Saudi Arabia Foodservice Market Size, Share and Forecast | 2034

Saudi Arabia Foodservice Market Outlook

According to the report by Expert Market Research (EMR), the Saudi Arabia foodservice market reached a value of approximately USD 20.87 billion in 2024. Aided by rapid urbanisation, an evolving consumer base, and government initiatives to diversify the economy, the market is expected to witness substantial growth. It is projected to grow at a CAGR of 11.60% between 2025 and 2034, reaching a value of around USD 62.54 billion by 2034.

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The foodservice sector in Saudi Arabia includes full-service restaurants, cafés, quick service restaurants (QSRs), street food vendors, institutional food providers, and cloud kitchens. The market has seen transformation in recent years, driven by changing consumer preferences, rising disposable incomes, and expanding tourism. Food habits are being influenced by global trends, while technology and digital platforms are reshaping how services are delivered.

Saudi Arabia Foodservice Market Size

The foodservice market in Saudi Arabia has grown steadily to reach USD 20.87 billion in 2024. It reflects not only an increasing population but also a shift toward out-of-home dining. With a young demographic that is digitally connected and exposed to global cuisines, there is a rising demand for varied and experiential dining options. The growing expatriate population further boosts demand for international and ethnic cuisine.

As the Kingdom invests in large-scale infrastructure projects and tourism through its Vision 2030 strategy, the foodservice industry is expected to expand into newer cities and hospitality zones. With hospitality being one of the key sectors earmarked for development, foodservice providers are expected to benefit from the increase in footfall at entertainment venues, malls, hotels, and resorts.

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Saudi Arabia Foodservice Market Share

Quick service restaurants and casual dining establishments dominate the market share, driven by their convenience, affordability, and appeal to the youth. However, premium and fine-dining outlets are also growing in popularity, especially in urban centres like Riyadh and Jeddah. These outlets are tapping into the rising affluent class and a growing taste for gourmet experiences.

Local chains have a strong presence in the market, but international brands continue to expand aggressively through franchise models. Brands like KFC, McDonald's, Domino's, and Starbucks have built solid networks across the country. At the same time, Saudi-owned brands are rising, offering unique culinary concepts rooted in cultural identity and local flavours.

Saudi Arabia Foodservice Market Trends

One of the most prominent trends is the rise of food delivery services. The increasing use of mobile apps, food aggregators, and e-commerce platforms has made food delivery more accessible and efficient. This trend is further strengthened by the emergence of cloud kitchens, which operate without a storefront and cater exclusively to delivery and takeaway orders.

Health-conscious dining is gaining traction, as Saudi consumers become more aware of nutrition and wellness. Restaurants are introducing healthy menus, including gluten-free, organic, and plant-based options. Calorie labeling has also become common in menus, influenced by regulatory guidelines and consumer demand.

Another trend is the integration of technology in operations. Restaurants are investing in point-of-sale (POS) systems, contactless payments, self-service kiosks, and digital ordering to streamline service and enhance customer experience. Many establishments are also using data analytics to personalise offerings and improve operational efficiency.

Drivers of Growth

Economic diversification under Vision 2030 is a major growth driver for the foodservice industry in Saudi Arabia. The government's commitment to increasing the contribution of tourism, entertainment, and hospitality sectors to GDP is creating new demand for foodservice offerings. As public spaces, cultural events, and tourist destinations expand, so does the need for dining options.

Urbanisation and changing lifestyles are accelerating the frequency of eating out. With more women joining the workforce and the pace of daily life increasing, people are looking for convenient meal solutions. This shift is fuelling demand not only for QSRs but also for meal subscription plans and grab-and-go outlets.

The influx of tourists, particularly under the new tourism visa program, is another significant factor. International visitors bring diverse culinary expectations, and their presence stimulates growth in both international chains and upscale dining establishments. New developments in Riyadh, AlUla, NEOM, and the Red Sea coast are poised to further amplify this demand.

Saudi Arabia Foodservice Market Segmentation

The market can be divided based on type and outlet.

Breakup by Type

Cafes and Bars
Cloud Kitchen
Full-Service Restaurants
Quick Service Restaurants

Breakup by Outlet

Chained Outlets
Independent Outlets

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

Starbucks Corporation
McDonald's Corporation
Herfy Food Services Co. JSC
Kudu LLC
Domino's Pizza LLC
Yum! Brands, Inc.
ALBAIK Food Systems Ltd.
Papa John's International, Inc.
Restaurant Brands International Inc
Hardee's Restaurants LLC
Others

Challenges and Opportunities

Despite its growth, the Saudi Arabia foodservice market faces several challenges. High operational costs, including rent, utilities, and imported ingredients, can put pressure on margins. Labour shortages, especially in specialised culinary roles, are another concern. Compliance with Saudisation policies requires businesses to train and hire Saudi nationals, which can be resource-intensive for smaller operators.

Consumer expectations are also evolving quickly, requiring businesses to stay agile in terms of menu innovation and service delivery. Failing to adapt to shifting trends-whether health, tech, or sustainability-related-can result in loss of competitiveness.

However, the opportunities are substantial. The emergence of second-tier cities as new growth hubs, expansion into institutional catering for schools, hospitals, and offices, and collaboration with tech startups present fertile ground for expansion. Partnerships with delivery platforms and investments in cloud kitchens can allow operators to scale without high capital costs.

Saudi Arabia Foodservice Market Forecast

Looking ahead, the Saudi Arabia foodservice market is set to grow from USD 20.87 billion in 2024 to USD 62.54 billion by 2034. This robust growth will be supported by demographic expansion, continued urban development, and strong government support for tourism and hospitality.

Future success will depend on the ability of foodservice players to innovate, localise, and digitise their operations. Those that combine high-quality food with convenience, customisation, and an understanding of local culture will be best positioned to capitalise on the evolving landscape.

The market is likely to witness increasing segmentation, with offerings tailored to different income levels, age groups, and dietary preferences. Premium, mid-range, and budget categories will all find room to grow, as long as operators remain responsive to consumer needs and focused on delivering consistent value.

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