Saudi Arabia Olive Oil Market- Trend Analysis & Forecast

Market/ Product Overview

Saudi Arabia’s olive oil market, traditionally dominated by imports, is entering a new phase of expansion backed by both rising domestic consumption and evolving government strategies aimed at local agricultural development. In 2024, the Saudi olive oil market is estimated to be valued at US$ ** million, marking a steady increase from US$ ** million in 2019. Consumption has been growing at an annual rate of over 6% as olive oil becomes increasingly favored for its health benefits and its alignment with the Kingdom’s nutritional goals under Vision 2030.

Per capita consumption of olive oil in Saudi Arabia is relatively low compared to Mediterranean countries, currently estimated at around 0.7 liters per year, but this figure has grown by nearly **% over the past five years. The retail segment leads demand, with premium extra virgin olive oil gaining preference among urban households. Bulk consumption in foodservice and manufacturing also shows upward movement, especially in hospitality and health-conscious food product development.

As demand increases, local production initiatives—primarily in Al-Jouf, Tabuk, and Al-Qassim—are gaining momentum. Despite limited production scale, Saudi Arabia produced over 4,000 metric tons of olive oil in 2023, nearly double the 2018 figure, signaling a drive toward import substitution and rural development. However, with over 85% of demand met through imports, international trade remains central to market structure and pricing.

Significance of Saudi Arabia in Global Olive Oil Supply Chain

While not a major global olive oil producer, Saudi Arabia is emerging as a high-potential demand market within the global olive oil value chain. The country imported over ** thousand tonnes of olive oil in 2023, accounting for nearly **% of global trade, with primary sourcing from Spain, Tunisia, and Italy. This demand trajectory makes the Kingdom one of the fastest-growing non-EU markets in the sector.

The Saudi market also holds strategic value for exporters due to its premium consumption profile. Nearly **% of imported olive oil is extra virgin grade, with Spanish and Italian varieties holding dominant brand positioning. Moreover, Saudi Arabia’s liberal trade policies, relatively low tariffs, and strategic location for GCC re-exports enhance its role in regional trade dynamics.

With Vision 2030 emphasizing food security, sustainability, and self-reliance, olive oil cultivation is gaining policy attention. The Ministry of Environment, Water and Agriculture (MEWA) has set targets to expand olive plantations by over 30% by 2027, leveraging water-efficient drip irrigation and renewable energy technologies. Though small in global output, Saudi Arabia's increasing engagement in olive oil production contributes to broader agricultural diversification in the Middle East.

Saudi Arabia Olive Oil Supply & Demand Trend

Saudi Arabia’s olive oil demand continues to outpace local supply, resulting in a persistent supply gap largely bridged through imports. In 2023, domestic consumption reached ** thousand tonnes, up from ** thousand tonnes in 2018, supported by a compound annual growth rate (CAGR) of **%. On the supply side, local production contributed just 13–**% of total demand, amounting to ** thousand tonnes, signaling room for substantial local development.

The Kingdom currently cultivates over ** million olive trees, primarily in Al-Jouf and Tabuk, which are supported by favorable soil and climate conditions. Despite the potential, constraints such as water limitations, mechanization costs, and low yields per hectare (averaging 2.8 tons/ha) hinder expansion. To address this, MEWA has launched technical training and financial incentives for farmers, including up to **% subsidies on irrigation systems and seedlings under its Sustainable Agricultural Rural Development Program (Reef).

On the demand side, rising health consciousness, increasing expatriate population, and the influence of Mediterranean cuisine have amplified olive oil usage across Saudi households and restaurants. Moreover, the halal-certified olive oil market segment has grown by **% YoY, contributing to premiumization trends. Given the rising middle-class income and culinary exposure, consumption is projected to exceed ** thousand tonnes by 2032.

Saudi Arabia Olive Oil Market Growth Factors

Saudi Arabia Olive Oil Market Segmentation

The Saudi olive oil market can be segmented by type, application, end-user, and distribution channel.

