Oman Foodservice Market Size

Oman Foodservice Market Analysis

The Oman Foodservice Market size is estimated at 1.51 billion USD in 2024, and is expected to reach 2.16 billion USD by 2029, growing at a CAGR of 7.45% during the forecast period (2024-2029).

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1.51 Billion

Market Size in 2024 (USD)

2.16 Billion

Market Size in 2029 (USD)

4.28 %

CAGR (2017-2023)

7.45 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

46.30 %

value share, Quick Service Restaurants, 2023

High affinity toward meat-based dishes and increasing per capita are boosting the segment. Omani residents spend almost 30% of their budget to purchase meat products.

Largest Segment by Outlet Type

56.78 %

value share, Independent Outlets, 2023

QSRs dominate the segment, owing to an increase in consumer spending on meat-based dishes. As of 2022, nearly 29% of Oman's monthly food budget was spent on meat.

Fastest-growing segment by Foodservice Type

17.32 %

Projected CAGR, Cloud Kitchen, 2024-2029

Millennials' inclination toward using smartphone applications for online food delivery is boosting the segment. More than 50% of them are regular food-app users in Oman.

Fastest-growing segment by Outlet Type

7.67 %

Projected CAGR, Chained Outlets, 2024-2029

Full service restaurants dominate the segment, with Middle Eastern cuisine being the most popular. This is primarily due to the low cost of Arabic dishes like kebabs in Oman.

Leading Market Player

1.96 %

market share, LuLu Group International, 2022

LuLu Group has a large network of supermarkets, hypermarkets, and convenience stores in Oman, with most of them offering bakery, beverages, and fast-food options.

QSR remains the major channel owing to the rising popularity of international fast-food chains in the country

Oman 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 quick service restaurants segment accounted for the major market share in 2022, which is further forecasted to register a CAGR of 8.48% during the forecast period, 2023-2029. The consumption of fast food like kebabs, pizzas, burgers, and fried chicken products is increasing, and the demand for non-veg fast-food products is always high, as the poultry meat consumption of the country was around 34.27 kg per capita in 2022. The number of food chain outlets in Oman reached 41 outlets for Pizza Hut, 36 outlets for KFC, 24 outlets for McDonald's, and 10 outlets for Burger King across the country.
• The cloud kitchen sub-segment is projected to be the fastest-growing foodservice type, registering a CAGR of 17.45% during the forecast period, 2023-2029, owing to the increased number of online orders and the high internet penetration rate, which reached over 95.2% at the start of 2022. Popular ghost kitchens are expanding their footprint due to increased consumption and demand through online delivery as the setup cost is low and the reach is more compared to dine-in facilities like IO Kitchen, the first and leading Omani-owned cloud kitchen, which has signed a partnership agreement with KR&CO to use its smart kitchen operations. Oman-based cloud kitchen operator KitchenomiKs has raised USD 1.7 million in its seed round from angel investors.
• Post-pandemic, the overall foodservice market grew by 45.88% in terms of sales value in 2022 compared to 2020. Omani families spend 24% of their household budget on food, which is the highest percentage among the GCC countries. The number of international arrivals, which reached over 0.25 million in 2022, has also fueled the segment's growth.