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Saudi Arabia Foodservice Market Size

The Saudi Arabia foodservice market is experiencing significant growth, with full-service restaurants holding the largest market share, followed by quick-service restaurants. The market's expansion is driven by the increasing popularity of Asian cuisines among the young population and a rising interest in international meat-based dishes, influenced by the expatriate community and government initiatives to boost tourism and economic diversification. The cafes and bars segment is the fastest-growing sector, fueled by the demand for social and workspaces, particularly among remote workers and freelancers.

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Market Size of saudi arabia foodservice Industry

Saudi Arabia Foodservice Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 27.18 Billion
svg icon Market Size (2029) USD 42.48 Billion
svg icon Largest Share by Foodservice Type Full Service Restaurants
svg icon CAGR (2024 - 2029) 9.34 %
svg icon Fastest Growing by Foodservice Type Cafes & Bars
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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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).

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

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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

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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

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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

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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

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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

  • 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.
Saudi Arabia Foodservice Market

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.
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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Saudi Arabia Foodservice Market Size Summary

The Saudi Arabia foodservice market is experiencing significant growth, driven by a diverse range of dining options and a youthful population eager for new culinary experiences. Full-service restaurants dominate the market, with a strong preference for Asian cuisines among the younger demographic, which is a substantial portion of the population. Quick-service restaurants also hold a significant share, offering popular international and local fast-food options. The rise of cafes and bars is notable, fueled by the increasing demand for social and coworking spaces, reflecting broader social changes and economic reforms in the country. The market is further bolstered by the growing expatriate community and government initiatives to boost tourism and economic diversification.

Cloud kitchens are emerging as a rapidly expanding segment, leveraging technological advancements to offer flexible and profitable dining solutions. The integration of modern technology in foodservice operations is enhancing efficiency and customer reach. The branded coffee market is thriving, with both international and domestic brands gaining popularity, contributing to Saudi Arabia's status as a leading coffee market in the Middle East. The market remains fragmented, with major players like ALBAIK Food Systems and Americana Restaurants International leading the charge. Recent partnerships and expansions by key companies indicate a robust growth trajectory, with plans to enhance distribution and expand brand presence across the kingdom.

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Saudi Arabia 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

Saudi Arabia Foodservice Market Size FAQs

The Saudi Arabia Foodservice Market size is expected to reach USD 27.18 billion in 2024 and grow at a CAGR of 9.34% to reach USD 42.48 billion by 2029.

In 2024, the Saudi Arabia Foodservice Market size is expected to reach USD 27.18 billion.

Food Service Market in Saudi Arabia Report Snapshots

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