Poultry Market in Saudi Arabia Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

Saudi Arabia Poultry Market Analysis

The Saudi Arabia Poultry Market is expected to register a CAGR of 4.11% during the forecast period.

The Saudi Arabian poultry sector has emerged as one of the largest and most dynamic segments within the country's food industry, characterized by robust domestic production capabilities and strategic development initiatives. The domestic production landscape has shown remarkable progress, with official data from the Saudi Ministry of Environment, Water and Agriculture (MEWA) reporting poultry production reaching 910,000 MT in 2021. The sector has achieved a significant milestone by reaching a 60% self-sufficiency level, marking substantial progress in reducing import dependency. This transformation has been driven by technological advancements in poultry farming, improved breeding techniques, and enhanced farm management practices. The industry's evolution reflects a broader shift towards modernizing agricultural practices while maintaining strict adherence to halal standards and food safety regulations.

The retail landscape for poultry products has undergone significant transformation, with modern trade channels gaining prominence and reshaping distribution networks. In February 2023, LuLu Group further expanded its presence in the Eastern Region by opening its latest hypermarket, demonstrating the ongoing modernization of retail infrastructure. The shift towards modern retail formats has been accompanied by innovations in packaging, storage, and display solutions, particularly for fresh and frozen poultry products. Consumer preferences have evolved to favor convenience and quality, driving retailers to invest in cold chain infrastructure and premium product offerings. These developments have created new opportunities for both domestic and international players to enhance their market presence through innovative retail concepts and improved customer experiences.

The investment climate in Saudi Arabia's poultry sector has witnessed unprecedented momentum, characterized by substantial capital inflows and strategic partnerships. A landmark development includes the planned investment of USD 4.5 billion into the industry until 2025, representing one of the largest capital commitments in the sector's history. This investment surge has been complemented by corporate expansion initiatives, exemplified by Almarai's announcement in 2022 of a USD 1.8 billion poultry expansion plan aimed at doubling its production capacity over five years. The sector has attracted both domestic and international investors, driven by favorable government policies, including 100% ownership opportunities for local producers and production-based subsidies.

Technological innovation and sustainability have become central themes in the Saudi Arabian poultry industry's development trajectory. The sector has witnessed increased adoption of precision farming techniques, automated processing systems, and advanced monitoring technologies. Modern poultry facilities are incorporating IoT-enabled solutions for real-time monitoring of environmental conditions, feed management, and animal welfare parameters. The industry's focus on sustainability is reflected in investments in energy-efficient systems, water conservation technologies, and waste management solutions. These technological advancements are not only improving operational efficiency but also addressing environmental concerns while maintaining compliance with international quality standards and halal requirements.

Saudi Arabia Poultry Market Trends

Escalating Demand for Processed Poultry Products, Coupled with Modern Retailing

The Saudi Arabian poultry market is experiencing robust growth driven by changing consumer lifestyles, increasing disposable income, and a rise in the number of working women. These factors have led to increased demand for convenient, ready-to-eat, and ready-to-cook poultry products. The range of convenience food has expanded significantly due to technological innovations in the food industry, encompassing chilled, frozen poultry, shelf-stable, microwaveable, and prepared mixes. Major players like Al Kabeer Group ME and Almarai Company are capitalizing on this trend by offering a wide assortment of halal-certified ready-to-eat and ready-to-cook poultry products, including samosas, spring rolls, nuggets, fillets, kebabs, sausages, and burger patties.

The consistent launch of new processed poultry products, coupled with hyper-branding and modern retailing across meat shelves in supermarket stores, is driving market growth. For instance, in February 2022, the Seara brand of JBS launched a portfolio of 120 products at two local plants in Saudi Arabia, considering Middle Eastern culture and cuisine. The brand introduced a halal portfolio including breaded chicken, chicken burgers, meatballs, and other processed products. Additionally, retailers like Carrefour, Lulu, and others are expanding their frozen poultry and chilled poultry product offerings to meet growing consumer demand. The advancement in freezing technologies, innovative refrigerator displays in supermarkets, and improved supply chain solutions have further supported the increasing consumption of processed poultry products.

Favorable Government Initiatives to Boost Production

The Saudi government has implemented significant initiatives to boost domestic poultry production as part of its Vision 2030 strategy. The Ministry of Environment, Water, and Agriculture (MEWA) is actively encouraging local producers to increase production through various support measures, including direct production-based subsidies of up to USD 187 million annually to Saudi Arabian poultry farmers. The government's commitment is evident in its recent announcement to invest USD 5 billion to achieve self-sufficiency in poultry meat production, demonstrating its dedication to reducing import dependency and strengthening domestic production capabilities.

The effectiveness of these initiatives is reflected in the significant growth of domestic production, which reached 910,000 MT in 2021, achieving a 60% self-sufficiency level compared to 40% in 2016. Major industry players are responding positively to these government initiatives through substantial investments. For instance, in May 2021, Saudi Arabian food manufacturer Almarai invested USD 1.8 billion to expand its poultry business and enhance biosecurity on poultry farms. Similarly, Brazil's chicken meat processor, BRF SA, invested in two poultry meat processing facilities in Saudi Arabia through an agreement with the Ministry of Investment of Saudi Arabia, with one fully-owned plant expected to produce around 50,000 MT of poultry meat annually.

