Saudi Arabia Agriculture Market

Saudi Arabia Agriculture Market Size:

Saudi Arabia agriculture market size is projected to exhibit a growth rate (CAGR) of 5.50% during 2024-2032. The market is majorly driven by favorable government initiatives and heavy investments in innovative agriculture techniques. Additionally, the emphasis on sustainable farming and domestic production targets to navigate challenges posed by arid climate and scarce water resources, which, in turn, is improving food security and thereby market growth.

Saudi Arabia Agriculture Market Analysis:

• Major Market Drivers: The market is principally driven by favorable initiatives by the Saudi Government such as the Vision 2030 that aims to attain food security and strengthen the economy. Moreover, the escalating demand for locally cultivated crops, majorly driven by a heightening population and intensifying health awareness, further fuels the market. In addition, international collaborations are further spurring innovation and promoting sustainable farming methods across the regional sector.
• Key Market Trends: The market experiences numerous key trends, such as the adoption of precision agriculture methods and controlled-environment agriculture (CEA), to upgrade resource utilization and enhance efficacy. Moreover, organic farming is gaining momentum as customer preferences are rapidly inclining towards eco-friendlier and healthier food options. Additionally, the expansion of digitalization in agriculture industry, which includes incorporation of data analytics and the Internet of Things (IoT), is also increasing Saudi Arabia agriculture market share. These trends are notably driven by necessity of sustainable agriculture in the country, mainly due to water shortage and dry weather condition.
• Competitive Landscape: Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. 
• Challenges and Opportunities: The market experiences numerous challenges, including water scarcity and amplified reliance on certain crop imports. In addition, arid climate conditions cause disruptions in maintaining stable crop yield, which represents another factor hindering the market growth. Nonetheless, various growth opportunities are observed like amplifying government funds for advancing sustainable farming technologies and increasing demand for organic food products. Furthermore, strategic collaborations with international agribusinesses offer additional possibilities to tap new markets and innovate within the agricultural supply chain.

Saudi Arabia Agriculture Market Trends:

Increasing Adoption of Advanced Farming Techniques

As per the Saudi Arabia agriculture market statistics, a substantial growth has been observed in the agriculture sector due to increased adoption of cutting-edge farming technologies, such as controlled environment agriculture (CEA), hydroponics, and vertical farming, that can effectively upgrade crop production amidst harsh environmental conditions. Such technologies facilitate the effective utilization of energy and water resources, which is crucial in a region with water shortage challenges. Moreover, the government’s aids for innovative agricultural practices, combined with significant investments in research and development, is notably boosting the adoption of these advanced technologies. Additionally, this trend is redefining the farming landscape, improving productivity, and fostering sustainable agricultural practices in the country. For instance, in March 2023, RedSea, a Saudi Arabia-based agricultural technology company, signed a MoU with Saudi Downtown Company. As per the agreement terms, RedSea will receive investments for the development of greenhouses that majorly leverage hydroponic technique to grow crops.

Rapid Expansion of Organic Farming

According to the Saudi Arabia agriculture market analysis report, an escalating shift towards organic farming has been observed in the country. For instance, in November 2023, 12 farms in Tabuk city of Saudi Arabia completely adopted organic farming methods, leveraging natural fertilizers, to address the elevated need for healthy and sustainable food. This shift is primarily driven by heightening customer demand for nutritious and organic food products. The government’s emphasis on sustainable and eco-friendly agricultural methodologies aligns with this shift, compelling local farmers to deploy organic farming techniques. Moreover, this shift is fostered by beneficial subsidies and educational initiatives strategized to lower chemical utilization and endorse natural agriculture practices. In addition, the magnification of organic farming is paving new opportunities for domestic producers to address the needs of health-conscious customers while improving food safety as well as quality standards.

Significant Investments in Food Security Initiatives

Saudi Arabia is substantially investing in food security ventures as an objective of its Vision 2030 project to minimize reliance on overseas food imports. Such investments include enhancing domestic food production capacities, improving water managements systems, and launching large-scale agricultural initiatives. Moreover, tactical collaborations with international agricultural firms and amplified funds for farming technology are also crucial aspects of these efforts. Additionally, the soaring emphasis on food security intends to develop a more self-reliant agricultural industry, facilitating a steady food supply and supporting the economic stability by increasing the Saudi Arabia agriculture market revenue. For instance, in July 2024, Saudi Arabia received five new investment opportunities to fortify its food security, including coffee city project to cultivate more than 150,000 trees and Al-Ennab Village project to cultivate fruit and palm trees, etc.

Saudi Arabia Agriculture Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2024-2032. Our report has categorized the market based on type.

Breakup by Type:

• Food Crops/Cereals
• Fruits
• Vegetables
• Oilseeds and Pulses
   

The report has provided a detailed breakup and analysis of the market by type. This includes food crops/cereals, fruits, vegetables, and oilseeds and pulses.

In Saudi Arabia, food crops/cereals generally include barley and wheat, which are staple crops in the local diet. According to the USDA Foreign Agricultural Service, 129.43kg of wheat has been consumed in Saudi Arabia in marketing year 2023/2024. Although the country has dry climatic conditions, technological advancements in irrigation and profitable subsidies by government significantly promote cereal cultivation. Moreover, these crops are essential for both livestock feed and human consumption, with wheat being major grain that is utilized in numerous traditional dishes. Additionally, the government is actively investing in research activities to enhance crop yield and facilitate a steady domestic cereal supply.

