Saudi Arabia Food Services market is anticipated to reach
USD26.54 billion by 2026, growing at a CAGR of 7.68% during the forecast
period. Growth in the market can be attributed
to increasing disposable income, growing tourism industry, increasing urbanization,
and rapid expansion of food delivery services in Saudi Arabia. Large base of young
adults & working population coupled with social and cultural changes are
the major drivers for the Saudi Arabia Food Services Market. Moreover, the online food services industry has been growing
at an exponential rate, with technological advancements facilitating the
development of online platform and allowing for a better user experience and
convenience.
Restaurants
were forced to close their dine-in services during the lockdown in 2020 due to
government restrictions, leaving them with no choice but to rely on online
delivery services. This increased the overall demand for online food ordering
and delivery in Saudi Arabia. Recognizing a massive opportunity for online food
delivery services, market players adopted the World Health Organization (WHO)
guidelines and began to adhere to no contact delivery, which helped them regain
customer trust and, as a result, helped the market recover. Furthermore, the
pandemic has broadened the customer base of online food delivery market,
pushing it beyond typical younger consumer segment.
The
Saudi Labor Law requires employers to fill the majority of positions with Saudi
nationals, with the remainder filled by expats. Many positions are still
unfilled because restaurant owners are not allowed to hire foreigners, thereby,
negatively impacting the food service market in the country.
Saudi
Arabia Food Service market is categorized by type, by region and by food chain.
In terms of by type, the Saudi Arabia food services market is segmented into
QSR (Quick Service Restaurants), Dinning Services, Café & Others (Canteens,
Lounges, etc.). Amongst, Quick Service Restaurants segment leads all the types
of restaurant segments in the Saudi Arabia food services market and this segment
is expected to continue its dominance over the forecast period on account of
changing tastes and preferences of people. Factors such as increased price
consciousness and value-seeking consumer behavior, among others, have
contributed to an increase in demand for quick service restaurants. Another
reason for this segment's rapid growth is the widespread use of the internet
and social media, which divulging large number of Saudis to Western food and
culture. Cafés are increasing in number in Saudi Arabia, with international
brands, like Applebee’s, Outback Steak House, Chili’s, and TGI Fridays, marking
their presence.
In terms of region, the Saudi
Arabia Food Service market is categorized into Western, Central, Eastern,
Southern and Northern region, respectively. In 2020, the Western Region was the
highest revenue-generating region in the Saudi Arabia food services market.
Furthermore, due to factors such as increased internet connectivity, modern and
changing lifestyles and preferences, and so on, the region is expected to
remain the most dominant region during the forecast period as well. Some of the
major players operating in the Saudi Arabia Food Services market are McDonald’s,
Herfy, AL BAIK, KUDU,
KFC, etc.
Years
considered for this report:
Historical Years: 2016-2019
Base Year: 2020
Estimated Year: 2021E
Forecast Period: 2022F–2026F
Objective of the Study:
- To analyze the historical growth in the market size of the Saudi
Arabia food services market from 2016 to 2020.
- To estimate and forecast the market size of the Saudi Arabia food
services market from 2021E to 2026F and growth rate until 2026F.
- To classify and forecast Saudi Arabia food services market based on
by type, by region and by food chain.
- To identify the dominant region or segment in the Saudi Arabia food
services market.
- To identify drivers and challenges for the Saudi Arabia food
services market.
- To examine competitive developments such as expansions, new product
launches, mergers & acquisitions, etc., in the Saudi Arabia food
services market.
- To conduct pricing analysis for Saudi Arabia food services market.
- To identify and analyze the profiles of leading players operating
in Saudi Arabia food services market.
- To identify key sustainable strategies adopted by market players in
Saudi Arabia food services market.
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TechSci Research performed both primary
as well as exhaustive secondary research for this study. Initially, TechSci
Research sourced a list of service providers across the country. Subsequently,
TechSci Research conducted primary research surveys with the identified food
chains. While interviewing, the respondents were also enquired about their
competitors. Through this technique, TechSci Research could include the service
providers which could not be identified due to the limitations of secondary
research. TechSci Research analyzed the service providers, and presence of all
major players across the country.
TechSci Research calculated the market size of Saudi Arabia food
services market using a bottom-up approach, wherein data for various segments
were recorded and forecast for the future years. TechSci Research sourced these
values from the industry experts and food chain representatives and externally
validated them through analyzing historical data of these segments for getting
an appropriate, overall market size. Various secondary sources such as company
websites, news articles, press releases, company annual reports, investor
presentations, and financial reports were also studied by TechSci Research.
Key Target Audience:
- Food Services owners and
franchise.
- Food Service end users.
- Research organizations and
consulting companies.
The study is useful in providing answers
to several critical questions that are important for the industry stakeholders
such as service providers, end-users, etc., besides allowing them in
strategizing investments and capitalizing on market opportunities.
Report Scope:
In this report, Saudi Arabia Food
Service market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Saudi
Arabia Food Services Market, By Type
- QSR (Quick Service Restaurant)
- Café
- Dining Services
- Others (Canteens, Lounges, etc.)
- Saudi
Arabia Food Services Market, By Region:
- Western
- Central
- Eastern
- Southern
- Northern
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in Saudi Arabia Food Services market.
Available
Customizations
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
In case you don’t find what you are looking for, please get in touch with our custom research team at [email protected]