Saudi Arabia Foodservice Market Trends, Industry [2031]

Segments - Saudi Arabia Foodservice Market by Types (Fast Food Restaurants, Full-service Restaurants, Catering/Institutional Food Sector, and Cafes), Structures (Independent Consumer Foodservice and Chained Consumer Foodservice), and Country Forecasts, 2023-2031

Author : Debadatta Patel

Fact-checked by : PARTHA PAUL

Editor : Shruti Bhat

Report Description

The Saudi Arabia foodservice market was valued at USD 26.38 Billion in 2022 and is anticipated to reach USD 48.91 Billion by 2031, expanding at a CAGR of 7.1% during the forecast period, 2023–2031. Foodservice refers to services provided by the institutions or businesses that prepare meals for other enterprises and foundations such as schools, offices, and events among others.

Over the years, the foodservice industry has evolved to offer a range of proper cooking infrastructure and environment wherein the food service is prepared in a safe, hygienic, and healthy method. The kitchen of the foodservice establishment is where the food is prepared by the cooks based on the requirement of the customers.

Saudi Arabia Food Service Market Outlook

A well-equipped kitchen is the one, which is provided with the right utensils, cooking tools, measuring ingredients, and food ingredients. Most foodservice joints and businesses have a basic characteristic infrastructure and establishment such as a restaurant, fast food chain, cafe, and others.

The COVID-19 had negatively impacted the market due to the nationwide lockdown, which resulted in the closure of many restaurants and diners in the country. However, the strong presence of the millennial population in the country is a key factor likely to upsurge in the demand for outside-home foods in the long run.

Market Trends, Drivers, Restraints, and Opportunities

Rising purchasing power of a large number of the consumers in Saudi Arabia owing to the increase in employment opportunities are driving the market growth.
Penetration of the Internet in the country has resulted in the vast promotion of online food delivery services. This is further expected to boost the market growth during the forecast period.
Increasing urbanization that impacted to rise in the number of restaurants and cafes along with rapid expansion of the tourism industry in the country are pushing the surge in demand for foodservices instead of home-made food. This is projected to boost the market in the coming years.
Rising number of health-conscious population, rising rate of obesity, and the threat of contamination about food prepared outside the home are major challenges that can hamper the market growth.
Adoption of casual western-style dining along with the inclusion of American and European cuisines in restaurants are expected to provide lucrative growth opportunities of the market.

Scope of the Report

The report on the Saudi Arabia foodservice market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Attributes	Details
Report Title	Foodservice Market - Saudi Arabia Industry Analysis, Growth, Share, Size, Trends, and Forecast
Base Year	2022
Historic Data	2016–2021
Forecast Period	2023–2031
Segmentation	Types (Fast Food Restaurants, Full-service Restaurants, Catering/Institutional Food Sector, and Cafes), Structures (Independent Consumer Foodservice and Chained Consumer Foodservice)
Country	Saudi Arabia
Report Coverage	Market scope, analysis, share, competitive analysis, Divers, restraints, opportunities, and revenue forecast
Key Players Covered in the Report	Herfy Food Services Co.; Albaik; Domino’s Pizza Inc.; McDonalds Corporation; and Yum! Brands Inc.

Saudi Arabia Foodservice Market Segment Insights

High competition and rising demand drive the full-service restaurant segment

Based on types, the Saudi Arabia foodservice market is segmented into fast food restaurants, full services restaurants, catering/institutional food sector, and cafes. The full-service restaurants segment accounts is projected to expand at a robust CAGR during the forecast period.

Full-service restaurants in Saudi Arabia operate on a primary and individual basis according to the food ordered by the customers. The restaurants in the country have extensive menu and comprehensive variety of food choices for the customers both domestic and intercontinental cuisine.

Additionally, the rise in tourism positively impacts the growth of the full-service restaurants, which is further influenced by busy lifestyle of the people and the rise in millennial population who prefer to eat fast food. Penetration of smartphones and the internet boosts the online food delivery services, which is further expected to accelerate the growth of fast-food joints of restaurants.

New trends introduced by fast food restaurants such as combo meals, high discount offers, and easy payment services for food order from fast food restaurants present key aspects of the market. The adoption of American culture and cuisine in Saudi Arabia resulted in the emergence of many America-based fast-food restaurants such as McDonalds, KFC, Burger King, among others. Rising competition among full-service restaurants and the adoption of western dining culture present key drivers of the segment growth.

