In 2023, retail sales in Saudi Arabia were estimated at 126.1 billion U.S. dollars. By 2028, the volume of retail sales in the country was forecast to increase to approximately 161.4 billion U.S. dollars.

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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

In 2023, fashion accounted for 25 percent of retail trade in Saudi Arabia. The remaining 75 percent of retail trade consisted of electronics, grocery and other categories. From 2023 to 2028, the compound annual growth rate (CAGR) is expected to increase from six to eight percent.

Saudi Arabia's retail banking market is segmented by product (transactional accounts, savings accounts, debit cards, credit cards, loans, and other products), industry (hardware, software, and services), and channel (direct sales and distributor). The market size and forecasts for the Saudi Arabia retail banking market are provided in terms of value (USD) for all the above segments.

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. The MENA (Middle East and North Africa) retail market refers to the sector of the economy that deals with the sale of goods and services to consumers in this diverse and dynamic region. Encompassing a wide geographical area that includes countries like Saudi Arabia, the UAE, Egypt, Qatar, Morocco, and others, the MENA retail market is influenced by a unique blend of cultural, economic, and technological factors. The retail industry in MENA has witnessed substantial growth over the past few years, driven by a young, tech-savvy population, rising disposable incomes, and evolving consumer preferences. The region is home to a growing middle class, and the increased urbanization in major cities like Dubai, Cairo, and Riyadh has created opportunities for both traditional brick-and-mortar retail stores and digital commerce platforms. This growth is predominantly driven by factors such as the increasing penetration of e-commerce, rising disposable incomes, and the growing population in the region. Additionally, government initiatives to promote retail development, such as the Saudi Vision 2030, are expected to contribute to the market's expansion. 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.

Saudi Arabia e-retail market is expected to show an impressive growth in CAGR in the upcoming five years of forecast, 2024-2028.

The Saudi Arabian retail market, valued at $157.90 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 7.1% from 2025 to 2033. This expansion is fueled by several key drivers. A burgeoning young population with increasing disposable incomes is driving higher consumer spending. Government initiatives promoting economic diversification and infrastructure development, particularly in non-food retail sectors, are also contributing significantly. The rise of e-commerce and the expansion of online retail channels are transforming the landscape, while the increasing popularity of hypermarkets and supermarkets continues to cater to the changing consumer preferences towards convenient shopping experiences. Furthermore, a growing focus on healthy and organic food options is impacting the food retail segment. However, the market faces challenges such as fluctuating oil prices impacting consumer confidence, and intense competition amongst established players and emerging online retailers. Despite these restraints, the market segmentation reveals significant opportunities. The non-food retail sector, encompassing apparel, electronics, and home goods, shows considerable potential for growth driven by rising middle-class spending and increased fashion consciousness. Within the food retail segment, the demand for imported goods and specialized food products presents further expansion opportunities. The distribution channels show a balanced landscape, with supermarkets and hypermarkets maintaining a strong presence, while online channels are experiencing rapid growth, reflecting a shift towards digital shopping habits. The competitive landscape is characterized by established local and international players vying for market share through strategic pricing, branding, and customer loyalty programs. Effective management of supply chain logistics, adapting to evolving consumer preferences, and leveraging technological advancements are crucial strategies for success in this dynamic market.

The research report provides both the historic and forecast market data of total retail sales, and the health and beauty market in Saudi Arabia. It illustrates the data with charts, graphs and tables summarizing the value, with category details in health and beauty sector. The forecasts include the impact of COVID-19 on growth. The research report also reveals major retailers share in health and beauty sector with their price and market positioning in 2020. Read More

The home improvement market in Saudi Arabia reached around 280 million euros in 2022, down from 350 million in 2019. Home improvement retailers in the kingdom include Saco, Home Centre and Gulf Depot.

