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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Organic packaged food and beverages in the United Arab Emirates is led by Hipp GmbH & Co Vertrieb KG with a value share of 9.5% in 2021, followed by Arla Foods Amba and Abazeer Trading Co with shares of 7.9% and 7.1% respectively.
  • While the country ranks outside the top 30 globally in terms of market size and per capita spend, it is set to be amongst the fastest growing over the period 2021-26 with a value CAGR of 11.4%.

 

  • Organic products in Saudi Arabia registered a market value of US$54.2 mn in 2021, representing about 0.1% of global demand, with a per capita expenditure of US$1.64.
  • As the market for organic evolves, and consumers become increasingly health-conscious, demand is expected to continue to increase, leading to a value of US$73.2 million by 2025.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Saudi Arabia recorded an increase of 3.2% in 2021, registering a market size of US$54.2 million.
  • Growth in organic packaged food was fuelled by organic baby food, which accounts for almost half the market and recorded a 3.8% expansion in 2021.
  • Organic beverage sales in Saudi Arabia were negligible in 2021, due to a lack of local production and lack of consumer demand.
Market Trends
  • The Covid-19 pandemic has led to an increased health awareness and consciousness in Saudi Arabia over 2020-21, as consumers tried to strengthen their immune systems against the virus. The government enforced lockdowns also led to a rise in home cooking, which benefited sales of organic packaged food as consumers were more conscious of the ingredients they purchased.
  • Organic packaged food became more price competitive in Saudi Arabia over the review period, which led to an increase in its demand. The average retail current unit price rose over 2021 as a whole, though it remained slightly lower than in 2019, and much lower than in earlier years of the review period, following a significant decrease in 2020. The increase in the average retail current unit following the rise in VAT in July 2020 (from 5% to 15%) dampened the growth potential in 2021, however the category still witnessed significant sales development.
  • In 2021, organic packaged food also benefited from an expanding distribution reach and a wider product offering. Over 2018-19, there was limited distribution of organic packaged food in Saudi Arabia. Most chained supermarkets and hypermarkets sold organic packaged food only in outlets located in affluent areas. However, as demand rose sharply in 2020, retailers began to recognise the potential of expanding their product offering and stocking organic products over a larger area, leading to significant growth in their retail value share over 2020-21. The expanded product offering included organic packaged food combined with other varieties of health and wellness foods, including organic packaged food with added vitamins, such as Yum Earth Organic Pops Vitamin C, organic free from lactose options, such as Rachel's Organic Natural Bio-Live Yogurt, and organic free from gluten products.
Competitive Landscape
  • Enmaeyat Group was the leading player in organic packaged food in 2021, capturing a retail value share of 9.5%, followed by Danya Foods Ltd (7.9%) and Abazeer Trading Co (7.1%). International brands continued to dominate the competitive landscape of organic packaged food in Saudi Arabia in 2021, given the relatively weak presence of local producers in the category. Most of the key players were active in organic baby food, with international brands distributed by local players like Enmaeyat Group with Hipp (GBO: Hipp GmbH & Co Vertrieb KG), Danya Foods Ltd with Arla (GBO: Arla Foods Amba) and Binzagr Co with Heinz (GBO: Kraft Heinz Co). These international brands continue to remain successful in Saudi Arabia as they are highly trusted and recommended by mothers. However, one player that could disrupt the competitive landscape is the local company Abazeer Trading Co. The “Made in Saudi” trend helped drive the company’s success in 2021, in addition to the success of Abazeer’s new lines of organic rice and pasta.
  • Organic baby food was the top performing category within organic packaged food in 2021, accounting for 46.1% of the market. Organic edible oil and organic breakfast foods followed, capturing respective shares of 14.3% and 11.8%. Organic dairy and organic rice, pasta and noodles captured shares of 8.2% each. 2020 also witnessed the entry of Wholesome by Hermas Nature Trading Est, which quickly established a dominant position in organic breakfast cereals, as they are more price competitive than most of their competitors. Wholesome’s organic range includes fibre flakes, corn flakes, and Choco Crispies, which are also gluten free and available through key modern grocery retailers.
