Skip to content Skip to Search
Skip navigation

Saudi shoppers heavily favour local produce

Nine in 10 Saudi food shoppers look for produce that was sourced locally Usplash+/Getty
Nine in 10 Saudi food shoppers look for produce that was sourced locally, according to a survey
  • Shoppers open to new technology
  • Local produce very important
  • Discounting opportunities for retailers

Saudi shoppers heavily favour local produce over imported foodstuffs and have a high interest in the use of artificial intelligence in food shopping, a new survey has found.

It also described the Saudi supermarket sector as a huge opportunity for discount retailers. 

The Customer Perception Map by global consultancy Oliver Wyman, which included Saudi Arabia for the first time, said the Saudi market was ripe for developing along the lines of the United Arab Emirates, where consolidation and specialisation is taking place. 



UAE supermarket operator Spinneys opened its first supermarket in Saudi Arabia this year and is planning a further 12 stores in the country by 2028. 

“Saudi Arabia’s retailers may also have an advantage over their Western counterparts in that Saudi consumers appear to be more willing to engage with new technology,” the report finds. 

“Saudi customers are three times more interested in using customer service and shopping assistant chatbots than their US counterparts.” 

The survey found that 90 percent of customers actively seek out fruit and vegetables produced locally, while 51 percent said price is their prime concern. This means retailers could “take larger control of their supply chains and offer unique high-quality fresh products,” it said. 

The report said these preferences could open a window for major European discount retailers such as Aldi and Lidl to expand into the Saudi market. 

“Of the respondents familiar with European discounters, 93 percent indicated that they would shop at these stores if they came to Saudi Arabia,” the report said, adding it was only a question of time before the low-cost discounters gained traction in the region. 

“While several homegrown brands are already pushing to stand out in this sector, the opportunity exists for greater competition.” 

Saudi Arabia’s fast food market, meanwhile, is growing rapidly. Sales are expected to rise from more than $9 billion this year to $15 billion in 2029, with the number of outlets going from 24,000 to 34,000. 

Global geopolitics are increasingly playing a role in consumer choice. Public relations company Edelman’s latest Trust Barometer report found that nearly eight out of 10 consumers in Saudi Arabia said they now more often buy home brands instead of foreign brands. 

Joe Abi Akl, head of Oliver Wyman’s retail and consumer practice for India, the Middle East and Africa nonetheless said Saudi Arabia was a huge market opportunity: “By developing and deploying the right strategy… retailers can find niche areas of the market for expansion.” 

Latest articles

Nature, Outdoors, Countryside

PIF’s Salic seeks to buyout Olam’s agriculture unit

Singapore-based Olam Group has confirmed that Saudi Agricultural and Livestock Investment (Salic) has offered to acquire its remaining stake in Olam Agri Holdings. The Public Investment Fund (PIF) subsidiary acquired a 35 percent stake in Olam Agri for $1.24 billion in December 2022, valuing the company at $3.5 billion. Olam Group retains 64.6 percent of its […]

Adult, Female, Person

Tecom profit up amid rise in commercial space demand

Dubai-listed Tecom Group reported a 20 percent year-on-year increase in net profit to AED340 million ($92.6 million) in the third quarter of 2024, driven by steady demand for premium commercial and industrial properties. Revenue for the quarter rose 12 percent annually to AED611 million, supported by Dubai’s strong economic fundamentals and growing demand for commercial […]

A sheep farm in Pukekohe, North Island, New Zealand. The country exported meat worth $155m to the GCC in 2023

New Zealand agrees free-trade deal with GCC

The GCC has agreed a new free-trade deal with New Zealand. The agreement will give duty-free access to 99 percent of New Zealand exports over 10 years, according to New Zealand trade minister Todd McClay.  McClay said the agreement was the culmination of an 18-year-long ambition to agree a trade deal in the Middle East. […]

A Saudi man walks at the Tadawul Saudi Stock Exchange, in Riyadh, Saudi Arabia

Kuwaiti companies looking at Saudi exchange listings

Kuwaiti companies are eyeing up opportunities to list on Saudi Arabia’s Tadawul exchange, according to reports. It comes almost two years since deals were signed between market regulators in both Gulf states to explore collaboration around cross-listings on the Tadawul and Kuwait’s bourse. Firas Al-Salem, chairman of the Kuwaiti Business Council, said that listings could […]