Saudi Arabia Poultry Market Forecast: Growth Dynamics and Challenges to 2033

The Saudi Arabia Poultry Meat market is projected to grow to USD 5.62 billion by 2033, driven by urbanization, disposable income growth, and consumer preference for halal products. Government support enhances production, but market saturation and health trends pose challenges.

The Saudi Arabia Poultry Meat market is projected to grow to USD 5.62 billion by 2033 from USD 4.75 billion in 2024, translating to a Compound Annual Growth Rate (CAGR) of 1.90% from 2025 to 2033. Key factors driving this growth include urbanization, increased disposable income, evolving consumer preferences for convenient meals, enhanced food processing capabilities, governmental food security programs, and a demand for high-quality, halal-certified poultry products.

As Saudi Arabia’s population grows, the poultry sector has become an essential part of the food economy, making it the largest buyer of poultry within the Gulf Cooperation Council (GCC). The economical price of poultry compared to red meat has contributed to its rising popularity among consumers. This shift is propelled by a bustling urban lifestyle and the expansion of the retail and restaurant sectors, fostering a heightened appetite for processed and ready-to-eat chicken products.

The Saudi government is actively supporting the chicken meat industry through initiatives aimed at increasing local production and bolstering sector sustainability. Investments in modern technologies, processing facilities, and poultry farms have amplified domestic output, enhancing food security and decreasing reliance on imports. Particularly, halal certification remains pivotal within the industry, ensuring the alignment with Islamic dietary laws vital for the majority Muslim population in the region.

In 2022, Saudi Arabia accounted for approximately 71% of the Middle East’s poultry production, which rose dramatically from 45% domestic sourcing in 2016 to 68% in 2022, indicating significant growth in both output and quality. The Saudi government has initiated programs, including financial incentives, to encourage further local production, signifying its commitment to food security and self-sufficiency. Furthermore, partnerships with international firms also aim to enhance domestic production capacities, attracted by beneficial government policies.

The local market has become increasingly competitive, with various foreign investments and new entrants. Rapid growth in the foodservice and retail sectors has broadened the availability of poultry products, enabling manufacturers to reach a wider customer base. However, the influx of imported poultry has led to price wars and increased difficulty for local producers to maintain margins.

Shifting consumer preferences towards healthier options pose potential challenges for the poultry industry in Saudi Arabia. Health-conscious buyers increasingly favor plant-based alternatives or lower-fat poultry products, compelling producers to adapt their offerings or diversify into alternative protein sources to remain competitive amidst changing dietary trends.

The report includes a comprehensive analysis of key players in the Saudi poultry sector, such as Al-Watania Poultry, Almarai, and BRF S.A., among others, underscoring the dynamic nature of this market. The forthcoming years are critical for players to innovate and align their strategies with evolving consumer demands while maintaining compliance with cultural practices such as halal certification.

The Saudi Arabia Poultry Meat market is positioned for continued growth, anticipated to reach USD 5.62 billion by 2033. This expansion is spurred by urbanization, improved incomes, increasing consumer demand for halal products, and government initiatives aimed at enhancing local production and food security. However, challenges such as market saturation and shifting consumer preferences towards healthier options necessitate that producers remain agile and adaptive in this evolving landscape.

Original Source: www.globenewswire.com