Saudi Arabia Foodservice Market Report and Forecast 2024-2032

Saudi Arabia Foodservice Market Outlook

The Saudi Arabia foodservice market size reached approximately USD 20.87 billion in 2023. The market is assessed to grow at a CAGR of 11.6% between 2024 and 2032 to attain a value of around USD 55.28 billion by 2032.

Key Trends in the Market

Foodservice is an industry that encompasses the handling, preparation, storage, cooking, and delivery of food and beverages. Cafes, restaurants, bars, fast-food chains, and kiosks, among others, are different types of foodservice establishments. The foodservice sector plays an important role in the economic development of a country.

• The Saudi Arabia foodservice market demand is being supported by the growing young population seeking international and ethnic cuisines in the country. In addition to this, the robustly growing tourism sector, supported by government initiatives like Vision 2030 and an increasing number of concerts and sporting events, is expected to surge the expansion of foodservice establishments in the forecast period.

• The rising demand for home delivery of food is also driving the Saudi Arabia foodservice market growth. Restaurants in the country are increasingly adopting online food delivery platforms such as Uber Eats to enhance the convenience of users and make the ordering process easier.

• With the surging health and environmental consciousness in the country, restaurants and cafes are offering healthy food and beverage options that can align with the wellness and health goals of customers.

• Some of the key Saudi Arabia foodservice market trends include technological advancements and innovations. Foodservice establishments are increasingly adopting technologies like robotics, virtual reality, artificial intelligence, and blockchain, among others, to streamline their operations, offer personalised and immersive experiences to customers, and automate various processes.

Market Analysis

Based on type, the market is segmented into cafes and bars, cloud kitchen, full-service restaurants, and quick service restaurants. On the basis of outlet, the Saudi Arabia foodservice market segmentation includes chained outlets and independent outlets.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Saudi Arabia foodservice market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Starbucks Corporation 

• McDonald’s Corporation 

• Herfy Food Services Co. JSC 

• Kudu LLC 

• Domino's Pizza LLC 

• Yum! Brands, Inc. 

• ALBAIK Food Systems Ltd. 

• Papa John's International, Inc. 

• Restaurant Brands International Inc 

• Hardee’s Restaurants LLC 

• Others

Market Share by Type

As per the Saudi Arabia foodservice market analysis, full-service restaurants are increasingly gaining substantial popularity. This can be attributed to growing disposable incomes, rising focus on quality experience by customers, and the availability of a diverse variety of food in such restaurants. Besides, the increasing number of high-end full-service restaurants offering fine dining and international cuisines in regions such as Jeddah and Riyadh is also aiding the segment’s growth.

In Saudi Arabia, cafes are considered popular spaces for socialisation and gathering, especially among the millennial and Gen-Z population. This is expected to drive the expansion of tea and coffee shops and lead to an influx of speciality coffee retailers in Saudi Arabia in the coming years.

Market Share by Outlet

Chained outlets hold a considerable Saudi Arabia foodservice market share. Fast-food chains specialising in burgers, pizza, subs, and fried chicken, among others, enjoy substantial popularity in the country due to their quick delivery, diverse offerings, and affordability. With the growing trend of health and wellness, these food outlets are utilising local ingredients to create healthy and nutritional food and beverages.

In the forecast period, independent food outlets are expected to gain popularity as they are attempting to offer different cuisines. Moreover, the robustly growing tourism sector is increasing the preference for local food, surging the expansion of independent food establishments.

Competitive Landscape

Starbucks Corporation is one of the largest coffee shop chains in the world. With its history dating back to 1971, the company has emerged as a prominent retailer and roaster of speciality coffee that is ethically sourced. It is headquartered in Washington, the United States, and offers a wide range of coffee that can be easily made at home.

McDonald’s Corporation is a leading foodservice retailer, that is headquartered in Illinois, the United States. Its first restaurant was opened in 1940, and since then the company has been recognised for its burgers, French fries, hamburgers, and wraps, among others. It boasts over 40,000 locations in more than 100 countries, and most of its restaurants are owned by local business owners.

Herfy Food Services Co. JSC is a Saudi Arabia foodservice company that was founded in 1981. The company is renowned for its high-quality products, and it is Saudi Arabia’s first fully integrated fast food business that owns an advanced meat processing plant and line bakeries. Apart from the Middle East, the company also has a wide presence in Bangladesh.

Other Saudi Arabia foodservice market players include Kudu LLC, Domino's Pizza LLC, Yum! Brands, Inc., ALBAIK Food Systems Ltd., Papa John's International, Inc., Restaurant Brands International Inc, and Hardee’s Restaurants LLC, among others.

Key Highlights of the Report