Saudi Arabia Foodservice Market Overview

Market Size in 2024 : USD 28,669 Million

Market Size in 2033: USD 58,310 Million

Market Growth Rate 2025-2033: 8.21%

According to IMARC Group’s latest research publication,“Saudi Arabia Foodservice Market Size, Share, Trends and Forecast by Foodservice Type, Outlet, Location, and Region, 2025-2033“, The Saudi Arabia foodservice market size was valued at USD 28,669 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 58,310 Million by 2033, exhibiting a CAGR of 8.21% from 2025-2033.

Growth Factors in the Saudi Arabia Foodservice Market

• Rising Tourism and Cultural Events

Saudi Arabia’s ambitious Vision 2030 initiative has significantly boosted tourism, driving growth in the foodservice market. The influx of both domestic and international visitors, particularly to cities like Riyadh and Jeddah, has increased demand for diverse dining experiences. For example, events like Riyadh Season and Jeddah Season have attracted millions, with pop-up restaurants such as Zuma and Scalini catering to tourists seeking local and international cuisines. With this surge in culinary demand, the saudi arabia foodservice market size 2024 reflects significant expansion opportunities. Religious tourism, especially during Hajj and Umrah, further fuels demand for full-service restaurants, as pilgrims explore Middle Eastern and Asian flavors, creating opportunities for foodservice providers to expand their presence in high-traffic areas.

• Urbanization and Changing Lifestyles

Rapid urbanization and evolving lifestyles, particularly among Saudi Arabia’s youthful population, are key growth drivers. With over half of the population under 30, there’s a strong preference for convenience and dining out. The rise of dual-income households and working women has reduced home cooking, boosting demand for quick-service restaurants (QSRs) like Al Baik and international chains like McDonald’s. Urban centers like Riyadh and Dhahran see increased footfall in casual dining spots, as busy professionals seek fast, accessible meals. This shift has encouraged foodservice operators to open new outlets in densely populated areas, catering to modern, fast-paced lifestyles.

• Government Support and Economic Diversification

The Saudi government’s Vision 2030 plan, aimed at diversifying the economy, has created a favorable environment for the foodservice industry. Initiatives like reduced licensing costs for restaurants and financial aid for small businesses have lowered entry barriers for new players. The development of tourism projects, such as the Red Sea Project, has spurred demand for foodservice outlets in emerging destinations. For instance, the government’s investment in entertainment districts has led to the rise of food trucks and pop-up dining during events like Winter at Tantora, enabling businesses to tap into new markets and contribute to economic growth.

Key Trends in the Saudi Arabia Foodservice Market

• Growth of Online Food Delivery and Cloud Kitchens

The surge in smartphone penetration and digital adoption has transformed the foodservice landscape, with online food delivery platforms like Jahez and HungerStation gaining massive popularity. These platforms cater to busy consumers seeking convenience, especially in urban areas. Cloud kitchens, which focus solely on delivery, have emerged as a cost-effective model, reducing overhead costs for operators. For example, many cloud kitchens partner with delivery apps to offer diverse menus, from fast food to healthy options, appealing to millennials and professionals. This trend reflects a shift toward tech-enabled convenience, reshaping how food is accessed in Saudi Arabia.

• Demand for Health-Conscious and Sustainable Dining

Health and wellness trends are gaining traction, driven by a growing awareness of nutrition and sustainability. Consumers, particularly younger demographics, are seeking organic, plant-based, and low-calorie options. Restaurants like The Warehouse in Jeddah have introduced healthier menus, incorporating local ingredients to align with cultural preferences. The Saudi Green Initiative has also encouraged sustainable practices, with brands like Napco National offering compostable packaging for foodservice clients. This shift is evident in the rise of juice bars and cafes offering smoothies and organic snacks, catering to health-conscious consumers while addressing environmental concerns.

• Rise of Experiential and Fusion Dining

Saudi Arabia’s foodservice market is witnessing a surge in experiential dining, blending traditional Saudi flavors with international influences. Restaurants like Zuma and Catch have opened pop-up branches during cultural festivals, offering innovative menus that attract younger consumers. Fusion cuisine, combining Middle Eastern ingredients with global styles, is gaining popularity, especially among the 37% of the population under 25. For instance, local chefs like Nehal Felemban are opening restaurants that merge Saudi culinary traditions with modern techniques, creating unique dining experiences. This trend is fueled by a desire for novelty and social media-driven dining, particularly in vibrant cities like Riyadh.

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Saudi Arabia Foodservice Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Foodservice Type:

• Cafes and Bars
  • By Cuisine
    • Cafes
    • Juice/Smoothie/Desserts Bars
    • Specialist Coffee and Tea Shops
• Cloud Kitchen
• Full Service Restaurants
  • By Cuisine
    • Asian
    • European
    • Latin American
    • Middle Eastern
    • North American
    • Others
• Quick Service Restaurants
  • By Cuisine
    • Bakeries
    • Burger
    • Ice Cream
    • Meat-based Cuisines
    • Pizza
    • Others

Analysis by Outlet:

• Chained Outlets
• Independent Outlets

Analysis by Location:

• Leisure
• Lodging
• Retail
• Standalone
• Travel

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The major market players are indulging in expansion, innovation, and digitization, aligned with the Saudi Vision 2030. The FFCC states that the Saudi Vision 2030 aims to diversify the food service market by raising the number of cafes per million from its current count of 258 to 1,000 per million. International food chains are increasing their footprint and utilizing the new urban population with increasing disposable income.

Future Outlook

The Saudi Arabia foodservice market is poised for dynamic growth, driven by continued urbanization, a youthful demographic, and Vision 2030’s focus on tourism and economic diversification. The expansion of international brands like The Cheesecake Factory and local favorites like Al Baik will intensify competition, pushing innovation in menus and service models. The rise of digital platforms and cloud kitchens will further enhance accessibility, catering to convenience-driven consumers. Additionally, the growing emphasis on health-conscious and sustainable dining will encourage restaurants to adopt eco-friendly practices and healthier offerings. With tourism projects like the Red Sea Project and cultural events expanding, the market will see increased investment in diverse dining formats, solidifying Saudi Arabia’s position as a culinary hub in the Middle East.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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