Saudi Arabia Seafood Market

Saudi Arabia Seafood Market Size:

Saudi Arabia seafood market size reached US$ 1.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1.25 Billion by 2032, exhibiting a growth rate (CAGR) of 2.18% during 2024-2032. The increasing health consciousness among consumers, strategic government initiatives promoting seafood consumption, expanding retain channels, and significant technological advancements in aquaculture represent some of the key factors driving the growth of the market.

Saudi Arabia Seafood Market Analysis:

• Major Market Drivers: The growth of Saudi Arabia seafood market is attributed to the enhancing health awareness among consumers and the higher consumption of protein food products. Efforts to reduce the dependence on oil as a source of income for the government also contribute to market development. The Kingdom’s Vision 2030 plan has allocated massive funds towards the development of the aquaculture industry to increase seafood production locally. Also, advances in aquaculture technologies and enhanced supply chain systems support market growth. Higher disposable incomes and a rising population also contribute to the rising consumption of seafood in Saudi Arabia. Besides, the country’s policies on food self-sufficiency and reduced importation also play a vital role in the growth of the market.
• Key Market Trends: The trend towards sustainable and environmentally friendly seafood production is evident, reflecting the general tendencies of the world community. Shifts in consumer behavior are calling for more transparency of the supply chain and environmental impact. Consumption of high-end seafood products and exotic species has also increased due to shift in consumers’ diet preferences and increase in the number of expatriates in the country. Advances in packaging and processing techniques are enhancing the quality and shelf life of seafoods, thereby favoring its growth. Online grocery shopping and food delivery services provide consumers with easier access to a broader range of seafood products, which, in turn, supports the expansion of the market.
• Competitive Landscape: Some of the major market players in the Saudi Arabia seafood industry include Almunajem Foods, Arab Fisheries Co., IZAFCO LLC, National Aquaculture Group, and Shell Fisheries Company W.L.L., among many others.
• Challenges and Opportunities: Some of the challenges affecting the Saudi Arabia seafood market include overfishing, environmental issues, and the need to embrace sustainable fishing practices. Market penetration may be limited by the challenges of meeting sustainable standards and the associated costs of technology. Nevertheless, these challenges are promise for innovation and investment. The government’s supportive policies and incentives for sustainable aquaculture development help promote growth. There is potential to improve advanced aquaculture practices and conduct research to increase the efficiency and sustainability of the sector. Collaborating with international seafood companies can facilitate the transfer of skills and technologies, thereby bolstering the market.

Saudi Arabia Seafood Market Trends:

Health and Nutritional Awareness

The increasing awareness of healthy eating and nutritional values among the consumers is a key factor that has been contributing to the growth of the seafood industry in Saudi Arabia. With the increasing awareness of the health value of seafood, including high protein, omega-3 fatty acids, and other vitamins and minerals, there is a rising demand for seafood consumption. This shift in dietary habits is rapidly increasing the consumption of various seafood products. Furthermore, the increased awareness of the benefits of seafood through educational campaigns and initiatives by health organizations also contribute to this trend. The rising cases of lifestyle diseases, including obesity and heart diseases, have made the population turn to seafood as a healthier option, thus fueling market growth. For instance, according to a 2021 report by Saudi Gazette, the Saudi Food and Drug Authority (SFDA) launched a campaign promoting the benefits of consuming seafood for a balanced diet, emphasizing its role in preventing chronic diseases and supporting overall health.

Government Initiatives and Vision 2030

The efforts of the Saudi Arabian government and the strategic objectives set out in Vision 2030 are the key factors that contribute to the development of the seafood market. Under its economic diversification agenda, the government has been expanding the aquaculture sector to cut down the reliance on oil and improve food production. Large capital investments, subsidies, and incentives are given to encourage local seafood production to meet the growing domestic consumption. This governmental support encompasses infrastructure development, technological innovation in aquaculture, and efficient legal structures. These initiatives thus play a big role in expanding the market and providing room for local producers to grow in the seafood industry. According to an article published on the King Abdullah University of Science and Technology in August 2021, the Ministry of Environment, Water, and Agriculture (MEWA) announced a new program under Vision 2030 to boost aquaculture production to 600,000 tons by 2030, which includes significant investments in technology and infrastructure to support sustainable aquaculture practices.

Technological Advancements and Aquaculture Innovation

The growth of the seafood market in Saudi Arabia can be attributed to technological advancements and innovations in aquaculture. The use of new technologies in aquaculture like RAS, automated feeding, and genetic improvement of species improves the yields of seafood production. These technologies enable responsible and eco-friendly practices, which help prevent overfishing and harm to the marine environment. Furthermore, improved cold chain logistics and processing technologies enhance the quality and freshness of seafood products, increasing the product’s shelf life and market availability. The continuous innovation in the enhancement of aquaculture practices and the development of more robust seafood species to support the growing consumer demand for seafood products also fuels market growth. Saudi Arabia’s National Fisheries Development Programme (NFDP), led by Dr Ali Al-Shaikhi, plans to attract $4 billion in investments in the aquaculture sector as part of the Kingdom’s Vision 2030 initiative to diversify the Saudi economy.

Saudi Arabia Seafood Market Segmentation:

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

Breakup by Type:

• Fish
• Shrimp
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes fish, shrimp, and others.

