For instance, under the Sustainable Agricultural Rural Development Program and Organic Action Plan, the Government of Saudi Arabia plans to invest around SR 700 million to boost the production of organic food items, which will accelerate the market growth in the approaching years. Moreover, growing adoption of advanced technologies by manufacturers, increasing consumers preference for organic food items over meat-based food products, rising availability of organic products at online stores and rapid urbanization, are some of the additional factors supplementing the Saudi Arabia Organic Food Market size. In addition, the increasing investments by leading players on research and development, strategic alliances, and partnerships between companies, rise in the launch of innovative products and growing population growth rates, are further contributing towards the market growth.  

The leading players operating in the market are Almizan Natural Trading Company, HiPP, Arla Foods, Danone, General Mills Inc., Organic Valley, Heinz Baby, Organic Life Est., Natureland and Abazeer, among others.

Based on Type, the Organic Dairy segment is predicted to grow at a significant CAGR during the forecast period

Organic food manufacturers are offering low fat and reduced level of sodium organic milk products and growing focus of companies on building positive brand image, some of the factors propelling the segment's growth.

On the other hand, the Organic Fruits & Vegetables segment is anticipated to capture the largest market share over the forecast period. Growing awareness about the nutritional benefits offered by organic fruits and vegetables and rising consumers inclination towards adopting healthy lifestyles, are some of the factors pushing the segment's growth.

Based on Distribution Channel, the Online Stores segment is projected to expand at a remarkable CAGR over the forecast period

Increasing internet penetration rates across Saudi Arabia, rapid growth in the e-commerce industry and Government initiatives promoting digital economy, are some of the important factors augmenting the segment's growth. In addition, the online stores are open 24*7, offers wide range of organic food items, at attractive discounts and provides free-home delivery options on the purchase of certain goods, are further boosting the segment's growth.

Key Developments

In February 2020, Arla Foods introduced new range of organic supplements in the Saudi Arabia. The company launched 4 products namely Mom Formula, Infant Milk Formulas, Multi-grain porridges, Pouches/fruit and vegetable porridges. Through this strategic product launch, the company has strengthened its position in the Saudi Arabian organic products market.
In October 2019, General Mills Inc. entered into strategic agreement with Bidfood KSA to expand distribution of Green Giant Frozen Vegetables across Saudi Arabia food service channels. Through this strategic product launch, the company has strengthened its presence in Saudi Arabia organic foods market.
In August 2019, Organic Valley introduced its new FUEL high-protein milk shake, made with organic protein and essential nutrients. The product was developed to meet the growing demand of consumers for high protein & low-sugar choice without any harmful chemicals and growth hormones.
In March 2018, Danone entered into strategic agreement with National Agricultural Development Company (NADEC) to sell Its 61% stake to NADEC estimating around USD 143 million. Through this strategic acquisition, NADEC enhanced its dairy portfolio and has strengthened its presence throughout the region, including Saudi Arabia, UAE, Kuwait, Bahrain, Jordan, and Lebanon.

Market Segmentation

Segmentation by Type

Organic Meat & Poultry
Organic Dairy
Organic Fruits & Vegetables
Organic Spices & Pulses
Organic Processed Food
Organic Cereal & Food Grains
Other Food Types

Segmentation by Distribution Channel

Supermarkets/Hypermarkets
Online Stores
Specialized Stores
Other distribution channels

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