Saudi Arabia Foodservice Market Size
Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2023) | USD 25.19 Billion |
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Market Size (2029) | USD 42.48 Billion |
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Market Concentration | High |
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Largest Share by Foodservice Type | Full Service Restaurants |
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CAGR (2023 - 2029) | 9.10 % |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Foodservice Market Analysis
The Saudi Arabia Foodservice Market size is estimated at 25.19 billion USD in 2023, and is expected to reach 42.48 billion USD by 2029, growing at a CAGR of 9.10% during the forecast period (2023-2029).
- The growth rate of Full Service Restaurants segment indicates that it is the largest foodservice type. Emphasis on hospitality and communal dining experience, clubbed with the growing urbanization and increasing disposable income, is driving the growth of the FSR segment.
- Independent Outlets is the largest outlet for the Saudi Arabia Foodservice Market. Personalized and authentic dining experiences by independent outlets contributed to the trajectory of growth in the region.
- The Fastest-growing foodservice type for the Saudi Arabia Foodservice Market is Cafes & Bars. Increasing demand for socializing in a relaxed atmosphere and government efforts to promote tourism have contributed to the growth of this segment.
- Chained Outlets is the Fastest-growing outlet in the Saudi Arabia Foodservice Market. Increased demand for standardized and consistent services and quality food is driving the trajectory of growth of chained outlets in the region.
Full Service Restaurants is the largest Foodservice Type
- Full-service restaurants hold the major market share and are expected to register a CAGR of 4.33% by value in the study period. The popularity of Asian cuisines has expanded, especially among the younger population, due to the increasing need for gastronomic diversity. Around 37% of the Saudi Arabian population in 2023 is young, under the age of 25. The most popular cuisines in the country are Chinese, Japanese, Indian, traditional Cantonese, and Taiwanese.
- Quick-service restaurants segment holds the second major share and is projected to register a CAGR of 9.08% by value during the forecast period. Meat-based cuisines are dominant in the market. In recent years, there has also been a growing interest in international cuisines, including meat-based dishes from other cultures, such as American-style burgers, Turkish kebabs, and Indian curries. As of 2022, the ex-pat population was 13.5 million in the country. This trend has been fueled by the increasing number of expatriates living and working in Saudi Arabia and the government's efforts to promote tourism and diversify the economy.
- The cafes & bars segment is the fastest-growing foodservice type segment, projected to register a CAGR of 11.74% by value during the forecast period. The growth of cafes and pubs is the rise of coworking spaces and remote work. With more people working from home or freelancing, there is an increasing demand for spaces where people can gather to work, socialize, and network. More than 40% of the Middle East's 8,800-plus branded coffee shops are in Saudi Arabia. The popularity of cafes and pubs in Saudi Arabia is expected to grow in the coming years as the country continues developing and younger generations continue embracing new social norms and experiences.
To understand key trends, Download Sample Report
Saudi Arabia Foodservice Market Trends
International and local fast food chains compete for market share in Saudi Arabia
- QSR outlets held a major share of the market, amounting to 44.51% in 2022. Quick-service chains that offer burgers, pizza, fried chicken, and sandwiches are very popular in the country, including McDonald's, KFC, Burger King, and Domino's Pizza, with 168, 179, 63, and 118 outlets, respectively, in the country. In addition to international chains, there are also many popular local fast-food brands in Saudi Arabia, such as Al Baik, which is known for its crispy fried chicken and garlic sauce.
- The cafes & bars segment is the fastest-growing foodservice type segment in the market, and it is projected to grow by 5.44% during the forecast period. The Saudi Arabian government has been implementing reforms to modernize the economy and society, including loosening restrictions on entertainment, which has led to increasing demand for places to socialize and relax. An increasing number of young people in the country are looking for new and different experiences. Those under age 25 account for around 51% of the population, and when those under 29 are included, young people amount to two-thirds of Saudi Arabia's population.
