The Saudi Arabia food service market share was valued at USD 14.16 billion in 2022 and is expected to be worth USD 16.02 billion in 2023. The market is projected to reach USD 34.04 billion by 2030, recording a CAGR of 11.37% during the forecast period.
The food service market in Saudi Arabia is growing at a rapid pace as the demand for home delivery services is rising each year across the country. Consumers across Saudi Arabia are also increasing their intake of takeaway foods. The number of food and shopping malls has grown tremendously across the country over the last few years. Saudi Arabia is also witnessing a strong rise in the trend of opening food outlets in shopping malls. These factors will boost the Saudi Arabia food service market growth.
Fortune Business Insights™ displays this information in a report titled, “Saudi Arabia Food Service Market, 2023-2030.”
LIST OF KEY COMPANIES PROFILED IN THE REPORT
- Starbucks Corporation (U.S.)
- Yum! Brands, Inc. (U.S.)
- McDonald’s Corporation (U.S.)
- Restaurant Brands International Inc. (Canada)
- Domino’s Pizza, Inc. (U.S.)
- Papa John’s International, Inc. (U.S.)
- ALBAIK Food Systems Company Ltd. (Saudi Arabia)
- Herfy Food Services Co. JSC, KSA. (Saudi Arabia)
- KUDU Company for Food and Catering (Saudi Arabia)
- Hardee’s Restaurants LLC (U.S.)
Vast Variety in Menu to Increase Customers’ Preference for Full Service Restaurants
Based on type, the market is segmented into full service restaurants, quick-service restaurants, institutes, and others. The full service restaurant segment captured a dominant Saudi Arabia food service market share as families and corporate gatherings prefer these restaurants due to their vast variety in menu.
Commercial Food Services to Increase Considerably Due to Their Growing Network
By service type, the market is segmented into commercial and institutional. The commercial food service segment is anticipated to lead the market growth as more customers are visiting restaurants and cafes to dine out, which can prompt restaurant owners to expand their business operations.
The research report offers valuable insights into the market along with a detailed analysis of the market share, size, segmentation, and growth rate for all possible segments in the market. It also provides an in-depth analysis of the industry. It delivers vital insights, an overview of market dynamics, related markets, recent industry developments, such as mergers & acquisitions, SWOT analysis, leading market trends, regulatory scenario in key countries, and the competitive landscape of the market.
Drivers and Restraints:
International Brands to Expand Their Operations Across Saudi Arabia
Several internationally acclaimed restaurants and hotel chains have established their base in Saudi Arabia. Some of these include The Cheesecake Factory, Cipriani, and Hakkasan. Moreover, a rising number of well-renowned chefs in Saudi Arabia are opening their restaurants in the country, further boosting the market growth. However, negative aspects associated with online food deliveries might slump the market progress.
The food & beverage sector in Saudi Arabia is the largest in the Middle East region. As per data published by the Saudi Arabian General Authority for Investment (SAGIA), the country’s average spending on food services is estimated to rise by 6% every year during the next 5 years. The demographic and social changes in the country are responsible for the market’s growth.
Rising Tourism Sector to Prompt Top Market Players to Set Up Base in Saudi Arabia
The COVID-19 pandemic had a heavy impact on Saudi Arabia’s food service industry. This made companies wary of entering the market as there was a high risk of incurring losses. However, as the market recovered from the outbreak, these firms focused on expanding their business operations, which helped the food service industry grow.
Notable Industry Development:
June 2022: Hardee’s Restaurants LLC collaborated with Miso Robotics, an American robotics firm, to use robots across its restaurants in the Middle Eastern markets.