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