Saudi Arabia Food Service Market Size, Share, Growth Outlook & Challenges, 2032

Market Overview:
The Saudi Arabia food service market size was valued at USD 31.69 billion in 2024. The market is projected to grow from USD 34.45 billion in 2025 to USD 61.77 billion by 2032, exhibiting a CAGR of 8.70% during the forecast period.

The food service market in Saudi Arabia is growing at a rapid pace, driven by key Saudi Arabia food service market Trends. For instance, the demand for home delivery services is rising each year across the country, and consumers are also increasing their intake of takeaway foods. The number of food and shopping malls has grown tremendously across the country over the last few years, spreading from major hubs to tier 2 and tier 3 cities. Saudi Arabia is also witnessing a strong rise in the trend of opening food outlets in shopping malls. These factors, combined with rising household incomes and the convenience offered by fast food, will not only boost market growth but are also expected to impact the Saudi Arabia food service market share.

LIST OF KEY COMPANIES PROFILED IN THE REPORT

• Starbucks Corporation (U.S.)

• Yum! Brands, Inc. (U.S.)

• McDonald’s Corporation (U.S.)

• Restaurant Brands International Inc. (Canada)

• Domino’s Pizza, Inc. (U.S.)

• Papa John's International, Inc. (U.S.)

• ALBAIK Food Systems Company Ltd. (Saudi Arabia)

• Herfy Food Services Co. JSC, KSA. (Saudi Arabia)

• KUDU Company for Food and Catering (Saudi Arabia)

• Hardee’s Restaurants LLC (U.S.)

Segmentation:
Vast Variety in Menu to Increase Customers’ Preference for Full Service Restaurants
Based on type, the market is segmented into full service restaurants, quick-service restaurants, institutes, and others. The full service restaurant segment captured a dominant Saudi Arabia food service market share as families and corporate gatherings prefer these restaurants due to their vast variety in menu. The quick-service restaurant (QSR) segment holds the second-largest share and is expected to grow considerably, driven by the expansion of fast-food chains.

Dine-in Segment to Dominate Due to Tourist Footfall and Local Cuisine Appeal
By service type, the market is segmented into dine-in, takeaway, and delivery. The dine-in segment leads the market, largely driven by tourists who prefer visiting restaurants to experience local Turkish, Middle Eastern, and Asian cuisines. While dine-in is expected to maintain its dominance, the online food delivery segment is poised for significant growth due to urbanization and changing millennial lifestyles.

Source: https://www.fortunebusinessinsights.com/saudi-arabia-food-service-market-106896

Report Scope and Analysis
This report provides qualitative and quantitative insights into the market along with a detailed analysis of the market share, size, segmentation, and growth rate for all possible segments. It offers an elaborative analysis of the industry, including key insights, an overview of related markets, market dynamics, a SWOT analysis, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, leading market trends, and the competitive landscape.

Key Market Dynamics
The market's growth is primarily driven by the expansion of international brands into Saudi Arabia, with prominent restaurant and hotel chains like The Cheesecake Factory, Cipriani, and Hakkasan establishing operations. This is complemented by a rise in household income, an increasing number of working women spending on out-of-home foods, and the growing trend of veganism. However, potential challenges and negative perceptions associated with online food delivery services, such as lower food quality after transport and high delivery costs, may act as a restraint on market progress.

Country Insights:
The food & beverage sector in Saudi Arabia is the largest in the Middle East region. As per data published by the Saudi Arabian General Authority for Investment (SAGIA), the country’s average spending on food services is estimated to rise by 6% every year during the next 5 years. The demographic and social changes in the country, along with rising disposable incomes and a notable pace of growth in the tourism sector, are responsible for the market’s growth.

Competitive Landscape:
Growing Tourism Industry to Attract Companies to Expand Product Portfolios
The COVID-19 pandemic had a heavy impact on Saudi Arabia’s food service industry. This made companies wary of entering the market as there was a high risk of incurring losses. However, as the market recovered from the outbreak, these firms focused on expanding their business operations, which helped the food service industry grow. For instance, in 2022, Nestlé announced a USD 1.86 billion investment in the country over the next decade.

Notable Industry Development:

• January 2024: “Blessings Basket Company” has signed a franchise agreement with the “Rave Restaurant Group”, through its subsidiary “Pizza Inn”, to expand its presence in Saudi Arabia. Through this agreement, Pizza Inn will open 50 new restaurants in Saudi Arabia, starting with two stores in January 2024. In the upcoming decade, Blessings Basket Company is planning to launch 50 more restaurants in the Kingdom of Saudi Arabia.