Saudi Arabia Foodservice Market Size, Share and Report - 2034

Saudi Arabia Foodservice Market Outlook

The Saudi Arabia foodservice market reached an approximate value of USD 20.87 billion in 2024. Bolstered by rising consumer spending, changing lifestyle patterns, and a flourishing tourism and hospitality sector, the market is projected to grow at a robust CAGR of 11.60% during the forecast period of 2025-2034, reaching an estimated value of USD 62.54 billion by 2034. The foodservice sector in the Kingdom has evolved rapidly in recent years, driven by diversification efforts under Vision 2030, urbanisation, and a growing young population with a strong inclination towards global cuisines and out-of-home dining experiences.

The Saudi government’s liberalisation of social norms, expansion of entertainment avenues, and investments in infrastructure have significantly increased demand for quality dining establishments. Quick service restaurants (QSRs), cafes, cloud kitchens, and international food chains are rapidly expanding their footprints, reflecting the transformation of Saudi Arabia into a vibrant foodservice destination. The convergence of technological innovation and customer-centric strategies continues to reshape the competitive dynamics of the foodservice industry in the Kingdom.

Drivers of Growth

One of the key growth drivers of the Saudi Arabia foodservice market is the Kingdom’s Vision 2030 initiative, which seeks to diversify the economy and promote non-oil sectors, including tourism and entertainment. As part of this initiative, mega projects such as NEOM, Qiddiya, and the Red Sea Project are attracting international visitors and boosting the need for high-quality foodservice establishments.

The young population of Saudi Arabia, with over 60% under the age of 35, is another major growth catalyst. This demographic is more inclined towards dining out, experimenting with global cuisines, and using food delivery platforms, thereby fuelling demand across various foodservice segments. Urbanisation and the rise of nuclear families have also led to increased dependence on foodservice providers for convenience and variety.

The rapid expansion of malls, retail centres, airports, and entertainment complexes across major cities such as Riyadh, Jeddah, and Dammam has increased demand for foodservice outlets. Additionally, regulatory reforms permitting women to drive and easing restrictions on social gatherings have unlocked new consumer segments, significantly enlarging the addressable market for foodservice businesses.

The introduction of international culinary competitions, food festivals, and chef-led experiential dining events has elevated the food culture in the Kingdom. These initiatives not only increase public interest in premium dining experiences but also promote innovation and excellence in the industry.

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Saudi Arabia Foodservice Market Trends

A notable trend driving the Saudi Arabia foodservice market is the growing influence of Western dining habits. Global food brands are capitalising on local market opportunities through franchising, menu localisation, and digital outreach. This trend is reinforced by the Kingdom’s expanding middle class and youth population, which is increasingly exposed to international cuisines via social media and travel. As a result, there is a visible shift in demand from traditional meals to fast food, gourmet dining, and health-conscious options.

Another emerging trend is the surge in online food ordering, which has been accelerated by widespread smartphone penetration and digital payment adoption. Food delivery apps and third-party aggregators are expanding rapidly, supported by favourable demographic trends and increasing internet connectivity. The rise of cloud kitchens and virtual restaurants is also gaining momentum, offering scalability, operational efficiency, and reduced overhead costs.

Sustainability is becoming an important focus for foodservice providers in Saudi Arabia. Consumers are becoming increasingly environmentally conscious, and restaurants are responding with sustainable packaging, local sourcing, and waste reduction strategies. Health and wellness trends are also influencing menu innovation, with increased offerings of vegan, organic, and low-calorie options.

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 the optimistic growth trajectory, the Saudi Arabia foodservice market faces several challenges. High operational costs, especially for premium dining establishments, continue to impact profitability. The shortage of skilled labour in the hospitality sector necessitates significant investment in training and recruitment. Furthermore, supply chain complexities and reliance on imported food items pose risks related to cost volatility and regulatory compliance.

Cultural sensitivities and local preferences present unique challenges for international food brands entering the market. Menu adaptation, gender-segregated seating arrangements, and halal certification are essential considerations that require careful planning and execution.

However, these challenges also offer opportunities for innovation and localisation. For instance, sourcing ingredients locally can help control costs and support sustainability goals. Investing in local talent development through culinary schools and vocational training centres can address the skills gap and enhance service quality.

There is vast untapped potential in secondary cities and underserved regions, which remain underpenetrated by branded foodservice outlets. These areas offer opportunities for expansion, particularly for QSRs and affordable full-service restaurants. Additionally, the growing demand for healthy, organic, and plant-based food presents a niche market segment for foodservice providers to explore.

Technological integration offers further opportunities to optimise operations and enhance customer experience. From AI-powered ordering systems and digital kiosks to kitchen automation and predictive analytics, technology is transforming every facet of the foodservice value chain. Partnerships with last-mile delivery platforms and the integration of loyalty and CRM tools can further drive customer engagement and retention.

Saudi Arabia Foodservice Market Forecast

Looking ahead, the Saudi Arabia foodservice market is poised for sustained expansion over the forecast period of 2025-2034. The projected CAGR of 11.60% reflects the ongoing structural transformation of the Kingdom’s economy and society. The market is expected to achieve a value of USD 62.54 billion by 2034, supported by rising disposable incomes, a growing tourism sector, and increased private sector participation.

The evolving regulatory environment is expected to facilitate greater foreign investment, franchising activity, and public-private partnerships. Government support for SMEs and start-ups in the foodservice space, along with initiatives aimed at promoting culinary innovation, will further enhance the market's long-term potential.

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