Saudi Arabia Food Logistics Market Projected to Reach USD 2.0 Billion by 2033 at CAGR of 6.38%

Saudi Arabia Food Logistics Market Overview

Market Size in 2024: USD 1.1 Billion
Market Forecast in 2033: USD 2.0 Billion
Market Growth Rate 2025-2033: 6.38%

According to IMARC Group's latest research publication, "Saudi Arabia Food Logistics Market Size, Share, Trends and Forecast by Transportation Mode, Product Type, Service Type, Segment, and Region, 2025-2033", The Saudi Arabia food logistics market size reached USD 1.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2.0 Billion by 2033, exhibiting a growth rate (CAGR) of 6.38% during 2025-2033.

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How AI is Reshaping the Future of Saudi Arabia Food Logistics Market

● AI sharpens demand forecasting in Saudi food logistics, slashing waste by 20% for dairy during Ramadan via Vision 2030-backed tools that predict surges weeks ahead.​

● Route optimization with AI cuts fuel use 15% and boosts delivery speed in cold chains, as firms like Maersk deploy smart algorithms across Riyadh-Jeddah routes.​

● AI-driven robots and AMRs speed sorting in warehouses by 30%, handling perishables with precision in Saudi's 70 million sqm logistics hubs.​

● Real-time IoT-AI tracking ensures temp control, reducing spoilage 25% for seafood imports under NIDLP's digital push for food security.​

● Predictive analytics via AI hits USD 1.2B market value, powering dynamic inventory that meets e-commerce grocery boom seamlessly.

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Saudi Arabia Food Logistics Market Trends & Drivers:

Saudi Arabia's food logistics market is booming thanks to a massive push for advanced cold chain infrastructure, driven by surging demand for fresh dairy, seafood, and ready-to-eat items amid rapid urbanization and a population nearing 36 million. Perishables now make up 60% of food consumption, putting pressure on reliable temperature-controlled transport and storage to cut the 33% food waste rate. Recent moves like the Saudi Ports Authority's SR200 million ($53 million) deal with Arasco at Dammam Port are expanding food hubs right now, aligning with Vision 2030's food security goals that pump billions into resilient supply chains. Companies are racing to build over 200,000 sqm of new cold storage in key cities like Riyadh and Jeddah, using automation to keep goods fresh from port to plate.​

Government initiatives under Vision 2030 and the National Industrial Development and Logistics Program (NIDLP) are supercharging food logistics by turning Saudi Arabia into a global hub with smarter infrastructure and private investments. The NIDLP targets massive private sector funding to boost efficiency, while a whopping SAR 1.5 billion ($400 million) goes straight to cold chain upgrades for food security. Take the recent food logistics hub at King Abdulaziz Port-it's a prime example of public-private teamwork strengthening supply lines for imports that feed the Kingdom's growing retail scene. These efforts not only tackle import reliance but also create jobs and position Saudi as a bridge for regional trade, making logistics smoother and more competitive every day.​

E-commerce and retail explosion, fueled by tech like IoT, AI route optimization, and blockchain, are reshaping food logistics with real-time tracking and faster deliveries-think 25% quicker drops and 15% fewer lost packages. Hypermarkets, quick-service restaurants, and online grocery platforms are multiplying, demanding agile last-mile solutions for diverse imports from global cuisines. Vision 2030 backs this digital shift, with logistics firms investing in GPS, cloud platforms, and micro-fulfillment centers to handle the retail boom. It's all about transparency and speed, letting businesses trace perishables end-to-end while meeting picky consumer demands for quality and freshness in a youth-driven market.

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Saudi Arabia Food Logistics Industry Segmentation:

The report has segmented the market into the following categories:

Transportation Mode Insights:

● Roadways
● Railways
● Seaways
● Airways

Product Type Insights:

● Fish, Shellfish, and Meat
● Vegetables, Fruits, and Nuts
● Cereals, Bakery, and Dairy Products
● Coffee, Tea, and Vegetable Oil
● Others

Service Type Insights:

● Cold Chain
● Non-Cold Chain

Segment Insights:

● Transportation
● Packaging
● Instrumentation

Regional Insights:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Food Logistics Market

● December 2025: Mawani signs $53M deal with Arasco for 40,000 sqm food hub at Dammam Port, adding 100,000-tonne grain silos to boost efficiency.​

● November 2025: Al Muhaidib and noon launch MENA's largest logistics center in Riyadh, enhancing food delivery with advanced automation tech.​

● October 2025: Starlinks unveils Polaris facility in Riyadh, 44,000 AI-automated pallets for real-time cold chain control in food logistics.

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