Kuwait Foodservice Market Size

Kuwait Foodservice Market Analysis

The Kuwait Foodservice Market size is estimated at 3.26 billion USD in 2024, and is expected to reach 4.88 billion USD by 2029, growing at a CAGR of 8.42% during the forecast period (2024-2029).

Want to share this? Click here to share on social media or embed it on your website.

3.26 Billion

Market Size in 2024 (USD)

4.88 Billion

Market Size in 2029 (USD)

7.47 %

CAGR (2017-2023)

8.42 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

62.47 %

value share, Quick Service Restaurants, 2023

Meat-based cuisines and burgers led to the growth of quick service restaurants, as these two segments together held a share of more than 62% of total QSR cuisines in 2022.

Largest Segment by Outlet Type

70.84 %

value share, Independent Outlets, 2023

Small-scale independent restaurants are offering traditional and popular dishes, such as Tawa and Babel, and have established their presence throughout the country.

Fastest-growing segment by Foodservice Type

13.75 %

Projected CAGR, Cloud Kitchen, 2024-2029

During 2020-22, 89.76% of residents from Kuwait placed online food delivery orders, which was a major boost for the growth of cloud kitchens in Kuwait.

Fastest-growing segment by Outlet Type

9.07 %

Projected CAGR, Chained Outlets, 2024-2029

The large diaspora of expats from the United States and the United Kingdom drives the popularity of Western fast-food dishes in Kuwait, promoting the expansion of franchised outlets.

Leading Market Player

1.12 %

market share, LuLu Group International, 2022

The company has a presence in over 30 locations in Kuwait and is also a favorite among Kuwaiti consumers.

An increase in the number of online meal delivery application users and a rise in the number of outlets favour the market growth

Kuwait Foodservice Industry Segmentation

Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.

• The demand for cloud kitchens has increased over the past years and is forecast to witness the fastest-growing CAGR value of 14.02% from 2023 to 2029. This is due to the increasing penetration rate of online food delivery, which reached around 34.7% in 2022. However, the number of online meal delivery app users also reached a high number of around 1.04 million in 2022. The number of internet users in Kuwait increased by 35 thousand from 2020 to 2021. The business owners see this as an opportunity to turn to ghost kitchen concepts. International chains are also entering the market because the operational cost of ghost kitchens is low. Construction and service costs are lower than fine dining, casual dining, and quick service restaurants, which, in turn, affects the cost of food, ensuring the prices remain lower than a dine-in menu.
• The market for cafes and bars in Kuwait also accounts for a significant share, which is further expanding primarily due to the rise in cafés offering authentic snacks with a variety of beverages. Over the review period, coffee shops witnessed steady growth due to their increasing popularity as social outlets for friends, family, colleagues, and business associates. Owing to the high coffee consumption, the per capita reached more than 2.95 kg in 2022, 5.7% higher than in 2019.
• In 2022, around 35% of the population in Kuwait was dining out more than the previous year. However, the increasing number of overall foodservice orders per year reached over 0.22 million in 2022, witnessing a hike of 63,313 from 2017 to 2022, while sales of FSR and QSR outlets observed a hike of 41.01% and 20.43%, respectively, from 2020 to 2022.