United Arab Emirates Foodservice Market - Growth, Trends, and Forecasts (2023 - 2028)

The United Arab Emirates Foodservice Market is segmented by Type (Full-service restaurants, Quick Service restaurants, Cafés/bars, 100% Home Delivery, and Street Stalls/Kiosks), and By Structure (Independent Consumer Foodservice and Chained Consumer Foodservice). The report offers market size and values in USD million during the forecast period for the above segments.

UAE Foodservice Industry Overview

UAE Foodservice Market Summary
Study Period: 2018 - 2028
CAGR: 7.02 %

Major Players

UAE Foodservice Market Major Players

*Disclaimer: Major Players sorted in no particular order

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UAE Foodservice Market Analysis

The United Arab Emirates Foodservice Market is forecasted to register a CAGR of 7.02 % over the next five years.

High disposable income, rising tourist arrivals, increasing urban lifestyles, and evolving consumer preferences have propelled the growth of the foodservice market in the country. The lack of recreational opportunities in the country is creating a growth opportunity in the foodservice sector, as Emiratis are increasingly visiting foodservice channels to spend time with family. Growing trends in the market, such as food trucks and food stalls, with the availability of various international cuisines, are also rendering a new experience for customers, thus boosting their spending on food away from home.

Furthermore, with a high inflow of tourists and the presence of globally renowned food and beverage brands, the country is at the forefront of the foodservice industry in the Middle East. According to the latest data released by Dubai’s Department of Economy and Tourism (DET) at the ongoing Arabian Travel Market (ATM) in Dubai, the first quarter of international visitation reflected the best Q1 performance of 2022 since the global pandemic. This helped in creating a clear pathway for the city to progress toward its coveted goal of becoming the world’s most visited destination. March 2022 was a particularly exceptional month for post-pandemic tourism, as the city welcomed 1.78 million international visitors, an 11% increase over pre-pandemic visitation.

UAE Foodservice Industry Segments

The foodservice or catering sector comprises enterprises, institutions, and corporations that provide meals and snacks for immediate consumption on-site. The market studied is segmented by type and structure. Based on type, the market studied is segmented into full-service restaurants, quick service restaurants (QSR), cafe/bars, 100% home delivery/takeaway, and street stalls/kiosks. Based on structure, the market studied is segmented into independent consumer foodservice and chained consumer foodservice. For each segment, the market sizing and forecasts have been done on the basis of value in USD million.

Type
Full-service Restaurants
Quick-service Restaurants (QSR)
100% Home Delivery Restaurants
Cafes and bars
Street Stalls/Kiosks
Structure
Independent Consumer Foodservice
Chained Consumer Foodservice

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UAE Foodservice Market Trends

This section covers the major market trends shaping the UAE Foodservice Market according to our research experts:

Increasing Preference for International Cuisines

According to an independent survey of respondents performed in 2021, 88% of the UAE respondents were willing to try new cuisines and concepts. As a result, several multi-cuisine restaurants have sprouted across Emirates, including Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. According to the food importer and distributor "Truebell," the demand for Asian cuisines has continued to grow in the United Arab Emirates, with cuisines, like Chinese, Japanese, and Thai being among the consistently favorite ones for consumers in the country.

According to the UAE Government Portal, approximately 200 nationalities worked and resided with their families in the United Arab Emirates in the current year. According to the International Migrant Stock published by the Population Division of the UN Department of Economic and Social Affairs (DESA), the largest ethnic group in the United Arab Emirates is Indian expatriates, approximately 3.5 million people, accounting for roughly 30% of the population of the nation. About 15% of the diaspora resides in the Emirate of Abu Dhabi, with the remainder dispersed among the six Northern Emirates, including Dubai. Although the majority of the Indian residents are employed, 10% of the Indian population is made up of dependent family members. The most represented Indian state is Kerala, followed by Tamil Nadu and Andhra Pradesh. However, when combined, Indians from the Northern States make up a sizeable share of the Indian community in the United Arab Emirates.

The Middle Eastern country has also been witnessing an increase in demand for Chinese cuisine, shifting toward bowl-based dishes, including rice and noodle bowls with added meats and seafood. Hence, traditional Chinese cuisines and cooking traditions are emerging as significant cuisine types. Due to the United Arab Emirates rising importance as a tourist destination, multinational foodservice chains and local operators are searching for ways to develop and expand their presence across the country.

UAE Foodservice Market: Population, in %, United Arab Emirates, 2021

Full-Service Restaurants Hold a Prominent Share

The United Arab Emirates is experiencing a growing luxurious, refined dining culture as tourists are highly interested in experiencing the luxurious dine-in culture. In addition, tourism guides in the country also promote the fine dining experience in their tourism packages, boosting the demand for full-service restaurants. 

