Oman Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Oman Foodservice Market Trends

Oman's foodservice market grew by 42.7% in 2022, driven by the increased number of franchisee establishments and an immigrant working population

• The total number of outlets increased by 600 in 2017 compared to 6,074 in 2022. Owing to the increased number of franchisee establishments, the total number of small and medium enterprises (SMEs) in Oman increased by 42. 7 % to 73,741 by the end of March 2022 compared to 51,663 establishments during the same period in 2021. This created more job opportunities and increased the immigrant working population, which reached over 0.6 million as of 2022. However, of these enterprises, 15-20% were foodservice establishments. The consumption of food in the country increased to around 3.2 million metric tons in 2021 compared to 3.1 million tons in 2016. Owing to this, the number of orders per year also increased to more than 81,780 orders in 2022, observing an incline of 10.9% compared to 2017.
• The number of popular chained outlets also increased in Oman. For instance, in 2021, Pizza Hut was operating with 41 outlets, KFC with 36 outlets, MC Donald’s with 24 outlets, and Burger King with 10 outlets. The quick service restaurants segment accounted for the major share in the market, as around 3000 outlets were of QSR type among all outlets in 2022, which is further projected to register a CAGR of 2.27% during the forecast period, 2023-2029. The cloud kitchen sub-segment is anticipated to register a CAGR of 6.21% during the forecast period, 2023-2029. Owing to the advancements in technology in the past decade, the growth in number of people ordering food online in Oman has seen an increase reaching around 2,000 orders per day from apps like Talabat and Delivery Hero. For instance, there were 4.92 million internet users as of January 2021, which was an increase of 259 thousand compared to 2020.

Popular FSR cuisines in Oman witnessed a modest price increase in 5 years, driven by increased demand and a competitive market

• The sales of FSR cuisines increased by around USD 1.1 in 2022 compared to 2017, owing to the increased number of orders per year, which increased to over 81,780 in 2022. The market has become highly competitive, due to which the prices did not increase to a great extent. The number of online orders has increased, and the delivery apps offer special discounts for new customers and large orders, due to which the average order value has only increased by around 4% in 5 years for FSR cuisines. The most popular dishes consumed in the region include kabsa-majboos, which costs around USD 12.45 per 300 g, Kabuli rice, which costs USD 7.8 per 300 g, Shuwa, costing USD 6.4 per 300 g, and Harees, which costs USD 6.8 per 300 g.
• In Oman, 80% of the food consumed was imported, due to which the prices increased by 4% in 2022 compared to 2017. The inflation rate also observed growth which was recorded at 1.55%, with a 2.45% increase compared to the inflation rate in 2020. Popular dishes preferred by the Omani population include kebab, which costs USD 11.3 per 300 g, mushaltat, which costs USD 9.5 per 300 g, and falafel, which costs USD 7.5 per 300 g. The average order value for QSR cuisines increased by 4.347% in 2022 compared to 2017.
• The average order value is increasing Y-o-Y as the meat prices are increasing in the country, and around 70-80% of the FSR and QSR dishes are prepared with meat. In 2022, meat prices witnessed a growth of 7.7% compared to the previous year, resulting in an increase in prices. The per capita consumer spending increased to USD 8,190 in 2021, registering a growth rate of 6.76%.

Segment Analysis: Foodservice Type

Quick Service Restaurants Segment in Oman Foodservice Market

Quick Service Restaurants (QSR) dominate the Oman foodservice market, commanding approximately 46% market share in 2024. The segment's strong performance is primarily driven by the high consumption of meat-based dishes and burgers, with meat-based cuisines and burgers collectively accounting for nearly 59% of QSR sales. The segment's growth is further supported by the nation's high per capita meat consumption, particularly poultry, which has led to the expansion of international QSR chains across the country. Major QSR chains like Pizza Hut, KFC, McDonald's, and Burger King have established a strong presence with multiple outlets throughout Oman, catering to the increasing demand for convenient and quick dining options, contributing significantly to the fast food in Oman sector.

Cloud Kitchen Segment in Oman Foodservice Market

The cloud kitchen segment is experiencing remarkable growth in Oman, projected to expand at approximately 17% during 2024-2029. This explosive growth is primarily driven by the increasing adoption of smartphone applications and the expanding internet penetration rate, which reached 96.4% of the population in 2023. The segment's growth is particularly strong among millennials, with over half of Omani food delivery app users aged between 25 and 34 years. The rise of social media marketing, with platforms reaching a potential audience of 14.90 million, has further accelerated the segment's expansion. Cloud kitchen operators are capitalizing on this trend through strategic partnerships and technological innovations, with companies like IO Kitchen and KitchenomiKs leading the transformation of the digital foodservice landscape.

