The Saudi Arabia food service market size was valued at USD 12.57 billion in 2021 and is projected to reach a valuation of USD 14.16 billion in 2022. The market is expected to reach USD 30.47 billion by 2029 with a CAGR of 11.57% during the forecast period. Increasing adoption of western culture due to tourism and education activities is anticipated to drive market growth. Current spike in the number of food malls and food courts is expected to propel the market course. The shift towards international brands and the entry of major international food chains is projected to assist in market development. Fortune Business Insights™ shares this information in its report titled “Saudi Arabia Food Service Market, 2022-2029.”
List of Key Players Profiled in the Market Report
- Starbucks Corporation (U.S.)
- Yum! Brands, Inc. (U.S.)
- McDonald’s Corporation (U.S.)
- ALBAIK Food Systems Company Ltd. (Saudi Arabia)
- Restaurant Brands International Inc. (Canada)
- Domino’s Pizza, Inc. (U.S.)
- Herfy Food Services Co. JSC, KSA (Saudi Arabia)
- KUDU Company for Food and Catering (Saudi Arabia)
- Papa John’s International, Inc. (U.S.)
- Hardee’s Restaurants LLC (U.S.)
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Segmentation
Full Service Restaurants to Lead Owing to Increasing Number of Physical Restaurants
On the basis of type, the market is divided into full service restaurants, quick service restaurants, institutes, and others. Full service restaurants accounts for the largest part due to their quick services in the brick and mortar restaurants. It accounted for 41.64% in 2021. Fine dining and casual dining restaurants are the major contributors to this segment.
Commercial Segment to Dictate Due to Increasing Number of Salaried Professionals
Based on service type, the market is categorized into up to commercial and institutional service providers. Commercial food service provider is anticipated to dominate the market during the coming years due to growing number of salaries professionals in the household. The growth is attributed to increase in the frequency of families eating out. Easy convenience and availability of food services is expected to drive market growth for the segment.
Report Coverage
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market’s key players.
Drivers and Restraints
Increasing Number of Food Courts and Malls to Progress Market Growth
In recent years, shopping malls and food malls have been expanding in Saudi Arabia which is anticipated to drive Saudi Arabia food service market growth. Consumer need to have every amenity under one roof and also to have multi-brand outlets under one roof. The expansion of food malls possessed an opportunity for fast food chains of Quick Service Industry (QSR) industry which is estimated to market development. Growing expansion of international brands is expected to further propel market development. Over past few years, various casual dining chains in Saudi Arabia such as Cipriani, Cheesecake Factory, and Hakkasan.
However, high demand for online food delivery is expected to hamper the market growth. It also involves production of too much food which can create food waste.
Competitive Landscape
Partnership Strategies by Key Players to Advance Market Path
Partnership strategies by the market players are anticipated to improve market development. In January 2022, Halwani Bros. Co. invested around USD 53 million in Aquat Food Industries Co., sister company of Albaik Food Systems Co. By signing this agreement, the company targets to supply the locally-produced food products required to operate Albaik restaurants in Egypt. Some prominent players include Starbucks Corporation, McDonald’s Corporation, Domino’s Pizza, Inc., Papa John’s International, Inc. and others.
Key Industry Development
March 2022- BB Social Dining is launching a new food outlet at Saudi Arabia. The outlet is a casual dining outlet offers different food cuisines, thus fulfills the growing demand of its consumers.