The increasing consumption of fish species like tilapia, grouper and hammour is driving the seafood market in Saudi Arabia. These fish are popular due to their nutritional value and versatility in preparation methods. As part of Vision 2030, the government has set out to increase fish production through improved methods of aquaculture and enhancement of sustainable practices. The awareness of the consumers towards their health also increases the consumption of fish as it is low in fat and rich in protein. Furthermore, the development of new and sophisticated aquaculture farms guarantees a constant production of quality fish for domestic use as well as export. Apart from this, shrimps are one of the most important segments of the Saudi Arabia seafood market. The Saudi Arabian shrimp farming industry has been supported by large investments and technological improvements that improve the productivity and sustainability of the industry. To this end, the government’s support through Vision 2030 initiatives enhances local shrimp production with the goal of attaining self-sufficiency and minimizing importation. Furthermore, better management of the aquaculture industry and stringent quality control also guarantee the availability of quality shrimp for the local market and export. The rising demand for shrimp in various dishes is behind the growing market for this product in the kingdom.

Breakup by Form:

• Fresh / Chilled
• Frozen / Canned
• Processed
   

A detailed breakup and analysis of the market based on the form have also been provided in the report. This includes fresh / chilled, frozen / canned, and processed.

The frozen and chilled segment in the Saudi Arabia seafood market benefits from advanced cold chain logistics, ensuring fresh seafood supply from coastal areas like the Red Sea to urban centers. Investment in aquaculture and improvements in freezing and canning techniques have boosted the quality and accessibility of frozen, canned, and processed seafood across the kingdom. Processed seafood, including fish fillets and seafood-based snacks, is rapidly growing due to technological advancements in processing that maintain nutritional value and taste. Government incentives supporting local industry development further stimulate this sector, enhancing food security and promoting local fishing industries.

Breakup by Distribution Channel:

• Off-Trade
  • Convenience Stores
  • Online Channel
  • Supermarkets and Hypermarkets
  • Others
• On-Trade
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes off-trade (convenience stores, online channel, supermarkets and hypermarkets, and others) and on-trade.

The off-trade segment of the Saudi Arabia seafood market refers to the sale of seafood products through retail channels such as supermarkets, hypermarkets, grocery stores, and online platforms. This segment is witnessing robust growth due to increasing consumer preference for at-home meal preparation and the convenience offered by modern retail outlets. Innovations in packaging and preservation techniques, which ensures the freshness and extended shelf life of seafood, have further boosted sales in this segment. Additionally, the expansion of e-commerce and online grocery shopping has made a wide variety of seafood more accessible to consumers, contributing significantly to the market's growth.

The on-trade segment of the Saudi Arabia seafood market encompasses the sale of seafood through foodservice channels such as restaurants, hotels, cafes, and catering services. This segment benefits from the rising trend of dining out, driven by increasing disposable incomes and the growing expatriate population seeking diverse culinary experiences. High-end restaurants and hotels are increasingly featuring premium seafood dishes on their menus, attracting health-conscious and gourmet diners. Moreover, the burgeoning tourism industry and frequent hosting of international events in Saudi Arabia have amplified the demand for high-quality seafood in the hospitality sector, thereby driving the growth of the on-trade seafood market.

Breakup by Region:

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

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

The seafood market in Saudi Arabia is expanding across its diverse regions, each contributing uniquely due to geographic and economic factors. In the Northern and Central regions, growth is driven by improved logistics and cold chain infrastructures that ensure fresh seafood from coastal areas reaches urban centers like Riyadh, where demand for premium seafood is rising due to higher incomes and health awareness. The Western region, including cities like Jeddah along the Red Sea, thrives due to proximity to marine resources, advanced aquaculture practices, and a vibrant tourism industry that boosts seafood consumption. The Eastern region, adjacent to the Arabian Gulf, is pivotal for its rich marine resources, robust seafood processing facilities, and a large expatriate community demanding diverse seafood. Though less prominent, the Southern region is gradually growing its market with new infrastructure and increasing awareness of seafood's health benefits, indicating a positive trajectory for the country’s overall seafood industry.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the Saudi Arabia seafood industry include Almunajem Foods, Arab Fisheries Co., IZAFCO LLC, National Aquaculture Group, Shell Fisheries Company W.L.L., and among many others.

Some of the strategies used by the key players in the Saudi Arabia seafood market to sustain and gain market share include major capital expenditures on advanced sustainable aquaculture systems like Recirculating Aquaculture Systems (RAS) and Automated Feeding Systems in order to enhance productivity and reduce environmental impact. Firms also seek to offer a wider range of seafood products, including high-value and exotic species to meet the consumers’ needs. Such alliances with international companies help bring in better technology and skills. Furthermore, major players undertake strict quality control measures and certifications to harmonize with international standards, thus increasing consumer confidence. Marketing strategies are used to promote the consumption of seafood products for their health implications.

Saudi Arabia Seafood Market News:

• In June 2023, a strategic partnership contract was signed between NAQUA and the Saudi Agricultural and Livestock Investment Company (SALIC), one of the companies owned by the Public Investment Fund. Under the terms of agreement, SALIC will make a primary investment to increase the capital of NAQUA, thereby acquiring 42.4% of NAQUA’s total shares.
• In May 2024, Saudi-based Almunajem Foods Company announced plans to commence construction on a new food factory in Jeddah, with an investment totaling 157 million Saudi riyals ($41.88 million).

Saudi Arabia Seafood Market Report Scope:

Key Questions Answered in This Report:

• How has the Saudi Arabia seafood market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the Saudi Arabia seafood market?
• What is the impact of each driver, restraint, and opportunity on the Saudi Arabia seafood market?
• What are the key regional markets?
• Which countries represent the most attractive Saudi Arabia seafood market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the Saudi Arabia seafood market?
• What is the breakup of the market based on the form?
• Which is the most attractive form in the Saudi Arabia seafood market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the Saudi Arabia seafood market?
• What is the competitive structure of the market?
• Who are the key players/companies in the Saudi Arabia seafood 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 seafood market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia seafood 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 seafood industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.