Prospects And Growth Opportunity
  • Organic packaged food and beverages are forecast to witness a 6.8% CAGR over the forecast period 2022-25 and are expected to record sales of US$73.2 million in 2025. Driven by the growing demand for health and wellness products and the growing regard for “Made in Saudi”, companies are increasingly investing in organic packaged food and beverages. In 2021, the local company Sunbulah Group launched its wellness brand, which offers only organic products, including flakes and peanut butter. Private label is also well positioned for the forecast period as strong value positioning will remain a key factor for growth. Private label producers could gain ground by offering good quality organic options at competitive prices and expanding their ranges and presence in large modern grocery retailers, as Saudi Arabia’s economy is still recovering from the negative impacts of the Covid-19 pandemic.  Carrefour, for example, offers its Bio private label range, which includes a wide selection of organic options in categories like rice, pasta, breakfast cereals, cheese, sauces, and cereal bars.
  • E-commerce emerged as a key distribution channel across health and wellness categories, including organic packaged food, in 2020, driven by the lockdowns over the period and the preference for staying inside and mitigating the risk of contracting the virus. E-commerce is also attractive to younger generations who have a high appreciation for technological advancements. It also facilitates bulk buying due to improving logistics, including home delivery and online payment methods. While e-commerce’s share of retail value sales of organic packaged food was very small in 2021, as supermarkets and hypermarkets dominated the market, it continued to grow and offers growth potential over the forecast period.
  • Though organic beverage sales remained negligible in Saudi Arabia in 2021, consumers are increasingly looking for healthy alternatives for their drinks and there is growing appreciation for the use of clean, natural, and organic ingredients. This consumer behavior is reflected in the growth of organic packaged food and provides scope for the development of organic beverages in Saudi Arabia over the forecast period. Major players, including Almarai Co Ltd and National Agricultural Development Co (NADEC) have already invested in the area.
General Health and Wellness Trends
  • The consumption of health and wellness products is expected to record a CAGR of 1.1% over the forecast period 2022-25.  All categories, barring fortified/functional beverages, are projected to see positive retail volume and value CAGRs over the forecast period. Reduced sugar and salt and naturally healthy options are forecast to gain traction, benefiting better for you (BFY), naturally healthy (NH) and free from sales, given obesity concerns and as consumers are more health conscious following the Covid-19 pandemic. Organic was the smallest category within health and wellness in 2021, capturing a category value share of 0.9%, largely due to the absence of organic beverages. Sales of organic beverages are predicted to remain negligible, despite further development in this area. Fortified/functional packaged food captured the largest category share of 48.4% in 2021 and is forecast to perform well moving forward as consumers continue to demand immunity-boosting food.
  • Supply chain issues, inflationary pressures and geopolitical tensions will lead to health and wellness product manufacturers consolidating their offer, strengthening contingency plans and setting aside resources over the forecast period, to deal with potential new shockwaves. Manufacturers are also likely to continue to invest in new product development, especially with regards to providing healthier versions of their existing product lines, further driven by the desire to produce products that fall outside of the government’s 50% excise duty on sugary beverages, in particular, thereby offering potential savings for manufacturers and the end consumer. The government’s Vision 2030 project is expected to support local players by directing funds towards local brands, products and services and improving their purchasing power. The government also continues to aim to attract more companies to open their regional offices in Saudi Arabia, which would increase the awareness for health and wellness in the country and incentivise manufacturers to invest in health and wellness products.
General Economic and Demographic Landscape

