Saudi Arabia Spices Market Assessment, By Type [Cardamom, Coriander, Cumin, Pepper, Cinnamon, Turmeric, Others], By Form [Ground, Whole, Others], By Nature [Conventional, Organic], By Industry Type [Food and Beverage, Healthcare and Pharmaceuticals, Cosmetics and Personal Care], By Brand [Branded, Private Label], By Distribution Channel [Offline, Online], By Region, Opportunities and Forecast, 2018-2032F

Saudi Arabia spices market is projected to witness a CAGR of 5.88% during the forecast period 2024-2032, growing from USD 367.53 million in 2024 to USD 571.69 million in 2032. The market is on the rise, owing to a number of factors, including the rising expectations for varied tastes, cultural factors, and the benefits of spices. Being one of the major markets in the Middle East, most of the spices consumed in Saudi Arabia are imported, especially from India and Pakistan, and many other countries. The market involves a range of spices such as cumin, cardamom, pepper, saffron, coriander, and local mixes like baharat and za’atar, which are essential in Saudi cuisine. Capitalizing on consumer preferences for local tastes, in July 2024, Puck, owned by Arla Foods amba, launched its latest flavor jar, Zaatar Cream Cheese in KSA. Puck Zaatar Cream Cheese, available in a 450g jar, is an example of the coexistence of tradition and creativity. Along with the smoothness of cheese, the spice zaatar is added to flavor the product.

Moreover, increasing consumer awareness about the health aspects of spices, like anti-inflammation and digestion, is fueling demand for spices. A rising inclination towards organic and natural food items is further changing consumer behavior patterns, which has led to an increase in the consumption of spices sourced organically. In July 2024, a Baha farmer managed to grow cardamom. Through his agricultural trials, he cultivated over 350 cardamom plants. He made use of the region's natural resources, such as fertile soil, fresh water, and temperate climate, to plant cardamoms. He spaced his healthy cardamom seeds three centimeters deep in the ground and twenty to thirty centimeters apart from each other.

The evolution of the market is determined by its convenience and accessibility, as it includes offline shops and online stores selling a wide range of spice products. Major companies are concentrating on quality control, novel packing, and product diversification to attract consumers. Because of growing disposable incomes and an increasing passion for gourmet meals, the market is anticipated to experience steady growth. Over the next few years, a rising inclination towards more authenticity, superior quality, and responsible consumption is expected to alter the competitive environments, thereby making Saudi Arabia a profitable market for local and foreign spice companies. 

Rising Imports of Spices Catalyze Market Expansion

The increasing levels of imports are pivotal in the growth of the spices market in Saudi Arabia because the country depends on imports to satisfy its demand for various types of spices. Saudi Arabia is known to import large quantities of spices from countries such as India, Pakistan, and the United Arab Emirates, which are spices-dominating countries. In 2022, with USD 111 million in spice imports, Saudi Arabia rose to the seventh rank in the world. Spices were Saudi Arabia's 272nd most-imported goods that year. Pakistan (USD 29.5 million), India (USD 19.6 million), United Arab Emirates (USD 17.2 million), China (USD 15.5 million), and the United States (USD 13.1 million) are the countries from which Saudi Arabia imports the majority of its spices.

With the enhanced craving for exotic and quality spices, the imports have heightened in order to provide all kinds of spices, from everyday spices like cumin and cardamom to niche products such as saffron and blended spices. Furthermore, the increasing trend and demand for organic and natural spices has resulted in more imports of premium quality products. This import dependence is crucial in ensuring a constant supply of spices and fulfilling the varying needs of Saudi customers and its food service sector.

Government Initiatives Influence the Market Growth

The growing spices market in Saudi Arabia is attributable to the initiatives introduced by the government. Enhanced investments in the food and agricultural sectors have also been prioritized under the Kingdom’s Vision 2030. The administration at all levels is promoting regional food agriculture which in turn encourages the usage of spices in food preservation and processing.

With the aim of enhancing food availability and reducing dependence on foreign food, the challenge of developing the domestic food processing sub-sector has resulted in an increase in the use of spices. Moreover, the Saudi administration is even advocating for the agrarian advancement, promoting growing spices locally to cut down on foreign supplies and bolster food security.

For instance, in October 2024, The Kingdom announced its intention to become a world leader in saffron production, which is also known as "red gold" because of its high price and reputation as one of the most valuable spices in the world. A general strategy for planting saffron in the Kingdom was declared by the National Centre for Research and Development of Sustainable Agriculture. It focused on four main regions: Tabuk, Al Baha, Qassim, and Riyadh. The research will consider several factors that may impact the production of saffron, including the best times to plant, the right fertilizers, and the right plant density.

Food and Beverage Industry Dominates the Market

Saudi Arabia spices market is flourishing due to the region’s food and beverage industry. This sector, which is essentially the backbone of spice consumption, enjoys the use of spices in many ethnic cuisines, cooking processes, and ingredients of ready meals as well as in non-alcoholic and alcoholic beverages. The thriving restaurant and hospitality sectors, which are driven by escalating tourism rates and people's quest for food from different parts of the world, have increased the demand for spices in the Kingdom even higher.

