Saudi Arabia Foodservice Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

The Saudi Arabia Foodservice market is expected to reach US$ 51.64 billion by 2033 from US$ 26.61 billion in 2024, with a CAGR of 7.66% from 2025 to 2033. A growing number of restaurants and demographic changes, including the urban population's increase, changes in income, and changes in lifestyle, are driving the market and encouraging the development of new restaurants.

Saudi Arabia Foodservice Industry Overview

A growing population, urbanization, and increased disposable incomes have all contributed to the notable expansion of the foodservice sector in Saudi Arabia. The demand for quick-service restaurants (QSRs) and casual dining places is being driven by the nation's youthful and diverse population, who are increasingly looking for convenience and variety in their culinary options. Additionally, the range of food options available to customers has increased due to the growing number of local and foreign brands entering the market. In big cities like Riyadh, Jeddah, and Dhahran, where fast-food franchises, casual dining, and fine-dining establishments are thriving, this is especially noticeable. The foodservice industry has grown to be a crucial component of Saudi Arabia's retail landscape as the country's economy continues to modernize and diversify.

Furthermore, the Saudi Arabian foodservice industry has grown quickly due to the growing influence of international cuisine trends and the emergence of online food delivery services. Innovation is also being driven by consumer demand for sustainable and healthful dining options, as foodservice providers and restaurants adjust to the demands of health-conscious customers. The foodservice business has benefited from the government's Vision 2030 plan, which aims to diversify the economy and enhance the tourism sector. This is especially true given the growth of hospitality services and the rising number of tourists visiting the nation. It is anticipated that this trend would continue, making the Saudi foodservice industry one of the most competitive and active in the region.

Due to shifting consumer preferences and demographic changes, the foodservice sector in Saudi Arabia is undergoing major change. With 37% of the population under 25 in 2023, younger customers have a significant impact and are increasingly looking for international cuisines and a variety of eating experiences. A sizable expat population - 13.5 million in 2022 - has contributed to the culinary landscape's diversity and increased demand for a range of foreign cuisines. Fusion cuisines and contemporary eating concepts that combine traditional Saudi ingredients with foreign influences have emerged as a result of this demographic makeup. A noticeable trend in the sector is the move toward experiential eating, as eateries use creative ideas and themed settings to draw in younger customers.

With an astounding 93.5 million tourist arrivals in 2022 - 16.5 million of which were foreign visitors and 77 million of which were domestic - tourism has emerged as a key driver of the growth of the foodservice sector. With tourism spending hitting USD 49.33 billion that same year, this tourism boom has had a significant economic impact. The government's dedication to building tourism infrastructure has given foodservice providers a lot of chances to expand their operations, especially in new tourist areas and entertainment districts. Saudi Arabia's food and beverage sector is becoming more sophisticated and varied as a result of the industry's adaptation to serve tourists from other countries while preserving genuine regional cuisine.

Growth Drivers for the Saudi Arabia Foodservice Market

Growing Interest in Eating in a Health-conscious Manner

The Saudi food service industry is changing as a result of health and wellness trends. A focus on nutrient-dense, organic, and low-calorie food options has resulted from consumers becoming more aware of lifestyle-related diseases and making them more selective about what they eat. In order to accommodate the wide range of customer preferences, restaurants have responded to this trend by offering healthier menus that include gluten-free, vegan, and keto-friendly dishes. Restaurants are urged to embrace national health objectives with the support of Vision 2030's healthy eating initiatives. Restaurants that specialize in salads and juice bars are two more increasingly popular trends. This indicates that there is a growing desire for balanced eating, which in turn reflects a movement in culture toward health consciousness and opens up new menu options.

An Increase in Culinary Experiences Fueled by Tourists

Saudi Arabia's Vision 2030 places a strong emphasis on tourism, which is driving an unprecedented change in the demand for dining services. Travelers from all over the world are driving a wide range of culinary experiences, from upscale dining to regional specialties. In the first seven months of 2024, 4.2 million tourists traveled to the country for amusement and holiday, making it one of the most popular travel destinations worldwide, according to the Ministry of Tourism. In popular tourist destinations like Riyadh and Jeddah, upscale eateries, culinary festivals, and cultural dining events that appeal to a wide range of palates are emerging.

Foodies from all over the world have been drawn to events like Riyadh Season and AlUla's Winter at Tantora Festival, which have been promoting traditional foods along with creative interpretations. Desert feasts and heritage village lunches, which immerse foreign visitors in Saudi culture, are further examples of experiential dining.

Growth of Internet Meal Delivery Services

One of the main factors propelling the growth of the Saudi Arabian food service industry is the sharp rise in online meal delivery services brought on by rising smartphone penetration, urbanization, and shifting lifestyles. UberEats, Jahez, and HungerStation have joined the dining scene by offering convenience and diversity. Thanks to contactless delivery preferences and cutting-edge apps that provide easy ordering and payment alternatives, the trend is still going strong after the epidemic. By improving their online presence and even collaborating with delivery services, restaurants are adjusting. Cloud kitchens are contributing to the growth of the Saudi foodservice industry by providing culinary products only for delivery, which lowers overhead expenses. This pattern suggests a move away from the food service sector and toward convenience made possible by technology.

