Saudi Arabia Foodservice Market Size

Saudi Arabia Foodservice Market Analysis

The Saudi Arabia Foodservice Market size is estimated at 27.18 billion USD in 2024, and is expected to reach 42.48 billion USD by 2029, growing at a CAGR of 9.34% during the forecast period (2024-2029).

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27.18 Billion

Market Size in 2024 (USD)

42.48 Billion

Market Size in 2029 (USD)

7.25 %

CAGR (2017-2023)

9.34 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

54.03 %

value share, Full Service Restaurants, 2023

Emphasis on hospitality and communal dining experience, clubbed with the growing urbanization and increasing disposable income, is driving the growth of the FSR segment.

Largest Segment by Outlet Type

58.04 %

value share, Independent Outlets, 2023

Personalized and authentic dining experiences by independent outlets contributed to the trajectory of growth in the region.

Fastest-growing segment by Foodservice Type

12.01 %

Projected CAGR, Cafes & Bars, 2024-2029

Increasing demand for socializing in a relaxed atmosphere and government efforts to promote tourism have contributed to the growth of this segment.

Fastest-growing segment by Outlet Type

9.76 %

Projected CAGR, Chained Outlets, 2024-2029

Increased demand for standardized and consistent services and quality food is driving the trajectory of growth of chained outlets in the region.

Leading Market Player

0.28 %

market share, Americana Restaurants International PLC, 2022

The company has been operating in Saudi Arabia for over 50 years and has built a strong presence over the years with well-known brands such as KFC, Pizza Hut, and Hardee's.

Rising popularity of Asian cuisines and growing interest in international cuisines fuelling the market growth

Saudi Arabia 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.

• Full-service restaurants hold the major market share and are expected to register a CAGR of 4.33% by value in the study period. The popularity of Asian cuisines has expanded, especially among the younger population, due to the increasing need for gastronomic diversity. Around 37% of the Saudi Arabian population in 2023 is young, under the age of 25. The most popular cuisines in the country are Chinese, Japanese, Indian, traditional Cantonese, and Taiwanese.
• Quick-service restaurants segment holds the second major share and is projected to register a CAGR of 9.08% by value during the forecast period. Meat-based cuisines are dominant in the market. In recent years, there has also been a growing interest in international cuisines, including meat-based dishes from other cultures, such as American-style burgers, Turkish kebabs, and Indian curries. As of 2022, the ex-pat population was 13.5 million in the country. This trend has been fueled by the increasing number of expatriates living and working in Saudi Arabia and the government's efforts to promote tourism and diversify the economy.
• The cafes & bars segment is the fastest-growing foodservice type segment, projected to register a CAGR of 11.74% by value during the forecast period. The growth of cafes and pubs is the rise of coworking spaces and remote work. With more people working from home or freelancing, there is an increasing demand for spaces where people can gather to work, socialize, and network. More than 40% of the Middle East's 8,800-plus branded coffee shops are in Saudi Arabia. The popularity of cafes and pubs in Saudi Arabia is expected to grow in the coming years as the country continues developing and younger generations continue embracing new social norms and experiences.