Saudi Arabia Offers Enticing Niche Markets, Too

Like its fellow GCC members, Saudi Arabia offers some interesting markets for U.S. exporters of agricultural products. Saudi Arabia's ever-increasing number of Class A supermarkets and sizable food service sector, catering to a large foreign labor force, provide significant outlets for U.S. consumer food products.

First, Let's Concentrate on Tomatoes

The Saudi market for tomato concentrate and tomato-based sauces is estimated at an annual 22,000 metric tons. About 10,000 tons of the market consists of tomato paste, and another 7,000 - 10,000 tons of ketchup. U.S. exporters have garnered a significant share of this market.

The United States is a leading supplier of ketchup and flavored tomato sauces to the Saudi retail market. In general, Saudis tend to prefer U.S. tomato products over other brands, regarding U.S. products as being of high quality.

About 40 percent of Saudi tomato product imports arrive pre-packaged, and the other 60 percent goes for local manufacturing and re-packing.

Peanut Butter's Popularity Spreads

The Saudi peanut butter market is estimated at about 3,000 metric tons a year. Local production of peanut butter accounts for less than 10 percent of total consumption.

U.S. exporters dominate this market; they supplied 2,000 tons in calendar year 1998, garnering a whopping 98-percent share.

Saudi peanut butter consumers are mainly Western expatriates and Asians. However, an increasing number of Saudis, particularly children, are becoming regular peanut butter consumers.

COPYRIGHT 1999 U.S. Department of Agriculture
COPYRIGHT 2004 Gale Group