Saudi Arabia Alfalfa Market Size (2024 - 2029)

Saudi Arabia Alfalfa Market Analysis

The Saudi Arabia Alfalfa Market size is estimated at USD 2.10 billion in 2024, and is expected to reach USD 2.70 billion by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).

Over the medium term, factors including rising demand for quality hay for livestock and dairy production, prices of alfalfa hay, and health benefits of alfalfa over other alternative feed are expected to drive the market growth in the coming years. Livestock products remain the desired food for nutritional value and taste across major parts of Saudi Arabia.

Livestock products remain the desired food for nutritional value in major parts of Saudi Arabia. The consumption of animal products, such as milk, cheese, and meat, is increasing across KSA, which is attributed to the increasing awareness about cutting down their consumption of fatty and high-calorie foods, thereby shifting to healthy dairy products. The high demand for quality products is increasing the demand for quality feed, which, in turn, is driving the market for alfalfa, as farmers are choosing good-quality forage for cattle to produce high-quality animal products.​ For instance, according to the USDA, the annual chicken meat production in Saudi Arabia was around 1.13 million metric tons in 2022 as compared to 0.93 million metric tons in 2021. Hence, the market is projected to grow significantly in the country with the rising demand from the meat industry.

However, the major restraints for this market are a ban on forage production and ecological factors such as scarce water resources in the country. In 2019, the Saudi Arabian government announced a ban on the cultivation of green fodder (forages) and replaced it with imported sources. This is anticipated to increase the demand for imported high-protein alfalfa but will lead to a decrease in the area harvested for alfalfa. Moreover, locally produced compound feed has become more price-competitive, due to the strong incentives offered by the Saudi government to encourage compound feed production. The Saudi government offers interest-free loans and provides import subsidies for thirty-one feed ingredients, including yellow corn, soybean meal, and barley, to boost the expansion of feed processing facilities and help reduce the country's heavy reliance on huge forage imports including alfalfa. Hence, imported forage including alfalfa would be used only as an ingredient to produce compound feed, and not be offered for direct livestock feeding. Thus, the shift toward the compound feed is potentially limiting the growth of the alfalfa market in the country.

Saudi Arabia Alfalfa Industry Segmentation

Alfalfa, popularly known as lucerne, is an important forage crop widely grown for hay, pasturage, and silage. Alfalfa hay is very nutritious and palatable, high in protein, minerals, and vitamins. The Saudi Arabia alfalfa hay market includes production analysis (volume), consumption analysis (value and volume), export analysis (value and volume), import analysis (value and volume), and price trend analysis. The report offers the market size and forecasts in terms of value (USD) and volume (metric tons) for the segments mentioned above.