In 2023, retail sales in Saudi Arabia were estimated at ***** billion U.S. dollars. By 2028, the volume of retail sales in the country was forecast to increase to approximately ***** billion U.S. dollars.

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Saudi Arabia Retail Market Size 2025-2029

The Saudi Arabia retail market size is forecast to increase by USD 64.6 billion at a CAGR of 7.1% between 2024 and 2029.

The market is experiencing significant growth and transformation, driven by the Saudi Arabian government's Vision 2030 economic diversification plan. This initiative aims to reduce the kingdom's reliance on oil revenues and promote a thriving retail sector. The integration of technology is a key catalyst for this transformation, with e-commerce and digital payments gaining popularity among consumers. However, retailers face challenges in navigating the complex regulatory landscape of the industry. Compliance with regulations related to foreign investment, labor laws, and consumer protection is essential for success in the Saudi Arabian market.
Additionally, competition from both local and international players intensifies the need for retailers to differentiate themselves through innovative offerings and customer experience. Adapting to these market dynamics requires a strategic approach, focusing on digital transformation, regulatory compliance, and customer engagement to capitalize on the opportunities presented by the growing retail sector in Saudi Arabia.

What will be the size of the Saudi Arabia Retail Market during the forecast period?

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In the dynamic retail market of Saudi Arabia, operational efficiency and emerging technologies are driving innovation. Retailers are investing in retail automation, such as self-checkout kiosks and customer service chatbots, to streamline processes and enhance the shopping experience. Expansion plans are underway, with businesses leveraging business intelligence and data visualization to inform strategic decisions. Ethical sourcing and supply chain transparency are also key priorities, as consumer sentiment shifts towards sustainability and social responsibility. Pricing strategies are being reevaluated, with decision support systems helping retailers optimize costs and remain competitive. M&A activity is on the rise, as larger players seek to expand their market share.
Smart shelf technology and digital signage are also gaining traction, providing real-time inventory management and targeted promotional campaigns. Last-mile delivery is being revolutionized through the use of delivery drones, offering faster and more efficient service. Retailers are focusing on customer retention and brand loyalty, implementing customer satisfaction surveys and loyalty programs. Overall, retail innovation is at the forefront of business growth strategies, with a focus on leveraging technology to meet evolving consumer demands.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Non-food retail
  Food retail


Distribution Channel

  Bakalas
  Super markets
  Hyper markets
  Online


Geography

By Type Insights

The non-food retail segment is estimated to witness significant growth during the forecast period.

In the dynamic retail market of Saudi Arabia, various trends are shaping the industry's growth. The expanding population and rising disposable income, influenced by changing consumer lifestyles, have fueled demand for a broad array of non-food products. The Saudi Arabian government's Vision 2030 initiative, focusing on economic diversification and private sector promotion, has further propelled retail growth. Major retailers, such as Jarir and Lulu, have responded to evolving consumer preferences. Jarir, a prominent consumer electronics and bookstore chain, has capitalized on the increasing demand for technology and educational products by offering a wide range of innovative and high-quality offerings.

Meanwhile, Lulu, a leading fashion and lifestyle retailer, has successfully tapped into the growing interest in clothing, accessories, and home goods, providing personalized shopping experiences through its omni-channel retailing strategy. Retail infrastructure has evolved with the adoption of advanced technologies, including mobile payment systems and inventory management systems. These technologies have streamlined operations and improved customer experience. Green supply chains and sustainability practices have gained importance, with retailers embracing blockchain technology for increased transparency and traceability. Digital marketing strategies, including social media marketing, email marketing, and content marketing, have become essential for retailers to reach and engage customers.

Big data analysis and predictive analytics help retailers understand consumer spending pa

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Saudi Arabia Food Retail Market Size 2025-2029

The Saudi Arabia food retail market size is forecast to increase by USD 18.05 billion, at a CAGR of 5.9% between 2024 and 2029.

The Saudi Arabian food retail market is experiencing steady growth, driven by shifting consumer preferences and advancements in technology. Demand for healthier, sustainable options like organic and plant-based foods reflects changing buying habits, while e-commerce and digital tools are reshaping how businesses reach customers and streamline operations. Additionally, digital advancements are also shaping the industry, as retailers adopt technologies such as mobile applications, online ordering, and contactless payments to enhance the shopping experience and optimize their operations.
This report delivers actionable insights, including market size, growth forecasts through 2029, and analysis of key segments like grocery and specialty retail. It highlights the rise of online food retail as a major trend, alongside challenges such as intense competition among local and multinational players. 
For businesses aiming to refine strategies, enhance client engagement, or optimize supply chains, this report offers a clear view of the global food retail landscape. Its data-driven approach helps companies navigate evolving trends and tackle competitive pressures to stay ahead in a dynamic market

What will be the Size of the market During the Forecast Period?

