Saudi Arabia Plant Protein Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Source (Pea, Rapeseed, Soy, Hempseed, Others), By Form (Protein Concentrates, Protein Isolates, Protein Hydrolysate), By Application (Dietary Supplement, Food And Beverages, Pharmaceuticals, Animal Feed), And By Distribution Channel (Online, Offline) - Forecasts From 2023 To 2028

The plant protein market in Saudi Arabia is anticipated to increase from US$45.843 million in 2021 to US$71.259 million by 2028, at a CAGR of 6.50%.

Saudi Arabia is currently experiencing a notable shift towards embracing a lifestyle that prioritizes both health and environmental sustainability, addressing global challenges. While the adoption of a vegan diet is relatively new in the country, there is a growing interest and willingness among the population to explore this alternative. This emerging trend has attracted various players, including influential entities like KBW Ventures, a prominent Saudi Arabia-based venture capital fund led by Prince Khaled bin Alwaleed bin Talal Al Saud.  Recognizing the potential of innovative food companies contributing to global food solutions, KBW Ventures is actively investing in this sector.

A significant development in this landscape is the partnership between KBW Ventures and the vegan chain Plant Power Fast Food. As part of this collaboration, a series of outlets under the Plant Power Fast Food brand were opened in Saudi Arabia in 2020.  The investment deal and the acquisition of rights to establish these outlets underscore the commitment to fostering a sustainable food and beverage revolution in the country. These strategic investments are considered a pivotal step in shaping the future of the plant-based meat sector in Saudi Arabia. Industry experts view these initiatives as the "next new normal," anticipating a substantial impact on the market for plant-based protein. As these investments continue to gain momentum, they are expected to drive further awareness and acceptance of the vegan lifestyle, contributing to the broader global movement towards sustainable and plant-centric diets.

Shift in consumption preferences and market developments

The adoption of plant-based diets and alternative proteins has been consistently increasing in countries across the Middle East and Africa (MEA), with MEA consumers showing a greater inclination towards plant-based eating compared to their global counterparts. Over the last five years, there has been a significant decrease in claims related to vegetarian products, while there has been a noticeable rise in the launch of meat substitutes carrying vegan and plant-based labels. The region is also witnessing a surge in natural claims, particularly those associated with organic products. This aligns with the prevailing trends emphasizing clean labelling and the use of ingredients perceived as healthier, with a noticeable emphasis on on-pack messaging addressing environmental and climate concerns.

In the period from January to November 2021, the Gulf Cooperation Council (GCC) collectively imported plant-based protein ingredients totalling US$1.8 billion from around the world. Among the GCC nations, Saudi Arabia emerged as the largest importer, followed by the United Arab Emirates (UAE), Qatar, Oman, and Bahrain (excluding Kuwait). The primary suppliers to the region during this period were Ireland, the United States, and the Netherlands. Moving into 2022, the market size for non-animal derived proteins in the Gulf Cooperation Council, inclusive of Kuwait, reached 4.9 thousand tonnes in terms of volume sales. Notably, the demand for gluten was the highest at 2.4 thousand tonnes, followed by soy protein isolate (1.3 thousand tonnes), soy protein concentrate (1.1 thousand tonnes), vegetable proteins (12.1 tonnes), and pea protein (1.8 tonnes). These plant-based protein ingredients were commonly found in staple packaged foods such as baked goods, meat and seafood substitutes, dairy products and alternatives, ready meals, instant noodle cups, snacks, and even pet food.

The Middle East and Africa (MEA) countries have witnessed a consistent and accelerated rise in plant-based eating and alternative proteins, a trend further fueled by the impact of the COVID-19 pandemic. Despite diverse cultural practices related to meat and dairy consumption in the region, MEA nations show a greater inclination toward plant-based diets compared to the global average. The primary driver for adopting plant-based diets is the perceived health benefits, particularly evident in the popularity of plant-based meat substitutes and dairy milk alternatives. The concept of flexitarianism, where individuals seek to limit meat intake rather than strictly adhere to a plant-based diet, plays a significant role in the growth of the meatless category. A substantial portion (23%) of consumers are motivated by the desire to reduce meat consumption, while other factors contributing to the shift include concerns related to climate change, sustainability, and animal rights.

