Saudi Arabia is the best export opportunity for US processed meat

Processed MEAT Leads Growth: Processed meat is the leading category in Saudi Arabia’s food retail sector, followed by baby food and natural/organic foods. Other promising categories include ready meals (No. 7) and savory snacks (No. 8), which offer additional channels for U.S. meat exports .

Expanding Food Retail Market: Saudi Arabia’s food retail sector was valued at over US$51 billion in 2023, with annual growth projected to exceed 5%. Urbanization, population growth, and expansion of physical retail outlets are driving this surge.

U.S. competitive advantage: Saudi consumers trust U.S. agricultural products, which provides a competitive advantage. The favorable peg of the Saudi riyal to the U.S. DOLLAR increases the cost advantage for U.S. exporters.

Problems and competition

Fierce global competition: The US competes with Brazil, Egypt, the EU , India and other countries for market share in Saudi Arabia. Brazil dominates poultry imports with a 70% share, while the US accounts for less than 1%.

Beef Imports : The kingdom imports US$370 million worth of beef annually , with US production accounting for 3.2%, ranking fourth. Brazilian beef and Indian beef from Carabeuf capture the lower-priced segment, while US beef, known for its superior quality, targets higher-income consumers.

Logistics hurdles: Higher shipping costs and smaller order sizes from Saudi importers pose a challenge to U.S. companies accustomed to bulk shipments.

Opportunities for growth

Despite the challenges, Saudi Arabia's preference for American agricultural products has allowed American meat exporters to capture a larger share of this growing market. As the retail sector expands and consumer demand for convenience and quality increases, processed meats are emerging as a leading growth product.

Through strategic planning and targeted marketing, the U.S. meat industry can capitalize on Saudi Arabia's growing demand for high-quality products and strengthen its position in the region.