Saudi Arabia Edible Oils Market By Product Type (Canola Oil, Vegetable Oil, Olive Oil, Avocado Oil, Sunflower Oil, Others), By Nature (Organic, Conventional), By Application (Seasoning, Frying, Baking, Food Processing, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia Edible Oils Market was valued at USD 1.36 Billion in 2024 and is expected to reach USD 1.91 Billion by 2030 with a CAGR of 5.8% during the forecast period. The Saudi Arabia edible oils market is poised for significant growth from 2020 to 2030, driven by increasing consumer awareness of healthy eating habits, rising demand for organic and natural products, and the expanding food processing industry. The market is segmented by product type, including canola oil, vegetable oil, olive oil, avocado oil, sunflower oil, and others, with olive oil gaining popularity due to its health benefits and widespread use in Middle Eastern cuisine. By nature, the market is divided into organic and conventional oils, with organic oils witnessing higher demand as consumers prioritize health and sustainability. In terms of application, edible oils are utilized in seasoning, frying, baking, food processing, and other culinary uses, with food processing emerging as a dominant segment due to the growing consumption of processed and packaged foods. Geographically, the market is analyzed across key regions in Saudi Arabia, with urban centers like Riyadh and Jeddah driving demand due to higher disposable incomes and changing dietary preferences. According to the Saudi Arabian General Authority for Statistics, the average household income in Saudi Arabia increased by 4.5% in 2022, enabling consumers to spend more on premium and organic products. The competitive landscape is characterized by the presence of both local and international players, focusing on product innovation, strategic partnerships, and expanding distribution networks to capture market share. Key growth factors include the rising population, increasing urbanization, and government initiatives promoting healthy lifestyles. However, challenges such as fluctuating raw material prices and stringent regulations may hinder market growth. Overall, the Saudi Arabia edible oils market is expected to witness robust growth during the forecast period, supported by evolving consumer preferences and the growing food industry.

Key Market Drivers

Rising Health Consciousness and Demand for Healthier Oils 

One of the most prominent drivers of the edible oils market in Saudi Arabia is the increasing health consciousness among consumers. With a growing awareness of the link between diet and health, consumers are shifting towards healthier edible oil options such as olive oil, avocado oil, and canola oil. These oils are perceived as beneficial due to their high content of monounsaturated and polyunsaturated fats, which are associated with reduced risks of cardiovascular diseases and improved overall health. A 2023 survey by YouGov revealed that 70% of Saudi consumers are actively seeking healthier food options, including low-fat and nutrient-rich edible oils. The demand for olive oil, avocado oil, and canola oil is particularly high due to their perceived health benefits. Olive oil has gained popularity due to its Mediterranean diet association and its role in promoting heart health. Additionally, the demand for organic edible oils is rising as consumers seek products free from synthetic chemicals and pesticides. This trend is further supported by government initiatives promoting healthier lifestyles and the prevention of lifestyle-related diseases, such as obesity and diabetes, which are prevalent in the region.

Expansion of Food Processing and Hospitality Industries 

The rapid growth of the food processing and hospitality sectors in Saudi Arabia is another major driver for the edible oils market. The country’s Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil revenues, has led to significant investments in the food and beverage industry. Edible oils are a critical ingredient in various food processing applications, including frying, baking, seasoning, and ready-to-eat meals. The increasing demand for convenience foods, coupled with the rising number of restaurants, cafes, and fast-food chains, is boosting the consumption of edible oils. Furthermore, the growing tourism sector and the hosting of international events, such as the FIFA World Cup 2034, are expected to drive demand for edible oils in the hospitality industry. This expansion is creating a robust market for both conventional and specialty oils, catering to diverse culinary needs.

Population Growth and Changing Dietary Patterns 

Saudi Arabia’s growing population, coupled with changing dietary habits, is a significant driver for the edible oils market. The country’s population is increasingly urbanized, with a rising middle class that has higher disposable incomes. This demographic shift is leading to greater consumption of processed and packaged foods, which rely heavily on edible oils. Additionally, the influence of Western dietary patterns and the adoption of international cuisines are driving the demand for a variety of edible oils, such as sunflower oil, canola oil, and avocado oil. The younger generation, in particular, is more experimental with food choices, leading to increased demand for diverse and premium oil products. Moreover, the traditional use of edible oils in Middle Eastern cuisine, such as in dishes like hummus, falafel, and fried snacks, continues to sustain steady demand.                                             

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Key Market Challenges

Fluctuating Global Oil Prices and Supply Chain Disruptions

The edible oils market in Saudi Arabia is heavily reliant on imports, as the country does not produce sufficient quantities of oilseeds domestically. This reliance makes the market vulnerable to fluctuations in global oil prices, which are influenced by geopolitical tensions, climate change, and trade policies. For instance, disruptions in sunflower oil supplies due to the Russia-Ukraine conflict have significantly impacted global edible oil prices. Additionally, supply chain disruptions caused by the COVID-19 pandemic have highlighted the fragility of global trade networks. These factors can lead to price volatility, making it difficult for businesses to maintain stable pricing and profitability, and for consumers to afford essential cooking oils.