Product innovation and collaboration by major market players are further fueling the market for plant protein in Saudi Arabia. In July 2022, Tyson Foods Inc., a prominent U.S.-based company specializing in protein, acquired a significant stake in the poultry subsidiaries of Tanmiah in Saudi Arabia. As part of its strategy to broaden its protein offerings, Tyson Foods has ventured into the plant-based and blended products market by introducing its first-ever line under the new Raised & Rooted® brand.  This move positions Tyson Foods as the largest meat producer in the United States to enter the rapidly expanding alternative protein sector with its proprietary products. The Raised & Rooted brand aims to offer flavorful plant-based and blended foods that align with contemporary dietary preferences. The initial product lineup, scheduled for launch with several major retail partners this year, features plant-based nuggets and blended burgers, combining traditional beef with plant-derived ingredients. Additionally, the existing Aidells® brand has introduced Aidells Whole Blends™ sausage and meatballs, incorporating a blend of chicken and plant-based components.

The Saudi Arabia plant protein market for pea protein is expected to grow steadily. 

Pea protein is derived from green and yellow peas, which are a good source of protein. Many people consider pea protein as one of the closest substitutes to meat protein. Pea protein has essential amino acids that help in enhancing healthy body functions and help in improving blood circulation, help in weight control, promote metabolism and help in regulating blood sugar. Moreover, pea protein is fully vegan and lactose-free. Hence, pea protein is a very good source for people who are vegetarian or vegan.

As per the Government of Canada's Sector Trend Analysis on the plant-based protein food and beverage trend in the Gulf Cooperation Council (GCC), plant-based protein imports in the GCC nations amounted to US$1.8 billion from January to November 2021. Saudi Arabia emerged as a major importer of plant protein, with the United Arab Emirates, Qatar, Oman, and Bahrain following suit. Notably, pea protein exhibited the highest compound annual growth rate at 9.2%.

According to the Food and Agriculture Organization (FAO) statistics, poultry meat consumption is decreasing in the country. In 2013, per capita poultry meat consumption was 44.8 kg, and by 2021, it had decreased to 41.5 kg. People in the country are increasingly seeking products with high nutritional value that are also organic. Furthermore, the demand for textured proteins, such as pea protein, in convenient foods and ready-to-eat products is expected to drive the demand for pea protein upward in the projected period.

Market Key Developments

• In April 2022, Cargill Incorporated expanded its RadiPure pea protein into the Middle East, Turkey, Africa, and Indian markets. This pea protein offers the solubility of the flavor profile that customers need for food application development. Recognizing the growing consumer trend towards incorporating more plant-based protein in their diets, the company identifies these regions as key markets for its product offerings.

Segmentation:

• By Source
  • Pea
  • Rapeseed
  • Soy
  • Hempseed
  • Others
• By Form
  • Protein concentrates
  • Protein isolates
  • Protein hydrolysate
• By Application
  • Dietary supplements
  • Food and beverage
  • Pharmaceuticals
  • Animal feed
• By Distribution Channel
  • Online
  • Offline

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. SAUDI ARABIA PLANT PROTEIN MARKET BY SOURCE

5.1. Introduction

5.2. Pea

5.3. Rapeseed 

5.4. Soy

5.5. Hempseed 

5.6. Others

6. SAUDI ARABIA PLANT PROTEIN MARKET, BY FORM

6.1. Introduction

6.2. Protein concentrates

6.3. Protein isolates

6.4. Protein hydrolysate

7. SAUDI ARABIA PLANT PROTEIN MARKET, BY APPLICATION

7.1. Introduction

7.2. Dietary supplements

7.3. Food and beverage

7.4. Pharmaceuticals 

7.5. Animal feed

8. SAUDI ARABIA PLANT PROTEIN MARKET, BY DISTRIBUTION CHANNEL

8.1. Introduction

8.2. Online

8.3. Offline

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

10. COMPANY PROFILES

10.1. Cargill

10.2. Dupont De Nemours, Inc.

10.3. Now® Foods

10.4. Tate & Lyle

10.5. ADM

10.6. Ingredion Incorporated

Cargill

Dupont De Nemours, Inc.

Now® Foods

Tate & Lyle

ADM

Ingredion Incorporated