Saudi Arabia Fats & Oils Market Segmented, By Type (Fats, Oils), By Form (Dry, Liquid), By Application (Chocolate & Confectioneries, Processed Foods, Bakery Products, Dairy Products, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia Fats & Oils market was valued at USD 5.67 Million in 2024 and is expected to grow to USD 8.23 Million by 2030 with a CAGR of 6.41%. The Saudi Arabia Fats & Oils market is primarily driven by increasing consumer demand for processed and convenience foods, along with a rising preference for healthier dietary options. As disposable incomes grow, consumers are willing to spend more on high-quality edible oils and fats, particularly for use in cooking and food preparation. Health-consciousness is also becoming a significant factor, with a growing shift toward oils perceived as healthier, such as olive oil and sunflower oil. Also, the expansion of the food service industry, including restaurants, hotels, and catering services, contributes to the demand for fats and oils. The growing awareness of the importance of nutrition and the influence of global dietary trends further boost the market, encouraging product innovation and the availability of a variety of options.

Key Market Drivers

Rapid Population Growth & Urbanization

Rapid population growth and urbanization are pivotal drivers of the Saudi Arabia fats and oils market. As a part of this, according to WHO, as of 2023, there were 33,264,292 people living in Saudi Arabia; by 2050, that number is expected to rise by 43% to 47,693,910. This demographic shift has led to increased demand for convenience foods and dining out, both of which rely heavily on fats and oils. Urban lifestyles often involve a preference for processed and ready-to-eat foods, contributing to higher consumption of edible oils. Also, the expansion of the food service industry, including restaurants and fast-food chains, further boosts the consumption of fats and oils in commercial food preparation. As urban centers continue to grow, the demand for fats and oils is expected to rise, driven by changing dietary habits and the need for efficient food production and preparation methods.

Expansion of Food Service Sector

The expansion of Saudi Arabia’s foodservice sector plays a crucial role in driving the fats and oils market. As a part of this, according to a recent study, as of 2022, sales from food service establishments in Saudi Arabia totalled over USD 22.53 billion. As the foodservice industry grows, particularly with the rise of restaurants, fast food chains, and cafes, the demand for various fats and oils for cooking, frying, and food preparation increases. The increased consumption of ready-to-eat meals and processed foods in urban areas, driven by changing lifestyles and a growing preference for dining out, further accelerates this demand. Fats and oils are essential for ensuring the desired texture, Form, and quality of food, making them indispensable in the foodservice industry. The expansion is also fuelled by the growing population, rising disposable incomes, and the proliferation of both local and international food brands, all contributing to the increased use of fats and oils. As Saudi Arabia's foodservice sector continues to develop, it is expected that the consumption of oils will see consistent growth, stimulating the market.

Rising Processed Food Consumption

The rising consumption of processed foods in Saudi Arabia is a significant driver of the fats and oils market. As urbanization and busy lifestyles increase, consumers are turning to convenient, ready-to-eat meals and packaged foods. These products often require various fats and oils for cooking, preservation, and enhancing taste and texture. The demand for processed foods is further fueled by factors such as longer shelf life, ease of preparation, and the growing number of working professionals and dual-income households. This shift in dietary habits has led to a higher intake of fats and oils, including palm, sunflower, and soybean oils, which are commonly used in the food processing industry. Consequently, the increased consumption of processed foods directly contributes to the expansion of the fats and oils market in Saudi Arabia.

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Key Market Challenges

Supply Chain Vulnerabilities

Supply chain vulnerabilities pose a significant challenge to the Saudi Arabia fats and oils market due to the country’s heavy reliance on imports for most edible oil varieties. As Saudi Arabia does not produce many oilseeds domestically, it depends on international suppliers for raw materials such as palm, soybean, and sunflower oil. This dependency exposes the market to global supply chain disruptions caused by geopolitical tensions, climate change, trade restrictions, and logistical constraints. For instance, disruptions in major exporting countries or rising shipping costs can lead to price volatility and delayed product availability. The COVID-19 pandemic further exposed the fragility of global supply chains, leading to temporary shortages and increased costs across the fats and oils segment. Although there are ongoing efforts to develop domestic refining and processing capabilities, the scale remains limited. As a result, ensuring a stable, diversified, and resilient supply chain is essential to support the consistent availability and pricing of fats and oils in the Saudi market.

Economic Sensitivity to Oil Price Fluctuations

Economic sensitivity to oil price fluctuations presents a considerable challenge to the Saudi Arabia fats and oils market. As a nation heavily dependent on oil exports for revenue, any significant drop in global oil prices can directly impact the country’s economic stability. Lower oil revenues often lead to reduced government spending and consumer purchasing power, which can, in turn, affect overall demand for food products, including edible fats and oils. Also, budget constraints may limit public sector support for food-related infrastructure, subsidies, or import facilitation. On the industry side, price fluctuations in global oil markets can increase operational costs, such as transportation and energy expenses, affecting the final pricing of fats and oils. This economic volatility can also discourage investment in local production and innovation, thereby increasing reliance on imports. As the government works to diversify the economy through Vision 2030, mitigating the effects of oil price dependency remains a critical task for stabilizing the fats and oils market and ensuring sustainable growth.

