Saudi Arabia Fruits and Vegetables Market

The Saudi Arabia fruits and vegetables market is projected to grow at a CAGR of 5.2% during the forecast period (2021-2026).
NAVI MUMBAI, India - Aug. 2, 2021 - PRLog -- As an impact of COVID-19, the economy of Saudi Arabia shrank by 7.0% in the second quater of 2020. Although the retail sale of fruits and vegetables got increased due to consumer preference towards consuming healthy diet to boost immunity for fighting against the deadly pandemic, the supply chain and production got disrupted in terms of export and import trade movements. The wholesale market of fruits and vegetables also got disrupted due to lesser demand from the bulk purchasers belong to hotel, restaurants, and tourism industries.

Key Market Trends

Aiming for Self-Sufficiency in Vegetable Production

Adverse climatic conditions such as high temperatures and prolonged dry spells have meant that Saudi Arabia is highly dependent on the imports of fresh produce such as vegetables. In aiming for self-sufficiency in vegetable production, the Saudi government has been promoting technologies such as drip irrigation and protected cultivation. According to FAOSTAT, the fruit production in Saudi Arabia was 2,223,631.0 metric ton in 2016, which has increased by 43.7% and reached 3,195,046.0 metric ton in 2019. These initiatives are expected to reduce Saudi dependence on imports and thus boost domestic production in the country.

Dates Dominate Fruit and Vegetable Trade

Dates are one of the most traded commodities in Saudi Arabia and the country produces one-sixth of the dates grown all over the world. Although the country is a major exporter of dates, imports are also significant and necessary to meet the domestic demand. Yemen, United Arab Emirates, Kuwait, and Turkey are the major export trade partners of Saudi dates. The region of Madina Tayyiba grows Ajwa dates, which are known for their luscious and fruity taste and fine texture. The demand for dates has been considered to be inelastic to a degree because of the fruit's prominent role in Ramadan fasting tradition and Islamic culture as a whole. Saudi traders stand to benefit from a growing international demand for dates and the exports of dates are projected to grow during the forecast period.

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