Increasing Imports of Poultry Products in the Country

Saudi Arabia maintains its position as a significant importer of poultry products, with imports valued at USD 1.13 billion, making it the eighth-largest importer of poultry meat globally. The country's robust import market is driven by strong domestic demand that exceeds current local production capabilities. This import dependency is particularly evident in the diversity of source countries, with Brazil leading as the primary supplier, followed by Ukraine, France, Russia, and the United Arab Emirates. The country is actively engaging in multiple trade deals and establishing new bonds with major poultry-meat-producing countries to ensure a stable supply of high-quality meat products.

The import market is further strengthened by consumer preferences and quality considerations. Saudi consumers are willing to pay a premium for quality products, as evidenced by their preference for locally produced fresh poultry, for which they pay up to 50% more compared to frozen imported chicken meat. The government is also taking steps to expand its import sources while maintaining quality standards. For instance, in September 2022, the Ministry of Commerce announced approval for importing processed chicken products from 11 Thai factories after meeting with Saudi Food and Drug Administration (SFDA) officials. This diversification of import sources helps ensure a stable supply while maintaining competitive pricing in the market.

Segment Analysis: By Product Type

Broiler Meat Segment in Saudi Arabia Poultry Market

The broiler meat segment continues to dominate the Saudi Arabia poultry market, holding approximately 67% of the total market share in 2024. This significant market position is attributed to the growing preference for convenient, ready-to-eat, and ready-to-cook poultry products among Saudi consumers. The segment's dominance is further strengthened by the ease of preparation and storage capabilities in home refrigerators for extended periods. The food service channel actively purchases broiler meat in fresh, chilled, and frozen formats to meet varying consumer demands. Additionally, the Saudi government's strategic goal of investing SAR 17 billion to enhance self-sufficiency in poultry meat production has significantly boosted the broiler meat segment's growth. Companies that wish to expand may receive up to 70% of the investment cost by implementing advanced technology, further solidifying the segment's market leadership.

Processed Meat Segment in Saudi Arabia Poultry Market

The processed meat segment is projected to experience the highest growth rate of approximately 4% during the forecast period 2024-2029. This accelerated growth is primarily driven by the increasing demand from fast-food restaurants and the rising preference for ready-to-cook poultry meals among bachelors and working couples. The segment's expansion is further supported by technological innovations in the food industry, which have led to an expanded range of convenience foods, including chilled, frozen, shelf-stable, and microwaveable options. Major players like Al Kabeer Group ME and Almarai Company are capitalizing on this growth by offering a wide assortment of halal-certified ready-to-eat and ready-to-cook poultry products, including samosas, spring rolls, nuggets, fillets, kababs, sausages, and burger patties that align with consumer preferences for convenient meal solutions.

Remaining Segments in Product Type Segmentation

The eggs segment represents a crucial component of the Saudi Arabian poultry market, offering essential protein sources for at-home consumption across the country. The segment's significance is underscored by Saudi Arabia's achievement of self-sufficiency in table eggs production, demonstrating the country's strong domestic production capabilities. The segment encompasses various product offerings, including regular table eggs, specialty eggs enriched with omega-3, and organic variants, catering to diverse consumer preferences and nutritional needs. The Saudi government's continued support for local egg production, coupled with expanding export opportunities to neighboring countries, further strengthens this segment's position in the overall poultry market.

Segment Analysis: By Distribution Channel

Modern Trade Segment in Saudi Arabia Poultry Market

The modern trade segment, comprising hypermarkets and supermarkets, holds approximately 32% share of the Saudi Arabia poultry market in 2024. This significant market position is driven by the growing young and expatriate population demographics, coupled with hot summers and a general lack of entertainment activities in the country that have pushed the rapid development of modern grocery retailers and shopping centers. The segment's dominance is further strengthened by the heavy discounts, offers, and schemes available to customers for bulk purchasing. These retail outlets maintain a strong position due to their wide selection of offers, considerable shelf space, and frequent price promotions. The channel is most preferred by poultry manufacturers to launch new products such as frozen chicken meals and sausages, primarily due to the high footfall compared to other channels.

Modern Trade Growth Trajectory in Saudi Arabia Poultry Market

The modern trade segment is projected to grow at approximately 4% CAGR during 2024-2029, emerging as the fastest-growing distribution channel in the Saudi Arabian poultry market. This accelerated growth is attributed to the continuous expansion of major hypermarket and supermarket chains like Emke Group's Lulu Hypermarket, Panda Retail Company, Spar, and Carrefour throughout Saudi Arabia. These retail outlets have helped increase the availability of different poultry varieties, thereby boosting the overall demand for poultry meat. The segment's growth is further supported by the increasing consumer preference for organized retail, where they can find a wide variety of brands in the aisles, enabling product comparison and selection. The modern trade channel also benefits from its ability to maintain proper cold chain facilities and offer various packaging options to meet diverse consumer needs.

Remaining Segments in Distribution Channel

The other significant distribution channels in the Saudi Arabian poultry market include restaurants, hotels, and catering services. The restaurant segment plays a crucial role in driving poultry consumption through quick-service restaurants and traditional eateries, particularly with the growing trend of dining out among Saudi consumers. The hotel segment's importance continues to grow with the expansion of tourism infrastructure under Saudi Vision 2030, while the catering segment serves various institutional clients, including corporate offices, educational institutions, and the religious tourism sector. These channels collectively contribute to the market's dynamic growth by catering to different consumer preferences and consumption occasions, from quick meals to elaborate dining experiences.