Saudi Arabia Food Service Market Size, Share & Industry Analysis, By Type (Full Service Restaurants, Quick Service Restaurants, Institutes, and Others), By Service Type (Dine-In, Takeaway, and Delivery), By Restaurant Type (Chained and Independent), By Cuisine Type (Western Cuisine, Middle Eastern Cuisine, Asian Cuisine, and Others) and Country Forecast, 2025-2032

The Saudi Arabia food service market size was valued at USD 31.69 billion in 2024. The market is projected to grow from USD 34.45 billion in 2025 to USD 61.77 billion by 2032, exhibiting a CAGR of 8.70% during the forecast period.

The food service industry comprises businesses preparing and distributing food to customers through takeaway, delivery or on-premise consumption. Food service retailers, catering service providers, and food trucks are major contributors to the food service industry. The global food service market is boosting fast food consumption worldwide due to rising household incomes, the number of working women, and the convenience offered by fast food businesses.

The significant growth of the Saudi Arabia food service market is attributed to the increasing demand for home delivery services in the country and the rising consumption of takeaway foods. Furthermore, the number of shopping and food malls has rapidly expanded in Saudi Arabia over the last few years. The trend of opening food outlets in shopping malls, earlier limited only to the country's major cities, has now spread to tier 2 and tier 3 cities in the last decade. Therefore, the increasing number of food outlets and the rising trend of eating outside will boost the market growth.

The COVID-19 pandemic created unprecedented challenges at all stages of the food supply chain in Saudi Arabia. The outbreak impacted farm production, food processing, service, transport & logistics, and consumer demand. Furthermore, challenges in the transport & logistics sector disrupted the movement of products; however, the effects varied by mode of transport and type of product. Therefore, supply chain issues and challenges in the restaurant industry increased food costs and led to shortages of main ingredients. Obstacles in the supply lines created a scarcity of different raw materials and increased the overall costs, which eventually passed on to consumers.

Saudi Arabia Food Service Market Trends

Rising Trend of Veganism to Fuel Market Growth

Veganism is a new food trend that is growing strongly in Saudi Arabia across the globe. Vegans do not eat animal- and dairy-based products, while many do not eat honey, considering it an animal-derived ingredient. Diets based on large amounts of fruits and vegetables positively impact a consumer’s health. A vegan diet is plant-based and has grown in popularity over the past few years. Health is the primary reason for choosing a vegan diet. Even though this diet was earlier limited to the vegetarian population, it is now popular among all consumers.

Although the market in the Kingdom of Saudi Arabia (KSA) is significantly influenced by Western food culture, healthy food options, such as vegan/plant-based foods, are becoming quite popular among consumers in Saudi Arabia. Market players are also working toward spreading awareness among consumers and trying to launch vegan products in KSA’s market.

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Growth Factors 

Expansion of International Brands in Saudi Arabia to Fuel Market Growth

In the last few years, many international restaurants and dining chains have entered the Saudi Arabian market, including Cipriani, The Cheesecake Factory, and Hakkasan. Several widely popular fine dining hotels and restaurants have recently entered the KSA market by launching their branches in the country, mainly in Jeddah and Riyadh. Some of them are Scalini, Zuma, and Catch. A growing number of famous chefs in Saudi Arabia are focusing on opening their restaurants, which is an example of the ever-increasing penetration of local and international restaurants in Saudi Arabia’s food service industry.   

Riyadh is home to more branded international food outlets than Jeddah. This is due to the global brands expanding their business, and Riyadh is said to be their first choice over Jeddah. With the Saudi government’s 2030 vision underway, more branded outlets are expected to open in both Riyadh and Jeddah during the forecast period.

Increased Spending on Out-of-Home Foods to Drive Market Growth

Growth in household income owing to a rise in the number of dual-income households is a major factor boosting consumers’ spending on outdoor dining. With an increase in the number of working women, families are frequently visiting restaurants or ordering food from outside. This factor is increasing the customer footfall in dine-ins. The concept of food service outlets is gaining popularity across the Kingdom of Saudi Arabia, while franchising remains one of the most popular growth models for the country’s businesses. With a majority of the millennial population leaning toward fast food chains, their spending on quick service restaurants is increasing over traditional family restaurants.

RESTRAINING FACTORS

Negative Impacts of Online Food Delivery May Hamper Market Growth

Online food ordering is the latest trend in the food service industry, which a vast majority of consumers have adopted. However, some of the negative aspects of online food ordering can make customers wary of using this medium. One of the problems with food delivery is that the quality of the food delivered is often lower than that of a restaurant. Food is often transported over long distances, and its valuable nutrients can be lost over time. In addition, food from delivery services is often packaged in plastic packaging, which can fuel the problem of plastic pollution.

