Report Overview

Saudi Arabia Food Service Market - Industry Trends & Forecast Report, 2030

Saudi Arabia Food Service Market size was estimated to be worth USD 26.8 billion in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Food Service Market size is projected to grow at a CAGR of 9%, reaching a value of USD 42.7 billion by 2030. Major growth factors for Saudi Arabia Food Service Market include rapid urbanization in metropolitan cities and an increasing number of restaurants, cafes, and takeaway establishments. The flourishing tourism sector, along with rising demand for convenience foods and the integration of technologies, such as online food delivery platforms and digital payment methods, are projected to drive Saudi Arabia Food Service Market during the forecast period in analysis.

Food Service – Overview

Food service is the preparation, handling, packaging, and distribution of food, beverages, and related services by an establishment. It includes everything from kitchen management, menu planning, staff coordination, customer interactions, and feedback handling. In the food service industry, there are many different types of establishments, including restaurants, cafes, bars, cafeterias, catering companies, and institutional food providers. From upscale restaurants to quick and easy fast-food places, each type offers a unique experience. These establishments may be non-profit or may make the majority of their profits from services other than their food service facilities.

Saudi Arabia Food Service Market

Growth Drivers

Growing Consumer Demand for Dining Out and Delivery

The growing preference for dining out and food delivery services is emerging as a major growth factor for Saudi Arabia Food Service Market. The rapid urbanization and increasing younger population are resulting in a consumer shift towards convenience, experience, and variety. The Millennials and Gen Z population are significantly spending on gaining new experiences, like dining out, exploring new cuisines, and using food delivery apps. In addition, the growing use of mobile apps and technology platforms, along with the rising influence of social media, has resulted in increased use of food delivery services. Brands are also capitalizing on this demand by diversifying their offerings and focusing on health-conscious and on-the-go options to cater to evolving tastes and preferences, contributing to the sector's growth.

Challenges

High Operational Costs

The food service operators face significant challenges in the form of high operational costs, which act as a major barrier to Saudi Arabia Food Service Market growth. The high operational cost can be attributed to many different factors, including increasing food prices, rising labor costs, and high rent expenses. Saudi Arabia is reliant on food imports for its domestic consumption due to a lack of sufficient arable land and harsh weather conditions. Therefore, fluctuations in the international food supply chain directly influence the cost of commodity prices in the Kingdom. Rent for commercial spaces in prime locations can also be prohibitive, especially with the expansion of malls, restaurants, and entertainment venues. These factors can impact the profit margin of food service operators, limiting the growth of the Food Service Market in Saudi Arabia as well.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Food Service Market

The escalating geopolitical tensions impact several different aspects of Saudi Arabia Food Service Market, including supply chain and consumer behavior. The disruption in the supply chain due to geopolitical tensions affects the local and global supply of food in the Kingdom. Saudi Arabia is heavily reliant on imported food, as it is one of the world’s largest food importers. Any disruption in trade routes or tensions with key trade partners can lead to a shortage of essential supplies and increased costs. The inflation in the cost of food ingredients could result in increased operational costs for food service providers. Consumers may face higher prices, which could reduce demand for certain food items, particularly in price-sensitive segments of the market.

Saudi Arabia Food Service Market

Segmental Coverage

Saudi Arabia Food Service Market – By Type of Food Service

Based on type of food service, Saudi Arabia Food Service Market is segmented into quick-service restaurants (QSRs), full-service restaurants (FSRs), cafés & coffee shops, street stalls & kiosks, and catering services. The FSRs segment holds the largest share of Saudi Arabia Food Service Market. FSRs provide a complete dining experience to their customers and offer a good range of dishes, which makes them suitable for different occasions, such as social gatherings or business meetings. The QSRs segment is also growing at a high rate owing to the busy lifestyles of consumers and the growing demand for fast and convenient meals.

Saudi Arabia Food Service Market – By Delivery Model

On the basis of delivery model, Saudi Arabia Food Service Market is segmented into independent and chained. The independent food service segment accounts for a larger market share. Independent food service establishments cater to the local cuisine and tastes of Saudi Arabia, which makes them popular among local customers. In addition, independent establishments offer diverse food menus and creative dishes, which makes every food joint stand out on its own and helps establish customer loyalty. The chained segment also covers substantial market share because of various factors, such as the high popularity of fast-food chains, such as Burger King, self-service kiosks, and enhanced customer convenience.

Saudi Arabia Food Service Market – By Service Type

By service type, Saudi Arabia Food Service Market is segmented into dine-in, takeaway, delivery, and drive-through. The dine-in segment dominates Saudi Arabia Food Service Market by service type. The presence of high-end restaurants that provide unique and luxurious experiences to their customers is in high demand in Saudi Arabia due to high disposable income. The delivery segment is projected to register a higher growth rate over the forecast period. Consumer preference drastically shifted towards online food delivery platforms post the COVID-19 pandemic. The emergence of cloud kitchens gained immense popularity, particularly among working adults, which is acting as a significant driver of Saudi Arabia Food Service Market.