- Cloud kitchen is the second fastest-growing segment in the market, and it is projected to register a CAGR of 4.15% during the forecast period. The industry is expanding as a result of technological developments and the advantages offered by cloud kitchens over traditional kitchens, including higher profit margins and greater flexibility in location-based operations. Kaykroo and Sweetheart had 30 and 15 cloud kitchens, respectively, across Saudi Arabia in 2022. The market is also growing because of the significant integration of point-of-sale (POS), kitchen display systems (KDS), and inventory management technology.
To understand key trends, Download Sample Report
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The Saudi Arabian specialist coffee market is growing, driven by the emergence of home-grown brands.
Saudi Arabia Foodservice Industry Overview
The Saudi Arabia Foodservice Market is fragmented, with the top five companies occupying 0.96%. The major players in this market are ALBAIK Food Systems Company S.A., Americana Restaurants International PLC, Herfy Food Service Company, M.H. Alshaya Co. WLL and The Olayan Group (sorted alphabetically).
Saudi Arabia Foodservice Market Leaders
ALBAIK Food Systems Company S.A.
Americana Restaurants International PLC
Herfy Food Service Company
M.H. Alshaya Co. WLL
The Olayan Group
Other important companies include Al Tazaj Fakeih, AlAmar Foods Company, Apparel Group, Fawaz Abdulaziz AlHokair Company, Galadari Ice Cream Co Ltd LLC, Kudu Company For Food And Catering, LuLu Group International, Reza Food Services Company Limited, Saudi Airlines Catering.
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Foodservice Market News
- March 2023: Nathan & Nathan KSA has partnered with Fawaz Abdulaziz Al Hokair & Sons, which will bring together the expertise and resources of both companies, accelerate the growth of both groups’ active customer bases, and support the development of future opportunities together to provide unparalleled professional services to clients throughout the kingdom.
- February 2023: Alshaya Group has inaugurated a new production facility in Saudi Arabia to produce freshly baked and packaged food to 400 Starbucks stores in the country.
- January 2023: The company has planned to rollout around 45-50 new branches, specifically for Cinnabon and Mamma Bunz. It will also continue to expand the footprint of its home-grown concept “Shawarma Al Muhalhel”. Furthermore, the Company is expecting to expedite the expansion of its store network for existing brands like Cinnabon, Mamma Bunz, Crepe Affaire, and Shawarma AlMuhalhel through the sub-franchise model.
Saudi Arabia Foodservice Market Report - Table of Contents
EXECUTIVE SUMMARY & KEY FINDINGS
REPORT OFFERS
1. INTRODUCTION
1.1. Study Assumptions & Market Definition
1.2. Scope of the Study
1.3. Research Methodology
2. KEY INDUSTRY TRENDS
2.1. Number Of Outlets
2.2. Average Order Value
2.3. Regulatory Framework
2.4. Menu Analysis
3. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)
