Cheese is an important component of the diet of the inhabitants of Saudi Arabia, and its consumption has increased by almost 30% since 2017. At the same time, the country is significantly dependent on imports of this product: the deficit of domestic production on average for 2017-2021 was at the level of about 100 thousand tons.
In 2021, 140.9 thousand tons of cheeses were produced in Saudi Arabia, while consumption amounted to 252.4 thousand tons. Nevertheless, the average growth rate of production for 2017-2021 exceeded the consumption rate — 11.9% per year versus 6.7%, respectively.
The structure of cheese sales in Saudi Arabia is dominated by the processing sector and retail trade: in 2021, the former accounted for 58%, and retail trade — 34%. It should be noted that the share of the processing sector is growing every year, which in 2017 was 40%.
Processed cheeses form the basis of cheese consumption in Saudi Arabia, which together account for more than 70% of all sales in the retail and catering sector. At the same time, the vast majority of them are represented by pasty processed cheeses.
Soft cheeses are in second place in the structure of consumption, accounting for slightly more than 20% of sales of all cheeses. Their popularity is due to their wide representation in retail chains, the use of a large number of local dishes, as well as the widespread perception among consumers of them as healthy food.
The key players in the Saudi Arabian cheese market are Danya Foods, Almarai Co., Fromageries Bel and NADEC, which account for about 75% of all sales of these products.
In 2021, Saudi Arabia's cheese imports amounted to 191.8 thousand tons in the amount of 729.7 million US dollars, which is 5.9% and 6.8% higher than the previous year, respectively.
Due to the increase in the share of grated and processed cheeses in the total volume of deliveries in 2021, the highest import indicators were achieved in value terms (729.7 million US dollars) Saudi Arabia imports mainly processed cheeses, which accounted for 43% of natural and value imports in 2021. The second category in terms of import volumes are other cheeses, including for the production of processed cheeses — until 2017, their imports averaged 65 thousand tons per year, but since 2017 they have significantly decreased and stabilized at about 45 thousand tons (48 thousand tons by the end of 2021).
During 2017-2021, the leaders in the export of cheeses to the Saudi Arabian market were Denmark (the share in 2021 in physical terms was 22.1%), Bahrain (14.3%) and Egypt (13.5%).
In terms of value, the leaders are Bahrain (18.5%), Denmark (16.0%) and Poland (12.4%). At the same time, Bahrain has significantly increased the export of cheeses to Saudi Arabia, delivering products worth $134.8 million in 2021, which is 2.4 times higher than in 2020.
The average import price of processed cheeses in Saudi Arabia in 2021 amounted to $3,790 per ton, a decrease of 14.7% compared to the previous year. The most expensive products came from Jordan, the USA and Bahrain, the cheapest — from Egypt.
The average import price of young cheeses in Saudi Arabia in 2021 amounted to $3,103 per ton, an increase of 5.4% compared to the previous year. The most expensive products came from Germany and Cyprus (1.8 and 2.4 times higher than the average import price, respectively), and the cheapest — from Egypt and Denmark.
The average import price of other cheeses in Saudi Arabia in 2021 amounted to 4,449 US dollars per ton, an increase of 4.2% compared to the previous year. The most expensive products at a price of $ 8,673 per ton were supplied from Italy, the cheapest — from Egypt and Denmark (more than a quarter below the average import price).
High disposable incomes of the population and interest in high-quality products form the demand for imported dairy products of the premium segment, in particular for cheeses, ice cream, yoghurts.
The development of the hotel and restaurant sector and the opening of international catering chains create additional demand for various varieties of cheese (for example, parmesan), which is an integral ingredient of dishes such as pizza and pasta.
One of the most popular categories of cheeses are processed cheeses.
These cheeses are most often consumed by KSA residents for breakfast and during snacks. Mozzarella and feta are also among the most popular cheeses, especially in the restaurant sector, as salads, sandwiches, pizza and burgers are prepared with them.
Soft cheeses, according to forecasts, will be the most popular category of cheeses, which, first of all, is due to the growing awareness of consumers about healthy nutrition, namely, the change in consumer preferences from more high-calorie cottage cheese and processed cheeses towards more dietary soft cheeses. Mozzarella and feta are likely to remain the most popular types of brine cheese due to their demand in many international and local dishes. However, other options, such as halloumi and cheeses with mold, are also gaining popularity as consumers seek more variety and experiment with different flavors.