Competitive Landscape

Saudi Arabia Food Service market is highly competitive, as a number of companies are competing to gain a significant market share. Key players in the market include Alamar Foods Company, ALBAIK Food Systems Company S.A., REZA Investment Company Ltd, Herfy Food Service Company, Americana Restaurants International PLC, M.H. Alshaya Co. WLL, United Group, Support Services Company Ltd, Saudi Catering & Contracting Company, and Lulu Group International. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2024 – Meituan, a shopping delivery app based in China, announced the launch of Keeta, its food delivery service app, in Saudi Arabia.

Scope of the Report

By Type of Food Service

• Quick Service Restaurants (QSRs)

• Full Service Restaurants (FSRs)

• Cafés and Coffee Shops

• Street Stalls and Kiosks

• Catering Services

By Delivery Model

• Independent

• Chained

By Service Type

• Dine-in

• Takeaway

• Delivery

• Drive-through

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Food Service Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Disposable Income
         2. Rapid Urbanization in Urban Centers like Riyadh and Jeddah
         3. Changing Consumer Preferences
      2. Restraints
         1. Stringent Food Safety and Hygiene Regulations
         2. Labor Shortages in Saudi Arabia
      3. Opportunities
         1. Expansion of International Brands
         2. Growth of Food Delivery Services
         3. Government Initiatives to Boost Tourism
      4. Challenges
         1. Rising Food and Labor Costs
         2. Adhering to Local Customs, Dietary Restrictions, and Religious Practices
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Food Service Market: Marketing Strategies
5. Saudi Arabia Food Service Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type of Food Service
         1. Quick Service Restaurants (QSRs)
         2. Full Service Restaurants (FSRs)
         3. Cafés & Coffee Shops
         4. Street Stalls & Kiosks
         5. Catering Services
      2. By Delivery Model
         1. Independent
         2. Chained
      3. By Service Type
         1. Dine-in
         2. Takeaway
         3. Delivery
         4. Drive-through
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Food Service Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operation Channel Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Escalating Geopolitical Tensions on Saudi Arabia Food Service Market
8. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Alamar Foods Company
   2. ALBAIK Food Systems Company S.A
   3. REZA Investment Company Ltd
   4. Herfy Food Service Company
   5. Americana Restaurants International PLC
   6. M.H. Alshaya Co. WLL
   7. United Group
   8. Support Services Company Ltd
   9. Saudi Catering & Contracting Company
   10. Lulu group international
   11. Other Prominent Players
9. Key Strategic Recommendations
10. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1       Saudi Arabia Food Service Market Segmentation             

Figure 2       Saudi Arabia Food Service Market Value Chain Analysis    

Figure 3       Company Market Share Analysis, 2023                                               

Figure 4       Saudi Arabia Food Service Market Size, By Value (USD Billion), 2019–2030

Figure 5       Saudi Arabia Food Service Market Share, By Type of Food Service, By Value (USD Billion) 2019–2030

Figure 6       Saudi Arabia Food Service Market Share, By Delivery Model, By Value (USD Billion) 2019–2030

Figure 7       Saudi Arabia Food Service Market Share, By Service Type, By Value (USD Billion) 2019–2030

List of Tables   

Table 1        Saudi Arabia Food Service Market Size, By Value (USD Billion), 2019–2030

Table 2        Saudi Arabia Food Service Market Share, By Type of Food Service, By Value (USD Billion) 2019–2030

Table 3        Saudi Arabia Food Service Market Share, By Delivery Model, By Value (USD Billion) 2019–2030

Table 4        Saudi Arabia Food Service Market Share, By Service Type, By Value (USD Billion) 2019–2030

Table 5        Alamar Foods Company: Company Overview

Table 6        Alamar Foods Company Financial Overview

Table 7        ALBAIK Food Systems Company S.A Company Overview

Table 8        ALBAIK Food Systems Company S.A Financial Overview

Table 9        REZA Investment Company Ltd Company Overview

Table 10      REZA Investment Company Ltd Financial Overview

Table 11      Herfy Food Service Company Company Overview

Table 12      Herfy Food Service Company Financial Overview

Table 13      Americana Restaurants International PLC Company Overview

Table 14      Americana Restaurants International PLC Financial Overview

Table 15      M.H. Alshaya Co. WLL Company Overview

Table 16      M.H. Alshaya Co. WLL Financial Overview

Table 17      United Group Company Overview

Table 18      United Group Financial Overview

Table 19      Support Services Company Ltd Company Overview

Table 20      Support Services Company Ltd Financial Overview

Table 21      Saudi Catering & Contracting Company: Company Overview

Table 22      Saudi Catering & Contracting Company Financial Overview

Table 23      Lulu Group International Company Overview

Table 24      Lulu Group International Financial Overview