The most prevalent fruit in Saudi Arabia agriculture market is dates, which are a cultural symbol as well as a staple food. As per industry reports, Saudi Arabia produces around 837,000 mt of dates annually. In addition, various other fruits like grapes, citrus, and melons are also produced, profiting from upgraded farming practices and CEA technique. Furthermore, the demand for excellent-quality and fresh fruits significantly drives expansion and innovation in the agriculture sector.

The vegetables segment encompasses various types of crops, including peppers, tomatoes, and cucumbers, generally cultivated in controlled environments, such as greenhouses, by deploying hydroponic systems. For instance, according to industry reports, Saudi Arabia for the first time exported tomatoes to Europe in February 2024. The cultivation of tomatoes in harsh environmental conditions was achieved through vertical farming and advanced greenhouses, along with the efforts of Dava Agricultural Co., a Saudi Arabian company. Such advanced methods aid in navigating the adverse climatic challenges, facilitating all-year production. Moreover, the vegetable market is oriented towards addressing both export prospects and domestic demands, with an increased focus on sustainability as well as quality. Additionally, rising awareness regarding health benefits among consumers also propels the demand for domestically-grown, fresh vegetables in the country.

The oilseeds and pulses are steadily expanding in the Saudi Arabia agriculture market primarily due to increasing health consciousness and the demand for protein-rich food. Major crops encompass chickpeas and soybeans, which are requisite for animal feed and food processing sectors. Additionally, the government is actively endorsing the cultivation of such crops through research projects and profitable incentives intended to enhance sustainability as well as productivity, aligning with country’s objective for food differentiation and security.

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region
   

The report has also provided a comprehensive analysis of the Saudi Arabia agriculture market by region, including Northern and Central Region, Western Region, Eastern Region, and Southern Region.

The Northern and Central regions of Saudi Arabia play a crucial role in the agriculture market, primarily focusing on the cultivation of wheat, dates, and other staple crops. Leveraging advanced irrigation techniques and government support, these areas are optimizing water use in arid conditions. Moreover, with initiatives to enhance sustainable farming practices, the region is seeing increased investments in agricultural technology to improve crop yields and quality. In addition, this strategic focus contributes significantly to the country’s food security and agricultural diversification goals.

The Western region of Saudi Arabia is characterized by its horticultural and floricultural activities, benefiting from a relatively moderate climate and access to Red Sea water resources. This region emphasizes the production of fruits, vegetables, and flowers, supported by greenhouse farming and modern irrigation methods. Furthermore, as part of national efforts to boost agricultural productivity, the Western region is integrating advanced AgTech solutions to enhance efficiency and sustainability, playing a pivotal role in diversifying Saudi Arabia's agricultural output.

The Eastern region of Saudi Arabia is a key player in the agricultural market, particularly noted for its date farming and aquaculture activities. Proximity to the Arabian Gulf provides unique opportunities for fish farming and other marine agriculture ventures. Moreover, the region also focuses on leveraging innovative water management solutions to counteract water scarcity issues. In addition, with growing investments in modern agricultural practices and technologies, the Eastern region is enhancing its contribution to the nation’s overall agricultural sector and food security initiatives.

The Southern region of Saudi Arabia, with its distinct topography and climate, is known for cultivating coffee, honey, and various fruits. The region benefits from higher rainfall compared to other parts of the country, allowing for diverse agricultural practices. Additionally, initiatives to promote sustainable farming and local specialty crops are gaining momentum, supported by government programs and AgTech adoption. Furthermore, the Southern region’s focus on niche agricultural products is helping to strengthen the local economy and promote sustainable agricultural development.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. 
• The competitive landscape is steered by a combination of international firms and domestic companies that rapidly adopting advanced techniques to bolster productivity in extreme environmental conditions. For instance, December 2023, Pure Harvest Smart Farms, a United Arab Emirates based company, announced the strategic acquisition of Red Sea’s CEA production facility in Saudi Arabia to strengthen its farm footprint in the country. Moreover, major Saudi Arabia agriculture companies are currently emphasizing on vertical farming to amplify plantation yields. In addition, heavy investments and international collaborations are escalating, mainly driven by Saudi Arabia’ Vision 2030 initiative to lower dependency on imports and improve food security, reinforcing an evolving and competitive market sentiment.

Saudi Arabia Agriculture Market News:

• In April 2024, Natural Agriculture Development Company, a Saudi Arabia-based food processing and agricultural company, signed an agreement with Delphy, a leading agricultural services provider, to develop capabilities, bolster skills, and innovate agricultural technologies under Saudi Arabia’s Vision 2030. 
• In February 2024, Dava Agricultural Co., a company based in Saudi Arabia, signed an agreement with Lehman and Troost, a Netherlands-based agricultural trading company, to export Saudi vegetables, developed by leveraging cutting-edge hydroponic agricultural techniques, to Europe and Netherlands. The agreement is anticipated to fortify Saudi Arabia’s foothold in global agricultural export market.

Saudi Arabia Agriculture Market Report Scope:

Key Questions Answered in This Report:

• How has the Saudi Arabia agriculture market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Saudi Arabia agriculture market?
• What is the breakup of the Saudi Arabia agriculture market on the basis of type?
• What are the various stages in the value chain of the Saudi Arabia agriculture market?
• What are the key driving factors and challenges in the Saudi Arabia agriculture market?
• What is the structure of the Saudi Arabia agriculture market, and who are the key players?
• What is the degree of competition in the Saudi Arabia agriculture market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia agriculture market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia agriculture market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia agriculture industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.