Saudi Arabia Foodservice Market - Growth, Trends, and Forecast (2018 - 2023)
The Saudi Arabian foodservice market was valued at USD 29.83 billion in 2017, and it is expected to record a CAGR of 5.9% during the forecast period (2018–2023).
Growing demand for home delivery and foodservice providers is expected to drive the Saudi Arabian foodservice market. Increasing health consciousness and growing rate of obesity among the KSA population is challenging the market growth. Cafes are the fastest-growing foodservices and full-service restaurants hold a major share by type in the KSA food service market in 2017.
With the growing popularity of online food delivery services, the overall food service market in Saudi Arabia is forecasted to gain high potential during the forecast period. The eating-out trend in KSA is also growing rapidly, and has become a major attraction in the country. With limited options available for entertainment, the culture of eating out has gained higher preference. This dinning pattern is strongly impacting the KSA food service market. Also, the high expat population in Saudi Arabia has been contributing to the demand for assorted cuisines and new dining concepts. This is expected to drive the foodservice market in Saudi Arabia.
The Saudi Arabia foodservice market is segmented by structure into Chained and Independent consumer foodservice. Independent consumer foodservice companies capture the local tastes and preferences, in order to make the brand popular among the Saudis. Various local brands, such as Herfy, AlBeck, and Shawaya House, are also leveraging the potential demand for fast food, creating a strong presence in Saudi Arabian fast food landscape. Chained consumer service primarily includes US-0owned full-service chain restaurants, quick service restaurants, and cafés. Casual dining restaurants are increasing in number in Saudi Arabia, with international brands, like Applebee, Outback Steak House, Chilis, and TGI Fridays, marking their presence.
By type, the KSA foodservice market is segmented into Full-service Restaurant, Fast Food Restaurant, Café and Catering or Institutional Food Sector. Fast-food outlets have turned out to be important social spaces for a growing cohort of Saudi young people, and are a huge business in Saudi Arabia. Restaurants and cafes are classified according to their primary food offerings. Burgers are the most popular food type, based on consumer spending, the biggest part of the sales accounted for by chicken burgers. Some fast food outlets have introduced modification to their menus to reflect local tastes (McArabia Grilled Chicken by McDonalds- a pita bread sandwich), they also incorporated home and office delivery, regular promotions, free give-away items, and playing areas for children. This is driving the fast food restaurants sales in Saudi Arabia.
Major players - AL TAZAJ, AMERICANA GROUP, BURGER KING, DOMINOS PIZZA, ELBAIK FOOD SYSTEMS COMPANY SA, HERFY, KUDU, MCDONALDS, YUM! BRANDS, among others.
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