Saudi Arabia Food Service Market – Global Industry Size, Share, Trends

According to TechSci Research report, Saudi Arabia Food Service Market – Industry Size, Share, Trends, Competition, Opportunities and Forecast, 2018-2028F” The Saudi Arabia food service market is expected to grow during the forecast period owing to the factors such as growing trend for dining outside home, rising purchasing power, surging working population and rising innovation in the food service.

Similar to many other nations, going to cafes and coffee shops or eating at quick service and fast-food establishments has become a popular way to socialize with friends in Saudi Arabia as well. Owing to the large number of millennials, the expanding tourism sector, and the widespread acceptance of various cuisines, the dining-service restaurant segment holds the significant share of the market.

Numerous opportunities exist for the development of Saudi Arabia’s food service sector due to the country’s rapidly changing demographics. Saudi Arabia has the largest domestic market in the GCC as of 2022, with a population that is close to 36 million. The relatively young age demographic, with 53% of the population between the ages of 15 and 44, is more significant than the population’s overall size. This age group is more likely to spend money in the food and beverage industry and is more aware of the shifting consumer trends happening around the world.

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The Saudi Arabian food services market is divided into four categories based on type: QSRs (Quick Service Restaurants), dining services, cafés, and others (canteens, lounges, etc.). In the Saudi Arabian food service market in 2020, QSRs (Quick Service Restaurants) held the largest market share, followed by cafés. Chained consumer food services are expanding quickly as a result of the rising popularity of fast food and casual dining. Saudi Arabia is home to an increasing number of cafés, many of which are branded with familiar international names such as Applebee’s, Outback Steakhouse, Chili’s, etc. Additionally, the international chains have adopted the strategy of localization and customization through clever menu changes.

Leading market players operating in the Saudi Arabia food service market are:

  • Olayan Food Services Co. (OFS)
  • Alamar Foods Company
  • Riyadh International Catering Corporation
  • Kudu Company for Food and Catering
  • ELBAIK Food Systems Company S.A.
  • Herfy Food Services Co. JSC
  • Al -Ahlia Restaurant Co.
  • Mawarid Food Company Ltd.
  • Shawaya House Restaurants Company
  • Tanmiah Food Company

To maintain sustainable growth in the market, major players are concentrating on diversifying their portfolio of food products. A new investor still has a lot of room to grow in this market because it’s influenced favorably by three main things: more disposable income, exposure to the outside world, a dearth of entertainment options, and the growing number of malls in the nation. Moreover, the international chains have adopted the strategy of localization and customization through clever menu changes. For instance, the McArabia Grilled Chicken Sandwich from McDonald’s is an illustration of this. Similar to this, in November 2021, Domino’s introduced a new side dish called Domino’s Oven-Baked Dips to go with their bread twists. These dips come in three distinct flavors such as Cheesy Marinara, Five Cheese, and Baked Apple.

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The Saudi Arabian food service market is divided into five distinct geographic segments: Western, Central, Eastern, Southern, and Northern regions. Owing to the region’s high population density, expanding industrialization, and growing number of eateries, the Western region has the largest market for food service. Furthermore, due to the presence of sizable urban agglomerations that fuel an increase in demand for food services, states in the region such as Al-Jouf, Tabuk, Jeddah, Medina, and Mecca exhibit tremendous growth potential. Moreover, the growing demand for food services in the nation is being fueled by better lifestyles, rising purchasing power, and rising per capita income in the region.

Owing to Saudi Arabia’s growing urbanization, rising tourism numbers each year, and propensity for purchasing international brands, the food service industry is predicted to expand quickly. Other factors contributing to the growth of the nation’s food service market include the rising number of working women, shifting consumer preferences for high-end product quality, and international brand expansion. Being targeted consumer segments for the major players in the market, working-class and dual-income families are also likely to contribute to market growth,” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

Saudi Arabia Food Service Market Size By Type (Dining Service (Hotels, Restaurants), QSR (Quick Service Restaurants), Cafes, and Others (Cafeteria, Cloud Kitchen, etc.)), By Ownership (Standalone Outlets and Chained Outlets), By Domestic Vs. International Brands (Domestic Vs. International), By Region, Competition Forecast & Opportunities, 2028” has analyzed the future growth potential of Saudi Arabia food service market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and assist decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with significant drivers, challenges, and opportunities in Saudi Arabia food service market.

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