FMCG sector in Saudi Arabia - statistics & facts

Saudi Arabia FMCG sector outlook

Like the rest of the GCC countries, Saudi Arabia has a young and growing population, and high GDP. These factors support the demand for dairy products, juices, and other food and beverages. Unemployment rates in the kingdom are decreasing after reaching around 8.22 percent during the COVID-19 pandemic. Such development is expected to increase household incomes, and consumer spending. The food and beverages market size was estimated to continue growing after the pandemic. As economic conditions are becoming more favorable, the government’s focus on diversification and food sufficiency is expected to be the driving force for the growth of the F&B sector over the coming years.

Consumer behavior

The COVID-19 pandemic has shifted trends and lifestyles worldwide; the FMCG sector in Saudi Arabia was no exception. Consumers are expecting more convenience when it comes to their shopping behavior. More than one third of Saudis surveyed reported switching to online shopping due to supply chain issues. Moreover, consumers are considering more healthy and sustainable options. Around half of respondents in a survey stated that they were likely to consume less dairy products or replace products with alternatives like soy or soy milk to limit their contribution to climate change. More demanding consumers created challenges for businesses, but represented opportunities for growth too.

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