Arab News
Arab
News, Mon, Nov 03, 2025 | Jumada al-Awwal 12, 1447
German dairy, honey, and coffee firms plan factories in Saudi Arabia
Saudi Arabia:
Six German companies specializing in dairy, honey,
and coffee are exploring investment opportunities and commercial partnerships
with Saudi investors and suppliers.
The firms plan to expand into the Saudi market in
the coming phases and are working to establish local factories for food
production and processing, according to Rawabi Basyouni, head of the German Desk
for the Western Province at the German-Saudi Liaison Office for Economic
Affairs, Al-Eqtisadiah reported.
Basyouni noted that the companies are
targeting key sectors including dairy, cheese, honey, jams, and coffee, adding
that they recognize the scale of the Saudi market and the high quality of
existing domestic products.
Her remarks came during a meeting between the
German food sector delegation and representatives of the Jeddah Chamber of
Commerce, attended by a number of investors and stakeholders in the food
industry.
According to the Food and Agriculture Organization
of the UN, Germany leads the EU in milk production, with an annual output of
around 33 million metric tonnes. The country’s total dairy market is projected
to grow from about $30 billion in 2024 to around $39 billion by 2029, at
a compound annual growth rate of nearly 5 percent.
Cheese currently represents the largest segment by
value in Germany’s dairy market and is expected to remain the fastest-growing in
the coming years, driven by rising demand for high-quality and specialty
cheeses.
Fahad Al-Ghamdi, chairman of the Food and
Drug Products Committee at the Jeddah Chamber of Commerce,
told Al-Eqtisadiah that “the committee has been coordinating with several German
food companies,” describing the meeting as an important opportunity to
strengthen investment prospects between the two countries.
He confirmed ongoing cooperation to enhance
partnerships between Saudi and German firms in the date industry, noting strong
European demand for Saudi dates. He added that some date varieties are used in
pharmaceuticals, while others are incorporated into dairy and related products.
Al-Ghamdi added that while the German market is
competitive and robust, Saudi Arabia offers an attractive environment for
foreign investment, expressing optimism that several agreements and deals will
be signed between Saudi and German companies in the food sector.