Market Overview:

The demand for seafood in Saudi Arabia has been steadily increasing due to factors such as a rising population, urbanization, and a shift towards healthier diets. Seafood is a popular choice among consumers for its nutritional benefits and culinary versatility. The average per capita fish consumption in Saudi Arabia has been increasing over the years. According to a report by the Food and Agriculture Organization (FAO) of the United Nations in 2020, it reached 11.6 kilograms per capita annually, indicating a strong local demand for seafood and expected to witness a steady rise in the upcoming years.

The Saudi Arabian government has implemented regulatory measures to ensure the safety and quality of imported seafood. These measures include adherence to international food safety standards and inspections at various points in the supply chain. Seafood is widely available in both retail outlets, such as supermarkets and hypermarkets, and foodservice establishments, including restaurants and hotels. The hospitality industry plays a significant role in driving seafood consumption, particularly in coastal regions and tourist destinations.

KSA Seafood Market Analysis

KSA has an extensive coastline stretching about 2,640 kilometers along the Red Sea and Arabian Gulf. This geographical advantage provides opportunities for both marine and inland aquaculture.

Despite having access to rich fishing grounds along its Red Sea and Arabian Gulf coastlines, the Kingdom relies heavily on imports to meet its seafood demand. In 2019, Saudi Arabia imported about 171,000 tonnes of fish and seafood, signifying a crucial role of import in the country's seafood market dynamics.

Aquaculture is an important segment of Saudi Arabia's seafood industry. The government aims to produce 530,000 tonnes of fish from aquaculture by 2030 under its Vision 2030 program. In 2019, the aquaculture production was approximately 100,000 tonnes, highlighting the ambitious nature of this goal.

The Saudi government, under its Vision 2030 initiative, has prioritized the development of the aquaculture sector. Several incentives are being provided, such as low-cost loans and lease agreements for fish farming areas.

Key Trends by Market Segment:

By Type of Fish: In the seafood market of Saudi Arabia, fish stands out as the most popular and widely consumed type of seafood. In 2022, the sales value of fish witnessed a notable increase of ~5.7%.

This growth can be attributed to the rising domestic demand for fish, driven by a growing population that is increasingly conscious of adopting healthier lifestyles and diets.

As a result, fish maintains the highest per capita consumption in the country, with each person consuming an average of ~8 kg of fish in 2022, surpassing the consumption of shrimp and other types of seafood. Therefore, fish remains the primary and favored choice of seafood across Saudi Arabia.

By Form: the 'Frozen' segment is the dominant one in the Saudi seafood and fish feed market. Frozen seafood is often processed and frozen right after being caught to maintain its freshness and nutritional value. The long shelf life offered by frozen products makes them a reliable choice, particularly in regions like KSA where the local seafood production might not meet the demand.

Saudi Arabia relies heavily on imports for its seafood demand. In 2022, Saudi Arabia was one of the largest importers of seafood in the Middle East due to its growing population and increasing seafood consumption. Frozen seafood travels better over long distances, maintaining its quality upon arrival. Furthermore, Frozen seafood offers convenience as it can be stored for long periods and used as needed, which fits well with the fast-paced lifestyles of today's consumers.

By Geography: In 2022, Jeddah, region was the dominant region for the KSA Fish Feed Market. Being the second-largest city in Saudi Arabia and one of the most important ports on the Red Sea, is dominant city for the fish feed market in 2022. It has a thriving fish market, and its port serves as a crucial conduit for fish feed and other seafood products importation.

Jazan, although smaller, has significant potential due to its coastal location and the government's focus on aquaculture development. It's home to the Jazan Fisheries and Aquaculture project, aimed at boosting seafood production, which also stimulate the fish feed market.

Dammam, as part of the larger Eastern Province, has been a focus of government initiatives to develop fish farming due to its extensive coastline and proximity to rich fishing grounds in the Arabian Gulf. This emphasis could translate into a higher demand for fish feed.

However, other cities could also show strong growth in the fish feed market. For instance, cities in the Makkah province, like Mecca and Taif, due to high population densities, can drive internal demand.

Competitive Landscape:

The competitive landscape of the seafood and fish feed market in Saudi Arabia is highly dynamic and competitive with several key players actively participating in it. The major players include names such as the National Aquaculture Group (NAQUA), Arabian Aquaculture Society, and Tabuk Fisheries Company. NAQUA, one of the largest marine fish farms globally, specializes in the farming and production of a wide variety of seafood and aquaculture feed. The company has formed strategic partnerships with international seafood firms and feed producers to maintain its market position.

Tabuk Fisheries Company is another notable player that emphasizes the production of quality fish feed and the farming of multiple species. Their expansive portfolio helps them cater to different customer demands and maintain a competitive edge. Additionally, the Arabian Aquaculture Society focuses on improving aquaculture techniques and providing high-quality fish feed, aiming to contribute to the sustainability of Saudi Arabia's seafood industry. These companies, through their diverse offerings and strategic initiatives, continue to shape the industry's competitive landscape.

Recent Developments:

In February 2020, the Tabuk Fisheries and NEOM announced that they are working on an agreement to build a new fish farm with a capacity of 70 million fingerlings in the Kingdom of Saudi Arabia.

Asmak and Fish Farm, an aquaculture business established in the United Arab Emirates, signed a strategic distribution deal in February 2022. Through its processing plant and effective distribution channels, such as wholesale, foodservice, and retail, Asmak will sell fish farm goods to reach a bigger audience locally and regionally.

Tabuk Fisheries Co. made plans to build a fish farm in Saudi Arabia's Neom area public in April 2021. The hatchery will function with a 70 million fingerling capacity and concentrate on enhancing the production of regional fish species in the Red Sea to help the Kingdom reach its target of generating 600,000 tons of fish products by 2030.

Future Outlook:

KSA Seafood Industry is expected to grow at a CAGR of ~$% from 2022 to 2027 with rising demand for seafood due to population growth, economic prosperity, and government initiatives promoting self-sufficiency in seafood production.

The growing trend of being more health conscious has led people to recognize the health benefits associated with consuming seafood, such, as its high protein content and Omega 3 fatty acids. This increased awareness has resulted in a rise in demand for seafood in Saudi Arabia as indicated by the Ministry of Health reports on the adoption of eating habits.

The governments Vision 2030 initiative aims to boost the aquaculture sector by investing an amount of $1.6 billion. This financial support is expected to drive growth in the seafood and fish feed market by facilitating the establishment of farms and advancements in technology within the sector.

According to data from the General Authority for Statistics in Saudi Arabia there has been a 2.4% increase in the expatriate population during 2022. This demographic shift contributes to an increased demand for a range of seafood products.

The global demand for seafood is on the rise, which presents lucrative opportunities for exporting and subsequently boosting the industry growth. In 2022 Saudi Arabia witnessed an increase of 7% in seafood exports further driving expansion within both the seafood market and fish feed industry.

The aquaculture sector has the potential to experience growth in the seafood market thanks, to the efforts of major players such, as Tabuk Fisheries Company and NAQUA who are actively expanding their operations in this field.