Saudi Arabian foodservice market reached US$14.16B in 2022 and is predicted to reach US$16.02B in 2023, according to Fortune Business Insights; market anticipated to hit US$34.04B by 2030, recording a CAGR of 11.4% during 2023-2030 period

August 28, 2023 (press release) –

The Saudi Arabia food service market size touched USD 14.16 billion in 2022 and is predicted to reach USD 16.02 billion in 2023. The market is anticipated to touch USD 34.04 billion by 2030, recording a CAGR of 11.37% over 2023-2030.

Fortune Business Insights™ presents this information in its latest report titled “Saudi Arabia Food Service Market Size, Share & COVID-19 Impact Analysis, By Type (Full Service Restaurants, Quick Service Restaurants, Institutes, Others), By Service Type (Commercial and Institutional), and Country Forecast, 2023-2030”.

Food services are gaining immense popularity across Saudi Arabia as customers across the country are increasing the demand for home delivery solutions. A growing percentage of customers are raising their preference for takeaway foods as they offer a lot of convenience and individuals can choose from a wide range of food items. These factors are expected to accelerate Saudi Arabia food service market growth.

Growing Demand for Food Services Accelerated Market Growth during COVID-19 Pandemic

The COVID-19 outbreak set forth many challenges at all stages of the food service supply chain in Saudi Arabia. The pandemic had a negative impact on food processing, farm production, transport & logistics, food service, and consumer demand. Many other factors, such as labor shortage, caused a significant decline in farm production. Some sectors of the farm industry rely more on seasonal labor than others – while fruits and vegetables require a large labor force, grains, and oilseeds need fewer farmers.

Russo’s inaugurated a New Outlet in Saudi Arabia to Expand Business Prospect

In December 2022, Russo’s New York Pizzeria & Italian Kitchen opened its new outlet in Saudi Arabia. The 2400 sq. ft. outlet is situated at Park Avenue Mall and offers an Italian menu that serves New York-style pizza and pasta. Its menu also included salad options, Italian soups, pasta, pizzas, calzones, and desserts. The company said that it will also serve Halal and gluten-free food.

Rise in Outdoor Dining Spending to Boost Market Growth

Customers across Saudi Arabia are witnessing a strong rise in their average disposable incomes as the concept of dual-income households has gained significant traction across the country. The government is also taking various initiatives to increase the number of dual-income households by rolling out policies that promote gender equality and equal opportunities for women at work. These factors have encouraged customers to dine outdoors more frequently, which will further boost the adoption of food services in Saudi Arabia.

Tourism Industry Grows in the Middle East, Attracting Companies to Set Up Base

This industry was severely affected by the COVID-19 pandemic in 2020. This made market players quite wary of entering the highly volatile market as they would risk making heavy losses. However, as the market slowed recovery from the aftermath of the pandemic, many leading companies operating in the market were also encouraged to expand their operations in various regions, such as the Middle East. This helped this industry grow at a steady rate. For example, in 2022, Nestle announced an investment of USD 1.86 billion in Saudi Arabia over the next 10 years. The company’s initial investment of USD 100 million will begin by setting up a production factor that is estimated to be operational by 2025. This will be followed by a regional center that has a research & development center and its first business incubator that will assist small and medium-sized companies and start-ups.

Notable Industry Development:

April 2022: Saudi Arabia’s restaurant-tech firm Foodics raised USD 170m in a Series C investment round led by Prosus and Sanabil Investments. This round was joined by Sequoia Capital India and some existing investors, including STV and Endeavor Catalyst.

List of the 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.)

Further Report Findings

• The food & beverage sector in Saudi Arabia is considered one of the biggest in the Middle East region. As per the data published by the Saudi Arabian General Authority for Investment (SAGIA) in 2021, the nation’s overall spending on food services is expected to increase by almost 6% every year over the next five years. This will be greater than the country’s population growth of 1.8%.
• The full service restaurant segment accounted for a leading market share as these restaurants have a vast availability of food items on their menus. Corporate meetings, families, and social gatherings usually prefer these restaurants as they have foods that suit every individual’s taste and preference.

Table of Segmentation

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