Retail Sales of Department Stores in Saudi Arabia: Market Size, Growth and Forecast to 2021 provides detailed historic and forecast statistics on retail sales from 2011 to 2021 taking place at "Department Stores" for each Sector at Market level. However, delivered wholesale sales are not included.
The Market level analytics are provided for the following product Sectors: Read More

The Saudi Arabia Foodservice Market is segmented by Foodservice Type (Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants), by Outlet (Chained Outlets, Independent Outlets) and by Location (Leisure, Lodging, Retail, Standalone, Travel). Market Value in USD is presented. Key data points observed include the number of outlets for each foodservice channel; and, average order value in USD by foodservice channel.

The Saudi Arabia food retail market, valued at $51.56 billion in 2025, is projected to experience robust growth, driven by a burgeoning population, rising disposable incomes, and a shift towards modern retail formats. The 5.67% CAGR from 2025 to 2033 indicates a significant expansion, exceeding $75 billion by 2033. Key growth drivers include the increasing preference for convenience, the rising popularity of online grocery shopping, and the government's initiatives promoting food security and diversification. The market is segmented by distribution channel (offline and online), packaging type (flexible, semi-rigid, and rigid), and product category (meat and poultry, fruits and vegetables, cereals, dairy, and beverages). The dominance of offline channels is gradually being challenged by the rapid adoption of e-commerce, particularly among younger demographics. Furthermore, the market is witnessing a shift towards healthier and more convenient food options, driving growth in segments like ready-to-eat meals and organic products. Competition is intense, with both international and domestic players vying for market share. Leading companies like Lulu Group International, Carrefour SA, and several prominent Saudi Arabian retailers are employing aggressive competitive strategies including store expansions, private label development, and loyalty programs. The increasing reliance on technology for supply chain optimization and inventory management is also shaping the market landscape. However, challenges such as fluctuating food prices and potential supply chain disruptions remain significant considerations. The Saudi Arabian food retail sector's success depends on adapting to evolving consumer preferences. This includes investing in digital infrastructure to enhance online shopping experiences, expanding into underserved regions, and offering value-added services such as home delivery and personalized shopping experiences. Companies are focusing on enhancing their brand image, promoting sustainable practices, and ensuring food safety and quality to maintain a competitive edge. Successful players are adopting omnichannel strategies, integrating online and offline channels seamlessly to provide a unified and consistent customer journey. The market is poised for further consolidation, with potential mergers and acquisitions driving further growth and efficiency. Government regulations regarding food safety and labeling play a crucial role, and compliance is critical for sustained success in this dynamic and rapidly growing market.

Explore the Saudi Arabia frozen and retail bakery market, valued at USD 405 million in 2024. Learn about key growth drivers, trends, challenges, major players, and future opportunities in this rapidly expanding market.

[Keywords] Market include Saudi Marketing Company (FARM Superstores), Other prominent vendors, Al Othaim, Key players in retail market in Saudi Arabia, Competitive assessment of top five vendors

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The Market level analytics are provided for the following product Sectors: Read More

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Verdict Retail’s, "Retail Sales of Home Furniture and Homewares Retailers in Saudi Arabia: Market Size, Growth and Forecast to 2020" provides detailed historic and forecast statistics on retail sales from 2010 to 2020 taking place at "Home Furniture and Homewares Retailers" for each category at segment level. However, delivered wholesale sales are not included. The segment level analytics are provided for the following product categories: Furniture and floor coverings Home and garden products Verdict Retail categorizes "Home Furniture and Homewares Retailers" as According Verdict Retail “Home Furniture and Homewares Retailers” are those retailers where floor coverings, furniture and/or Homeware are the main footfall drivers and account for the majority of sales. "Retail Sales of Home Furniture and Homewares Retailers in Saudi Arabia: Market Size, Growth and Forecast to 2020" report is the result of Verdict Retail’s extensive market research covering the retail industry in Saudi Arabia. The report acts as an essential tool for companies active across the Saudi Arabia’s retail industry and for new players considering entering the market. The comprehensive statistics within the report provides insight into the operating environment of the market and also ensures right business decision making based on historical trends and industry model based forecasting. This is an on-demand report and will be delivered within 2 working days (excluding weekends) of the purchase. Read More

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