By product type, extra virgin olive oil dominates with a **% market share as of 2024. This segment has gained prominence due to its flavor profile and health benefits. Virgin and refined olive oils collectively hold around **%, primarily consumed by foodservice operators and large-scale food manufacturers. The remaining **% comprises specialty oils, including organic, cold-pressed, and infused variants, which are growing at over **% CAGR.

By application, culinary usage is the largest segment, accounting for **% of total volume in 2024. Olive oil is increasingly used in home cooking, salad dressings, and dips, as well as in restaurants and QSR chains. Cosmetic and pharmaceutical applications are niche but rising steadily, especially in organic skincare products.

By end-user, households represent **% of consumption, supported by a rising urban middle class and a health-conscious demographic. The institutional segment (hotels, restaurants, catering) follows with **%, while food processors and cosmetic manufacturers comprise the rest.

By distribution, modern trade channels such as hypermarkets and supermarkets (e.g., Carrefour, Lulu, Danube) dominate sales with **% share. E-commerce platforms like Amazon.sa, Noon, and Carrefour Online are rapidly gaining traction, with online olive oil sales rising **% annually. Traditional outlets, including local grocers, contribute **% to overall volume but are declining in relevance.

Saudi Arabia Olive Oil Trade (Export & Import) Trend

Saudi Arabia remains a net importer of olive oil, with imports accounting for over **% of domestic consumption. In 2024, olive oil imports stood at ** thousand tons, valued at US$ ** million, reflecting a **% YoY increase. Spain is the leading exporter to Saudi Arabia, supplying **% of total imports, followed by Tunisia (**%) and Italy (**%).

Tariffs on olive oil imports are relatively low, generally capped at **%, which facilitates access to premium international brands. However, non-tariff measures, including product labeling, halal certification, and shelf-life regulations, are strictly enforced under SFDA guidelines.

Saudi Arabia does not currently export significant volumes of olive oil, with local production primarily consumed domestically. However, small quantities of premium and organic variants are exported to GCC countries, including the UAE, Bahrain, and Qatar. In 2023, total exports were under 500 metric tons, valued at less than US$ ** million.

Trade partnerships are expanding through bilateral agreements. For instance, under the Saudi-Spanish Agri-MoU signed in 2022, collaboration in agri-processing and olive farming research has been initiated. Similarly, increased cooperation with Tunisia focuses on agronomic training and quality certification.

Influence of Saudi Arabia in Global Olive Oil Price

Saudi Arabia does not hold significant influence over global olive oil prices due to its limited export capacity and production scale. However, as a major importer of premium-grade oils, the Kingdom plays a role in shaping regional demand trends and price elasticity.

Global olive oil prices experienced volatility in 2024, with Spanish extra virgin olive oil reaching US$ **/kg on average, up from US$ **/kg in 2021. In Saudi Arabia, the import price averaged US$ **/liter in 2023, with retail prices ranging between US$ **–**/liter, depending on brand and grade. Wholesale price shifts in the EU often translate into **–** week delayed pricing changes in the Saudi market.

The growing preference for organic and cold-pressed oils has created a price premium of **–**% compared to refined variants. As local production improves in quality, it may help moderate price dependencies and provide domestic buffer capacity, though full-scale decoupling from global prices remains unlikely.

Market Competitive Landscape

Future Outlook

The Saudi Arabia olive oil market is expected to continue its upward trajectory, reaching a projected size of US$ ** million by 2032, with a CAGR of 5.8% from 2025 to 2032. This growth will be driven by rising per capita consumption, expansion of local production, and stronger retail distribution networks. The number of olive trees is anticipated to increase by **% by 2032, while production may surpass ** thousand tonnes annually by 2032.

Government initiatives for water-efficient farming, quality certification, and SME participation will further catalyze the sector’s maturity. Imports will continue to play a key role, though their share may drop to **% by 2032 as local players scale up. Opportunities for partnerships, agri-tech investment, and premium branding remain attractive for stakeholders.

In sum, Saudi Arabia’s olive oil market holds robust potential for long-term growth and strategic investment, underpinned by a dynamic policy environment, evolving consumer preferences, and a favorable trade landscape.