Saudi Arabia’s grocery retail sector is experiencing unprecedented growth in 2025, fueled by economic diversification efforts under Vision 2030, a youthful and digitally savvy population, and a surge in modern retail formats. The sector is projected to reach USD 31.4 billion this year, accounting for approximately 55% of the Kingdom’s total retail market. International Supermarket News+2World Business Outlook+2International Supermarket News+2
📈 Market Overview
The Saudi food and grocery retail market is expanding at a compound annual growth rate (CAGR) of 5.67%, with an anticipated increase of USD 16.37 billion between 2024 and 2028. This growth is driven by rising consumer demand for convenience, quality, and digital shopping experiences.World Business Outlook+2International Supermarket News+2International Supermarket News+2
Table 1: Saudi Arabia Grocery Retail Market Growth
| Year | Market Size (USD Billion) | CAGR (%) |
|---|---|---|
| 2024 | 29.7 | – |
| 2025 | 31.4 | 5.67 |
| 2026 | 33.2 | 5.67 |
| 2027 | 35.1 | 5.67 |
| 2028 | 37.1 | 5.67 |
🛒 Leading Supermarket Chains
Several key players dominate the Saudi supermarket landscape, each contributing to the sector’s robust growth through store expansions, digital innovations, and customer-centric strategies.International Supermarket News
Table 2: Top Supermarket Chains in Saudi Arabia (2024)
| Supermarket Chain | Turnover (USD Billion) | Number of Stores | Key Highlights |
|---|---|---|---|
| Panda Retail Company (Savola) | 2.8 | 200+ | One of the largest food retail chains, investing in modern retail formats and expanding digital presence. |
| Abdullah Al-Othaim Markets | 0.9 | 376 | Operates across 100+ cities, strong focus on e-commerce, logistics, sustainability, and customer loyalty programs. |
| Danube (BinDawood Holding) | 1.6 | 50+ | High-end supermarket chain known for premium offerings, focusing on expanding online grocery shopping. |
| Carrefour (Majid Al Futtaim) | 3.0 | 19 | Strong international presence, investing in AI-powered retail solutions and digital transformation. |
| BinDawood Stores | 1.5 | 87 | Operates supermarkets and hypermarkets in major cities such as Mecca and Madinah. |
📦 What’s in the Saudi Shopping Trolley?
Saudi consumers’ shopping baskets reflect a blend of traditional preferences and modern lifestyle choices. Staple items include:Xmap+3GlobalData+3International Supermarket News+3
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Fresh produce (fruits and vegetables)
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Halal-certified meats
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Dairy products
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Rice and grains
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Packaged foods and snacks
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Beverages (including juices and soft drinks)
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Personal care and household cleaning products
The rise in health consciousness has also led to increased demand for organic and health-focused products.
The Saudi grocery retail sector’s rapid growth is a testament to the Kingdom’s successful economic diversification and modernization efforts. As consumer preferences evolve, retailers are adapting by embracing digital transformation, expanding store networks, and offering a diverse range of products to meet the demands of a dynamic market.