Report Overview

Growing demand for ready-to-eat food items, temperature-controlled food goods, and rapid adoption of technology advancements are expected to boost the growth of Saudi Arabia Food and Beverage Warehousing Market during the forecast period between 2023 and 2029.

Saudi Arabia Food and Beverage Warehousing Market - Industry Trends & Forecast Report, 2029

Saudi Arabia food and beverage warehousing market size was estimated at USD 6.3 billion in 2022. During the forecast period between 2023 and 2029, Saudi Arabia food and beverage warehousing market size is projected to grow at a CAGR of 16.52% reaching a value of USD 18.23 billion by 2029. The food and beverages industry is one of the most important retail consumption industries in the country, with demand increasing by the day. Nowadays, with everyone having a busy work schedule, including both the husband and wife, the reliance on frozen food has grown rapidly. As a result, the logistics demand for frozen food items has increased. Warehouses are also in high demand across the country for storing inventory on such a large scale. Rising demand for a variety of cold chain warehouses for storing perishable food items for extended periods.

Saudi Arabia Food and Beverage Warehousing Market - Overview

Food and beverage warehousing is a commercial operation that entails storing finished items until they are ready to be delivered to shops or restaurants. Food and beverage storage is important because it makes it possible for businesses to keep a steady supply of items on hand, supporting their capacity to continue operating.

Growth Drivers

Increasing Demand for Cold Storage Facilities

To maintain their freshness and safety, perishable foods such as meat, seafood, and other items must be refrigerated in a particular way. Meat, fish, and seafood are often maintained in temperature-controlled areas at the retail level, such as cold stores or chilled cabinets. The expansion of the meat industry has increased the demand for cold storage facilities over the past few years; this trend is expected to continue during the forecast period due to factors like population growth and rising disposable incomes in emerging economies across various regions, which support the food and beverage warehousing market.

Growing Popularity of Frozen Food Products

Customer concerns about their health have increased, which can be attributed to this surge in demand for temperature-controlled food goods. The demand is expected to rise as e-commerce expands. The e-commerce industry is predicted to grow at a strong rate as a result of the growing acceptance of online payments and the rising prevalence of internet users. This would lead to improved food and beverage warehouse infrastructure, which would further drive the market in Saudi Arabia during the period in analysis.

Restraints

Complex Supply Chain

Recent years have seen a rapid expansion of the food supply chain, and consumers now expect to find fresh, exotic foods all year long. As a result, the supply chain is longer and more complex than ever, stretching globally and including a large number of additional parties. If things were not already challenging enough, the multi-year COVID pandemic shutdown that took place in 2020 added to the difficulty by shutting down several restaurant and food service supply chains, adding to the difficulty of retail chains, and making it more difficult for direct-to-customer food delivery.

Impact of COVID-19 on Saudi Arabia Food and Beverage Warehousing Market

The COVID-19 pandemic hindered the market expansion because of constraints on the food supply chain during the pandemic. The food supply system was significantly affected by the pandemic. There is a widespread shortage of various raw materials and vegetables at the retail level. The consumer services market suffered as a result of supply chain issues that affect the manufacture and delivery of food and other goods.

Saudi Arabia Food and Beverage Warehousing Market

Segmental Coverage

Saudi Arabia Food and Beverage Warehousing Market - By Product

Based on product, the Saudi Arabia food and beverage warehousing market is segmented into Meat, Fish, Seafood Warehousing, and Dairy & Frozen Desserts Warehousing. The dairy and frozen desserts segment dominates the market. Refrigerated warehouses store dairy and frozen dessert commodities that would rot under normal conditions. Fruits, dairy products, and vegetables, among other items, must be kept at a specific temperature in a refrigerated warehouse to stay fresh. Also, the refrigerated warehouse keeps sprouting and pest damage at bay. Refrigerated warehousing is associated with logistics, such as refrigerated containers and refrigerated ships, which transport goods to other locations.

Saudi Arabia Food and Beverage Warehousing Market - By Application

Based on application, the Saudi Arabia Food and Beverage Warehousing Market is divided into Processing Factory and Retailers segments. The retailers segment accounted for a majority of share in the Saudi Arabia Warehousing market by application in 2022. The strong output of the FMCG sector has positively impacted customer retail business across Saudi Arabia, increasing demand for warehouses throughout the country.

Competitive Landscape

Competition in Saudi Arabia food and beverage warehousing market is intense. Major companies in the market include Coldstar, Bring Frigoscandia, AGRO Merchants Group, Fresh Logic P, Dev Bhumi Cold Chain, C & M Cold Stores Ltd., and ColdEX. 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.

Scope of the Report

By Product

• Meat

• Fish

• Seafood Warehousing

• Dairy and Frozen Desserts Warehousing

By Application

• Processing Factory

• Retailers