Saudi Arabia Food Service Market Opportunities, Emerging Trends, Competitive Strategies and Forecast Report, 2030

According to the latest market research study published by P&S Intelligence, the Saudi Arabian food service market is poised for significant growth, with projected revenues reaching approximately USD 32.2 billion in 2024 and an anticipated compound annual growth rate (CAGR) of 8.8% through 2030, culminating in an estimated USD 53.3 billion by the end of the forecast period.

Several factors are driving this robust expansion. The increasing demand for home delivery services, coupled with a rise in the number of restaurants and retail malls, reflects a shift towards convenient dining options. Urbanization and changing lifestyles, particularly in cities like Riyadh, Jeddah, and Dammam, have heightened the demand for easy meal solutions. Technological advancements, including the integration of Internet of Things (IoT) and Artificial Intelligence (AI) in supply chain management, are also playing a pivotal role in transforming the food service landscape in the kingdom.

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Key Insights

Service Type Analysis

Full-service restaurants are expected to dominate the market, accounting for approximately 35% of the revenue in 2024. This preference is largely due to the cultural significance of family outings in Saudi Arabia. Additionally, cafes and bars are projected to experience the highest growth rate, with a CAGR of 9.2% during the forecast period, as they offer relaxed environments conducive to social interactions.

Outlet Type Trends

Independent outlets are anticipated to hold a larger market share, estimated at 65% in 2024, due to their ability to provide unique and personalized dining experiences. Conversely, chain outlets are expected to grow at a higher CAGR of 9.0%, driven by their consistent menus and the convenience they offer to customers.

Cuisine Preferences

Western cuisine is projected to lead the market, comprising about 45% of the share in 2024. This trend is attributed to the expansion of fast-food companies offering a variety of options like burgers and pizza. Meanwhile, Asian cuisine is expected to witness the fastest growth, as its health benefits align with the evolving preferences of both locals and international tourists.

Business Model Dynamics

The dine-in model is set to maintain the largest market share in 2024, driven by increasing urbanization and a cultural inclination towards eating out. However, the delivery segment is forecasted to grow at the highest CAGR, reflecting a shift towards convenience and time-saving dining options among consumers.

Regional Outlook

Geographically, Al-Riyadh province is expected to generate 40% of the total market revenue in 2024, making it both the largest and fastest-growing region. This dominance is due to the presence of numerous international food brands and significant investments in the food service sector within the province.

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Technological Advancements

The integration of IoT and AI technologies in supply chain management is emerging as a significant trend. These advancements enable real-time monitoring of inventory levels, temperature, and humidity during transit, thereby enhancing efficiency and customer satisfaction.

Competitive Landscape

The market is characterized by fragmentation, with both international and local players competing for market share. Major companies include Herfy Food Services Co. JSC KSA, ALBAIK Food Systems Company, Yum! Brands Inc., Brinker International Inc., Starbucks Corporation, Fawaz Abdulaziz AlHokair & Company, Reza Group, SAUDIA, Kudu Company for Food and Catering, and Domino's Pizza Inc.

Emerging Opportunities

The launch of new food delivery services, such as HungerStation's recent entry into NEOM using electric and hybrid vehicles, highlights the potential for growth in innovative and sustainable food service solutions within the kingdom.

In summary, the Saudi Arabian food service market is on a trajectory of substantial growth, propelled by cultural preferences, technological innovations, and evolving consumer behaviors. Stakeholders and investors have a promising landscape to explore, with ample opportunities across various segments of the industry.

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This release was published on openPR.