Press Release

At a Steady CAGR of Around 9.5%, Saudi Arabia Food Service Market to Reach USD 50 Billion Mark by 2030

The Saudi Arabia Food Service Market size was valued at around USD 29 billion in 2024 and is projected to reach USD 50 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 9.5% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in their recent research report. There is a continuous increase in the spending on food services. This is because as the disposable income of people increases, their chance to spend more on food from multiple cuisines also increases. For instance, as per the Saudi’s General Authority of Investment, the spending on food services will grow annually at a yearly rate of around 6% for the next 5 years.

Moreover, there is a continuous increase in the number of visitors to Saudi Arabia from other countries. These individuals are either tourists or come for work on behalf of any company. For instance, as per the UN Tourism, the kingdom has experienced about 73% growth in the number of international visitors. These people increase the demand for food service as some want to eat food from their domestic cuisines while others want to try traditional Arabian food. Additionally, as these people are working individuals, the demand for food services provided in companies and industries increases.

Furthermore, home delivery services increase the demand for food services. This is because home delivery services provide convenience to a lot of people who do not want to go out to eat, have busy schedules, or working women who do not get time to cook food. As a result, they incline more towards out-of-home food as it saves their time and effort. For instance,

• In 2024, Jahez, an online food delivery company in Saudi Arabia, experienced a growth of around 22.3% in its revenue in 2024.

Therefore, due to the high number of wealthier people, both locals and foreigners, their disposable incomes have inclined them to eat outdoor food thus leading to the growth of the food service industry, further states the research report, “Saudi Arabia Food Service Market Analysis, 2025”

Segmentation Analysis

Full Service Restaurants Hold the Largest Market Share

Based on the type of service provider, the market is further bifurcated into full service restaurants, quick service restaurants, and catering. Full service restaurants hold the major market share. This is mainly due to the increasing number of people visiting Saudi Arabia. For instance, in 2023, approximately 27.40 million people visited Saudi Arabia. These people increase the demand for food services from various cuisines as a few want meals based totally on their domestic cuisines while a few want to try traditional Arabian meals that are available at full-service restaurants. This results in an increase in sales of full-service restaurants.

Moreover, the lifestyle of local Arabians is also changing due to their increasing disposable incomes. More people spend time and go out to eat food at restaurants along with their families or their friends. Additionally, family gatherings and parties, that require food from various cuisines can be organized at such restaurants only. Therefore, a high number of people visit full service restaurants to enjoy multiple cuisines at one stop, thus increasing the market share of full-service restaurants segment.

Food Service Industry Revolves Around Central Region

Regionally, the Central region leads the food service industry in Saudi Arabia with Riyadh as the most prominent state. This is because this area consists of a large number of people with high disposable incomes, inclusive of locals as well as foreigners. There are around 1,00,000 people in Saudi from Western countries and maximum of them live in Riyadh. Additionally, because of the developed infrastructure in this region, most travelers visit this place. A majority of these locals and foreigners increase the demand for food service as their luxurious way of life inclines them toward consuming food from numerous cuisines. Moreover, to provide food services, there are more than 33,000 restaurants in this place. Consequently, because of the excessive demand and supply of food, central region leads the market.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Herfy, AlBaik, Gulf Catering Company, Starbucks, Pizza Hut, McDonald’s, Kudu Food and Catering, Dunkin’ Donuts, Americana Restaurants International PLC, Shawarmer, and others are looking forward to strengthening their market positions.

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 country?
4. How has the industry been evolving in terms of geography & service adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from services been evolving during 2020-30?
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?