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The food retail market continues to evolve, with online-grocery sales experiencing significant growth due to consumer polarization towards convenience and contactless shopping. Supermarkets, including Whole Foods, adapt by implementing delivery models such as curbside pickup and direct-to-door services. The food cupboard segment, characterized by small, convenience stores, also thrives in urban areas. Advanced technologies, sustainable practices, and strategic acquisitions are key strategies for market differentiation. Environmental regulations and consumer preferences for healthier foods, especially among Generation Z and millennials, influence product offerings. The beverages segment and online delivery channel further expand, driven by consumer tech adoption and economic recovery. Grocery CEOs partner with merchandising and category management teams to optimize strategy, utilizing senior partners in consumer tech and store operations for advanced analytics and consumer behavior insights. Prices and budgets remain value-conscious, with a focus on sustainability and e-commerce.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Offline
  Online


Packaging

  Flexible
  Semi-rigid
  Rigid


Geography

  Saudi Arabia

By End-user Insights

The offline segment is estimated to witness significant growth during the forecast period. In Saudi Arabia, traditional shopping experiences continue to hold significance for consumers when it comes to purchasing groceries and food items. The cultural appeal of local markets (souks) and brick-and-mortar grocery stores persists, fueling the expansion of offline food retail. Consumers prefer this shopping method to personally inspect the freshness, quality, and appearance of perishable goods, such as fruits, vegetables, and meats. As urbanization increases, the demand for large-format retail stores like hypermarkets rises to accommodate the needs of urban consumers. This trend is driven by the convenience and wide selection these stores offer. Despite the rise of e-commerce, physical stores remain a preferred choice for many value-conscious consumers seeking a more personalized shopping experience.

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Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers for the Saudi Arabia Food Retail industry?

The expansion of hypermarkets and supermarkets in Saudi Arabia is the key driver of the market. The online grocery sales sector is experiencing significant growth due to consumer polarization towards convenience and sustainability. With the rise of millennials and Generation Z consumers, there is a growing demand for advanced technologies such as curbside pickup, direct-to-door delivery, and sustainable practices in the supermarket business. Environmental regulations and consumer behavior are driving the supermarket industry to adopt advanced analytics and merchandising strategies. The beverages segment is a notable area of focu

In 2023, fashion accounted for ** percent of retail trade in Saudi Arabia. The remaining ** percent of retail trade consisted of electronics, groceries, and other categories. From 2023 to 2028, the compound annual growth rate (CAGR) is expected to increase from *** to ***** percent. Saudi Arabia’s retail market The Kingdom’s retail industry lists among the most appealing markets worldwide. Saudi Arabia had the highest retail market attractiveness score in the MENA region thanks to a combination of a young, dynamic population, aligned economic reforms, and rising income levels, among others. However, it is worth highlighting that the total retail sales as a share of GDP in the country have experienced a slight decline recently. The COVID-19 pandemic created a change in retail buying behavior in the Kingdom. This change increased online shopping habits in the post-pandemic years, primarily for groceries, food, and beverages, as well as cleaning products. Nevertheless, despite these changes favoring online retail, the e-commerce share of total retail remained around ***** percent as of 2022. Retail market in MENA The region’s traditional retail, which is mostly characterized by small and independent stores, has an influential role in the market despite the growing dominance of e-commerce and large retail chains. As of 2022, the annual growth rate of retail e-commerce sales in the Middle East and North Africa was ** percent, a regional rate that was second only to Latin America. When it comes to fashion, offline sales channels are forecast to remain the dominant way of shopping in MENA in the coming years.

In Saudi Arabia Retail Market is projected to grow from USD 2.3 trillion in 2025 to USD 3.7 trillion by 2031, at a CAGR of 8.2%

Discover the booming Saudi Arabia retail market! This in-depth analysis reveals a $157.9B market projected to grow at a 7.1% CAGR through 2033, driven by rising incomes, e-commerce growth, and government initiatives. Explore key segments, top companies, and market trends.

Industry Saudi Arabia Retail comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

In Saudi Arabia Retail Market, E-commerce has increased dramatically as technology adoption rises, which is driving the retail market even more.

