Saudi Arabia: Retail Foods

  |   Attaché Report (GAIN)   |   SA2021-0007

U.S. exports of consumer-oriented food products to Saudi Arabia decreased approximately five percent in 2020 to $560 million compared to 2019 due mainly to disruptions of air cargo shipments to Saudi Arabia for several weeks following the outbreak of COVID-19. Total retail sales of packaged food in 2020 were estimated at approximately $21 billion. Even though COVID-19 was blamed for a seven percent decrease in total U.S. agricultural exports in 2020 to $1.23 billion, U.S. Customs data for January - March 2021 indicates a 23 percent increase in U.S. agricultural exports over the same period from last year. Post anticipates a significant increase in U.S. high-value food products to Saudi Arabia in 2021 due to expansion of the retail sector as well as a return to normal operations within the food service sector. U.S. food is generally viewed as a higher-quality product, and it is well-positioned to gain market share in traditional retail outlets as well as several new home delivery food buying apps.

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