Market Size of gcc foodservice Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 54.72 Billion |
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Market Size (2029) | USD 98.04 Billion |
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Largest Share by Foodservice Type | Full Service Restaurants |
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CAGR (2024 - 2029) | 12.37 % |
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Largest Share by Country | Saudi Arabia |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
GCC Foodservice Market Analysis
The GCC Foodservice Market size is estimated at 54.72 billion USD in 2024, and is expected to reach 98.04 billion USD by 2029, growing at a CAGR of 12.37% during the forecast period (2024-2029).
54.72 Billion
Market Size in 2024 (USD)
98.04 Billion
Market Size in 2029 (USD)
6.42 %
CAGR (2017-2023)
12.37 %
CAGR (2024-2029)
Largest Country
51.34 %
value share, Saudi Arabia, 2023
Saudi Arabia is one of the main proponent countries in GCC, and its huge tourist and visiting and residential businessmen base promotes the segment.
Fastest-growing Country
17.10 %
Projected CAGR, United Arab Emirates, 2024-2029
The UAE population currently consists of 89% expats with diverse culinary habits, increasing the demand for international and ethnic cuisines in the foodservice industry.
Largest Segment by Foodservice Type
46.60 %
value share, Full Service Restaurants, 2023
Full service restaurants dominated the industry due to the increasing frequency of dining out, high disposable income, and a large base of tourists and expatriates.
Fastest-growing segment by Foodservice Type
15.95 %
Projected CAGR, Cloud Kitchen, 2024-2029
Expansive penetration of online food delivery services, like Deliveroo, Talabat, Noon Food, and Careem, is projected to help in the exponential growth of the virtual segment.
Leading Market Player
0.58 %
market share, MH Alshaya Co. WLL, 2022
The company has over 4,000 stores in the GCC, and its focus is on delivering exceptional customer experiences and quality food, which has helped it build a loyal customer base.
Higher dine-out frequency and increasing tourism contribute to the higher market share of the FSR segment
- The FSR segment accounted for the major share of the market in 2022, witnessing a hike of 77.79% in 2022 compared to 2020. Owing to the high dine-out frequency in the region, on an average basis, 40% of the population dine out frequently on a weekly basis, which has increased the sub-segment's growth over the past years. Due to increasing tourism and spending on food, the market is anticipated to grow rapidly.
- The cloud kitchens sub-segment is projected to witness the fastest growth, registering a CAGR of 15.86% during the forecast period, 2023-2029. Owing to the number of online delivery app users in the country, advancements in the delivery techniques like the use of heat bags, the 30-minute delivery time, special discounts, acceptance of digital payment, and contactless delivery have gained consumers' interest. In 2021, the fast delivery service Getir was the most popular food delivery app in the Middle East & African (EMEA) region, which was downloaded more than 23 million times in 2021. However, Uber Eats ranked second, with roughly 20 million downloads, followed by Deliveroo, with 13 million downloads in 2021.
- Demand for fast food is also increasing in the region. Owing to this, the QSR segment witnessed a significant growth of 61.40% in 2022 compared to 2020. Big chains like TGI Friday's, KFC, Burger King, and Pizza Hut are the most popular brands, which are expanding their footprint and accounting for the largest share of the market. The meat-based cuisine in both QSR and FSR segments accounted for the major share as the consumption of meat is high in the region, which was registered at 0.45 million metric tons in 2022 and is expected to increase further. Popular dishes include Shawarma, Al Harees, Kabja, Biryani, Chicken Curry, Kebab, and Fried Chicken products.
Understand The Key Trends Shaping This Market
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Saudi Arabia is the largest market owing to its sizeable population and higher disposable income
- Saudi Arabia is the largest country-wise segment in the GCC foodservice market, followed by the United Arab Emirates and Kuwait. The market is majorly led by the Middle Eastern full-service restaurant segment, which accounted for an estimated share of 24.92% in the Saudi Arabian market in 2022. People in Saudi Arabia appreciate regional cuisine cooked using locally produced goods. For lunch and dinner, dishes like roasted chicken, Kabsa, grilled meat, and fish specialties with rice are very popular.
- The UAE foodservice market has grown significantly in recent years in line with the rising number of restaurants and cafes. As of 2022, Dubai had more than 13,000 cafes and eateries, with an estimated 3.5 million population. The cafes & bars segment is expected to grow at a faster rate over the study period, registering a value CAGR of 2.71%. This has been attributed to the nation's rising café culture and the growing spending on specialty coffee. Over six million cups are drunk daily in the United Arab Emirates, which spends USD 630 million on coffee annually.
- In Kuwait, the cloud kitchen segment is the fastest-growing due to the increased penetration of internet users. The segment is estimated to record a value CAGR of 8.50% over the forecast period. As of 2022, nearly 4.31 million people in Kuwait used the internet, with the internet penetration rate rising to 99%. With the rising number of internet users, food delivery channels have increased and, in turn, boosted the sales of cloud kitchens. Talabat, Deliveroo, and Get Dukan are some of the prominent delivery players in the market. Thus, the Kuwaiti foodservice market observed a significant sales growth of 30% from 2020 to 2022. People are also looking for comfort food, which leads them to order food from home. Such factors are estimated to boost the sales of the foodservice market over the coming days.
