United Arab Emirates Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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 forecast for the United Arab Emirates Foodservice Market in value (USD million) for all the above segments.

Market Snapshot

United Arab Emirates Foodservice Market Forecast
Study Period: 2016 -2027
Base Year: 2021
CAGR: 6.8 %

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Market Overview

The UAE foodservice market is forecasted to register a CAGR of 6.8% during the forecast period (2022 - 2027).

COVID-19 drastically impacted all categories of consumer foodservice in the United Arab Emirates in 2020. This was primarily due to the effects of national lockdown restrictions, which meant that businesses in this industry had to close their doors to eat-in customers for long periods to prevent crowds of people from gathering in consumer foodservice outlets. Independent foodservice operators were more vulnerable to the effects of the COVID-19 crisis in 2020 than their chained counterparts as they lacked the robust support systems that chained players in consumer foodservice have. Without global or national strategies to follow, independent foodservice operators found it more difficult to adapt quickly to the COVID-19 pandemic, especially the many operators who did not have an online presence going into the pandemic in 2020.

High disposable income, rising tourist arrivals, increasing urban lifestyles, and evolving consumer preferences have propelled the growth of the country's foodservice market. The lack of recreational opportunities in the country is creating a growth opportunity in the foodservice sector, as the 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 the customers, thus boosting their spending on food away from home.

Scope of the Report

Foodservice is a fundamental part of the Emirati lifestyle, with consumers regularly eating out or visiting a cafe to gather with family and friends. The market studied is segmented by type and structure. Based on type, the market studied is segmented into foodservice outlets and catering, and the institutional food sector, wherein foodservice outlets are sub-segmented into full-service restaurants, Quick Service Restaurants (QSR), café/bars, 100% home delivery/takeaway, self-service cafeterias, and street stalls/kiosks. Based on structure, the market studied is segmented into independent consumer foodservice and chained consumer foodservice. The report offers market size and forecast for the United Arab Emirates (UAE) Foodservice Market in value (USD million) for all the above segments.

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

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Key Market Trends

Increasing Preference For International Cuisines

According to an independent survey of respondents performed in 2021, 88% of the United Arab Emirates (UAE) respondents were willing to try new cuisines and concepts. As a result, several multicuisine restaurants have sprouted across Emirates, including Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al Quawin, Ras Al Khaimah, and Fujairah. According to the food importer and distributor "Truebell," the demand for Asian cuisine has continued to grow in the United Arab Emirates, with cuisines, like Chinese, Japanese, and Thai being among the consistently favorite ones for the consumers in the country. 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 a significant cuisine types. Because of the United Arab Emirates' rising importance as a tourist destination, multinational foodservice chains and local operators have been continuously looking for ways to develop and expand their presence across the country and capture a significantly as long as the tourism industry flourishes in the country.

United Arab Emirates Foodservice Market Growth

Full-Service Restaurant Hold a Prominent Share

The United Arab Emirates is experiencing a growing luxurious fine dining culture as a tourist in the country 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. For instance, restaurants like Aseelah, Al Fanar Restaurant, Seven Sands, and Zaman Awal are examples of some of the restaurants offering fine dining authentic Emirate cuisine, which are also listed in the Forbes Dubai travel guide in 2019. Furthermore, owing to the rising disposable income of the expat 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.

United Arab Emirates Foodservice Market Analysis

Competitive Landscape

The United Arab Emirates (UAE) 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 of the US 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 some key strategies adopted by the key players operating in the market studied. For instance, in 2020, Subway launched a range of meat-alternative sandwiches across the United Arab Emirates (UAE) outlets.

Recent Development

  • In September 2021, Subway made a new master franchise agreement in the United Arab Emirates with development partner Kamal Osman Jamjoom Group (KOJ), marking the start of a new chapter for Subway in the United Arab Emirates as it seeks to expand its footprint and remain competitive among other QSRs in the market.
  • In August 2021, McDonald's UAE signed a partnership with AL Dhafra Sports and Cultural Club to open the latest restaurant in Abu Dhabi. The new restaurant will include McCafe, in addition to offering a Drive-Thru Service and Self-Ordering Kiosks facilities.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions & 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 By 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 By Structure

      1. 5.2.1 Independent Consumer Foodservice

      2. 5.2.2 Chained Consumer Foodservice

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 McDonald's Corporation

      2. 6.4.2 Dominos Pizza Inc.

      3. 6.4.3 YUM! Brands Inc.

      4. 6.4.4 Restaurant Brands International Inc.

      5. 6.4.5 Apparel Group

      6. 6.4.6 Rmal Hospitality

      7. 6.4.7 Bin Hendi Group

      8. 6.4.8 Americana Group Inc.

      9. 6.4.9 Starbucks Corporation

      10. 6.4.10 Krispy Kreme Doughnuts

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

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The United Arab Emirates Foodservice Market market is studied from 2016 - 2027.

The United Arab Emirates Foodservice Market is growing at a CAGR of 6.8% over the next 5 years.

The United Arab Emirates Foodservice Market is valued at 6 Billion USD in 2016.

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

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