3.1. Foodservice Type
3.1.1. Cafes & Bars
3.1.1.1. By Cuisine
3.1.1.1.1. Cafes
3.1.1.1.2. Juice/Smoothie/Desserts Bars
3.1.1.1.3. Specialist Coffee & Tea Shops
3.1.2. Cloud Kitchen
3.1.3. Full Service Restaurants
3.1.3.1. By Cuisine
3.1.3.1.1. Asian
3.1.3.1.2. European
3.1.3.1.3. Latin American
3.1.3.1.4. Middle Eastern
3.1.3.1.5. North American
3.1.3.1.6. Other FSR Cuisines
3.1.4. Quick Service Restaurants
3.1.4.1. By Cuisine
3.1.4.1.1. Bakeries
3.1.4.1.2. Burger
3.1.4.1.3. Ice Cream
3.1.4.1.4. Meat-based Cuisines
3.1.4.1.5. Pizza
3.1.4.1.6. Other QSR Cuisines
3.2. Outlet
3.2.1. Chained Outlets
3.2.2. Independent Outlets
3.3. Location
3.3.1. Leisure
3.3.2. Lodging
3.3.3. Retail
3.3.4. Standalone
3.3.5. Travel
4. COMPETITIVE LANDSCAPE
4.1. Key Strategic Moves
4.2. Market Share Analysis
4.3. Company Landscape
4.4. Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
4.4.1. Al Tazaj Fakeih
4.4.2. AlAmar Foods Company
4.4.3. ALBAIK Food Systems Company S.A.
4.4.4. Americana Restaurants International PLC
4.4.5. Apparel Group
4.4.6. Fawaz Abdulaziz AlHokair Company
4.4.7. Galadari Ice Cream Co Ltd LLC
4.4.8. Herfy Food Service Company
4.4.9. Kudu Company For Food And Catering
4.4.10. LuLu Group International
4.4.11. M.H. Alshaya Co. WLL
4.4.12. Reza Food Services Company Limited
4.4.13. Saudi Airlines Catering
4.4.14. The Olayan Group
5. KEY STRATEGIC QUESTIONS FOR FOODSERVICE CEOS
6. APPENDIX
6.1. Global Overview
6.1.1. Overview
6.1.2. Porter’s Five Forces Framework
6.1.3. Global Value Chain Analysis
6.1.4. Market Dynamics (DROs)
6.2. Sources & References
6.3. List of Tables & Figures
6.4. Primary Insights
6.5. Data Pack
6.6. Glossary of Terms
List of Tables & Figures
- Figure 1:
- NUMBER OF OUTLET UNITS BY FOODSERVICE CHANNELS, SAUDI ARABIA, 2017 - 2029
- Figure 2:
- AVERAGE ORDER VALUE BY FOODSERVICE CHANNELS, USD, SAUDI ARABIA, 2017 VS 2022 VS 2029
- Figure 3:
- SAUDI ARABIA FOODSERVICE MARKET, VALUE, USD, 2017 - 2029
- Figure 4:
- VALUE OF FOODSERVICE MARKET BY FOODSERVICE TYPE, USD, SAUDI ARABIA, 2017 - 2029
- Figure 5:
- VALUE SHARE OF FOODSERVICE MARKET, %, BY FOODSERVICE TYPE, SAUDI ARABIA, 2017 VS 2023 VS 2029
- Figure 6:
- VALUE OF CAFES & BARS FOODSERVICE MARKET BY CUISINE, USD, SAUDI ARABIA, 2017 - 2029
- Figure 7:
- VALUE SHARE OF CAFES & BARS FOODSERVICE MARKET BY CUISINE, %, SAUDI ARABIA, 2017 VS 2023 VS 2029
- Figure 8:
- VALUE OF FOODSERVICE MARKET VIA CAFES, USD, SAUDI ARABIA, 2017 - 2029
- Figure 9:
- VALUE SHARE OF CAFES FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 10:
- VALUE OF FOODSERVICE MARKET VIA JUICE/SMOOTHIE/DESSERTS BARS, USD, SAUDI ARABIA, 2017 - 2029
- Figure 11:
- VALUE SHARE OF JUICE/SMOOTHIE/DESSERTS BARS FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 12:
- VALUE OF FOODSERVICE MARKET VIA SPECIALIST COFFEE & TEA SHOPS, USD, SAUDI ARABIA, 2017 - 2029
- Figure 13:
- VALUE SHARE OF SPECIALIST COFFEE & TEA SHOPS FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 14:
- VALUE OF CLOUD KITCHEN FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 15:
- VALUE SHARE OF CLOUD KITCHEN FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 16:
- VALUE OF FULL SERVICE RESTAURANTS FOODSERVICE MARKET BY CUISINE, USD, SAUDI ARABIA, 2017 - 2029
- Figure 17:
- VALUE SHARE OF FULL SERVICE RESTAURANTS FOODSERVICE MARKET BY CUISINE, %, SAUDI ARABIA, 2017 VS 2023 VS 2029
- Figure 18:
- VALUE OF ASIAN FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 19:
- VALUE SHARE OF ASIAN FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 20:
- VALUE OF EUROPEAN FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 21:
- VALUE SHARE OF EUROPEAN FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 22:
- VALUE OF LATIN AMERICAN FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 23:
