Market Definition
Catering services provide food, beverages, and other related services for events and occasions, such as weddings, corporate meetings, parties, and other gatherings. Companies, restaurants, or individuals specializing in food preparation and service for large groups can offer these services, typically including menu planning, food preparation, delivery, setup, service, and cleanup. Caterers may offer a range of options, from casual to formal, and may specialize in specific cuisines or dietary requirements. Some caterers also provide equipment and staffing, such as tables, chairs, linens, and waitstaff, to help manage the event.
Market Insights
The Saudi Arabia Catering Services Market was valued at USD 4.88 billion in 2022 and further expected to grow at a CAGR of 7.0% during the forecast period 2023-2028. The market is primarily driven by the increasing demand for catering services at events and social gatherings, hospitals, corporate offices, and educational institutions, among others. Other than this, the kingdom being the oil and gas giant, has witnessed higher demand of caterers for oil rigs to offer enough and on time food for offshore platforms. Over the years, the cities have been dotted with A’la carte restaurant and food trucks that is expected to bode well for the industry in the long run.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 7% |
| Region Covered | West, East, South, Central, North |
| Key Companies Profiled | Gulf Catering Company, Tamimi Global Company Ltd., Saudi Catering & Contracting, Algosaibi Services, Nesma Catering, Saudi Airlines Catering, Al-Suwaiket Catering, Al-Suwaidi Services, Others |
| Unit Denominations | USD Million/Billion |
In addition, the country's Vision 2030 initiative, which aims to diversify the economy and promote tourism, has led to the expansion of mega-projects and events that necessitate high-quality catering services. The growing trend towards healthy eating and the increasing popularity of international cuisines have also contributed to the growth of the market.
Furthermore, technological advancements, such as online ordering and delivery services, have made it easier for consumers to access catering services. The fierce competition between catering companies and restaurants that also offer such services has also led to a focus on quality and innovation in the industry, propelling the market forward.
Market Dynamics
Key Driver: Frequent Occurrence of Mega Events Within the Kingdom
The evolution of the industry's offering is based on the shift in demand, the creation of exciting mega-events and entertainment, and the establishment of the kingdom as a leading global business, entertainment, sports, and tourism destination. With the rising construction of corporate buildings, small and medium enterprises have been facilitating VIP dining services for small exclusive gatherings as well as high-profile celebrations, resulting in a significant demand for catering services in Saudi Arabia. Furthermore, the kingdom hosting various international seminars, conferences, etc., related to different educational or industrial backgrounds has reinforced the need for such services. For instance,
Possible Restraint: Scarcity of Skilled Professionals to Enhance Kitchen Efficiency and Inadequate Delivery Infrastructure in The Kingdom
The catering industry in Saudi Arabia is facing several challenges that need to be addressed to remain competitive. Firstly, kitchen operators are investing in expensive equipment without proper training for their teams on using it effectively. Therefore, training staff to utilize traditional cooking methods and new technology is crucial. Secondly, the rise of delivery services has become a necessity for both diners and restaurant operators, and demand is growing rapidly, but logistics infrastructure needs to keep pace with the demand. To overcome these challenges, catering businesses in kingdom need to focus on proper training and utilizing new technology while also investing in their delivery infrastructure to meet the growing demand.
Growth Opportunity: Offering Diverse Services for Business Meetings and Introducing Gift Certificates for Clients and Weddings
Professional caterers may provide different levels of service for business meetings, from upscale with wait staff to a hot lunch buffet set up for guests to serve themselves. Box lunches are also a terrific corporate-catered meal for guests who need to work through lunch.
Additionally, introducing gift certificates that can be redeemed for food, beverage, and delivery fees can be a great way to show appreciation to clients, vendors, and wedding couples or as treats for friends, family, and co-workers. With their ability to provide different types of delivery services and gift certificates, catering service providers can meet the diverse needs of their clients in Saudi Arabia in the coming years.
Key Trend: Companies Upscaling Their Menu and Experience Offerings
With demand at an all-time high, highly experienced and qualified catering companies with Kingdom-wide capacity emphasize providing unique menus and second-to-none services to meet the needs of mega-events. They are also willing to incorporate new and innovative technologies to enhance the customer experience, such as online ordering and payment systems, virtual reality tours, and interactive displays.
In conjugation, catering companies are paying more attention to the aesthetics of their services, including cutlery choices, table decorations, centerpieces, and linens. Also, they offer personalized and customizable options to create unique and memorable client experiences.
Many businesses focus on providing healthy and diverse menu options catering to various dietary restrictions and preferences. These efforts to improve the overall customer experience have been vital in differentiating themselves from other catering services and restaurants that offer catering.
Market Segmentation
Based on Type,
In 2022, The contractual segment dominated the industry with a substantial market share and the same trend is anticipated to continue in the upcoming years. The demand for contractual services was widely dominated by the tourism industry, owing to a constant need to serve both inbound and outbound tourists. For instance, by 2030, the Saudi Arabian government hopes to have 330 million travelers, which will encourage the demand for in-flight catering services. Additionally, as the government hires third-party caterers each year to suffice the meals for ever-growing hajj pilgrims, the government's aim to cater to more than 6 million pilgrims under the pilgrimage experience program 2030 will cause the catering business to grow in Mecca alone.
Based on Model,
The Client Pay B2B segment is projected to witness a significant share in the Saudi Arabia Catering services market during 2023-28. Business models and service innovations have enabled catering businesses to survive and thrive amid an industry-wide revamp. The growing expansion of service industries, and commercial companies in the kingdom, to gain the emerging revenue opportunities from its proliferating religious tourism and growing trade activities is anticipated to widely support the demand for B2B catering services in the country.
Do You Require Further Assistance?
Frequently Asked Questions
A. The Saudi Arabia Catering Services Market is projected to grow at a CAGR of around 7.0% during 2023-28.
A. Frequent occurrence of mega events within the kingdom is likely to drive the market further during the projected time frame.
A. The prominent players anticipated to stiffen the competition globally are Gulf Catering Company, Tamimi Global Company Ltd., Saudi Catering & Contracting, Algosaibi Services, Nesma Catering, Saudi Airlines Catering, Al-Suwaiket Catering, Al-Suwaidi Services.
A. Contractual segment is anticipated to emerge as an area of remunerative opportunities for the leading players in the Saudi Arabia Catering Services Market during the forecast period.
A. Companies upscaling their menu and experience offerings is the significant trend projected to shape the Saudi Arabia Catering Services Market through 2028.
A. Scarcity of skilled professionals to enhance kitchen efficiency and inadequate delivery infrastructure in the kingdom is the possible restraints affecting the growth of the Market.
