GCC Foodservice Industry Overview
A burgeoning tourism economy, rising disposable incomes, and shifting consumer preferences have all contributed to the GCC's (Gulf Cooperation Council) foodservice industry's recent notable expansion. From quick-service restaurants to fine dining, the region's diverse demographic - which includes a sizable youth population and a growing number of expatriates - has produced a thriving market for a range of foodservice products. Furthermore, the growing popularity of convenience and health-conscious eating has increased demand for grab-and-go items, delivery services, and healthier menu options. These elements are further reinforced by advancements in food technology, such as cloud kitchens, smartphone apps, and digital ordering platforms, which are revolutionizing how customers engage with foodservice providers.As the demand for a wider variety of culinary experiences grows, more international food companies are entering the GCC countries, especially Saudi Arabia, the United Arab Emirates, and Qatar. The expansion of the sector is also greatly aided by tourism, which is boosted by events like Expo 2020 in Dubai and important athletic competitions. Demand has been further fueled by the surge in eating out and food delivery services brought about by the increase in disposable money, particularly among younger people. All things considered, the GCC foodservice industry is expected to keep growing due to both domestic and foreign customer preferences.
While keeping close ties to traditional Middle Eastern food, the business is seeing a noticeable move towards a wider variety of culinary options. The appeal of both traditional and international meat-based cuisines was fueled by the region's 0.45 million metric tons of meat consumption in 2022. As a result of this tendency, hybrid menus that blend regional cuisines with global culinary methods have become more popular; this is especially seen in the growing number of fusion restaurants. With fast food giants like TGI Friday's, KFC, and Burger King growing their customer bases while embracing local tastes and preferences, quick service restaurants are changing their menus to feature both international favorites and locally tailored options.
In the GCC foodservice industry, coffee and café culture have become major trends. This is especially true in the UAE, where coffee consumption has skyrocketed to over six million cups per day and USD 630 million is spent annually on coffee. Due to this expansion, both local specialty coffee shops and global coffee chains have proliferated, each providing distinctive experiences and high-quality goods. More than 13,000 cafés and restaurants serve an estimated 3.5 million people in Dubai alone, demonstrating the market's density and competitiveness.
Growth Drivers for the GCC Foodservice Market
Population Growth & Urbanization
The GCC region is seeing fast population growth, particularly in metropolitan areas, leading to an increase in demand for different foodservice options. The region’s growing middle class is becoming more accustomed to dining out and exploring a variety of cuisines. This trend is further amplified by the influx of expatriates, creating a multicultural environment where food preferences span a wide range. As urban centers expand, the demand for different types of foodservice outlets, including quick-service restaurants, casual dining, and high-end establishments, is increasing. Additionally, new commercial spaces are being developed as a result of urbanization, increasing the number of foodservice venues available. As a result, the culinary scene is dynamic and changing quickly to suit a range of consumer preferences.Rising Disposable Incomes
As disposable incomes rise across the GCC, there has been a noteworthy shift in consumer buying habits, particularly in the foodservice industry. Richer people are more inclined to spend money on fine dining experiences, whether they are provided by international food chains, fast casual restaurants, or upscale eateries. A more affluent middle class that wants to try and enjoy a variety of cuisine options has also resulted from this increase in disposable money. Gourmet meals and unique cultural experiences are now part of dining out, which is more than just a way to stay nourished. Additionally, consumers are more likely to spend on food delivery and convenience-based services, further driving the growth of the foodservice industry in the region.Tourism Boom
The foodservice industry has been greatly impacted by the sharp increase in tourism in the GCC region, especially in nations like Saudi Arabia, Qatar, and the United Arab Emirates. Restaurants, cafes, and other foodservice providers that serve both foreign tourists and the expanding local population are in high demand as tourism increases. The growing need for variety is reflected in the existence of international food chains as well as regional eateries providing a range of gastronomic experiences. Mega-events like Expo 2020 and important athletic events have increased demand for foodservice by attracting tourists from around the world and fostering a more competitive and varied market. Thus, the expansion of the foodservice industry, which offers prospects for innovation and growth, has been greatly aided by the surge in tourism.Challenges in the GCC Foodservice Market
Sustainability and Waste Management
Growing customer and governmental awareness of environmental issues has made sustainability and waste management major challenges for foodservice operators in the GCC. The need for operators to embrace environmentally responsible practices - like using sustainable foods, cutting down on food waste, and using less plastic - is growing. It is frequently necessary to invest in waste management systems, sustainable packaging, and new technology in order to implement these practices. However, because environmentally friendly options might be more expensive than conventional alternatives, striking a balance between sustainability goals and cost-effectiveness can be difficult. Systems for managing food waste also need infrastructure and continual employee training, which raises operating expenses even further. Despite these obstacles, companies can attract eco-aware customers, improve their brand image, and remain ahead of the curve by successfully incorporating sustainability into their operations.Fluctuating Food Prices
