Saudi Arabian foodservice market size valued at US$29.16B in 2023, says Fortune Business Insights; market is projected to grow from US$31.69B in 2024 to US$61.77B by 2032, exhibiting a CAGR of 8.7% during the forecast period

April 26, 2024 (press release) –

The Saudi Arabia food service market size was valued at USD 29.16 billion in 2023. The market 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.

Fortune Business Insights™ presents this information in its report titled, “Saudi Arabia Food Service Market Size, Share & Industry Analysis, By Type (Full Service Restaurants, Quick Service Restaurants, Institutes, and Others), By Service Type (Dine-In, Takeaway, and Delivery), By Restaurant Type (Chained and Independent), By Cuisine Type (Western Cuisine, Middle Eastern Cuisine, Asian Cuisine, and Others) and Country Forecast, 2024-2032”.

Businesses which make and distribute food to their customers through on-premise, delivery, or takeaway comes under the food service industry. The growing convenience, number of working women, and the surging household incomes contribute to the food service market expansion. The rising demand for home delivery services in the country and the growing consumption of takeaway foods drive the market growth. In addition, the Saudi Arabian market has also been driven by the rapid expansion of the number of food and shopping malls in the country over the past few years.

The COVID-19 pandemic had a negative impact on the market expansion. The disruptions in farm production, service, transport & logistics, food processing, and consumer demand during the pandemic hindered the growth of the market. The increased challenges in the transport & logistics industry due to the pandemic further impact the movements of the products.

Real Business Company Fast Food Acquired Asyaf Private Equity Fund to Expand its Presence in Saudi Arabia

In September 2023, Real Business Company Fast Food acquired Asyaf Private Equity Fund from Asyaf Investments Company. Via this acquisition, the Real Business Company Fast Food plans to expand its business and presence in the Saudi Arabian food service industry.

Growing Expansion of International Restaurants in Saudi Arabia Propels Market Growth

The growing expansion of several international restaurants and dining chains, such as The Cheesecake Factory, Cipriani, and Hakkasan, drives the Saudi Arabia food service market growth. The entry of many popular restaurants and dining hotels in the Saudi Arabian is marked by introducing their branches across the country, specifically in Riyadh and Jeddah. The increasing focus of several famous Chefs in Saudi Arabia on launching their own restaurants due to the rising penetration of international and local restaurants in the country’s food service industry drives market expansion.

However, the negative aspects, such as the low quality of the food delivered than that of a restaurant, in the online food delivery trend, may hamper market expansion.

Growing Key Players’ Focus on Investment in Saudi Arabia Propels Market Growth

In terms of the competitive landscape, the Saudi Arabia food service market consists of key players, including Nestle and others. The increasing focus of these players on investing in the country to propel market expansion. For instance, in 2022, Nestle announced its plans to invest USD 1.86 billion in Saudi Arabia and the primary investment of USD 100 million will start with the launch of a manufacturing plant in 2025.

Notable Industry Development

• January 2024: Blessings Basket Company and Rave Restaurant Group signed a franchise agreement via its subsidiary Pizza Inn to expand its presence in Saudi Arabia. Pizza Inn will open 50 new restaurants in the country through this partnership, starting with two stores in January 2024. Currently, Pizza Inn operates 110 restaurants in the U.S. and 19 across the international markets.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/press-release/saudi-arabia-food-service-market-10933

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 Saudi Arabia food service market share is growing in the country due to the increasing fast food consumption and rising working women percentage, disposable incomes, and convenience provided by the fast food business in the country. The increased availability of affordable fast-food restaurants raised the frequency of dining out, especially among the working-class population.
• The full service type segment held the largest part in the market share. The growth is attributed to the increasing number of full service restaurants as family outings become more frequent in the country.
• The Western cuisine type segment dominates the market owing to the rapid expansion of fast food chains offering pizza, burgers, and sandwiches in the country.
• The growing number of tourists visiting the restaurants that do not opt for the online food delivery and takeaway option their hotels drive the dine-in segment’s growth.

The independent restaurant type segment holds over 60% of the total the market in Saudi Arabia due to the presence of food services, such as Western cuisine fine-ding restaurants, high-end sandwich outlets, food trucks, and Turkish fine-dining restaurants.

Table of Segmentation

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