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The Saudi Arabia Food Retail Market size is forecast to increase by USD 16.37 billion at a CAGR of 5.67% between 2024 and 2028. The Saudi Arabia Food Retail Market is witnessing significant expansion, driven by the proliferation of hypermarkets and supermarkets. These retailers cater to the increasing demand for convenience and an extensive selection of food items among consumers. Digital advancements are also shaping the industry, as retailers adopt technologies such as mobile applications, online ordering, and contactless payments to enhance the shopping experience and optimize their operations. The Saudi Food and Drug Authority's stringent food safety regulations ensure that all food products meet the highest standards. The combination of a growing population, rising disposable income, and these market trends presents both opportunities and challenges for food retailers in Saudi Arabia.
The market are experiencing substantial transformations as consumers continue to favor online grocery shopping and prioritize whole foods and eco-friendly practices. Convenient delivery alternatives, such as curbside pickup and direct-to-door, are gaining popularity, particularly among budget-conscious millennials and Gen Z shoppers. In response to these shifting consumer preferences, retailers are implementing advanced technologies, including analytics and merchandising strategies, to stay competitive. The food cupboard segment, encompassing staples and non-perishable items, is experiencing notable growth. Retailers are broadening their product offerings by collaborating with local and international brands, with a focus on sustainability and adherence to environmental regulations. Senior supermarket executives are leveraging consumer technology and optimizing store operations to manage costs and prices efficiently while providing a wider selection of healthier food options and competitive online delivery services. Additionally, the beverages segment is expanding due to the increasing demand for convenience and healthier choices. The Saudi Arabian food retail market is anticipated to persistently grow, fueled by strategic acquisitions and innovations that are shaping its future.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Saudi Arabian food retail market is experiencing significant growth in the traditional offline sector. Consumers continue to favor physical supermarkets and local grocery stores due to their convenience and cultural significance. However, online grocery shopping is gaining traction, particularly among younger demographics who value convenience and innovative technologies such as curbside pickup and home delivery. In response, major retailers, including Whole Foods, are implementing sustainable practices and strategic acquisitions to cater to the increasing demand for healthier and eco-friendly options. The beverages sector is also thriving through online channels. Despite economic instability and inflation, urban consumers are enhancing their shopping experience with advanced analytics and technology. Meanwhile, traditional markets and physical stores continue to hold cultural and practical importance in Saudi Arabia's retail landscape.
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The Offline segment accounted for USD 38.59 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The Saudi Arabian food retail market is experiencing significant growth, fueled by the proliferation of hypermarkets and supermarkets. This expansion is due in part to increased consumer spending and a preference for modern retail formats. Supermarkets are gaining favor among consumers for their convenience, extensive product offerings, and high-quality items. These trends are influenced by economic growth and the influence of Western lifestyle norms. International retailers, such as Whole Foods and Hema, are entering the market to meet this demand. Advanced technologies, including online grocery sales, curbside pickup, and direct-to-door delivery, are transforming the industry.
Retailers are also embracing sustainability and utilizing consumer technology for sophisticated analytics and merchandising. The beverages sector is particularly thriving in online delivery, as health-conscious consumers seek convenience. Despite economic recovery and inflation leading to price sensitivity, consumer behavior remains focused on quality and availability. Overall, the market is undergoing a transformation with a strong emphasis on technology, sustainability, and adapting to evolving consumer preferences. Whole Foods and Hema are prime examples of this trend, as they integrate sustainable practices into their operations and leverage technology to enhance the shopping experience for customers.
In the food retail sector in Saudi Arabia, a strong digitalization trend is emerging. This transformation is marked by the rising popularity of online grocery sales among consumers. Factors fueling this trend include the widespread use of consumer technology, shifting consumer habits, and government initiatives. Major supermarkets, such as Whole Foods, are collaborating with strategic partners to provide sophisticated analytics and merchandising solutions to meet the demands of budget-conscious, health-conscious, and value-conscious shoppers. Delivery models, such as curbside pickup and door-to-door, have gained traction, especially among millennials and Generation Z consumers. Advanced technologies, including IoT sensors, RFID tags, and AI-driven analytics, are being employed in food retail stores to boost operational efficiency, ensure product quality, and enhance the overall shopping experience.