Health Concerns and Shifting Consumer Preferences

As awareness of health and wellness grows, Saudi consumers are increasingly shifting towards healthier oil options, such as olive oil, avocado oil, and canola oil, which are perceived as having better nutritional profiles. However, these oils are often more expensive than traditional options like vegetable oil or palm oil, which remain popular due to their affordability. This creates a challenge for manufacturers and retailers who must balance the demand for healthier options with the need to cater to price-sensitive consumers. Additionally, the rise of lifestyle diseases such as obesity and diabetes has led to government initiatives promoting healthier diets, further pressuring the market to adapt. Companies that fail to innovate and offer healthier alternatives risk losing market share to competitors who can meet these evolving demands.

Regulatory and Sustainability Challenges

The Saudi Arabian government has been implementing stricter regulations on food safety and quality standards, which can increase compliance costs for edible oil manufacturers. For example, regulations on trans fats and labeling requirements necessitate significant investments in reformulation and packaging. Additionally, there is growing pressure to adopt sustainable practices, as consumers and regulators alike demand environmentally friendly production methods. This includes reducing the carbon footprint of imported oils and ensuring ethical sourcing of raw materials. However, transitioning to sustainable practices often requires substantial capital investment and operational changes, which can be challenging for smaller players in the market. Furthermore, the lack of local production of oilseeds means that the industry has limited control over the sustainability of its supply chain, adding another layer of complexity.

Key Market Trends

Increasing Popularity of Specialty and Premium Oils

One of the most notable trends in the Saudi Arabia edible oils market is the growing demand for specialty and premium oils. Consumers are increasingly seeking high-quality, niche products that offer unique flavors, health benefits, and culinary versatility. Oils such as avocado oil, flaxseed oil, and cold-pressed olive oil are gaining traction due to their perceived health benefits and premium positioning. Avocado oil, for instance, is rich in monounsaturated fats and antioxidants, making it a popular choice among health-conscious consumers. Similarly, cold-pressed olive oil, which retains more nutrients compared to refined oils, is being favored for its superior quality and taste. This trend is also fueled by the influence of global food trends and the growing popularity of gourmet cooking, particularly among the urban middle and upper-class populations. Manufacturers are responding by introducing innovative and premium product lines to cater to this demand.

Rise of E-Commerce and Online Retail Channels

The rapid growth of e-commerce and online retail platforms is another significant trend impacting the edible oils market in Saudi Arabia. With increasing internet penetration and smartphone usage, consumers are increasingly turning to online channels for their grocery shopping, including edible oils. E-commerce platforms offer convenience, a wide range of product options, and competitive pricing, making them an attractive choice for consumers. This trend has been further accelerated by the COVID-19 pandemic, which prompted a surge in online shopping as consumers sought to avoid physical stores. Major retailers and brands are now focusing on strengthening their online presence through partnerships with e-commerce platforms and the development of direct-to-consumer (DTC) channels. Additionally, the use of digital marketing and social media influencers to promote edible oils is becoming a key strategy to reach tech-savvy consumers.

Sustainability and Ethical Sourcing

Sustainability and ethical sourcing are emerging as critical trends in the Saudi Arabia edible oils market. Consumers are becoming more aware of the environmental and social impact of their purchasing decisions, leading to a growing demand for sustainably produced and ethically sourced edible oils. This includes oils derived from responsibly managed farms, fair trade practices, and environmentally friendly production processes. For example, palm oil, which has faced criticism for its association with deforestation and habitat destruction, is being replaced by more sustainable alternatives in some product lines. Manufacturers are increasingly adopting certifications such as Rainforest Alliance, Fair Trade, and Organic to appeal to environmentally conscious consumers. Additionally, there is a growing emphasis on reducing packaging waste and using recyclable or biodegradable materials, aligning with global sustainability goals and Saudi Arabia’s Vision 2030 initiatives.

Segmental Insights

Product Type Insights

The product type segment is one of the most critical categorizations in the Saudi Arabia edible oils market, encompassing canola oil, vegetable oil, olive oil, avocado oil, sunflower oil, and others. Each product type caters to specific consumer needs and culinary applications, contributing to the overall market growth. Olive oil is the leading segment in the Saudi Arabia edible oils market, driven by its strong association with Mediterranean cuisine and its numerous health benefits. Rich in monounsaturated fats and antioxidants, olive oil is preferred for seasoning, salad dressings, and light cooking. The growing awareness of its nutritional advantages, coupled with the influence of Middle Eastern culinary traditions, has solidified its dominance in the market. Sunflower oil is another popular choice, valued for its light flavor and high vitamin E content. It is commonly used for frying and baking, making it a versatile option for both households and the food industry. Its affordability and health benefits contribute to its steady demand. Canola Oil Known for its low saturated fat content and high levels of omega-3 fatty acids, canola oil is widely used in cooking and frying. Its health benefits, such as improving heart health and reducing cholesterol, have made it a popular choice among health-conscious consumers. A 2022 report by the Saudi Ministry of Environment, Water, and Agriculture stated that the demand for canola oil in Saudi Arabia is growing at a CAGR of 7%, driven by its low saturated fat content and suitability for heart-healthy diets.  However, its market share is relatively smaller compared to other oils due to limited awareness and higher prices. Vegetable oil, a generic term for oils derived from plants, is one of the most widely consumed edible oils in Saudi Arabia. It is affordable, versatile, and suitable for various cooking methods, including frying, baking, and sautéing. Its widespread availability and cost-effectiveness make it a staple in households and the food processing industry.

