Market Insights Consumer Food Oils & Fats

Butter - Saudi Arabia

Saudi Arabia

Revenue in the Butter market amounts to €113.10m in 2024. The market is expected to grow annually by 2.86% (CAGR 2024-2029).
In global comparison, most revenue is generated in India (€6,324m in 2024).
In relation to total population figures, per person revenues of €3.02 are generated in 2024.
In the Butter market, volume is expected to amount to 13.48m kg by 2029. The Butter market is expected to show a volume growth of 0.9% in 2025.
The average volume per person in the Butter market is expected to amount to 0.34kg in 2024.

Key regions: Canada, Japan, United Kingdom, South Korea, United States

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Analyst Opinion

The Butter market in the Oils & Fats sector within The Food market in Saudi Arabia is witnessing negligible growth. This stagnation is influenced by changing consumer preferences, the rise of healthier alternatives, and economic factors affecting purchasing power.

Customer preferences: Consumers in Saudi Arabia are gravitating towards plant-based and fortified spreads, reflecting a growing awareness of health and wellness. This shift is underpinned by a younger demographic that prioritizes nutrition and sustainability, often influenced by global dietary trends. Additionally, the rise of convenience-driven lifestyles has led to increased demand for ready-to-use cooking products. Cultural factors also play a role, as traditional meals evolve, prompting a reconsideration of fat sources in everyday cooking, thereby impacting butter consumption.

Trends in the market: In Saudi Arabia, the Butter Market within the Oils & Fats sector is experiencing a notable shift toward healthier alternatives, with consumers increasingly favoring plant-based spreads and fortified butter options. This trend is driven by a younger population that values nutrition and sustainability, reflecting broader global dietary influences. The demand for convenience is also rising, as busy lifestyles prompt consumers to seek ready-to-use cooking products. Additionally, cultural shifts are reshaping traditional cooking practices, leading to a reconsideration of fat sources, which could significantly impact butter consumption and create new opportunities for industry stakeholders.

Local special circumstances: In Saudi Arabia, the Butter Market within the Oils & Fats sector is shaped by unique geographical and cultural factors. The country's arid climate influences dairy production, leading to a reliance on imported butter and alternatives. Moreover, cultural traditions emphasize hospitality, requiring diverse cooking fats for traditional dishes. Regulatory frameworks promoting health awareness are pushing manufacturers to innovate with lower-fat and fortified butter options. This combination of local dietary habits and growing health consciousness is driving a shift toward healthier spreads, creating new market dynamics.

Underlying macroeconomic factors: The Butter Market within the Oils & Fats sector in Saudi Arabia is significantly influenced by macroeconomic factors such as global commodity prices, national economic stability, and consumer purchasing power. Fluctuations in international dairy prices can impact import costs, affecting local butter prices and availability. Additionally, the ongoing diversification efforts under Vision 2030 have led to increased investments in the food sector, enhancing local production capabilities. Rising disposable incomes are shifting consumer preferences towards premium and health-conscious butter options. Moreover, government initiatives promoting food security and nutritional awareness are further shaping market dynamics, fostering innovation and sustainability in product offerings.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.