Independent consumer foodservice segment holds a significant market share

On the basis of structures, the market is bifurcated into independent consumer food service and chained consumer foodservices. The independent consumer foodservice is expected to expand at a substantial CAGR during the forecast period owing to the availability of extensive range of food items and variety of taste choices for consumers.

Even though independent consumer foodservice institutions are expensive, the growth of this segment is influenced by the rising purchasing power of customers and increasing demand for this segment. The hospitality service, premium food quality, comprehensive menu are some vital factors that positively impact the segment growth. In Saudi Arabia, the restaurants that operate independently primarily focus on serving authentic and cultural food items that attract consumers especially the tourists.

Segments

By Types

Fast Food Restaurants
Full-service Restaurants
Catering/Institutional Food Sector
Cafes

By Structures

Independent Consumer Foodservice
Chained Consumer Foodservice

By country

Saudi Arabia

By Key Players

Herfy Food Services Co
Albaik
Domino’s Pizza Inc
Yum! Brands Inc.
McDonalds Corporation

Competitive Landscape

Key players in the Saudi Arabia foodservice market are Herfy Food Services Co.; Albaik; Domino’s Pizza Inc.; McDonalds Corporation; and Yum! Brands Inc. These players are widely engaged in various business development strategies including mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence and expand their consumer base globally.

According to a global report, Saudi Arabia ranks the third position in smartphone and internet penetration, which has accelerated the growth of the online food delivery service.

Saudi Arabia foodservice market Key Players

Table Of Content

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Foodservice Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Foodservice Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Foodservice Market - Supply Chain
  4.5. Global Foodservice Market Forecast
     4.5.1. Foodservice Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Foodservice Market Size (000â€™ Units) and Y-o-Y Growth
     4.5.3. Foodservice Market Absolute $ Opportunity
5. Global Foodservice Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. Foodservice Market Size and Volume Forecast by Types
     5.3.1. Fast Food Restaurants
     5.3.2. Full-service Restaurants
     5.3.3. Catering/Institutional Food Sector
     5.3.4. Cafes
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Foodservice Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. Foodservice Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global Foodservice Demand Share Forecast, 2019-2026
7. North America Foodservice Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America Foodservice Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America Foodservice Market Size and Volume Forecast by Types
     7.4.1. Fast Food Restaurants
     7.4.2. Full-service Restaurants
     7.4.3. Catering/Institutional Food Sector
     7.4.4. Cafes
  7.5. Basis Point Share (BPS) Analysis by Types
  7.6. Y-o-Y Growth Projections by Types
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America Foodservice Demand Share Forecast, 2019-2026
8. Latin America Foodservice Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America Foodservice Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America Foodservice Market Size and Volume Forecast by Types
     8.4.1. Fast Food Restaurants
     8.4.2. Full-service Restaurants
     8.4.3. Catering/Institutional Food Sector
     8.4.4. Cafes
  8.5. Basis Point Share (BPS) Analysis by Types
  8.6. Y-o-Y Growth Projections by Types
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America Foodservice Demand Share Forecast, 2019-2026
9. Europe Foodservice Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Europe Average Pricing Analysis
  9.2. Europe Foodservice Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe Foodservice Market Size and Volume Forecast by Types
     9.4.1. Fast Food Restaurants
     9.4.2. Full-service Restaurants
     9.4.3. Catering/Institutional Food Sector
     9.4.4. Cafes
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe Foodservice Demand Share Forecast, 2019-2026
10. Asia Pacific Foodservice Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific Foodservice Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific Foodservice Market Size and Volume Forecast by Types
     10.4.1. Fast Food Restaurants
     10.4.2. Full-service Restaurants
     10.4.3. Catering/Institutional Food Sector
     10.4.4. Cafes
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific Foodservice Demand Share Forecast, 2019-2026
11. Middle East & Africa Foodservice Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa Foodservice Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa Foodservice Market Size and Volume Forecast by Types
     11.4.1. Fast Food Restaurants
     11.4.2. Full-service Restaurants
     11.4.3. Catering/Institutional Food Sector
     11.4.4. Cafes
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa Foodservice Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global Foodservice Market: Market Share Analysis
  12.2. Foodservice Distributors and Customers
  12.3. Foodservice Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. Herfy Food Services Co
     12.4.2. Albaik
     12.4.3. Domino’s Pizza Inc
     12.4.4. McDonalds Corporation
     12.4.5. Yum! Brands Inc