Another downside of food delivery is that using these services can be expensive for consumers. While food delivery is free in most countries, if the value of the order is below a certain amount, customers may have to pay for delivery even if the ordered food is very affordable. These factors may impede the Saudi Arabia food service market growth.

Saudi Arabia Food Service Market Segmentation Analysis

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By Type Analysis

Full Service Restaurant Segment Holds a Major Market Share Attributed to Variety in Menu

Based on type, the market is segmented into full service restaurants, quick service restaurants, institutes, and others.

The full service restaurants segment captured a dominant Saudi Arabia food service market share owing to the availability of a wide range of food items on the menu. Families, corporate meetings, and gatherings generally prefer full service restaurants as they have a variety of food items available for every individual. As family outings become more frequent, the number of full service restaurants is also increasing. In addition to the food, full service restaurants that offer alcohol are also growing. Consumption of alcohol is rising each year, and restaurants are expanding their network to cater to this need.

The quick-service restaurants capture the second largest share of the market in terms of market value and is expected to grow with a considerable CAGR. The rapid growth of the QSR outlets will be attributed to the growing penetration of the fast food chains in the country and expected future investments in the country.

By Service Type Analysis

Dine-in Segment Dominates the Market Owing to Huge Footfall from Tourists to Taste Local Cuisine

Based on the service type, the Saudi Arabia food service market is segmented into dine-in, takeaway, and delivery.

The dine-in segment captures the major share of the market due to the attraction of foreign tourists to try Turkish, Middle Eastern, and Asian cuisine. Saudi Arabia’s restaurant industry is mainly driven by the huge footfall from tourists, who usually visit restaurants and do not opt for online food delivery and takeaway options in their hotels. This factor is expected to be sustained in the long run, and the dominance of the dine-in segment will be seen in the forecast period.

With the growing urbanization and lifestyle changes among the millennials coupled with the increasing number of migrating families residing in Saudi Arabia, the online food ordering segment is expected to flourish over the next decade. Many online food ordering companies are expanding in the region and are competing with each other to capture the major share of the Saudi Arabian food service industry. In July 2023, “Dook”, an online food ordering platform, entered the Saudi Arabian market, which let the customers order the food online at the same price as the restaurant. Dook is aiming to capture the market share by offering great profit opportunities to the restaurants by lowering Dook’s commission. Such entries in the online food ordering segment are expected to boost the overall food service market growth.

By Restaurant Type Analysis

Independent Restaurants Lead the Market Share Due to the Presence of Small Independent Eateries

On the basis of restaurant types, the Saudi Arabian food service market is divided into chain and independent.

The idependent segment account for more than 60% of the total food service market size in the country. Recent trends in Saudi Arabia’s consumer food service include Turkish fine-dining restaurants, Western cuisine fine-dining restaurants, food trucks, and high-end sandwich outlets.

In the last decade, many local market players have entered the chain restaurant segment by opening fast-food chains in the Riyad and Jeddah region to compete with the international chain restaurants by providing a local variety of fast food at a cheaper cost. The Maestro Pizza and AlBaik are examples of local Saudi-based fast food chains strengthening their market footprint in the Saudi Arabia food service market. The chain segment is expected to grow with the highest CAGR due to the interest of foreign market players to expand in the GULF region and the competition among local brands to capture the untapped smaller markets in the country.

By Cuisine Type Analysis

Western Cuisine Holds the Largest Share as a Result of Attraction among Tourists and Local Millenial Generation

By cuisine type, the Saudi Arabia food service market is categorized into Western, Middle Eastern, Asian, and others.

The Western segment dominates the Saudi Arabia food service market share by capturing more than one-third of the market revenue. The dominance of Western cuisine is attributed to the huge inflow of tourists from North America, South America, and Europe.

Visitors visiting from Western countries tend to spend more on food by visiting fast-food chains, such as McDonald’s, Burger King, Domino’s, Pizza Hut, KFC, Starbucks, and other local fast-food chains and coffee shops. The Western cuisine segment is expected to grow at the highest growth rate over the forecast period, owing to the rapid expansion of fast food chains in the country offering burgers, pizza, and sandwiches. Apart from the fast-food chains operating in the country, full service restaurants and fine-dining eateries are also being launched in the region to attract foreign tourists to local Middle Eastern cuisine. These factors are expected to boost Saudi Arabia's market size in the coming decade.