The size of the MENA Retail Market was valued at USD XX USD Billion in 2023 and is projected to reach USD XXX USD Billion by 2032, with an expected CAGR of 7.12% during the forecast period. Recent developments include: May 2024: Alshaya Group, a Kuwait-based franchise operator, announced the inauguration of a new outlet 'Hampton by Hilton' in Kuwait. The outlet showcases 110 modern and stylishly designed bedrooms, with modern amenities, including a complementary hot breakfast and a fully-equipped gym., May 2024: Al-Futtaim, a Dubai, UAE-based conglomerate, launched its IKEA brand at Dalma Mall in Abu Dhabi, UAE. The launch of this store aimed to cater to the needs and tastes of the local community., March 2024: Lulu Group International, an Abu Dhabi, UAE-based multinational conglomerate, inaugurated its new hypermarket in Dubai Outlet Mall. The new outlet features different products under various segments, including fresh food, grocery, bakery, dairy, electronics, and home appliances., November 2023: CHALHOUB GROUP, a Dubai, UAE-based luxury goods distributor, established a partnership with Inter Parfums, Inc., a perfume distributor in the UAE, Kuwait, Saudi Arabia, Egypt, and Bahrain. This partnership encourages CHALHOUB GROUP to expand its presence for fragrance products in the Middle East region., April 2023: BinDawood Stores, a Saudi Arabia-based distributor, announced its plans to open around 6-7 new supermarkets, hypermarkets, and express stores in the same year. The company aimed to expand its presence in the main cities of Saudi Arabia.. Key drivers for this market are: Improving Infrastructural Facilities to Fuel Market Growth. Potential restraints include: Improving Infrastructural Facilities to Fuel Market Growth. Notable trends are: Improving Infrastructural Facilities to Fuel Market Growth.

Pharmacy retailing market size in Saudi Arabia was expected to reach 37.6 billion Saudi Riyals in 2026. In 2016, pharmacy retailing sales value in Saudi Arabia was 23.4 billion Saudi Riyals.

This statistic present the share of the online retail market in Saudi Arabia in 2017, split by type. That year, the share of online retail of consumer electronics amounted to around ** percent, followed by apparel and footwear with around ** percent.

Saudi Arabia Convenience Store Retail Market valued at USD 5 billion, driven by urbanization and consumer preferences, with growth in key cities like Riyadh and Jeddah.

Saudi Arabia Food Retail Market is expected to grow during 2025-2031

Saudi Arabia Web3 in Retail Market is projected to grow around USD 14.8 billion by 2031, at a CAGR of 29.4% during the forecast period.

Dive deep into the dynamics of Saudi Arabia Food & Grocery Retail Market, size at USD 60.94 billion in 2023 featuring industry analysis and growth opportunities

The Saudi Arabia pharmacy retail market was valued at USD 28.00 Billion in 2024 and is expected to grow at a CAGR of 8.30%, reaching USD 62.15 Billion by 2034. The market growth is driven by the growing healthcare demand and regulatory reforms in Saudi Arabia.

Key Market Trends and Insights

• Saudi Arabia contributed 1.5% of the global pharmacy market revenue during the historical period.
• Drugs dominated the market, representing 65% of total revenue in the historical period.
• By type, the online segment is expected to witness substantial growth in the forecast period.

Market Size and Forecast

• Market Size (2024): USD 28.00 Billion
• Projected Market Size (2034): USD 62.15 Billion
• CAGR (2025-2034): 8.30%

In 2023, the value of the e-commerce market in Saudi Arabia amounted to *** billion U.S. dollars. This represented an increase from ***** billion U.S. dollars of market value seen in the previous year.

The e-retail industry in the Gulf Cooperation Council (GCC) region was expected to have a penetration rate of **** percent of the offline retail in 2025 before the COVID-19 pandemic. The forecasted penetration rate grew to about **** percent after the pandemic.  GCC e-commerce overview The e-retail industry in the region has been expanding rapidly over the past couple of years. The value of e-commerce transactions was forecasted to reach around ** billion U.S. dollars by 2022 in the United Arab Emirates (UAE). The UAE ranks first in the Middle East and North Africa (MENA) region in the UNCTAD E-commerce Index, followed by Saudi Arabia. The most popular e-commerce segment in UAE in 2020 was *******************, while in Saudi Arabia it was the ****************.  COVID-19 impact on GCC e-commerce    The value of e-commerce sales in the region was accelerated after the lockdowns and social distancing rules imposed by the governments to prevent the spread of the COVID-19 virus. In Saudi Arabia, the estimated market size by 2025 was ** billion U.S. dollars. According to a survey in UAE in 2020, more than ** percent of respondents increased their online shopping frequency post the pandemic . The governments responded to the shifts to e-commerce by easing the process of obtaining e-commerce licenses. This was undertaken to encourage new businesses to enter the market in the field of logistics and other sectors that could support the e-commerce industry.

The home improvement market in Saudi Arabia reached around *** million euros in 2022, down from *** million in 2019. Home improvement retailers in the kingdom include Saco, Home Centre and Gulf Depot.

Saudi Arabia premium packaged bakery retail market valued at USD 1.2 billion, driven by demand for convenience foods, rising incomes, and artisanal products in key cities like Riyadh and Jeddah.