Nature Insights

The nature segment categorizes edible oils into organic and conventional types, reflecting the growing consumer preference for natural and sustainable products. Conventional oils dominate the market due to their affordability and widespread availability. These oils are produced using traditional farming methods, often involving synthetic inputs. While they cater to the mass market, their growth is slower compared to organic oils due to increasing consumer awareness about the benefits of organic products. Conventional oils currently lead the market, as they are more accessible and affordable for the majority of consumers. However, their growth is gradually being challenged by the rising demand for organic alternatives.

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Regional Insights

The Saudi Arabia edible oils market exhibits distinct regional dynamics, with each region contributing uniquely to the overall market landscape. The Western region, particularly cities like Jeddah and Mecca, is the leading contributor to the market due to its high population density, urbanization, and economic activity. This region is a hub for trade and commerce, with a well-developed retail infrastructure that supports the distribution of a wide variety of edible oils. Additionally, the Western region's cosmopolitan population, which includes a significant expatriate community, drives demand for diverse oil types, including olive oil, canola oil, and sunflower oil, catering to varied culinary preferences. The presence of major ports in Jeddah also facilitates the import of edible oils, ensuring a steady supply to meet the region's high consumption levels.

In contrast, the Eastern region, home to cities like Dammam and Al Khobar, is the fastest-growing region in the Saudi edible oils market. This growth is fueled by the region's economic prosperity, driven by the oil and gas industry, which has led to higher disposable incomes and increased spending on premium and healthier edible oils. The Eastern region also has a growing food processing industry, which boosts demand for edible oils used in commercial applications. Furthermore, the region's strategic location near key trade routes enhances its access to imported oils, supporting market expansion. The rising health consciousness among consumers in this region has also spurred demand for organic and specialty oils, such as avocado oil and cold-pressed olive oil, contributing to its rapid growth.

The Northern & Central region including Riyadh, plays a pivotal role in the market due to its status as the political and administrative capital of Saudi Arabia. Riyadh's affluent population and thriving foodservice industry drive demand for high-quality edible oils, particularly for frying and baking applications. However, growth in this region is more stable compared to the Eastern region, as it is already a mature market with well-established consumption patterns. The Southern region, including cities like Abha and Jizan, lags behind in terms of market share and growth. This is primarily due to its lower population density and economic activity compared to other regions. However, the Southern region has untapped potential, particularly in rural areas where increasing awareness of healthier oil options could drive future growth.

Recent Developments

• The Saudi Agricultural & Livestock Investment Company (Salic) agreed to acquire an additional 44.6% stake in Singapore-based commodities trader Olam Agri, bringing its total ownership to 80.01%. This USD 1.78 billion deal, announced in February 2025, aims to secure critical agricultural supply chains and diversify Saudi Arabia's economy beyond oil.
• The increasing number of pilgrims visiting Mecca has significantly boosted the demand for edible oils in Saudi Arabia. In 2023, 1,660,915 pilgrims from abroad visited Mecca, accounting for 90% of the total Hajj visitors. This influx has led to a surge in food services, including street vendors, restaurants, and catering services, all of which heavily rely on edible oils.
• In January 2025, Savola Group announced the sale of its Iranian operations, including the manufacturing and distribution of edible oils, to a foreign investor for SAR 705 million (approximately USD 187.6 million). This strategic move aligns with Savola's focus on high-potential markets and streamlining its portfolio.

Key Market Players

• Savola Group
• ACH Food Companies, Inc. (Mazola)
• IFFCO International Group
• National Agricultural Development Company
• Quality Supplies llc 
• Cargill, Incorporated
• AJWA Group
• Pompeian, Inc.
•  La Tourangelle, Inc.
• Filippo Berio USA, LTD.

Report Scope:

In this report, the Saudi Arabia edible oils market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Saudi Arabia Edible Oils Market, By Product Type:

o   Canola Oil

o   Vegetable Oil

o   Olive Oil

o   Avocado Oil

o   Sunflower Oil

o   Others

• Saudi Arabia Edible Oils Market, By Nature:

o   Organic

o   Conventional

• Saudi Arabia Edible Oils Market, By Application:

o   Seasoning

o   Frying

o   Baking

o   Food Processing

o   Others

• Saudi Arabia Edible Oils Market, By Region:

o   Western

o   Northern & Central

o   Eastern

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia edible oils market.

Available Customizations:

Saudi Arabia edible oils market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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