Saudi Arabia Edible Oil Market Overview
Market Size in 2024: USD 2.3 Billion
Market Size in 2033: USD 3.4 Billion
Market Growth Rate 2025-2033: 4.20%
According to IMARC Group's latest research publication, "Saudi Arabia Edible Oil Market Size, Share, Trends and Forecast by Product Type, Nature, Distribution Channel, End Use, and Region, 2025-2033", The Saudi Arabia edible oil market size reached USD 2.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.4 Billion by 2033, exhibiting a growth rate (CAGR) of 4.20% during 2025-2033.
Growth Factors in the Saudi Arabia Edible Oil Market
- Vision 2030 and Food Security Initiatives
Saudi Arabia’s Vision 2030 is boosting the edible oil industry through a $13.3 billion investment in food security, aiming to localize production. The National Agricultural Development Company (NADEC) has expanded its sunflower oil facilities, processing 500,000 tons annually. Government subsidies for agricultural tech have increased local olive oil output by 15%, with companies like Al Watania boosting production. The industry’s market size is $1.31 billion, driven by demand for palm and sunflower oils. The Saudi Food and Drug Authority’s support for quality standards encourages firms like Savola to innovate, ensuring affordable supply. These efforts, tied to 1.5 million new urban households, are reducing import reliance and fueling growth in domestic edible oil production.
- Tourism and Hospitality Sector Boom
The hospitality sector, fueled by 1.66 million pilgrims annually, is driving edible oil demand. Hotels and restaurants, especially in Makkah, use 30% more oil for traditional and international cuisines. The $6 trillion tourism investment, including projects like Red Sea resorts, boosts catering services, with palm oil consumption at 884,100 tons. Companies like IFFCO Group are supplying bulk oils to 500,000 food outlets. Government-backed tourism initiatives, such as Al Ula’s development, increase demand for high-quality oils like olive oil. Street food vendors, relying on deep-fried dishes, account for 20% of oil use. This surge in tourism-driven food services is a major growth engine for the edible oil market.
- Rising Health-Conscious Consumer Demand
Health awareness is pushing demand for healthier edible oils, with olive oil sales rising 25% due to its low saturated fat content. The Saudi Food and Drug Authority’s campaigns promote oils fortified with vitamins A and D, with 40% of consumers choosing these options. Savola’s Afia brand has launched organic olive oil lines, capturing 15% of the premium market. The $1.27 billion retail food sector sees 60% of urban consumers opting for low-cholesterol oils. Government health programs, like the Quality-of-Life initiative, encourage dietary shifts, boosting sales for brands like Mazola. With 65% of the population under 35, this young, health-focused demographic is driving edible oil innovation and market expansion.
Key Trends in the Saudi Arabia Edible Oil Market
- Shift to Organic and Sustainable Oils
Consumers are embracing organic and sustainable edible oils, with 35% of buyers preferring carbon-neutral products. IFFCO Group’s Rahma brand has introduced organic olive oil, with a $10 million Tunisia facility exporting to Saudi Arabia. The Saudi Green Initiative supports eco-friendly production, offering subsidies for sustainable practices. About 20% of edible oil sales now come from organic variants, driven by urban demand in Riyadh. Savola’s new eco-friendly palm oil line reduces emissions by 15%. This trend aligns with Vision 2030’s sustainability goals, with 45% of restaurants using organic oils to attract health-conscious diners, boosting the market for green products.
- E-Commerce and Digital Sales Growth
Online platforms are reshaping edible oil sales, with $200 million in transactions via Amazon.sa and Noon. Mobile apps drive 70% of purchases, with 60% of buyers under 40 using digital channels. The government’s 5G expansion and digital payment systems enhance e-commerce, boosting sales for brands like Afia by 12%. Social media campaigns on TikTok, targeting young consumers, have increased Noor oil’s online orders by 18%. Retailers like Carrefour report a 15% spike in online edible oil sales. This trend, supported by Vision 2030’s digital transformation push, offers convenience and variety, making e-commerce a key driver for the edible oil market.
- Fortification and Functional Oils
Fortified edible oils, enriched with vitamins A and D, are gaining traction, with 30% of the market favoring these products. The Saudi Food and Drug Authority’s fortification mandates drive adoption, with NADEC’s fortified sunflower oil sales up 10%. These oils address micronutrient deficiencies, appealing to 50% of health-conscious households. Brands like Mazola are launching omega-3 enriched oils, with 25,000 tons sold in urban areas. Government health campaigns, like the Ministry of Health’s nutrition programs, promote fortified oils, boosting demand. This trend caters to Saudi Arabia’s young population, with 65% seeking functional foods, driving innovation and expanding the market for health-focused edible oils.
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Saudi Arabia Edible Oil Industry Segmentation:
The report has segmented the market into the following categories:
Product Type Insights:
- Palm Oil
- Soybean Oil
- Sunflower Oil
- Olive Oil
- Corn Oil
- Rapeseeds Oil
- Others
Nature Insights:
- Organic
- Conventional
Distribution Channel Insights:
- Business to Business
- Business to Consumer
End Use Insights:
- Industrial
- Food Service
- Retail
Regional Insights:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Future Outlook
Saudi Arabia’s edible oil industry is poised for dynamic growth, driven by Vision 2030’s food security push and a booming hospitality sector catering to millions of tourists. Government initiatives promoting local production and sustainability will reduce import dependency, while companies like Savola and IFFCO expand organic and fortified oil lines to meet health-conscious consumer demand. The rise of e-commerce, fueled by digital transformation and 5G, will make oils more accessible through platforms like Noon. With a young, urban population driving demand for premium and functional oils, the industry will see innovation in sustainable packaging and nutrient-enriched products. This growth will create jobs, strengthen local manufacturing, and position Saudi Arabia as a regional leader in edible oil production.
Research Methodology:
The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.
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