- VALUE SHARE OF LATIN AMERICAN FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 24:
- VALUE OF MIDDLE EASTERN FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 25:
- VALUE SHARE OF MIDDLE EASTERN FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 26:
- VALUE OF NORTH AMERICAN FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 27:
- VALUE SHARE OF NORTH AMERICAN FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 28:
- VALUE OF OTHER FSR CUISINES MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 29:
- VALUE SHARE OF OTHER FSR CUISINES FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 30:
- VALUE OF QUICK SERVICE RESTAURANTS FOODSERVICE MARKET BY CUISINE, USD, SAUDI ARABIA, 2017 - 2029
- Figure 31:
- VALUE SHARE OF QUICK SERVICE RESTAURANTS FOODSERVICE MARKET BY CUISINE, %, SAUDI ARABIA, 2017 VS 2023 VS 2029
- Figure 32:
- VALUE OF BAKERIES FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 33:
- VALUE SHARE OF BAKERIES FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 34:
- VALUE OF BURGER FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 35:
- VALUE SHARE OF BURGER FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 36:
- VALUE OF ICE CREAM FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 37:
- VALUE SHARE OF ICE CREAM FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 38:
- VALUE OF MEAT-BASED CUISINES FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 39:
- VALUE SHARE OF MEAT-BASED CUISINES FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 40:
- VALUE OF PIZZA FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 41:
- VALUE SHARE OF PIZZA FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 42:
- VALUE OF OTHER QSR CUISINES FOODSERVICE MARKET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 43:
- VALUE SHARE OF OTHER QSR CUISINES FOODSERVICE MARKET BY OUTLETS, %, SAUDI ARABIA, 2022 VS 2029
- Figure 44:
- VALUE OF FOODSERVICE MARKET BY OUTLET, USD, SAUDI ARABIA, 2017 - 2029
- Figure 45:
- VALUE SHARE OF FOODSERVICE MARKET, %, BY OUTLET, SAUDI ARABIA, 2017 VS 2023 VS 2029
- Figure 46:
- VALUE OF FOODSERVICE MARKET VIA CHAINED OUTLETS, USD, SAUDI ARABIA, 2017 - 2029
- Figure 47:
- VALUE SHARE OF CHAINED OUTLETS FOODSERVICE MARKET BY FOODSERVICE TYPE, %, SAUDI ARABIA, 2022 VS 2029
- Figure 48:
- VALUE OF FOODSERVICE MARKET VIA INDEPENDENT OUTLETS, USD, SAUDI ARABIA, 2017 - 2029
- Figure 49:
- VALUE SHARE OF INDEPENDENT OUTLETS FOODSERVICE MARKET BY FOODSERVICE TYPE, %, SAUDI ARABIA, 2022 VS 2029
- Figure 50:
- VALUE OF FOODSERVICE MARKET BY LOCATION, USD, SAUDI ARABIA, 2017 - 2029
- Figure 51:
- VALUE SHARE OF FOODSERVICE MARKET, %, BY LOCATION, SAUDI ARABIA, 2017 VS 2023 VS 2029
- Figure 52:
- VALUE OF FOODSERVICE MARKET VIA LEISURE LOCATION, USD, SAUDI ARABIA, 2017 - 2029
- Figure 53:
- VALUE SHARE OF LEISURE FOODSERVICE MARKET BY FOODSERVICE TYPE, %, SAUDI ARABIA, 2022 VS 2029
- Figure 54:
- VALUE OF FOODSERVICE MARKET VIA LODGING LOCATION, USD, SAUDI ARABIA, 2017 - 2029
- Figure 55:
- VALUE SHARE OF LODGING FOODSERVICE MARKET BY FOODSERVICE TYPE, %, SAUDI ARABIA, 2022 VS 2029
- Figure 56:
- VALUE OF FOODSERVICE MARKET VIA RETAIL LOCATION, USD, SAUDI ARABIA, 2017 - 2029
- Figure 57:
- VALUE SHARE OF RETAIL FOODSERVICE MARKET BY FOODSERVICE TYPE, %, SAUDI ARABIA, 2022 VS 2029
- Figure 58:
- VALUE OF FOODSERVICE MARKET VIA STANDALONE LOCATION, USD, SAUDI ARABIA, 2017 - 2029
- Figure 59:
- VALUE SHARE OF STANDALONE FOODSERVICE MARKET BY FOODSERVICE TYPE, %, SAUDI ARABIA, 2022 VS 2029
- Figure 60:
- VALUE OF FOODSERVICE MARKET VIA TRAVEL LOCATION, USD, SAUDI ARABIA, 2017 - 2029
- Figure 61:
- VALUE SHARE OF TRAVEL FOODSERVICE MARKET BY FOODSERVICE TYPE, %, SAUDI ARABIA, 2022 VS 2029