Due to the GCC's heavy reliance on food imports, fluctuating food costs provide a serious problem to the foodservice industry. Price volatility may result from any interruptions in the global supply chain, including those brought on by natural disasters, unstable geopolitical conditions, or transportation problems. For foodservice companies that depend on steady and predictable pricing to stay profitable, this unpredictability is especially worrisome. Furthermore, by raising the price of imported goods, trade policy measures like tariffs or export limits can make matters worse. This unpredictability makes it difficult for businesses to manage their margins, as they must constantly adjust prices or absorb higher costs. Foodservice operators in the GCC must therefore devise plans to deal with and lessen the effects of volatile food prices.GCC Foodservice Market Overview by Regions
By Countries, the GCC Foodservice market is divided into Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, Rest of GCC.United Arab Emirates Foodservice Market
A growing population, more tourists, and increased disposable incomes are all contributing factors to the United Arab Emirates' (UAE) booming foodservice industry. With a sizable expat population and a cosmopolitan atmosphere, the nation generates demand for a wide range of culinary options, from fine dining to fast cuisine. International food brands and regional foodservice businesses rely heavily on Dubai and Abu Dhabi. Furthermore, the UAE's flourishing tourism sector increases demand for eateries, coffee shops, and food delivery services - particularly during international gatherings like Expo 2020. Operators are being prompted to provide better and more sustainable options as a result of market pressure from health-conscious customers and a shift toward eco-friendly and sustainable dining options. It is anticipated that the UAE's foodservice sector would keep growing due to innovation and consumer desire for a variety of culinary experiences.Saudi Arabia Foodservice Market
Because of the country's youthful population, increased urbanization, and rising disposable incomes, the foodservice industry in Saudi Arabia is growing quickly. A thriving foodservice industry is one aspect of the nation's economic diversification that has increased as a result of the Vision 2030 project. There is a high need for a variety of dining options, from informal dining to sophisticated dining, due to the expanding middle class and the influx of pilgrims and visitors. In big cities like Riyadh, Jeddah, and Mecca, both local and international fast-food franchises are flourishing. Consumer behavior is also being influenced by a move toward healthier eating habits and convenience-based services like food delivery. In keeping with broader global trends, the market is also witnessing an increase in interest in locally sourced and sustainable ingredients.Bahrain Foodservice Market
Bahrain's small but wealthy population and rising tourism are driving the country's foodservice industry's steady expansion. The desire for a range of cuisines, from traditional Arabic food to worldwide fast food and fine dining, is fueled by the nation's diversified population, which includes a sizable expat community. Consumer expenditure on eating out and food delivery services has expanded as a result of the expanding middle class and growing disposable incomes. Another factor driving market expansion is Bahrain's standing as a regional center for business and its booming tourism industry, especially during Formula 1 events. Organic, low-calorie, and locally sourced food options are becoming more and more popular as a result of health-conscious eating and sustainable practices. All things considered, Bahrain's foodservice industry is growing due to changing consumer preferences and economic expansion.Kuwait Foodservice Market
The foodservice industry in Kuwait is expanding steadily due to the country's youthful urban population and increased disposable income. The demand for quick-service restaurants, fast food, and meal delivery services has increased due to the growing number of working professionals and a move toward more convenient dining options. Due to the high number of expatriates, Kuwaiti customers are increasingly looking for a variety of culinary experiences, with a particular affinity for international cuisines. Additionally, the industry is seeing an increase in health-conscious eating, which is driving foodservice operators to promote low-calorie, organic, and healthier menu alternatives. Consumer choices are also being shaped by the increased emphasis on sustainability and environmentally friendly packaging. The foodservice industry is predicted to prosper as Kuwait's economy continues to diversify, helped by urbanization, rising purchasing power, and changing eating preferences.GCC Foodservice Market Segments
Foodservice Types - Market breakup from 4 viewpoints
- Cafes & Bars
- Cloud Kitchen
- Full Service Restaurants
- Quick Service Restaurants
Outlet - Market breakup from 2 viewpoints
- Chained Outlets
- Independent Outlets
Location - Market breakup from 5 viewpoints
- Leisure
- Lodging
- Retail
- Standalone
- Travel
GCC Countries Food Service Market
- Bahrain
- Kuwait
- Oman
- Qatar
- Saudi Arabia
- United Arab Emirates
- Rest of GCC
Company Analysis for GCC Foodservice
- Al Tazaj Fakeih
- Alamar Foods Company
- ALBAIK Food Systems Company SA
- Galadari Ice Cream Co. Ltd LLC
- Herfy Food Service Company
- Kudu Company For Food And Catering
- LuLu Group International
- Riyadh International Catering Corporation
- Shahia Food Limited Company
Table of Contents
Companies Mentioned
- Al Tazaj Fakeih
- Alamar Foods Company
- ALBAIK Food Systems Company SA
- Galadari Ice Cream Co. Ltd LLC
- Herfy Food Service Company
- Kudu Company For Food And Catering
- LuLu Group International
- Riyadh International Catering Corporation
- Shahia Food Limited Company
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 200 |
Published | March 2025 |
Forecast Period | 2024 - 2033 |
Estimated Market Value ( USD | $ 51.84 Billion |
Forecasted Market Value ( USD | $ 158.22 Billion |
Compound Annual Growth Rate | 13.2% |
Regions Covered | Middle East |
No. of Companies Mentioned | 9 |