Saudi Arabia’s food and beverage sector books 6.3% growth in H1 2022
Saudi Arabia’s food and beverage sector increased 6.3 percent in the first half of 2022, according to the Kingdom’s Small and Medium Enterprises Authority, also known as Monsha’at.
Small and medium enterprises have made the sector even more attractive for investors, as $187 million were invested in the Kingdom’s F&B startups in the first half of 2022, according to research firm MAGNiTT’s Saudi Arabia Venture Capital report.
Foodics, one of Saudi Arabia’s leading startups in the F&B space, spearheaded the investment growth in the second quarter of 2022, raising $170 million in April from Saudi, Dutch and Indian investors.
The food app and delivery markets are also seeing huge growth as they were valued at $511 million in 2021 and are expected to grow by 10 percent annually through 2026.
The Kingdom has been betting big on diversifying its economy. With the rise of an entrepreneurial generation, the government aims to attract 100 million visitors annually through the F&B sector by 2030.
Bandr bin Abdullah Alobied, deputy governor for strategy at Monsha’at, said in a statement that despite being one of the most competitive industries, F&B is booming in the Kingdom because of good disposable income, a diverse palate and new cultural outlets.
The Jazan province alone has over 330km of coastline, 1,985 coffee farms and 340,000 coffee trees. It grows 2,040 tons of green coffee beans per year.
Recognized as one of the Kingdom’s national treasures, the Khawlani coffee bean has seen a 70 percent increase in production over recent years.
A Public Investment Fund company, the Saudi Coffee Co., is also joining in to boost growth as it plans to invest $319 million in sustainable coffee production over the next 10 years.Source: Arab News