Economy: 

  • Saudi Arabia GDP growth recovered to 1.7% in 2021 and the economy is expected to expand by an average annual rate of 2.4% in real terms over 2022-2040.
  • Inflation in Saudi Arabia is forecast to slow down to 2.3% in 2022, from 3.1% in 2021.
  • Public debt in Saudi Arabia fell to 29.9% of GDP in 2021 from 32.4% in 2020, pointing to the country’s improving fiscal health.

 

Population demographics: 

  • The population of Saudi Arabia was 33.2 million in 2021 and is expected to rise to 34.8 million by 2025.
  • The gain in population is mainly driven by growing life expectancy at birth in Saudi Arabia, driven by greater awareness to health risks and better living conditions.
  • The median age in 2021 was recorded at an all-time high 31.8 years. This is further expected to climb to 35.0 years by 2030. 

 

Income & expenditure: 

  • Per capita gross income in Saudi Arabia is forecast to increase by 26.6% in real terms over 2021-2040, a much slower pace compared to many other Middle East and Africa countries.
  • Over the 2020-2030 period, Saudi Arabia is projected to retain its position and rank 72nd out of 84 countries in Euromonitor International’s Wealth Index.
  • The Riyadh region is anticipated to remain the largest consumer market in Saudi Arabia by 2040, accounting for 28.2% of total consumer expenditure.

 

Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

5,512.7

5,421.4

5,684.6

5,767.2

5,787.1

5,831.5

5,896.8

5,985.9

1.5%

1.1%

Organic packaged food and beverages consumption

USD million

28.4

34.4

52.5

54.2

60.1

59.0

64.9

73.2

24.0%

6.8%

Organic packaged food consumption

USD million

28.4

34.4

52.5

54.2

60.1

59.0

64.9

73.2

24.0%

6.8%

Organic beverages consumption

USD million

-

-

-

-

-

-

-

-

-

-

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

0.5

0.6

0.9

0.9

1.0

1.0

1.1

1.2

21.6%

6.3%

 

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

33.7

34.0

32.9

33.2

33.6

34.0

34.4

34.8

% Middle and upper class of total population

%

29.5

29.4

29.3

29.2

29.2

29.2

29.2

29.1

% Population aged 65+

%

3.4

3.6

3.8

3.9

4.1

4.3

4.6

4.8

% Population aged 0-14

%

24.7

24.5

24.4

24.3

24.1

24.0

23.8

23.6

% Population with higher education degrees

%

14.1

14.2

14.2

14.3

14.3

14.4

14.4

14.4

Average number of children per household

children

1.6

1.6

1.6

1.6

1.6

1.6

1.5

1.5

GDP per capita

USD per capita

24,228.8

23,633.5

21,404.5

25,215.0

26,256.5

26,970.9

27,400.4

27,770.0

Consumer expenditure per capita (US$)

USD per capita

9,233.9

9,481.3

9,623.2

10,806.4

11,086.8

11,382.7

11,608.8

11,810.5

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

1,884.6

1,931.6

1,975.6

2,223.2

2,277.9

2,329.0

2,362.4

2,390.9

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Riyadh

6.7

Top cities by population (2021)

2

Jeddah

4.3

Top cities by population (2021)

3

Dammam

2.5

Top cities by population (2021)

4

Mecca

2.0

Top cities by population (2021)

5

Medina

1.4

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Savola Group

Top grocery retailers by sales (2021)

2

Abdullah Al-Othaim Markets Co

Top grocery retailers by sales (2021)

3

Bin Dawood Group

Top grocery retailers by sales (2021)

4

Carrefour SA

Top grocery retailers by sales (2021)

5

Saudi Marketing Co

 

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Saudi Arabia

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2021

Saudi Arabia

1

Organic Coffee Roast Not Decaf

1,029,272

2021

Saudi Arabia

2

Organic Berries Fresh

951,301

2021

Saudi Arabia

3

Organic Vinegar and Substitutes

848,893

2021

Saudi Arabia

4

Organic Lettuce Not Head Fr/Ch

170,133

2021

Saudi Arabia

5

Organic Cherries Fresh

165,000

2021

Saudi Arabia

Total

Total Organics*

3,604,811

2020

Saudi Arabia

1

Organic Vinegar and Substitutes

2,095,005

2020

Saudi Arabia

2

Organic Coffee Roast Not Decaf

1,151,471

2020

Saudi Arabia

3

Organic Berries Fresh

1,008,989

2020

Saudi Arabia

4

Organic Lettuce Not Head Fr/Ch

336,683

2020

Saudi Arabia

5

Organic Fruit Prep

120,322

2020

Saudi Arabia

Total

Total Organics*

4,905,798

2019

Saudi Arabia

1

Organic Lettuce Not Head Fr/Ch

1,294,542

2019

Saudi Arabia

2

Organic Coffee Roast Not Decaf

788,991

2019

Saudi Arabia

3

Organic Vinegar and Substitutes

668,473

2019

Saudi Arabia

4

Organic Fruit Prep

80,182

2019

Saudi Arabia

5

Organic Carrots Fr/Ch

73,772

2019

Saudi Arabia

Total

Total Organics*

3,061,943

2018

Saudi Arabia

1

Organic Lettuce Not Head Fr/Ch

2,009,037

2018

Saudi Arabia

2

Organic Vinegar and Substitutes

643,639

2018

Saudi Arabia

3

Organic Berries Fresh

441,869

2018

Saudi Arabia

4

Organic Coffee Roast Not Decaf

399,476

2018

Saudi Arabia

5

Organic Carrots Fr/Ch

116,706

2018

Saudi Arabia

Total

Total Organics*

3,848,384

 

Note : Total organics is the sum of all exports to a country within a year.

Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2018 – 2021 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2018-2021 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

Ministry of Environment, Water and Agriculture

Agency(s) Contact Information:

Ministry of Environment, Water and Agriculture, Department of Organic Agriculture
Airport Road, Riyadh 11195
Kingdom of Saudi Arabia
Phone: 966 3 4016666
Fax: 966 3 4031415
Email:  kaorganic@moa.gov.sa
Website

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

February 2008 - Adopted Standardization Organization for the Cooperation Council for the Arab States of the Gulf (GSO)'s guide to organic food production, processing and marketing and labeling: GSO CAC/GL 32:2008 Production, Processing, Labelling and Marketing of Organically Produced Foods (.pdf; in English)

February 2009 - Adopted the Saudi Commission for Standardization and Metrology (SASO) directory on the local level.

February 2009 - Adopted The Standards & Controls of Organic Farming Activity in Kingdom of Saudi Arabia.

Saudi Arabia is a member of the Gulf Cooperation Council (GCC) that includes Bahrain, Kuwait, Oman, Qatar, United Arab Emirates (UAE) and Saudi Arabia. Gulf Standards Organization (GSO) is responsible for developing food and non food standards in the GCC. Once a new standard is approved by the GSO food standards committee, each member country officially adopts the standard, thus making it a national standard as well as a GSO standard. 

GSO 2374:2014 Guidelines for the Production, Processing, Labelling and Marketing of Organically Produced Foods

February 2016: Organic Agriculture Law and Organic Agriculture By-Law (comments accepted until October 8, 2016)

Date of Implementation: 2011

Regulation and/or Standard Scope:

These standards promote the production, manufacture and trade of organic food and the formulation of definitions, rules and regulations related to organic activity. These standards also aim to protect people working in the areas of organic farming and consumers from fraud, and to support and provide the supply of organic products and their inputs leading to stronger organic agricultural sector in the Kingdom. The Orgnaic Law includes apiculture, aquaculture and seaweed.

Using the term organic in trademarks, brand names, pictorial matter or symbols relating to and placed on any packaging, document, notice, label, etc. accompanying or referring to a product which is non-organic or has not been certified is prohibited.

Imported Products

Beginning November 2012, requirements for import of organic fresh produce include: have a valid commercial import registration, providing a copy of the product's organic certification, and fulfilling other administrative requirements. See news report (website; in Arabic).

Among other requirements, imported products must be certified in the country of production, must be labelled with organic-production-data labels and logos, and the name of the certification body or registration number.

GCC Guide for Control on Imported Foods is useful for all food imports.

Certification and Accreditation

Certification:

Certification is required.

Accreditation Method:

Government

Accreditation:

Certifiers operating in the country must have a representative residing in Saudi Arabia, and must register with the Ministry of Environment, Water and Agriculture.

Additional Information

Reference Standards:

Reviewed and accepted in the IFOAM Family of Standards. Products certified according to any of the standards or regulations approved as part of the International Federation of Organic Agriculture Movement's (IFOAM) Family of Standards will meet the requirements of Saudi Arabia's organic regulations, said its Ministry of Agriculture in a letter to IFOAM. The NOP and Canada Organic Regime, as well as 53 other government and private sector standards are on IFOAM's list.

Regulations were drafted in line with European Council Regulation (EC) No. 834/2007 on organic agriculture.

See Standards and Controls Activity of organic agriculture in the Kingdom of Saudi Arabia (in Arabic and English)

Additional Information:

Saudi Organic Farming Association, a civil association working under the supervision of the Ministry of Agriculture
Email: Info@sofa.org.sa
Phone: 4016666 ext 3538
Fax: 014066987
Mobile: 0508030720

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