Spices play a crucial role in Saudi cuisine and are particularly used in preparing rice and meat dishes such as Kabsa and Mandi. Furthermore, health-oriented consumers are showing great interest in conventional spiced beverages like Arabic coffee flavored with cardamom and saffron and herbal teas with spices like cinnamon and ginger, which is further increasing the demand for spices in the beverage sector. Recently, in October 2024, Urth Caffe in Riyadh launched its latest offering, Urth Caffe pumpkin chai latte, which is the first of its kind in Saudi Arabia. The chai latte makes use of the innovative divine spice tea, along with pumpkin puree, ice cream, milk, and sugar syrup.

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Future Market Scenario (2025-2032F)

• The rising health consciousness among consumers leading to the growing preference for organic foods is anticipated to drive the growth in demand for organic pesticide-free and high-grade premium spices.
• The growth of online retailing will enhance the scope of spices for consumers, thereby paving the way for market expansion through e-commerce. This, in turn, will cater to ample opportunities for market growth over the upcoming years.
• Due to increasing advancements in machinery used for spice processing, packaging, and preservation, quality, shelf stability, and convenience of the products are expected to improve, targeting the modern market, thereby creating an immense opportunity for exponential growth in the future.

Report Scope

“Saudi Arabia Spices Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Saudi Arabia spices market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2024 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2024
Historical Period	2018-2023
Forecast Period	2025-2032
Projected Growth Rate	CAGR of 5.88% between 2025 and 2032
Revenue Forecast in 2032	USD 571.69 million
Segments Covered	Type, Form, Nature, Industry Type, Brand, Distribution Channel
Regions Covered	Makkah, Riyadh, Eastern Province, Madinah and Rest of Saudi Arabia
Key Companies Profile	Gul Mohammed Spice Factory (Mehran Spice & Food Industries), Shan Foods Private Limited, Savola Group (Afia), Basamh Trading Company, Eastern Condiments Middle East And North Africa (Eastern Condiments Pvt Ltd), Esnad Company Limited, LuLu Hypermarket LLC, FoodNation Co., Abdul Aziz Hamad Al Fares And Sons Company (Ai Fares Food Packaging Factory), Carrefour (Majid Al Futtaim Hypermarkets Llc), Everest Food Products Pvt. Ltd.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, Saudi Arabia spices market has been segmented into the following categories: 

• By Type
  • Cardamom
  • Coriander
  • Cumin
  • Pepper
  • Cinnamon
  • Turmeric
  • Others
• By Form
  • Ground
  • Whole
  • Others
• By Nature
  • Conventional
  • Organic
• By Industry Type
  • Food and Beverage
  • Healthcare and Pharmaceuticals
  • Cosmetics and Personal Care
• By Brand
  • Branded
  • Private Label
• By Distribution Channel
  • Offline
  • Online
• By Region
  • Makkah
  • Riyadh
  • Eastern Province
  • Madinah
  • Rest of Saudi Arabia

Key Players Landscape and Outlook

The competitive landscape of Saudi Arabia spices market is characterized by a mix of international and local players, all attempting to gain market share through product quality, variety, and innovation. Companies in the market focus on providing a wide range of spices, from basic staples such as cumin and black pepper to premium products such as saffron and cardamom. The market is becoming increasingly dynamic, with a growing preference for organic and ethically sourced spices, driving companies to innovate and meet consumer demands.

Key players are enhancing their presence across multiple channels, including supermarkets, hypermarkets, specialty stores, and online platforms. The rapid growth of e-commerce is a significant trend, providing consumers with greater convenience and access to a wider selection of products.

The market players are expected to continue to focus on premiumization, sustainability, and health trends, incorporating consumer preferences for high-quality and functional spices. Additionally, companies are likely to expand their product portfolios to include more blends and ready-to-use seasoning products aimed at busy lifestyles and increasing interest in gourmet cooking among Saudi consumers.

In October 2024, Lulu Hypermarket rolled out various Indian-made goods, including spices, throughout the supermarkets across Saudi Arabia to coincide with the Diwali festival. This program was under the trade cooperation between Saudi Arabia and India, emphasizing the country’s dedication in establishing a strong market presence for the customers in the Kingdom.

In October 2024, Basamh Trading Company finished renovating the Dammam cold store for frozen and chilled products trade, including spice goods. The revamp involves reconstructing six rooms by replacing units, doing necessary maintenance, and running and full maintenance of four rooms. The event has provided a forum for cooperation, thought-provoking conversations, and an agreement on the company's 2030 goals, as addressed in a lively panel discussion.

Key Players Operating in Saudi Arabia Spices Market are:

• Gul Mohammed Spice Factory (Mehran Spice & Food Industries)
• Shan Foods Private Limited
• Savola Group (Afia)
• Basamh Trading Company
• Eastern Condiments Middle East And North Africa (Eastern Condiments Pvt Ltd)
• Esnad Company Limited
• LuLu Hypermarket LLC,
• FoodNation Co.
• Abdul Aziz Hamad Al Fares And Sons Company (Ai Fares Food Packaging Factory)
• Carrefour (Majid Al Futtaim Hypermarkets Llc)
• Everest Food Products Pvt. Ltd.

Markets and Data’s reports answer the following questions:

• What is the current and future market size of the product/service in question Saudi Arabia or specific to different countries?
• How are the markets divided into different product/service segments and the market size and growth of each segment?
• What is the market potential of different product segments and their investment case?
• How are the markets predicted to develop in the future and what factors will drive or inhibit growth?
• What is the business environment and regulatory landscape specific to the product/service?

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