Recent Expansion Moves: Almarai’s Bold Multi-Protein Play
In 2024, Almarai, the Kingdom’s flagship food and beverage giant, announced a game-changing SAR 18 billion ($4.8 billion) investment plan—its most aggressive diversification move yet. The multi-year strategy spans an extensive expansion of its poultry processing operations (increasing capacity from 250 to 450 million birds annually by 2026), as well as a strategic entry into seafood, beef, and lamb production.
This expansion is not just product-led—it includes building new farms, processing plants, and cold chain infrastructure to support a vertically integrated protein portfolio. The company’s goal? To reduce reliance on imports (currently ~80% for red meat and seafood), cater to a health-conscious and protein-hungry population, and reinforce its leadership across Saudi Arabia’s rapidly evolving meat market.
Market Context: A USD 4.85 Bn Opportunity in Motion
The Saudi meat market was valued at USD 4.85 billion in 2023, buoyed by rising demand for high-quality, protein-rich diets, population growth, and evolving consumer preferences. Poultry continues to dominate due to affordability, versatility, and its centrality in Saudi cuisine, while segments like beef, lamb, and seafood remain import-heavy but demand-ready.
Key trends shaping the market include:
- Health-led consumption shifts: Consumers are increasingly opting for lean proteins, clean labels, and convenience-focused formats like ready-to-cook and processed meats.
- Retail and foodservice expansion: The growth of hypermarkets and modern foodservice chains across Riyadh, Jeddah, and Dammam has enhanced accessibility to varied meat offerings.
- Vision 2030 influence: The national drive to localize food production is accelerating investments across meat, dairy, and agribusiness verticals.
Amidst this backdrop, Almarai’s entry into seafood, beef, and lamb is more than diversification—it’s a strategic conquest of unmet demand in under-penetrated segments.
Expansion Thesis: Why Almarai Is Moving Now
Almarai’s SAR 18 billion push reflects a blend of market readiness and macro-policy alignment. Here’s why the timing is optimal:
- Under-supplied domestic market: While poultry is relatively localized, beef, lamb, and seafood continue to rely on imports. Consumers want fresh, traceable alternatives—and local players are best positioned to deliver.
- Premiumization window: As the KSA middle class grows, there’s rising demand for premium protein formats, including marinated cuts, frozen ready meals, and value-added processed meats.
- Government support: The move supports Vision 2030’s food security objectives, giving Almarai access to policy incentives, land allocations, and regulatory fast-tracking.
- Brand adjacency advantage: With a trusted presence in dairy, juices, and poultry, Almarai can extend into protein verticals with built-in consumer trust and infrastructure leverage.
Competitive Context: First-Mover Advantage, But Not Alone
Almarai’s expansion is the most financially aggressive, but not without competition:
- Tanmiah Food Company—partnered with Tyson Foods—is expanding its processed poultry operations and exploring further protein verticals through its subsidiaries.
- Almunajem Foods has already scaled its Jeddah-based meat processing unit to 45,000 MT annually to capitalize on localized demand.
- Savola Group and others are eyeing category expansion through strategic partnerships and private-label meat ventures.
What differentiates Almarai is its portfolio-level integration—while others expand within one category, Almarai is orchestrating a pan-protein presence with supply chain ownership from farm to shelf.
Outlook: Smart Consolidation or Stretch Too Far?
From a market lens, Almarai’s move is strategically sound:
✅ Yes, the market is large and growing: At USD 4.85 Bn in 2023, the Saudi meat market offers room for vertical expansion—especially in import-heavy red meat and seafood categories.
✅ Yes, consumer behavior is shifting: Fitness-driven, young Saudi consumers are redefining food choices—demanding clean, convenient, and trusted proteins.
✅ Yes, government policy is aligned: With Vision 2030 driving localization and food security, this move gives Almarai regulatory tailwinds and national relevance.
⚠️ But the risk lies in execution: Managing poultry, seafood, beef, and lamb at scale introduces logistical, regulatory, and marketing complexity. Maintaining quality and identity across categories without diluting the core brand promise will be critical.
Still, this is not a brand chasing trends—it’s a company aligning long-term bets with national imperatives and shifting consumer expectations. If executed well, Almarai could become the undisputed protein leader of the Gulf region by 2028.