Challenges in the Saudi Arabia Foodservice Market

Fluctuating Food Prices and Supply Chain Disruptions

For the Saudi Arabian foodservice industry, supply chain interruptions and fluctuating food prices pose serious problems. Due to its heavy reliance on imports for a variety of food items, the nation is susceptible to fluctuations in world prices. The cost of foodservice operations is directly impacted by changes in the prices of commodities such as grains, meats, and dairy products on a worldwide scale. Furthermore, delays in the delivery of essential materials may result from supply chain disruptions brought on by natural catastrophes, geopolitical events, or logistical problems. Businesses find it challenging to maintain stable profit margins as a result of unpredictable pricing and inventory constraints. Foodservice companies must diversify their sourcing alternatives, build solid connections with their suppliers, and implement flexible pricing strategies to lessen the influence of outside variables on their business operations.

Growing Reliance on Delivery Services

For foodservice operators, Saudi Arabia's increasing reliance on food delivery services has brought both opportunities and challenges. Restaurants and foodservice establishments need to make investments in strong digital solutions, like user-friendly applications and online ordering platforms, as customers increasingly choose the ease of ordering meals online. Businesses must also build delivery infrastructure or collaborate with others to guarantee prompt and effective service. This change also necessitates improved customer service skills, such as managing client expectations, tracking orders, and providing timely answers to questions. Nevertheless, these expenditures on delivery logistics, technology, and service infrastructure result in increased operating expenses. Foodservice companies must therefore strike a balance between profitability and the higher expenses of delivery services, which makes it crucial to streamline operations while satisfying customer demand for expediency.

Saudi Arabia Foodservice Market Overview by Regions

By Region, the Saudi Arabia Foodservice market is divided into Western Region, Northern & Central Region, Eastern Region, Southern Region.

Eastern Saudi Arabia Foodservice Market

A growing population, increased disposable incomes, and a growing need for a variety of dining options are all contributing factors to the success of the Eastern Saudi Arabia foodservice business. Quick-service restaurants (QSRs) and casual eating places are in greater demand as a result of the fast urbanization of cities like Dammam, Khobar, and Jubail. Both domestic and foreign foodservice brands are drawn to the area because of its notable industrial and commercial centers. The market is also being further stimulated by the growing popularity of online ordering platforms and meal delivery services. The industry is growing as a result of Eastern Saudi Arabian consumers' growing desire for a variety of international cuisines, healthful food options, and upscale dining experiences. In order to satisfy changing customer demands, foodservice companies are consequently developing and broadening their services.

Western Saudi Arabia Foodservice Market

The foodservice industry in Western Saudi Arabia is one of the most vibrant, and major contributors to its expansion are the cities of Jeddah, Mecca, and Medina. As the region's economic center, Jeddah is home to a wide variety of foodservice businesses that serve both locals and tourists from other countries, ranging from casual dining to gourmet dining. The significant number of pilgrims traveling to Mecca and Medina for religious reasons has a significant impact on the local foodservice industry, resulting in a seasonal spike in demand for food and beverage services. The market is also being shaped by the rising popularity of fast casual dining, regional and foreign cuisines, and health-conscious options. The region's foodservice providers are becoming more widely available due to the growth of e-commerce sites and meal delivery services.

Saudi Arabia Foodservice Market Segments

Foodservice Type - Market breakup by 4 viewpoints

• Cafes & Bars
• Cloud Kitchen
• Full Service Restaurants
• Quick Service Restaurants

Outlet - Market breakup by 2 viewpoints

• Chained Outlets
• Independent Outlets

Location - Market breakup by 5 viewpoints

• Leisure
• Lodging
• Retail
• Standalone
• Travel

Key Questions Answered in Report

1. How big is the Saudi Arabia Foodservice industry?
The Saudi Arabia Foodservice market size was valued at US$ 26.61 billion in 2024 and is expected to reach US$ 51.64 billion in 2033.

2. What is the Saudi Arabia Foodservice growth rate?
The Saudi Arabia Foodservice market is expected to expand at a compound annual growth rate (CAGR) of 7.66% from 2025 to 2033.

3. Who are the key players in Saudi Arabia Foodservice industry?
Some key players operating in the Saudi Arabia Foodservice market includes Al Tazaj Fakeih, AlAmar Foods Company, ALBAIK Food Systems Company S.A., Americana Restaurants International PLC, Apparel Group, Fawaz Abdulaziz AlHokair Company, Galadari Ice Cream Co Ltd LLC, Herfy Food Service Company, Kudu Company for Food and Catering, LuLu Group International.

4. What are the factors driving the Saudi Arabia Foodservice industry?
Saudi Arabia's foodservice business is being driven by a number of factors, including urbanization, rising disposable incomes, changing consumer lifestyles, convenience demand, tourism growth, and a penchant for a variety of cuisines.

5. What segments are covered in the Saudi Arabia Foodservice Market report?
Foodservice Type, Outlet, Location and Region segment are covered in this report