Press Release

Frequent Occurrences of Mega Events Necessitate Catering Services in Saudi Arabia

The Saudi Arabia Catering Service Market is projected to grow at a CAGR of 7% in the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The market growth is attributed to the increasing demand for hygienic and cost-competitive food services among both the residents and business facilities for various occasions, events and weddings, etc. Moreover, with the growing expansion of airports in the country, due to the increasing focus of the Saudi Government to welcome millions of visitors in the country to boost their GDP growth, the demand for catering services to provide food to their employees has substantially increased.

Thus with the increasing demand, various catering service providers, such as Saudi Airlines Catering Company, Gulf Catering Company, etc., are collaborating with FMCG companies to enhance their food sales. For instance, in 2022, Saudi Airlines Catering Company (SACC) announced a collaboration agreement with Siwar Foods, a Saudi Based FMCG company, to work together on food solutions for different economic sectors and increase their presence and revenue opportunities in the country.

Additionally, the county hosts a series of national and international events such as Saudi Horeca, HVAC R, Saudi International Hala Expo, commerce, etc., which leads to an increase in visitor’s arrival in Saudi Arabia, thereby resulting in increased demand for catering services during 2023-28, further states the research report, “Saudi Arabia Catering Service Market Analysis, 2023.

Segmentation Analysis

• By Type (Contractual, Non-Contractual)
• By End User (Corporate, Educational Institutes, Healthcare, Defense and Offshore, Mining & EPC, Sports & Leisure, Others)
• By Model (Client Pay B2B, Consumer pays/retail, B2C),
• By Region (North, East, South, West, Central)

Contractual Segment to Hold a Dominant Share in the Market

Between the types, the market for contract catering services has expanded significantly over the years and is anticipated to hold a significant share of the Qatar Catering Services market. This was witnessed by the growing need for contractual catering contracts from end-user industries like business & industry, commercial spaces, and other leisure activities. Additionally, the rising religious tourism in Saudi Arabia, due to the presence of several sacred places such as Makkah and Madinah, etc., have further augmented the demand for contract catering services by the tourism authority to ensure the availability of food services to the visitors. Moreover, in order to increase the visitors tally, the government, in 2023, announced the removal of the limit on the number and the age restriction for Hajj pilgrims. This would also result in constant demand for contract catering services in the Kingdom during the forecast period.

Business and Industry to Gain Notable Traction in The Forecast Period

Among the End Users, Business and Industry have seen substantial expansion in recent years as businesses worldwide have chosen Saudi Arabia as a location for their corporate headquarters because of the nation’s openness to international trade and advantageous location as a regional gateway. Additionally, the expansion of corporate catering services in Saudi Arabia will be aided by the increased foreign direct investment in the country by companies, including Aramco, etc., to promote the development of the private sector and lower taxes for office environments.

For instance, according to UNCTAD’s World Investment Report 2022, FDI inflows in Saudi Arabia rose from around USD 5.39 billion in 2020 to over USD19.28 billion in 2021 and are expected to continue to grow owing to the rising initiatives of the KSA government promoting flexible FDI laws. Thus, the growing expansion of office spaces in the country is expected to continue to support the demand for food services in the coming years as well, thereby leading to a surge in the revenue growth of Saudi Arabia’s Catering Services market.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (Gulf Catering Company, Tamimi Global Company Ltd., Saudi Catering & Contracting, Algosaibi Services, Nesma Catering, Saudi Airlines Catering, Al-Suwaidi Services, and Gulf Mahmal Support Services Co. Ltd., etc.) are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the region?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping across various countries?
6. How have the buying behavior, customer in- inclination, and expectations from product manufacturers been evolving during 2018-28?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?