Moreover, sustainability and environmental regulations are becoming crucial considerations for food retailers, with many embracing eco-friendly practices and e-commerce platforms. The beverages segment is projected to experience substantial growth in the online delivery channel, fueled by the increasing preference for healthier and convenient food and beverage alternatives. The economic recovery and inflation have also influenced consumer behavior, with many turning to online shopping for its accessibility and convenience. Overall, the market is set for expansion, driven by strategic mergers and acquisitions, cutting-edge technologies, and evolving consumer preferences.
Stringent regulations on food products in Saudi Arabia is key challenge affecting the market growth. In the Saudi Arabian food retail market, online-grocery sales are witnessing a surge due to consumer polarization towards convenience and contactless shopping. Supermarkets, such as Whole Foods, are adopting various delivery models, including curbside pickup and direct-to-door, to cater to the evolving consumer preferences. Advanced technologies, like consumer tech and store operations, are being leveraged to enhance merchandising strategies and provide personalized shopping experiences. Sustainable practices and strategic acquisitions are also becoming essential components of retailers' strategies to meet the demands of value-conscious and health-conscious consumers, particularly Generation Z and millennials. Environmental regulations are increasingly influencing food retailers' operations, with a growing focus on reducing plastic waste and promoting the use of reusable bags.
The beverages segment is expected to remain a significant contributor to the online delivery channel, as consumers continue to prioritize convenience and affordability. The economic recovery and inflation are also impacting consumer behavior, with budgets becoming a key consideration when making purchasing decisions. The availability of products and stated consumer behavior are crucial factors influencing the success of food retailers in Saudi Arabia.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Abdullah Al Othaim Markets Co. - The company is committed to providing top-tier quality and unwavering food safety standards, all while maintaining affordable pricing for our valued customers. We prioritize timely delivery to ensure customer satisfaction, aligning with our objective of meeting and exceeding expectations. By combining excellence in food quality, safety, affordability, and efficiency, we strive to establish a strong presence in the competitive food retail market of Saudi Arabia. Our dedication to these core principles sets US apart and fosters long-lasting relationships with our customers.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Saudi Arabian food retail market is seeing rapid growth in online grocery sales as consumers increasingly favor convenience and value. Supermarkets are adapting with delivery options like curbside pickup and direct-to-door services. Advanced technologies and strategic acquisitions, including innovations from Hema stores, are enhancing the shopping experience to meet changing consumer demands.
Retailers are focusing on sustainability and compliance with environmental regulations to appeal to health-conscious millennials and Gen Z. The beverages segment is expected to lead online sales due to high regional consumption rates. To stay competitive, supermarkets are using consumer tech and advanced analytics to understand buying patterns, optimize pricing, and manage budgets. With value-driven consumers seeking affordable options, and economic recovery pushing product availability and online shopping, the market is evolving. Partnerships with both local and international brands are expanding product ranges and attracting a broader customer base. Overall, the market is set for continued growth, driven by shifting demographics, technological advances, and economic trends.
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Market Scope |
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Report Coverage |
Details |
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Page number |
150 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.67% |
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Market growth 2024-2028 |
USD 16.37 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.3 |
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Key companies profiled |
Abdullah Al Othaim Markets Co., Al Dabbagh Group, Al Jazera, Al Raya, AL SADHAN, Amazon.com Inc., Astra Markets, Bindawood Holding, Carrefour SA, Hermas, Jeddah Central Markets Co., Lulu Group International, Manuel Supermarket, Nahada, Nana, One Meem, Savola Group, SPAR Group Inc., Speedy, and Tamimi Markets |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Packaging
8 Market Segmentation by Product
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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