Saudi Arabia Foodservice Market Size, Share and Industry Report - 2034

 

Saudi Arabia Foodservice Market Outlook

According to the report by Expert Market Research (EMR), the Saudi Arabia foodservice market attained a value of approximately USD 20.87 billion in 2024. Aided by the rapid urbanisation, the increasing popularity of online food delivery, and a growing preference for international cuisines, the market is anticipated to grow at a robust CAGR of 11.60% during the forecast period of 2025 to 2034. It is projected to reach a value of around USD 62.54 billion by 2034. This dynamic growth aligns with Saudi Arabia’s broader Vision 2030 strategy, which emphasises the diversification of the economy beyond oil by fostering the development of the service and tourism sectors. With the country investing heavily in hospitality infrastructure and tourism megaprojects, foodservice has emerged as a pivotal industry that caters not only to local demand but also to the expanding tourist population.

Saudi Arabia Foodservice Market Size

The foodservice market in Saudi Arabia has witnessed substantial expansion in recent years, driven by demographic shifts, lifestyle changes, and increasing consumer spending. In 2024, the market stood at USD 20.87 billion, underscoring its significance within the Kingdom’s broader economic landscape. The sizeable market is attributed to rising disposable incomes, growing urban populations, and a youthful demographic that favours dining out and experimenting with diverse food formats. The adoption of technology and online platforms has also contributed to enlarging the consumer base by offering convenience and accessibility. Looking ahead, the market is expected to maintain double-digit growth, bolstered by continued investment in modern retail formats, expansion of quick-service restaurants, and demand for premium and niche dining experiences.

Saudi Arabia Foodservice Market Share

The Saudi Arabia foodservice market is fragmented across various segments, with quick-service restaurants (QSRs), full-service restaurants, cafés, and institutional catering services accounting for significant shares. Among these, QSRs dominate the market due to their affordability, convenience, and alignment with the fast-paced lifestyles of urban consumers. International QSR chains such as McDonald’s, KFC, and Domino’s hold strong positions in the Kingdom, supported by effective franchising models. Meanwhile, full-service restaurants and upscale dining outlets maintain a steady presence in high-income areas and tourist zones, offering diverse global cuisines and premium services. The café culture, particularly among millennials and Gen Z, continues to grow, with coffee shops and casual hangouts driving market penetration in both major and secondary cities. Additionally, institutional catering services for schools, hospitals, and corporate offices remain an integral part of the market, serving consistent and large-volume demand.

Saudi Arabia Foodservice Market Trends

The Saudi foodservice industry is undergoing a transformation, influenced by emerging global and regional consumer preferences. One notable trend is the increasing demand for international cuisines, reflecting a shift in consumer tastes toward global food experiences. As a result, fusion food and themed dining formats have gained popularity. Another key trend is the digitalisation of foodservice operations, with online ordering, mobile app payments, and AI-based recommendation engines becoming standard practice. Food aggregators like Jahez, HungerStation, and Uber Eats have played a critical role in shaping delivery culture across urban areas.

Health consciousness is also rising, prompting foodservice providers to offer menus featuring organic, vegan, and low-calorie options. This wellness trend has become particularly prominent among urban consumers seeking balanced nutrition. Moreover, the push towards sustainable and environmentally responsible practices has taken root in the industry, with restaurants adopting biodegradable packaging, sourcing local ingredients, and reducing food waste. Additionally, the anticipated influx of tourists through the Kingdom’s megaprojects such as NEOM and Qiddiya is expected to further influence trends towards luxury and experiential dining, creating a more diversified market landscape.

Download a free sample report, complete with the Table of Contents — https://www.expertmarketresearch.com/reports/saudi-arabia-foodservice-market/requestsample

Drivers of Growth

Several factors are propelling the growth of the Saudi Arabia foodservice market. Foremost among these is the country’s youthful and urbanised population, with over 65% of residents under the age of 35. This demographic is particularly inclined towards dining out, using delivery apps, and exploring global cuisines. Rising disposable income levels and higher consumer confidence in the economy have also led to increased expenditure on food outside the home. In addition, the country’s Vision 2030 initiative has catalysed major investments in tourism and hospitality infrastructure, further stimulating demand for foodservice.

The rapid development of digital platforms has also played a pivotal role in reshaping the foodservice landscape. Consumers now enjoy greater flexibility and choice through mobile applications, contactless delivery, and personalised marketing strategies. Furthermore, the entry of international brands and the expansion of domestic chains through franchising models have improved accessibility, competitive pricing, and service quality across the country. Government incentives to support small and medium-sized enterprises (SMEs) in the food and beverage sector have also facilitated local entrepreneurship and innovation, further enriching the market ecosystem.

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

key Players

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 impressive growth trajectory, the Saudi Arabia foodservice market faces certain challenges. These include rising competition, high operational costs, and regulatory complexities. Fluctuations in the cost of imported food ingredients, combined with global supply chain disruptions, can pressure profit margins. Moreover, sourcing and retaining skilled labour remains a persistent issue for many foodservice operators, especially those offering specialised cuisines.

However, these challenges also open doors to innovation and improvement. For instance, investing in local sourcing and establishing long-term supplier partnerships can mitigate cost volatility. Upskilling staff and enhancing service quality through training programmes can create a competitive advantage. There is also considerable opportunity in expanding foodservice operations into Tier 2 and Tier 3 cities, where consumer demand is growing but options remain limited.

Moreover, the increased demand for health-conscious, halal-certified, and culturally relevant dining options presents significant growth prospects. Ghost kitchens and virtual brands offer a cost-effective way for entrepreneurs and established players alike to enter or expand within the market. With smart city developments and a growing emphasis on lifestyle and leisure experiences, the role of foodservice will become increasingly central to Saudi Arabia’s consumer economy.

Saudi Arabia Foodservice Market Forecast

Looking forward, the Saudi Arabia foodservice market is poised for remarkable expansion over the coming decade. From a market value of USD 20.87 billion in 2024, it is expected to grow to approximately USD 62.54 billion by 2034, reflecting a compound annual growth rate (CAGR) of 11.60%. This growth will be supported by favourable demographic trends, technological adoption, diversification of the economy, and increased international tourism.

As the Kingdom continues to invest in large-scale developments, the foodservice industry will play a critical role in supporting hospitality, entertainment, and cultural experiences. The rise of niche food categories, sustainable practices, and digital innovation will further reshape the competitive landscape. Stakeholders in the foodservice value chain—including investors, entrepreneurs, food producers, and service providers—are likely to witness substantial opportunities as Saudi Arabia positions itself as a regional leader in hospitality and culinary excellence.

Read Our More Trending Reports:

North America Bus Market: https://www.expertmarketresearch.com/reports/north-america-bus-market

Socks Market: https://www.expertmarketresearch.com/reports/socks-market

High Oleic Oil Market: https://www.expertmarketresearch.com/reports/high-oleic-oil-market

Media Contact:

Company Name: Claight Corporation
Email: sales@expertmarketresearch.com
Toll Free Number: +1–415–325–5166 | +44–702–402–5790
Address: C-130 Sector 2 Noida, Uttar Pradesh 201301
Website: https://www.expertmarketresearch.com