Saudi Arabia Food Service Market Size, Share, Trends, Analyzing, Growth, 2032
Market Overview:
The Saudi Arabia food service market size was valued at USD 29.16 billion in 2023 and is projected to grow from USD 31.69 billion in 2024 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 as the demand for home delivery services is rising each year across the country. Consumers across Saudi Arabia 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. Saudi Arabia is also witnessing a strong rise in the trend of opening food outlets in shopping malls. These factors will boost the Saudi Arabia food service market growth.
Fortune Business Insights™ displays this information in a report titled, "Saudi Arabia Food Service Market, 2024-2032."
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.)
Source: https://www.fortunebusinessinsights.com/saudi-arabia-food-service-market-106896
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.
Commercial Food Services to Increase Considerably Due to Their Growing Network
By service type, the market is segmented into commercial and institutional. The commercial food service segment is anticipated to lead the market growth as more customers are visiting restaurants and cafes to dine out, which can prompt restaurant owners to expand their business operations.
Report Coverage:
The research report offers valuable insights into the market along with a detailed analysis of the market share, size, segmentation, and growth rate for all possible segments in the market. It also provides an in-depth analysis of the industry. It delivers vital insights, an overview of market dynamics, related markets, recent industry developments, such as mergers & acquisitions, SWOT analysis, leading market trends, regulatory scenario in key countries, and the competitive landscape of the market.
Drivers and Restraints:
International Brands to Expand Their Operations Across Saudi Arabia
Several internationally acclaimed restaurants and hotel chains have established their base in Saudi Arabia. Some of these include The Cheesecake Factory, Cipriani, and Hakkasan. Moreover, a rising number of well-renowned chefs in Saudi Arabia are opening their restaurants in the country, further boosting the market growth. However, negative aspects associated with online food deliveries might slump the 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 are responsible for the market’s growth.
Competitive Landscape:
Rising Tourism Sector to Prompt Top Market Players to Set Up Base in Saudi Arabia
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.
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. Pizza Inn currently operates 110 restaurants in the U.S. and 19 in international markets. In the upcoming decade, Blessings Basket Company is planning to launch 50 more restaurants in the Kingdom of Saudi Arabia.