Saudi Arabia Foodservice Market Overview

Market Size in 2024 : USD 28,669 Million

Market Size in 2033: USD 58,310 Million

Market Growth Rate 2025-2033: 8.21%

According to IMARC Group's latest research publication,"Saudi Arabia Foodservice Market Size, Share, Trends and Forecast by Foodservice Type, Outlet, Location, and Region, 2025-2033", The Saudi Arabia foodservice market size was valued at USD 28,669 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 58,310 Million by 2033, exhibiting a CAGR of 8.21% from 2025-2033. 

Growth Factors Driving the Saudi Arabia Foodservice Industry

• Booming Tourism and Entertainment

The foodservice industry is boosted by the desire of Saudi Arabia to achieve the status of one of the world tourism centers. The country has experienced a huge number of diners with 93.5 million tourist entry and 16.5 million foreign guests. Government Vision 2030 project is turning the face of the country by investing in the development project such as the Red Sea Project that is establishing new dining hotspots in tourist locations. Other festivals such as Riyadh and Jeddah Seasons have lured pop up restaurants of international outlets such as Zuma and Scalini which have helped in maintaining local economies. The boost in this tourism spurs full service restaurant consumption which has a significant market share as the average order value is at a higher level, i.e., it is $23.25. Modernisation of entertainment by the government like concerts and sport events also contribute to the growth in foodservice since it leads more people to visit the foodservice facilities.

• Young Population with High Disposable Income

Young population of Saudi Arabia (population under 25 years of age is 51% and that under 29 years is two-thirds) is one of the primary factors in the foodservice growth. Being keen to gain new experiences, this segment is inclined to make generous spending on restaurants, especially at the fast-food restaurants and coffee shops. The consumer spending in food outside the home has been spurred by the increase in household income especially in the group with dual income families. It is visible in the popularity of the fast-food restaurants such as McDonald and the local favorite, the Al Baik with the fast-food restaurants having a share of 44.51%. Disposable incomes have also increased through the government efforts of diversifying the economy and this has been motivating people to dine more often. Such a demographic trend, along with the increase in the demand of convenience, can contribute to the growth of foodservice establishments in such cities as Riyadh and Jeddah.

• International Brand Expansion

The foodservice environment in Saudi Arabia is taking a new shape with the entry of international food chains. Brands such as The Cheesecake Factory, Hakkasan and Dunkin which recently launched its eight hundredth store is fast opening across Saudi Arabia more so in Riyadh and Jeddah. Its Vision 2030 reforms by the government have reduced the restrictions to foreign investment making it an attractive party to international markets. The ease of chains to scale is taken care of through franchising models, where a minimum of 4,500 is required to launch a McDonalds to 342,400 in the case of Subway. The brands are responding to the increase in demand of various cuisines, especially western and Asian cuisine, as a result of the various expatriates who have a population of 13.5 million. With the entry of international players, competition increases, the quality of dining improves, and innovation goes up and this contributes substantially towards the growth of the industry.

Emerging Trends in the Saudi Arabia Foodservice Market

• Rise of Cloud Kitchens

The trend of connecting with cloud kitchens is catching up in Saudi Arabia due to the rising demand of delivering convenient food. These delivery-only shops collaborate with such platforms as HungerStation and Talabat and target a wider customer base without having higher costs in the form of overhead expenses. The potential of the trend is indicated by a recent report according to which the food tech startup Rebel foods has opened two of its cloud kitchens in Riyadh. Smartphone penetration in the country is at the third spot in the world, which is why online food delivery companies such as Jahez and UberEats are doing great, with the delivery market standing at $511 million last year. Cloud kitchens are flexible, have location and menu innovation, and respond to the fast lifestyles of urban consumers. This is given the fact that the trend follows the rising order to deliver without contact, and it transforms the foodservice industry.

• Shift to Fast Casual Dining

Fast casual eating is becoming a new trend, combining the convenience of fast food with its superior quality and healthy food. Customers, particularly, millennials are shifting to fast food restaurants where they may find their meals fresh and modify them. Local chains such as The Warehouse and international chains such as Chipotle are appealing to this need. The development of coworking places and remote work exploitation has led to an increase in the number of fast casual restaurants as young professionals want to find a place to work and communicate. Due to this age distribution of 53 percent of the people between the ages of 15-44, this is transforming the eating habits. Even cafes such as C-Hub and Overdose are now doing well with Saudi Arabia having more than 40 percent of the Middle Easts total 8,800 branded coffee shops and this indicates how much the segment had grown in a short time.

• Growing Health and Sustainability Focus

The foodservice industry in Saudi Arabia is witnessing the shifts toward health-conscious dining due to the increased rate of awareness related to wellness and obesity issues. Restaurants are feeding healthier menus due to consumers opting towards fixing in nutrient dense, sustainable choices. Juices and Smoothies bars such as the ones in Town Square Jeddah serve this trend providing fresh vegetable-based products. Eager to buy responsibly, the fact that the government promotes sustainable activities, such as promoting subsidies on local food production promotes eateries to do so. Specialty coffee stores such as Dose are specialized in the artisanal, health-driven beverages, targeting younger audiences. This tendency can be found in the emergence of the home-grown brands with their focus on local ingredients and sustainable business, which matches the global dynamics of sustainability and the needs of health-conscious tourists and people living on the territory alike.

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Saudi Arabia Foodservice Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Foodservice Type:

• Cafes and Bars
• By Cuisine
• Cafes
• Juice/Smoothie/Desserts Bars
• Specialist Coffee and Tea Shops
• Cloud Kitchen
• Full Service Restaurants
• By Cuisine
• Asian
• European
• Latin American
• Middle Eastern
• North American
• Others
• Quick Service Restaurants
• By Cuisine
• Bakeries
• Burger
• Ice Cream
• Meat-based Cuisines
• Pizza
• Others

Analysis by Outlet:

• Chained Outlets
• Independent Outlets

Analysis by Location:

• Leisure
• Lodging
• Retail
• Standalone
• Travel

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The major market players are indulging in expansion, innovation, and digitization, aligned with the Saudi Vision 2030. The FFCC states that the Saudi Vision 2030 aims to diversify the food service market by raising the number of cafes per million from its current count of 258 to 1,000 per million. International food chains are increasing their footprint and utilizing the new urban population with increasing disposable income. Cloud kitchen models have urged players to deploy more innovative delivery-focused formats that ensure a more efficient model for operations catering to booming online food deliveries. Several of the operators have resorted to technology-backed solutions such as AI-powered ordering systems and mobile apps to maximize customer convenience and loyalty. Sustainability is becoming an important area of focus, where products focus on eco-friendly packaging, avoiding food waste, and health-conscious dining options are popular that emphasize the entry of organic, plant-based, and low-calorie offerings to the menu, in line with changing consumer preferences.

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Future Outlook

Saudi Arabia foodservice market will see a vibrant growth due to the population, which is a large, highflying, young and urbanizing community, and the government projects such as Vision 2030. As tourism continues to skyrocket, new eating places, which will come alongside such jobs as the Red Sea Project, will present new opportunities to restaurants. Technology (the employment of AI-based supply chain and other online delivery agencies such as HungerStation) will increase efficiencies and outreach to more customers. The international brands will be on growing trend but the local players such as Herfy and Al Baik would gain market share as they combine the cultural satisfaction with the modern regulations of dining. The sustainable and health-conscious dining will pick up momentum also because government promotes the production of local products and because people insist on them. The industry has restrictions such as supply chain which are the hindrances to the industry growth but due to its flexibility and product ranges, it will be a dynamic and competitive industry in the Middle East.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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