Saudi Arabia is the second largest arabian state and comprises the majority of the arabian peninsula and the population of the country is estimated to be around 34.14 million in 2019.

Saudi Arabia’s Food and Beverage (F&B) market is the largest and most attractive in the Middle East during 2018-19, valued at $45 billion.

Food and Beverage (F&B) market is predicted to grow at a rate of 6% over the next five years. That growth is being driven by several factors, including the Kingdom’s expanding population and the increase in visitors.

The average household reportedly spends 18% of its total expenditure on F&B, meaning the Kingdom’s domestic demand amounts to 60% of total consumption in the GCC.

Around $70 billion was spent on food consumption during 2018 in the Kingdom.

The food retail market in Saudi Arabia to grow at a CAGR of around 5% by 2020.

Saudi Arabia accounts for around 51% of the total food retail sales in the GCC region.

The Kingdom’s halal food market is currently worth $6 billion, but it has the potential to take a substantially bigger share of the $1.3 trillion global halal market.

According to the Saudi Arabia General Investment Authority (SAGIA), the Kingdom is expected to see around $59 billion worth of investment in its food industry by 2021.

2018 also saw a 10% increase in food imports, and that figure is expected to increase to $35 billion by 2020, raising the prospect of significant import-substitution opportunities for Saudi F&B producers to serve the untapped demand for local dairy, meat and fruit products.

Saudi Arabia’s seafood consumption is expected to grow by 7.4% p.a. reaching 500,000 tons in 2030

Saudi Arabia maintains 70% of the packaging industry, which is witnessing an expansion rate that ranges from 5% to 15% annually.

Riyadh and Jeddah continue to rank highly in the Middle East’s top 10 most active cities for hospitality development, sitting third and fourth respectively.

Saudi Arabia is dramatically increasing its hotel offering, including notable interest from international hotel groups.

The hospitality industry’s growth shows no sign of slowing with 64,000 hotel rooms and 187 hotel projects forecast to be added to current supply in 2019.

The newly released ‘Saudi Arabia Hotel Sector Report’ indicates that with a 13% increase in number of hotel rooms during 2017 and an extra 48,000 being constructed.

The recent change in legislation to promote tourism in the country in addition to investments in leisure and entertainment, has enhanced opportunities for more diverse stock in the medium and long-term.

The hospitality sector in Riyadh is broadening due to the country’s fledgling entertainment sector, according to CBRE.

Travel bookings in the Kingdom are considered the largest in the Middle East and North Africa (MENA) - worth more than $25 billion each year - so while other sectors’ growth might be decreasing.

Saudi Arabia is currently in the midst of expanding its leisure tourism sector and expects 30 million visitors annually by 2030.

According to the most recent annual statistics, travel and tourism accounts for 9.4% of KSA’s total GDP, with traveler expenditure growing by 10.5% annually ($14.8bn).

Total international overnight visitor arrivals in Saudi Arabia topped 16.1m in 2017, alongside a 10.5% year-on-year increase in expenditure to $14.8bn.

The encouraging growth is forecast to continue, with international arrivals due to increase on average by 4% per annum to 2025 to reach 22.1m according to WTTC.

Business travelers will be a key driver for revenues, with the WTTC’s 2018 report underlining that 52.8% of tourist spend in Riyadh is accounted for by corporate visitors.