Key Market Trends

Emphasis on Sustainable and Organic Products

The Saudi Arabia fats and oils market is experiencing a significant shift towards sustainability and organic products, driven by evolving consumer preferences and global health trends. Consumers are increasingly seeking ethically sourced, environmentally friendly, and minimally processed oils, such as cold-pressed olive, avocado, and sunflower oils. This demand is fueled by a growing awareness of health benefits associated with natural products and a desire for transparency in sourcing and production practices. In response, manufacturers are innovating to offer premium, organic, and infused oils that cater to these preferences. Companies like Savola Foods and Azzayt Oils Group are leading the way by committing to sustainable practices and introducing products that align with consumer expectations. This trend is further supported by Saudi Arabia's Vision 2030, which emphasizes economic diversification and sustainable development, encouraging investments in eco-friendly agricultural practices and local production. As a result, the market is witnessing a transformation where sustainability and health consciousness are becoming central to product development and marketing strategies. This shift not only meets the current consumer demand but also positions the Saudi fats and oils industry for long-term growth and resilience in a health-conscious global market.

Diversification of Product Offerings

The Saudi Arabia fats and oils market is witnessing a notable trend towards the diversification of product offerings, driven by evolving consumer preferences and economic diversification efforts. Consumers are increasingly seeking a variety of oils that cater to health-conscious lifestyles, including options like olive, sunflower, avocado, and flaxseed oils. This shift is influenced by a growing awareness of the health benefits associated with different types of fats and oils. In response, manufacturers are expanding their portfolios to include specialty and blended oils that meet specific dietary and culinary needs. This includes the introduction of oils fortified with omega-3 fatty acids, low-cholesterol variants, and products tailored for specific cooking methods. The rise of plant-based diets and the increasing demand for organic products are also encouraging producers to innovate and offer a broader range of options. Also, government initiatives under Vision 2030 are supporting the local production of diverse oil products, aiming to reduce import dependency and promote food security. Investments in the food processing sector are facilitating the development of new oil products that align with both traditional tastes and modern health trends.

Health-Conscious Consumer Preferences

Health-conscious consumer preferences are significantly influencing the Saudi Arabia fats and oils market. With a growing awareness of the health implications associated with dietary fats, consumers are increasingly seeking healthier alternatives to traditional cooking oils. This shift is evident in the rising demand for oils perceived to have health benefits, such as olive oil, canola oil, and sunflower oil. These oils are favored for their lower saturated fat content and potential to support heart health. The market is responding to these changing preferences by expanding the availability of oils enriched with omega-3 fatty acids, like flaxseed and soybean oils, which are known to support heart and brain health. High-oleic oils, such as safflower and sunflower oils, are also gaining popularity due to their ability to help maintain healthy cholesterol levels and extend the shelf life of baked goods. This trend is particularly pronounced among younger consumers, who are more focused on wellness, clean eating, and home cooking. Their preferences are driving the demand for functional oils and clean-label products, prompting manufacturers to innovate and offer products that align with these health-conscious values

Segmental Insights

Type Insights

Oils dominated the Saudi Arabia Fats & Oils market, driven by their widespread use in both household and industrial food applications. The preference for oils such as sunflower, palm, soybean, and olive are rooted in their versatility, affordability, and health appeal. These oils are extensively used for cooking, frying, baking, and food processing, making them a staple in Saudi kitchens and commercial food establishments. As a part of this, according to a recent study, as of 2024, with hotel occupancy rates rising 69% in 2023 from 59% in 2022, the Saudi hospitality industry is expanding significantly. Increasing health awareness has also prompted a shift toward oils with lower saturated fat content, further boosting demand. Also, the expanding foodservice sector, growth in ready-to-eat meals, and rising consumption of processed foods have all contributed to the rising dominance of oils. Their longer shelf life, ease of storage, and economic viability continue to strengthen their market leadership.

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Regional Insights

Northern & Central dominated the Saudi Arabia Fats & Oils market, due to their higher population density, urbanization, and concentration of economic activities. Major cities like Riyadh, located in the Central region, serve as key hubs for commerce, industry, and food services, significantly driving the consumption of fats and oils. These regions also have a well-established distribution network and access to retail and foodservice outlets, which supports market penetration and product availability. Also, the Western region's is driven by its strong tourism industry, religious pilgrimages, and a thriving hospitality sector centered around cities like Makkah, Madinah, and Jeddah. The influx of domestic and international visitors boosts demand for food services, increasing the consumption of edible oils in restaurants, hotels, and catering operations.

Recent Developments

• In May 2024, Pakistani and Saudi investors launched $5 million edible oil refinery in Saudi Arabia through a joint venture (JV). This follows recent business-to-business engagements between the two nations. The announcement comes after a 50-member delegation, led by Saudi Arabia’s Assistant Minister of Investment Ibrahim Al-Mubarak, visited Pakistan to explore investment opportunities.

Key Market Players  

• IFFCO Group
• Cargill Incorporated
• Areej Vegetable Oils & Derivatives S.A.O.C.
• Wilmar International Limited
• Pacific Oils & Fats Industries
• Mewah Group
• Parisons Group of Companies
• Aak India
• Fuji Oil Asia Pte. Ltd
• Bunge Global SA

Report Scope:

In this report, the Saudi Arabia Fats & Oils Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Saudi Arabia Fats & Oils Market, By Type:

o   Fats

o   Oils

• Saudi Arabia Fats & Oils Market, By Form:

o   Dry

o   Liquid

• Saudi Arabia Fats & Oils Market, By Application:

o   Chocolate & Confectioneries

o   Processed Foods

o   Bakery Products

o   Dairy Products

o   Others

• Saudi Arabia Fats & Oils Market, By Region:

o   Eastern

o   Western

o   Northern & Central

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Fats & Oils Market.

Available Customizations:

Saudi Arabia Fats & 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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