The full-service restaurants offer several delicacies and maintain the decorum and standardization of the specific establishments. In the United Arab Emirates, the full-service restaurant segment is highly fragmented, owing to the presence of a great number of small and major players. Furthermore, the rising disposable income of the ex-pat population and the growing influence of western culture among the locals have increased the demand for ethnic food in the country. Thus, people are inclined toward dining in ethnic restaurants to experience ambiance and food.

UAE Foodservice Market: Foodservice Sales, by Type, in %, United Arab Emirates, 2021

UAE Foodservice Market Competitor Analysis

The United Arab Emirates foodservice market is highly fragmented, which comprises a large number of regional and international players, such as Yum Brands and McDonald's, among other local players. Some US-based fast-food chains continue to dominate the fast-food restaurant sector in the country, with the presence of major food chains, such as KFC, McDonald's, Pizza Hut, Burger King, Hardee's, and Domino's Pizza. Additionally, there is stiff competition among the foodservice providers based on pricing, quality of foodservice, calorie intake per meal, and healthier menu options. International restaurants, such as McDonald's, Starbucks Corporation, and Subway, have been continuously expanding through franchises or joint ventures with local foodservice companies. Product innovation, expansion, mergers/acquisitions, and partnerships are key strategies adopted by the key players in the market studied.

UAE Foodservice Market Top Players

  1. YUM! Brands Inc.

  2. Starbucks

  3. Domino's

  4. McDonald's

  5. Restaurant Brands International

*Disclaimer: Major Players sorted in no particular order

UAE Foodservice Market Concentration

UAE Foodservice Market Recent Developments

  • November 2022: Following a two-year creative partnership, Starbucks, a leading roaster and retailer of specialty coffee, unveiled a new look for its EMEA ready-to-drink portfolio in conjunction with global brand transformation company Landor & Fitch.
  • June 2022: In Dubai's Mall of the Emirates, EATX opened its first coffee shop under its Encounter Coffee Roasters brand, simply known as Encounter Coffee. Encounter Coffee Roasters, which was established in 2016 by Bull & Roo before changing its name to EATX Hospitality in 2021, provides coffee to the seven artisan food & beverage operators in the group, including the food and coffee café Tom & Serg, the coffee roastery and bakery The Sum of Us, the specialty coffee shop Common Grounds, and the restaurant chain Harvest & Co.
  • September 2021: Subway announced the opening of its 125th Subway store in the United Arab Emirates. The new store was launched in Arjan in partnership with its master franchisee, Kamal Osman Jamjoom Group (KOJ Group). Responding to the rising consumer demand for more quick, convenient, better-for-you food options, the brand's footprint across the United Arab Emirates has been growing with the opening of Subway's new restaurant chains.

UAE Foodservice Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Buyers/Consumers

      2. 4.3.2 Bargaining Power of Suppliers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products and Services

      5. 4.3.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Full-service Restaurants

      2. 5.1.2 Quick-service Restaurants (QSR)

      3. 5.1.3 100% Home Delivery Restaurants

      4. 5.1.4 Cafes and bars

      5. 5.1.5 Street Stalls/Kiosks

    2. 5.2 Structure

      1. 5.2.1 Independent Consumer Foodservice

      2. 5.2.2 Chained Consumer Foodservice

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 McDonald's Corporation

      2. 6.3.2 Dominos Pizza Inc.

      3. 6.3.3 YUM! Brands Inc.

      4. 6.3.4 Restaurant Brands International Inc.

      5. 6.3.5 Apparel Group

      6. 6.3.6 Rmal Hospitality

      7. 6.3.7 Bin Hendi Group

      8. 6.3.8 Americana Group Inc.

      9. 6.3.9 Starbucks Corporation

      10. 6.3.10 Krispy Kreme Doughnuts

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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UAE Foodservice Market Research FAQs

The United Arab Emirates Foodservice Market is studied from 2018 - 2028.

The United Arab Emirates Foodservice Market is growing at a CAGR of 7.02% over the next 5 years.

The United Arab Emirates Foodservice Market is valued at 6 Billion USD in 2018.

YUM! Brands Inc., Starbucks, Domino's, McDonald's, Restaurant Brands International are the major companies operating in United Arab Emirates Foodservice Market.

United Arab Emirates Foodservice Industry Reports

In-depth industry statistics and market share insights of the United Arab Emirates Foodservice sector for 2020, 2021, and 2022. The United Arab Emirates Foodservice research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the United Arab Emirates Foodservice report PDF.

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