Food Industry in Saudi Arabia is one of the most dynamic and rapidly growing sectors worldwide, continuously evolving to meet the increasing and diverse needs of the population. In Saudi Arabia, this sector holds particular importance due to its crucial role in achieving food security and enhancing the national economy. With Vision 2030, efforts to develop the food industry and attract local and foreign investments are increasing, opening vast opportunities for industrial investors.

Overview of the Global Food Industry

The global food market revenue is projected to reach approximately $9.68 trillion in 2025, with continuous growth expected in the coming years. The meat sector is one of the largest in this market, reaching a size of $1.55 trillion in 2025.

This global market is dominated by a group of major companies, with the top 25 food companies generating revenues of $1.8 trillion in recent years and profits exceeding $160 billion.

The Food Industry in Saudi Arabia

The food industry in Saudi Arabia is witnessing remarkable growth, supported by both government and private investments. According to the Saudi Authority for Industrial Cities and Technology Zones (“Modon”), the number of food-producing factories in its cities has increased to approximately 1,300, reflecting significant development in this sector.

Local investments account for up to 90% of total investments in the food manufacturing sector, while foreign and joint investments make up 10%. Additionally, small and medium-sized enterprises (SMEs) dominate the food production and manufacturing sector, constituting 88% of all factories in the Kingdom.

Saudi Arabia’s global market share in the food manufacturing sector stands at SAR 176 billion, with expectations for the country’s food market to grow to SAR 214 billion by 2030.

The Role of ipic in Developing the Food Sector

IPIC plays a crucial role in strengthening the food sector in Saudi Arabia by providing integrated solutions based on advanced technologies and strategic planning. Leveraging its expertise in industrial consulting, the company contributes to digital transformation and enhances production efficiency in food factories, helping improve quality and reduce costs.

IPIC offers advanced solutions, including:

• Digital Transformation and Advanced Technologies: Implementing Industry 4.0 and the Internet of Things (IoT) to enhance food factories’ efficiency and productivity.
• Industrial Feasibility Studies: Providing in-depth analyses and detailed studies to help investors make well-informed strategic decisions.
• Factory Establishment and Management: Delivering comprehensive services, including project planning, resource management, and ensuring compliance with industry standards.
• Digital Twin Technology: Creating digital models of industrial facilities to simulate and optimize performance while reducing production errors.

Investment Opportunities in Saudi Arabia’s Food Sector

With population growth and rising demand for diverse food products, numerous promising investment opportunities are available in Saudi Arabia’s food industry, including:

1. Production of Healthy and Functional Foods
   – As consumer awareness of health increases, demand is rising for healthy and functional food products, such as high-protein, fiber-rich, and vitamin-enriched foods.
2. Development of Sustainable Farming Technologies
   – Investing in vertical farming and hydroponics can boost productivity and reduce reliance on imports.
3. Organic Food Manufacturing
   – The growing demand for organic products presents opportunities for investors to develop production lines catering to this market.
4. Expansion in Frozen and Packaged Foods
   – Due to fast-paced lifestyles, demand for ready-made and frozen foods is increasing, providing investment prospects in this field.
5. Development of Supply Chain and Distribution Networks
   – Investing in improved supply chains ensures high-quality food products reach consumers efficiently.

Key Investment Drivers in Saudi Arabia

• Strong Government Support: The Saudi government provides multiple incentives for investors in the food sector.
• Strategic Location: Saudi Arabia serves as a gateway to markets in the Middle East and North Africa, facilitating access to multiple markets.
• Advanced Infrastructure: Industrial cities and technology zones offer modern facilities that support food industry growth.
• Increasing Local Demand: With a growing population and rising income levels, demand for diverse food products is expanding.

Conclusion

The food sector in Saudi Arabia represents a promising investment opportunity, driven by economic growth and ambitious government initiatives. With ongoing support, investing in this sector is an ideal choice for industrial investors seeking sustainable growth.

ipic plays a strategic role in accelerating industrial development and driving digital transformation in the food sector, enhancing opportunities for success and sustainability in this field.

Contact us today to learn more about feasibility studies and industrial consulting services.

ipic – Your Companion in Industrial Transformation Journey