Canned food market in Saudi Arabia to grow at a 3.55% CAGR by 2028, promising aluminium usage growth in the packaging sector

According to a research report, the Saudi Arabia Canned Food Market is anticipated to grow at a robust compound annual growth rate of 3.55 per cent from 2021 to 2028. This elevation is expected to bring the market value to US$1,132.689 million at the end of the forecast period compared to US$887.449 million in 2021.

Saudi Arabia’s food processing industry has grown over the years, attracting noteworthy investments. By 2030, the investments are estimated to peak at $70 billion, representing a 59 per cent increase from 2016. 

The continued robustness of the food sector is expected to grow to about $20 billion by 2035, stimulating the canned food market extensively, particularly within the key industries like beverages, dairy, and ready-to-eat sectors. 

As highlighted in AL Circle’s recent report, titled ‘Global Aluminium Industry Outlook 2024’, the packaging sector in 2023 accounted for 16 per cent of the global aluminium usage across end-user sectors. During the said year, the global aluminium demand from the packaging sector grew by approximately 4.35 percent. 

A research showed that the Middle East & Africa food cans market was valued at about US$1.58 billion in 2023 and is expected to grow to US$1.75 billion (approx.) in 2028, at a CAGR of 2 per cent. This growth is primarily driven by countries like the United Arab Emirates, Saudi Arabia, and South Africa. 

Factors contributing to market growth

· Urbanisation and modern retail with the upsurge in urban population is one of the major factors contributing to Saudi Arabia’s canned food market growth. Widen income allocation for food expenditures, coupled with an increased number of supermarkets and hypermarkets, forms a solid foundation for market expansion. 

· An increased focus on tourism, resulting in extensive hotel development projects, has led to a growth in canned food markets in Saudi Arabia. Ongoing development in the hospitality industry promises to heighten canned food consumption within Saudi Arabia.

· Preference shifts to online shopping and the upmarket lifestyle have also promoted growth in the canned food market. To meet the upswing demand for canned food items, many companies are introducing canned-packed food without compromising on taste.