Saudi Arabia Foodservice Market - Growth, Trends and Forecasts (2018 - 2023)
Saudi Arabia Foodservice Market Insights
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). The market is expected to reach USD XX billion by 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.
Saudi Arabia Foodservice Market Dynamics
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.
Saudi Arabia Foodservice Market Segmentation
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 Arabia’s 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’s, 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 McDonald's- 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.
Saudi Arabia Foodservice Market Competitive landscape
There is a high competition in the market with the presence of many local and international players trying to gain a competitive advantage over each other by adopting strategies, such as new and innovative food product launches and mergers.
American fast food chains continue to dominate the upscale fast food restaurant sector in Saudi Arabia. KFC, McDonald’s, Pizza Hut, Burger King, Hardee’s, Subway, Little Caesar’s Pizza, Pizza Inn, and Domino's Pizza, are major players. Other local chains, such as Herfy, Al-Beck, Shawaya House, Taza, Dajen, and Kudo, are gaining popularity and continue to expand in major urban areas. Pizza Hut holds the largest market share among the brands, because of its large branch network (180 branches). The top 30 brands among fast-food chains accounted for approximately 66.3% of the market in 2017.
Reasons to Purchase Saudi Arabia Foodservice Market Report
Analyzing outlook of the market with the recent trends and Porter’s five forces analysis.
Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come.
Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects.
Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years.
Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players.
3 months analyst support along with the Market Estimates sheet in excel.
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