- Figure 62:
- MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, SAUDI ARABIA, 2019 - 2023
- Figure 63:
- MOST ADOPTED STRATEGIES, COUNT, SAUDI ARABIA, 2019 - 2023
- Figure 64:
- VALUE SHARE OF MAJOR PLAYERS, %, SAUDI ARABIA, 2022
Saudi Arabia Foodservice Industry Segmentation
Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.
- Full-service restaurants hold the major market share and are expected to register a CAGR of 4.33% by value in the study period. The popularity of Asian cuisines has expanded, especially among the younger population, due to the increasing need for gastronomic diversity. Around 37% of the Saudi Arabian population in 2023 is young, under the age of 25. The most popular cuisines in the country are Chinese, Japanese, Indian, traditional Cantonese, and Taiwanese.
- Quick-service restaurants segment holds the second major share and is projected to register a CAGR of 9.08% by value during the forecast period. Meat-based cuisines are dominant in the market. In recent years, there has also been a growing interest in international cuisines, including meat-based dishes from other cultures, such as American-style burgers, Turkish kebabs, and Indian curries. As of 2022, the ex-pat population was 13.5 million in the country. This trend has been fueled by the increasing number of expatriates living and working in Saudi Arabia and the government's efforts to promote tourism and diversify the economy.
- The cafes & bars segment is the fastest-growing foodservice type segment, projected to register a CAGR of 11.74% by value during the forecast period. The growth of cafes and pubs is the rise of coworking spaces and remote work. With more people working from home or freelancing, there is an increasing demand for spaces where people can gather to work, socialize, and network. More than 40% of the Middle East's 8,800-plus branded coffee shops are in Saudi Arabia. The popularity of cafes and pubs in Saudi Arabia is expected to grow in the coming years as the country continues developing and younger generations continue embracing new social norms and experiences.
Foodservice Type | ||||||||||
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Cloud Kitchen | ||||||||||
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Outlet | |
Chained Outlets | |
Independent Outlets |
Location | |
Leisure | |
Lodging | |
Retail | |
Standalone | |
Travel |
Market Definition
- FULL-SERVICE RESTAURANTS - A foodservice establishment where customers are seated at a table, give their order to a server and are served food at a table.
- QUICK SERVICE RESTAURANTS - A foodservice establishment that provides customers convenience, speed, and food offerings at lower prices. Customers usually help themselves and carry their own food to their tables.
- CAFES & BARS - A type of foodservice business that include bars and pubs that are licensed to serve alcoholic drinks for consumption, cafes that serve refreshments and light food items, as well as specialty tea and coffee shops, dessert bars, smoothie bars, and juice bars.
- CLOUD KITCHEN - A foodservice business that utilizes a commercial kitchen for the purpose of preparing food for delivery or takeout only, with no dine-in customers.
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step 1 are tested against available historical market numbers. Through an iterative process, the variables required for the market forecast are set, and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market size estimations for the forecast years are in nominal terms. Inflation is considered for average order value, and it is forecasted as per predicted inflation rates in the countries.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms