Saudi Arabia Cafés Market to Grow at a CAGR of Over 7% till 2026F | TechSci Research

Increasing per capita disposable income coupled with rising popularity of coffee and growing tourism industry is expected to drive the cafés market in Saudi Arabia.

According to TechSci Research report, “Saudi Arabia Cafés Market, By Ownership (Standalone Outlets & Chain Outlets), By Segment (International & Domestic), By Sales Channel (Retail Sales & Online), By Region, Competition, Forecast & Opportunities, 2026F”, owing to rapid urbanization and disposable income, the Saudi Arabia cafés market has grown at a rapid pace in recent years and is expected to grow at a CAGR of more than 7% in the forecast period. Over the forecast period, the growing tourism industry and rising youth population are expected to be the major factors driving the cafés market in Saudi Arabia. Furthermore, a growing urban population base, strong product awareness, and shifting societal norms are creating opportunities for restaurant and café owners across the country by meeting the demand for high-quality food. Furthermore, changing tastes and preferences due to western influence are expected to drive the demand for cafés in Saudi Arabia.

On March 2nd, 2020, Saudi Arabia reported the first case of COVID-19. The Saudi Ministry of Health and public health experts worked tirelessly to halt the spread of the virus. The Saudi government imposed a three-month lockdown and curfew across the country by the end of March 2020. During the pandemic, nutrition was regarded as a public health priority in order to build strong immunity and prevent virus transmission. As a result, people have begun to focus on healthy diet routines in order to combat the virus. These dietary changes are expected to impede the Saudi Arabia cafés market to some extent. The pandemic has had a significant impact on Saudi Arabia's tourism industry as well. Holy sites such as the Kaaba, the Great Mosque of Mecca, the Prophet's Mosque, Al Haram, and others are well-known pilgrimage destinations visited by millions of people each year. The Great Mosque of Mecca is one of the most important Hajj and Umrah pilgrimage sites in Saudi Arabia. To combat the spread of coronavirus, the government closed its borders to overseas umrah pilgrims and tourists from at least 25 countries beginning in March 2020. Later in the month, travel within and outside the country was halted, which had an effect on the Saudi Arabia café market as people were restricted to stay at home.

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Cafés market in Saudi Arabia is categorized by ownership, by segment, by sales channel, by region and by café chain. In terms of by ownership, the Saudi Arabia cafés market is segmented into Standalone Outlets & Chain Outlets. Among which, Chain Outlets market has accounted for the majority share in the Saudi Arabia cafés market in 2020 followed by Standalone Outlets. With the growing popularity of fast foods and casual hangouts, chained outlets are growing at a fast pace. Chain Outlets are increasing in number, with international brands, like McDonald’s, Applebee’s, KFC, Dominos, Chilis, etc. marking their presence in Saudi Arabia. Moreover, the global chains have followed the strategy of customization and localization through intelligent modifications in their menus.

In terms of sales channel, the Saudi Arabia cafés market is segmented into Retail Sales & Online. Among which, Retail Sales have dominated the Saudi Arabia cafés market with the market share of more than 74% in 2020, as people in the country enjoy going out and hangout in cafes. Moreover, rising youth population, changing lifestyle and preferences, etc. are also some factors fueling the market.

In terms of region, the Saudi Arabia cafés market is categorized into Western, Central, Southern, Eastern and Northern region. The cafés market in the western region was the largest in 2020 due to better product availability, increasing tourism in the region, brand expansion by many companies and hub for the nearby cities followed by the central region. This is mainly because of the increasing tourism in these regions every year and due to changing lifestyle and preferences, rising per capita income, and growing population.

In terms of company, some of the major players operating in the Saudi Arabia cafés market are Applebee’s, Starbucks, T.G.I. Friday’s, Chili’s, Java Time, and others. In 2020, Applebee’s held the major market share in the country’s cafés market and is expected to continue its dominance through 2026F. Leading players are focusing on expanding their café outlets to maintain sustainable growth in the market.

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“Saudi Arabia cafés market is expected to grow at a rapid pace due to growing western influence, rising number of tourists, increasing per capita income and likeliness towards international brands. Also, due to changing customer tastes and preferences by high-end product quality, international brand expansion is another reason for the growth of Saudi Arabia cafés market. Rising digital and social media penetration, combined with rising penetration of smartphones have led to increasing awareness and aspirations for latest food offerings”, said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

“Saudi Arabia Cafés Market, By Ownership (Standalone Outlets & Chain Outlets), By Segment (International & Domestic), By Sales Channel (Retail Sales & Online), By Region, Competition, Forecast & Opportunities, 2026F” has evaluated the future growth potential of Saudi Arabia cafés market and provides statistics and information on market structure, consumer behavior and trends. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities available in the Saudi Arabia cafés market.

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About TechSci Research:
TechSci Research is a leading global market research firm publishing premium market research reports. Serving 700 global clients with more than 600 premium market research studies, TechSci Research is serving clients across 11 different industrial verticals. TechSci Research specializes in research-based consulting assignments in high growth and emerging markets, leading technologies and niche applications. Our workforce of more than 100 fulltime Analysts and Consultants employing innovative research solutions and tracking global and country-specific high growth markets helps TechSci clients to lead rather than follow market trends.

About TechSci Research:

TechSci Research is a leading global market research firm publishing premium market research reports. Serving 700 global clients with more than 600 premium market research studies, TechSci Research is serving clients across 11 different industrial verticals. TechSci Research specializes in research-based consulting assignments in high growth and emerging markets, leading technologies and niche applications. Our workforce of more than 100 fulltime Analysts and Consultants employing innovative research solutions and tracking global and country specific high growth markets helps TechSci clients to lead rather than follow market trends.

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