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Kuwait Foodservice Market Size

The Kuwait Foodservice Market is experiencing significant growth, with the market size expanding due to various factors such as the rising demand for cloud kitchens and the increasing penetration of online food delivery services. The shift towards ghost kitchen concepts is driven by lower operational costs compared to traditional dining formats, attracting both local and international players. Additionally, the café and bar segment is gaining traction, fueled by the popularity of coffee shops as social hubs. The overall foodservice sector is witnessing a surge in dining out and foodservice orders, contributing to the market's expansion.

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Market Size of kuwait foodservice Industry

Kuwait Foodservice Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 3.26 Billion
svg icon Market Size (2029) USD 4.88 Billion
svg icon Largest Share by Foodservice Type Quick Service Restaurants
svg icon CAGR (2024 - 2029) 8.42 %
svg icon Fastest Growing by Foodservice Type Cloud Kitchen
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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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).

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

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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

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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

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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

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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

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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

  • 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.
Kuwait Foodservice Market

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.
Foodservice Type
Cafes & Bars
By Cuisine
Cafes
Juice/Smoothie/Desserts Bars
Specialist Coffee & Tea Shops
Cloud Kitchen
Full Service Restaurants
By Cuisine
Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants
By Cuisine
Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
Outlet
Chained Outlets
Independent Outlets
Location
Leisure
Lodging
Retail
Standalone
Travel
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Kuwait Foodservice Market Size Summary

The Kuwait foodservice market is experiencing significant growth, driven by the increasing demand for cloud kitchens and the expansion of online food delivery services. The market is characterized by a shift towards ghost kitchen concepts, which offer lower operational costs compared to traditional dining options. This trend is supported by the rising number of internet users and the growing popularity of food delivery apps. The market is also witnessing a surge in cafes and bars, fueled by the demand for authentic snacks and a variety of beverages. Coffee shops, in particular, have become popular social hubs, contributing to the steady growth of the foodservice sector. The quick-service restaurant segment holds a major share of the market, with international chains expanding their presence due to the increasing demand and cost-effective setup.

The foodservice market in Kuwait is fragmented, with several key players dominating the landscape. Despite the challenges posed by rising food prices and inflation, the market is recovering post-pandemic, with increased consumer spending on premium dining experiences. The entry of international chains offering unique dining experiences with imported premium ingredients is further driving market growth. The market's expansion is also supported by the increasing number of foodservice establishments and the rising average order values for both full-service and quick-service restaurants. As tourism in Kuwait rises, there is a growing willingness among consumers to pay higher prices for quality food and drinks, which is positively impacting sales in the foodservice industry.

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Kuwait Foodservice Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Foodservice Type

      1. 1.1.1 Cafes & Bars

        1. 1.1.1.1 By Cuisine

          1. 1.1.1.1.1 Cafes

          2. 1.1.1.1.2 Juice/Smoothie/Desserts Bars

          3. 1.1.1.1.3 Specialist Coffee & Tea Shops

      2. 1.1.2 Cloud Kitchen

      3. 1.1.3 Full Service Restaurants

        1. 1.1.3.1 By Cuisine

          1. 1.1.3.1.1 Asian

          2. 1.1.3.1.2 European

          3. 1.1.3.1.3 Latin American

          4. 1.1.3.1.4 Middle Eastern

          5. 1.1.3.1.5 North American

          6. 1.1.3.1.6 Other FSR Cuisines

      4. 1.1.4 Quick Service Restaurants

        1. 1.1.4.1 By Cuisine

          1. 1.1.4.1.1 Bakeries

          2. 1.1.4.1.2 Burger

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Meat-based Cuisines

          5. 1.1.4.1.5 Pizza

          6. 1.1.4.1.6 Other QSR Cuisines

    2. 1.2 Outlet

      1. 1.2.1 Chained Outlets

      2. 1.2.2 Independent Outlets

    3. 1.3 Location

      1. 1.3.1 Leisure

      2. 1.3.2 Lodging

      3. 1.3.3 Retail

      4. 1.3.4 Standalone

      5. 1.3.5 Travel

Kuwait Foodservice Market Size FAQs

The Kuwait Foodservice Market size is expected to reach USD 3.26 billion in 2024 and grow at a CAGR of 8.42% to reach USD 4.88 billion by 2029.

In 2024, the Kuwait Foodservice Market size is expected to reach USD 3.26 billion.

Kuwait Food Service Market Report Snapshots

Kuwait Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029