COUNTRY INSIGHTS

Saudi Arabia’s food & beverage industry is one of the largest in the Middle East region. According to the data published by the Saudi Arabian General Authority for Investment (SAGIA) in 2021, Saudi Arabia’s consumer spending on food service will rise by 6% per annum over the next five years, which is greater than the population growth of 1.8%. Demographic and social changes in the Kingdom of Saudi Arabia will mainly drive this growth.

Fast food consumption is steadily increasing in Saudi Arabia due to rising disposable incomes, increasing percentage of working women, and convenience provided by fast food businesses. Furthermore, the availability of affordable fast-food restaurants has increased the frequency of dining out, particularly among the working-class population. With the majority of the millennial population increasing their preference for fast food, their spending on quick-service restaurants is increasing. As Saudi Arabia’s tourism sector is growing at a notable pace, the country is moving toward becoming a global tourism hub backed by competitive advantages that attract international travelers looking for new experiences.

List of Key Companies in Saudi Arabia Food Service Market

Growing Tourism Industry in the Middle East to Attract Companies to Expand Product Portfolios

As the COVID-19 outbreak heavily hit the food service industry in 2020, market players were not ready to risk their businesses by entering volatile markets and making losses. However, since the markets recovered from the pandemic, key players in the market have also started expanding their businesses, and the food service industry has also grown at a steady rate. For instance, In 2022, Nestle announced that it would invest USD 1.86 billion in Saudi Arabia over the next decade. Nestle’s initial investment of USD 100 million will begin with establishing a manufacturing plant set to open in 2025.

LIST OF KEY COMPANIES PROFILED

• Starbucks Corporation (U.S.)


• Yum! Brands, Inc. (U.S.)


• McDonald’s Corporation (U.S.)


• Restaurant Brands International Inc. (Canada)


• Domino’s Pizza, Inc. (U.S.)


• Papa John's International, Inc. (U.S.)


• ALBAIK Food Systems Company Ltd. (Saudi Arabia)


• Herfy Food Services Co. JSC, KSA. (Saudi Arabia)


• KUDU Company for Food and Catering (Saudi Arabia)


• Hardee’s Restaurants LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS

• January 2024: “Blessings Basket Company” has signed a franchise agreement with the “Rave Restaurant Group”, through its subsidiary “Pizza Inn”, to expand its presence in Saudi Arabia.  Through this agreement, Pizza Inn will open 50 new restaurants in Saudi Arabia, starting with two stores in January 2024. Pizza Inn currently operates 110 restaurants in the U.S. and 19 in international markets. In the upcoming decade, Blessings Basket Company is planning to launch 50 more restaurants in the Kingdom of Saudi Arabia.  


• July 2023: Rebel Foods, an Indian cloud kitchen operator, entered the Saudi Arabian market by inaugurating its two cloud kitchens in Riyadh. The cloud kitchen company is planning to establish 60 virtual restaurants in Riyadh within one year and is also planning to expand to other cities, including Jeddah. Rebel Foods runs cloud kitchen brands such as Behrouz Biryani, Faasos, Oven Story Pizza, and more.


• January 2023: “Foodics”, a prominent cloud-based restaurant managing technology and payments platform based in the Middle East, partnered with French start-up “Partoo”. Through this partnership, restaurants will be able to manage their social media presence from a single interface only in a few clicks. Partoo has already helped many brands, from corner shops to chain restaurants, in growing and managing their businesses.


• December 2022: One of the popular hospitality groups in Africa, “Tashas Group” launched its trademark “Flamingo Collection” in Saudi Arabia. Flamingo Collection offers three unique concepts, “Flamingo Room”, “Collective Africa”, and “Akkuring Africa” under one roof. Flamingo Room by tashas offers an elevating dining experience for lunch and dinner.


• December 2021: Dubai-based Japanese restaurant chain “Akiba Dori” opened its first outlet out of UAE at The House Hotel, Jeddah. The restaurant menu features classic Japanese street food dishes, including Japanese curries, sushi, sliders, sandos, and gyoza dumplings.

REPORT COVERAGE

The research report provides qualitative and quantitative insights into the market along with a detailed analysis of the market share, size, segmentation, and growth rate for all possible segments in the market. The report also provides an elaborative analysis of the industry. It offers key insights, an overview of related markets, market dynamics, SWOT analysis, recent industry developments, such as mergers & acquisitions, regulatory scenarios in key countries, leading market trends, and the competitive landscape of the market.

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Report Scope & Segmentation