The Saudi Arabian food retail market is expected to grow by USD 16.37 billion at a compound annual growth rate (CAGR) of 5.67% between 2024 and 2028. A separate report suggests that the overall retail market in Saudi Arabia could expand at a CAGR of 4.40% during 2024-2032. Grocery retail accounts for around 55% of the total market, and by 2025, the online grocery sector is forecast to represent 10% of all grocery sales, with the overall market size reaching USD 31.4 billion. The rise of modern retail formats, such as supermarkets and hypermarkets, is driving this growth.
Table: Leading Supermarket Chains in Saudi Arabia (2024)
| Supermarket Chain | Turnover (USD) | Number of Stores | Key Highlights |
|---|---|---|---|
| Abdullah Al-Othaim Markets Company | 900 million | 376 (aiming for 600 by 2026) | Operates across 100+ cities, strong focus on e-commerce, logistics, sustainability, and customer loyalty programs. |
| Panda Retail Company (Savola Group) | 2.8 billion | 200+ | One of the largest food retail chains, investing in modern retail formats and expanding digital presence. |
| Danube (BinDawood Holding) | 1.6 billion | 50+ | High-end supermarket chain known for premium offerings, focusing on expanding online grocery shopping. |
| Carrefour (Majid Al Futtaim) | 3 billion | 19 | Strong international presence, investing in AI-powered retail solutions and digital transformation. |
The Rise of Digital Payments and Logistics
The young, growing population and increasing disposable income in Saudi Arabia have fueled demand for supermarkets, which are adapting with advanced digital payments and logistics solutions. Government support for local food production and modernisation, in line with Saudi Vision 2030, has further propelled the expansion of supermarket chains across the Kingdom.
Vision 2030: Driving Retail Expansion
Saudi Arabia’s Vision 2030 aims to diversify the economy away from oil, focusing on sectors such as tourism, finance, agriculture, manufacturing, and retail. The retail sector contributes 23% to the Kingdom’s non-oil GDP. Within this sector, food and grocery chains are experiencing the fastest growth, driven by investments in store expansion, customer loyalty programs, and digital transformation.
Fastest Growing Grocery Retail Chain 2024: Abdullah Al-Othaim Markets
World Business Outlook has named Abdullah Al-Othaim Markets Company the “Fastest Growing Grocery Retail Chain in Saudi Arabia 2024.” Established in 1956 and based in Riyadh, Al-Othaim Markets operates over 376 stores across the MENA region, with plans to expand to 600 outlets by 2026.
Othaim’s Leadership and Innovation
Abdullah Al-Othaim Markets stands out in the Saudi food retail sector by embracing digital innovation and sustainable practices. The company has partnered with key players such as Saudi Telecom Company and Al Rajhi Bank to enhance its digital services, including paperless receipts and digital gift cards. In 2023, Othaim Markets achieved a 7% sales growth, outpacing the market average. The company continues to invest in logistics, e-commerce, and environmental sustainability, contributing to Saudi Arabia’s food security and economic diversification goals.
As the Saudi food retail market continues its rapid growth, supermarket chains like Abdullah Al-Othaim Markets, Panda, and Carrefour are leading the way with modern retail formats, digital transformation, and customer-focused solutions.
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