Remaining Segments in Foodservice Type

The Full Service Restaurants (FSR) and Cafes & Bars segments continue to play vital roles in shaping Oman's restaurant industry. FSRs are particularly notable for their diverse culinary offerings, specializing in Asian and Middle Eastern cuisines, which cater to both local preferences and international tourists. The Cafes & Bars segment has established itself as a significant social and cultural hub, with specialty coffee shops and traditional cafes serving as popular gathering spots. Both segments have embraced modern trends while maintaining traditional flavors, contributing to the market's overall diversity and sophistication.

Segment Analysis: Outlet

Independent Outlets Segment in Oman Foodservice Market

Independent outlets dominate the Omani restaurant industry, holding approximately 57% market share in 2024. The segment's strong performance is primarily driven by quick service restaurants (QSRs), with burgers and meat-based cuisines accounting for the majority share. The success of independent outlets can be attributed to their flexibility in service models, unique ability to fuse multiple cultures through their menus and ambiance, and successful adoption of digital technologies like online payment systems and automated kitchen technologies. These establishments have maintained a strong connection to their local communities, providing personalized dining experiences that resonate with local tastes and preferences. Asian and Middle Eastern cuisines are particularly popular in independent full-service restaurants, reflecting the cultural preferences of both locals and expatriates.

Chained Outlets Segment in Oman Foodservice Market

The chained outlets segment is projected to experience robust growth at approximately 8% during 2024-2029, driven by increasing consumer demand for international dining experiences. Competitors in the chained consumer foodservice industry are implementing innovative technologies such as self-service kiosks to improve cost-effectiveness and service speed. The segment's growth is further supported by the expansion of global restaurant and café brands through partnerships with regional companies. The cloud kitchen sub-segment within chained outlets is showing particularly strong potential, benefiting from the increasing penetration of food delivery apps and changing consumer preferences. Major international chains are choosing to expand primarily through franchising rather than company-operated locations, as this model offers lower risk and better market penetration.

Segment Analysis: Location

Standalone Segment in Oman Foodservice Market

The standalone segment dominates the Oman restaurant business in Oman, driven by the strategic establishment of restaurants in densely populated areas like Muttrah Souk and Sultan Qaboos Road in Muscat to capture high consumer traffic. Quick service restaurants (QSRs) hold a significant position within standalone locations, with burger and meat-based cuisines collectively accounting for approximately 59% of the segment. The availability of ingredients such as meat, Indian spices, rice, and wheat has enabled restaurants to serve popular and affordable Asian and Middle Eastern dishes, including kabuli rice, biryani, shuwa, and harees. The segment's growth is further supported by the increasing number of international food chain outlets, with Pizza Hut operating 41 outlets, KFC with 36 outlets, McDonald's with 24 outlets, and Burger King with 10 outlets across the country.

Lodging Segment in Oman Foodservice Market

The lodging segment demonstrates robust growth potential in the Oman foodservice market, with specialist coffee and tea shops in hotels experiencing particularly strong expansion. The segment's growth is primarily driven by the rising number of hotel guests and expanding accommodation facilities, with over 467 hotels currently operating in the country. International visitors, particularly from Asia and America, contribute significantly to the segment's development, with 127,995 and 35,803 visitors respectively staying in three to five-star hotels. Premium hotels like Six Senses Zighy Bay, Grand Hyatt Muscat, and Sheraton Oman are leading the market with their diverse dining options, while major coffee chains including Starbucks, Costa Coffee, and Tim Hortons have established strategic presence within these establishments to cater to both leisure and business travelers.

Remaining Segments in Location

The leisure segment encompasses foodservice establishments in amusement parks, stadiums, museums, and movie theaters, benefiting from increasing domestic and international visitor traffic. The retail segment features foodservice outlets in shopping centers and malls, with international chains maintaining a strong presence in these locations. The travel segment serves transportation hubs including airports, railway stations, and highways, with a particular focus on cruise ports and airports like Muscat International, Duqm International, and Sohar Airport, where various international and local food brands cater to travelers' dining needs through both quick-service and full-service restaurant formats.

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