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The MENA food service market size was worth USD 101.36 billion in 2024. The market is estimated to grow from USD 113.72 billion in 2025 to USD 89.04 billion by 2032, exhibhiting a CAGR of 8.41% during the forecast period.
The Middle East and North Africa (MENA) food service market is growing steadily due to increasing urbanization, young population, diversification policies, and growing disposable incomes. Recovery in tourism and international events post-pandemic also boosted demand for restaurants, catering, and quick-service restaurants. According to the Ministry of Tourism, the number of tourists increased from 63.83 million in 2021 to 86.16 million in 2023. Concurrently, digitalization — ranging from food delivery apps to cloud kitchens — is transforming consumer behavior and broadening access.
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Rising Concept of Cloud Kitchen in the MENA Countries Influences the Market’s Growth Momentum
A developing and lucrative business concept, “cloud kitchens” has been the catchword in the restaurant businesses lately. Also known as “dark kitchens” and “ghost kitchens,” they have caused an immense disturbance in the industry and unlocked new gateways for revenue generation.
A popular concept, takeaway services, is already a flourishing business in Asian countries such as India and Singapore. However, in a few years, the enormous growth of this concept has caught the attention of international restaurateurs in GCC countries such as Saudi Arabia, UAE, and Kuwait. The growing number of immigrants, mounting usage of online food delivery companies, and regular changes in consumer preferences are anticipated to encourage the growth of the market. Foreseeing the growth potential in the region, key players are entering this lucrative market to widen their customer reach. At one such instance, in Dubai, Foodlink Global Restaurants & Catering LLC launched a new gourmet cloud kitchen, “Art of Dum,” in February 2023.
Rising Disposable Income and Expanding Middle Class Population to Boost Market Growth
Increased disposable incomes and growing middle class population are the leading drivers for strong growth in the MENA food service sector, as they increase consumers' spending on eating at restaurants and drive the expansion of food service establishments throughout urban areas. With GDP per capita and domestic consumption still on the rise in the GCC and wider MENA region, consumers spend more of their budget at food service establishments for a variety of cuisines and dining experiences.
Food Inflation and Import Dependency to Limit Market Growth
GCC countries are located in arid regions with limited renewable water resources due to scarce rainfall. The region’s natural resources have come under significant pressure and depletion due to unchecked economic and demographic development, poorly planned rapid urbanization, high resource consumption, and the expansion of irrigation systems on local farms. The situation is expected to worsen due to problems caused by climate change. The resulting environmental challenges could limit future growth potential and expose the region to a variety of natural and artificial ecological risks.
The World Bank reported that from March to December 2022, food inflation averaged 29% in 16 MENA countries, outpacing the overall annual inflation rate of 19.4%. The World Bank also warned that nutritional decline caused by rising food prices will have long-term consequences for children’s development and prospects. The MENA region's economies range from high-income oil exporters in the Gulf Cooperation Council (GCC) countries, to conflict-affected nations such as Yemen, developing oil importers such as Jordan, and developing oil exporters such as Iraq.
In Iran and Egypt, annual food inflation exceeds 61%, making it challenging for families to afford essential food items such as rice, bread, and vegetables. With food inflation reaching new heights every year, consumer spending on food consumed outside the home will also be hampered by the reduced number of restaurant outings, lessened spending on food consumed outside of the home, and increasing food prices in food outlets.
Based on type, the market is divided into full-service restaurants, quick-service restaurants, institutes, and others.
Full-service restaurants are the most dominant in the MENA food service market share as they offer an inclusive dining experience with table service, expansive menus, distinctive atmosphere, and leisure or formal occasion facilities. The segment is highest in terms of value share, particularly in developed urban areas and tourism-based nations such as Saudi Arabia, the UAE, and Qatar.
Quick Service Restaurants (QSRs) focus on providing fast, convenient meals with minimal table service. They typically have limited menus and emphasize efficiency in food preparation and service. International chains such as McDonald's, KFC, and Burger King have a substantial presence in the MENA region, alongside local brands offering fast food options. Cafés and coffee shops are prevalent throughout the MENA region, offering a relaxed environment for socializing, working, or enjoying a leisurely coffee break.
Quick-service restaurants will grow at a CAGR of 9.35%. Increasing urbanization and growing working classes favor quick, low-cost, and readily available meals, rising demand for QSRs.
Based on service type, the market is bifurcated into commercial and institutional.
The commercial segment leads the MENA food service market primarily due to its direct relationship with tourism, urbanization, and consumer lifestyle transitions. The region is a world destination for religious, leisure, and business tourism. For instance, Saudi Arabia received more than 100 million domestic and international tourists in 2023 (Saudi Ministry of Tourism), and the UAE received 17.15 million tourists in 2023 (Dubai Tourism Authority).
The institutional segment, in turn, is expected to record steady growth over the forecast period, at a CAGR of 6.66%. Institutional catering service operators serve organizations such as hospitals, corporations, schools, and others, thus catering to a captive audience type that has predetermined meal requirements. The concept of institutional catering through schools, colleges, and hospitals, which was only present in urban areas, is now expanding in rural areas and tier 2 and tier 3 cities. With the expansion of institutes' catering services in such cities, the institute-level food service market offers lucrative growth opportunities that will support the MENA food service market growth.
Based on region, the market is segmented into Saudi Arabia, UAE, Kuwait, Qatar, Egypt, Algeria, and the Rest of MENA.
Saudi Arabia had the largest share, 34.27% in 2024, followed by Egypt and the UAE. Saudi Arabia boasts the largest population, with more than 36 million inhabitants, thus triggering greater demand for food and higher visits to food service outlets such as quick-service restaurants (QSRs), cafes, bakeries, and full-service restaurants.
Egypt is experiencing fast growth due to its large size, growing urbanization, and rising middle-class incomes. There is abundant demand for both local affordable restaurants and international quick-service chains, making it one of the most exciting emerging markets in the region.
Additionally, the food service sector in the UAE is fueled by a robust tourism industry, a high percentage of expats, and growing cloud kitchens and upscale dining options serving international tastes.
The MENA food service market size is witnessing significant growth due to the increasing number of players in the market, such as Burger King, McDonald's Corporation, Pizza Hut, Taco Bell, and many others, who are regularly innovating in their food offerings. This includes the introduction of conventional and combination foods that provide a remarkable taste experience to the consumers. Restaurants are introducing new products specifically aimed at vegan consumers.
The MENA food service market report provides a detailed analysis of the market. It focuses on market dynamics, supply chain and key industry developments, such as mergers and acquisitions. Besides this, the report also offers insights into the latest industry trends and primary research methods.
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ATTRIBUTE |
DETAILS |
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Study Period |
2019-2032 |
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Base Year |
2024 |
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Estimated Year |
2025 |
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Forecast Period |
2025-2032 |
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Historical Period |
2019-2023 |
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Growth Rate |
CAGR of 8.41% from 2025 to 2032 |
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Unit |
Value (USD Billion) |
|
Segmentation |
By Type · Full Service Restaurants o Fine Dining Restaurants o Casual Dining Restaurants · Quick Service Restaurants · Institutes · Others |
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By Service Type · Commercial · Institutional |
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By Country · Saudi Arabia · UAE · Kuwait · Qatar · Egypt · Algeria · Rest of MENA |
Fortune Business Insights says that the MENA food service market was worth USD 101.36 billion in 2024.
The market is expected to exhibit a CAGR of 8.41% during the forecast period.
By type, the full-service restaurants segment is set to lead the market.
Burger King, McDonalds Corporation, Pizza Hut, Taco Bell, and others are the leading players in the market.
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