Report Overview

Changing dietary habits, increasing health awareness, expanding food industry, government initiatives promoting local production, foreign investments, and economic diversification are propelling the growth of Saudi Arabia Edible Oils Market during the forecast period between 2023 and 2029.

Saudi Arabia Edible Oils Market – Industry Trends & Forecast Report, 2029

Saudi Arabia edible oils market size is projected to grow at a CAGR of 3.05% during the forecast period between 2023 and 2029. The Saudi Arabia edible oils market is expected to record steady growth due to major driving factors, such as population growth, changing dietary habits, and increasing health awareness. The market is expected to continue its growth trajectory during the forecast period, with the rising demand for healthier edible oil options, such as olive oil and canola oil, and increasing consumer preference for convenience foods. The market is also benefiting from the government's initiatives to reduce dependence on oil exports and diversify the economy, which includes support for the domestic agriculture industry. Overall, the Saudi Arabia edible oils market is expected to grow at a moderate pace during the period in analysis.

Saudi Arabia Edible Oils Market - Overview

Edible oils refer to oils that are derived from various plant or animal sources and are used for cooking, frying, baking, and other food preparation methods. These oils are consumed in their liquid form and provide essential nutrients and flavor to the food. Some common edible oils include vegetable oils such as canola, soybean, corn, sunflower, and olive oil, as well as animal fats such as butter, lard, and ghee. Edible oils are also used in food manufacturing processes, such as for making margarine, mayonnaise, and other processed foods. They play a vital role in the human diet and are a significant source of dietary fat and energy.

Growth Drivers

Increasing Health Awareness among Consumers

Saudi Arabia edible oils market is expected to witness steady growth during the forecast period, driven by the increasing health awareness among consumers in the kingdom. With rising concerns about the health impacts of unhealthy food choices, more consumers are seeking healthier alternatives, including edible oils that are low in trans and saturated fats. The demand for high quality and organic edible oils is also on the rise, as consumers become more conscious of the potential harm caused by chemical additives in food products. These trends are expected to drive growth in the Saudi Arabia edible oils market, as manufacturers respond to an increasing demand for healthier and more natural products.

Restraints

Limited Domestic Production

Limited local production may limit the growth of Saudi Arabia edible oils market. The kingdom relies heavily on imports to meet the growing demand for edible oils, which can lead to price fluctuations and supply chain disruptions. Despite efforts to promote local production, such as increasing investment in agriculture and expanding domestic oilseed crushing capacity, the industry still struggles to achieve self-sufficiency. Also, the high costs associated with farming in the country's arid climate and the lack of arable land pose further challenges. These factors continue to hinder the growth and sustainability of Saudi Arabia edible oils market.

Impact of COVID-19 on Saudi Arabia Edible Oils Market

The COVID-19 pandemic had a significant impact on the Saudi Arabia edible oils market. The nationwide lockdowns and restrictions on travel and commerce resulted in a decline in demand for edible oils, as the food service industry, which is a major consumer of these products, was severely affected. However, the demand for edible oils for household consumption increased as people cooked more at home. The disruption in the supply chain also led to shortages and price fluctuations. Despite the challenges, the market has shown resilience, with manufacturers adapting to changing consumer behavior and investing in online channels to meet the demand.

Saudi Arabia Edible Oils Market

Segmental Coverage

Saudi Arabia Edible Oils Market - By Type

On basis of type, Saudi Arabia edible oils market is divided into Palm Oil, Soybean Oil, Rapeseed Oil, Sunflower Oil, Peanut Oil, Specialty Blended Oil, Olive Oil, Corn Oil, Flaxseed Oil, Avocado Oil, Edible Oil, Pumpkin Seed Oil, and Grape Seed Oil segments. The sunflower oil segment holds the highest market share in Saudi Arabia edible oil market. Sunflower oil is widely used in cooking and food preparation, due to its neutral taste, high smoke point, and the fact that it is rich in Vitamin E. It is also considered a healthier alternative to other vegetable oils, as it contains low saturated fats and high polyunsaturated fats, which are known to help reduce cholesterol levels in the body. Also, it is worth noting that there is a growing trend in Saudi Arabia towards using healthier alternatives to these oils, such as olive oil, which is considered one of the healthiest oils due to its high content of monounsaturated fats and antioxidants.

Saudi Arabia Edible Oils Market – By Packaging Type

On basis of packaging type, Saudi Arabia edible oils market is divided into Pouches, Jars, Cans, and Bottles segments. The pouches segment dominates the Saudi Arabia edible oils market. Because of their ease and affordability, flexible packaging, pouches have gained appeal for edible oils across Saudi Arabia. Flexible packaging is lightweight, easy to handle, and requires less storage space, which saves producers and consumers money. Also, pouches with qualities that preserve the quality of the oil, such as airtight closures and UV protection, can be designed.

Saudi Arabia Edible Oils Market – By End User

By end user, Saudi Arabia edible oils market is divided into Domestic, Food Service, and Industrial segments. During the forecast period, the food service segment is expected to continue to hold the highest market share. The usage of edible oils in the food service business is becoming more widespread across Saudi Arabia. This is owing to the region's tremendous growth in the food service business, which has been fueled by increased urbanization, rising incomes, and changing dietary patterns. The desire for convenience foods, as well as the need for healthier and more sustainable cooking oils, promote the usage of edible oils in the food service business.

Competitive Landscape

Major players in Saudi Arabia edible oils market include Savola Group, United Farmers Holding Company (UFHC), Nadec Foods, Lamsoon, Emirate Refining Company (Erco), Golden Falcon, Aujan Industries, Ali Shaihani Group of Industries, Faisal Al Nusif Trading Co. (Fantco), Arabian Food Industries Co. (Domty), Americana Foods, Salama Group, United Carton Industries Company (UCIC), Abdullah Hashim Industrial Gases & Equipment Co. Ltd., and Al-Adwani General Trading Co. Ltd. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In March 2021 - The Saudi Food and Drug Authority (SFDA) introduced new regulations for the labeling of edible oils and fats, aimed at improving food safety and consumer awareness. The new regulations require manufacturers to provide clear and accurate labeling information on the type, origin, and ingredients of edible oils and fats.

• In May 2021, Savola Group, one of the leading food companies in Saudi Arabia, announced its plans to invest SAR 1 billion (approximately USD 267 million) in the production of edible oils and sugar in the country. The investment is aimed at expanding the company's production capacity and meeting the growing demand for these products in the local market.

Scope of the Report

By Type

• • Palm Oil
  • Soybean Oil
  • Rapeseed Oil
  • Sunflower Oil
  • Peanut Oil
  • Specialty Blended Oil
  • Olive Oil
  • Corn Oil
  • Flaxseed Oil
  • Avocado Oil
  • Edible Oil
  • Pumpkin Seed Oil
  • Grape seed Oil
  • Others

By Packaging Type

• • Pouches
  • Jars
  • Cans
  • Bottles

By End Users

• • Domestic
  • Food Service
  • Industrial
  • Others