UAE Food Service Market- Trend Analysis & Forecasts

UAE Food Service Market Overview:
The UAE food service market was valued at nearly US$ ** billion in 2024 and is forecast to grow at a CAGR of **% through 2032. Demand is driven by a diverse population of around 10 million, with expatriates forming the majority and fueling appetite for international and local cuisines. Dubai and Abu Dhabi together account for about **% of total revenues, while Sharjah and Ajman are emerging growth hubs. Rising food expenditure, with per capita annual dining-out spend exceeding US$ 2,500 in 2023, highlights strong consumption trends. Digital adoption is reshaping the market, with online transactions already representing **% of sales in 2024, compared to **% in 2021, while margins are challenged by rising costs, with average profitability slipping from 8% to 6%.

Primary Areas/ Elements of Research & Analysis
The report provides comprehensive and valuable insights into the supply and demand dynamics of the UAE food service market. Below are the variables considered and analyzed in the report:
• Supply-demand trends, market growth, and trade
• Market structure, conduct, and performance analysis
• Historical and forecasted market size (value)
• Trade analysis (export & import), including key partners, quantities, values, and price trends
• Supply chain mapping, pricing, and regulatory framework
• Competitive landscape profiling of key players
• Factors influencing market performance, including sustainability trends

Market Growth Factors
Tourism remains a cornerstone, with 17 million visitors in 2023 contributing nearly US$ ** billion to food service, and arrivals projected to reach ** million by 2025. Quick service restaurants, valued at US$ ** billion in 2024, are expanding at an 8% CAGR, with digital platforms like Talabat and Deliveroo accounting for **% of QSR sales. High urbanization rates, with over **% of residents living in cities, and strong disposable incomes, averaging US$ 45,000 per capita, underpin growth. Government initiatives such as the UAE Food Safety Strategy 2024–2026 and the planned Al Maktoum Food Valley capable of hosting 500+ F&B outlets also provide structural support.

Market Restraints & Challenges
Rising operating expenses weigh heavily on the sector, with labor costs increasing by **% and prime area rents climbing by **% annually, pushing net margins closer to **%. Input cost volatility adds further stress, as meat and dairy prices rose by about **% in 2023, while shipping disruptions inflated logistics costs by **%. Local sourcing remains limited, covering only **% of food demand, keeping dependence on imports high. Regulatory fragmentation also slows expansion, with licensing delays stretching up to six weeks in certain emirates. Workforce turnover in premium venues, reaching nearly **% per year, underscores staffing as a persistent challenge.

Market Segmentation
In 2024, full-service restaurants captured about **% of revenues (US$ ** billion), while QSRs represented **% (US$ ** billion), followed by casual and buffet dining at **% and catering at **%. International cuisines dominate, but Middle Eastern food’s share grew from **% in 2020 to **% in 2024. Dine-in channels still account for **% of spending, but delivery and takeaway climbed to **%, supported by cloud kitchens expected to reach US$ ** million by 2026 with **% CAGR. Geographically, Dubai commands **% of revenues, Abu Dhabi **%, and Sharjah **%, with lower per-capita dining spend in smaller emirates—US$ ** annually in Sharjah versus US$ ** in Dubai—indicating untapped opportunities.

Competitive Landscape
Competition is anchored by both local and global players. Al Baik has expanded to 35+ outlets with annual revenues above US$ ** million, while Al Islami recorded **% growth in 2023 through its healthy food chains. McDonald’s operates 100+ outlets with 15 new openings in 2023, and Starbucks reported **% same-store growth. Alshaya Group manages over ** brands and expanded Shake Shack and Five Guys in 2024. Cloud kitchen leader Kitopi processed US$ ** million in orders in 2023, growing by **%, while Talabat controls nearly **% of delivery transactions. Recent deals include a US$ ** million acquisition of a premium café group in 2025, highlighting private equity’s rising role in consolidation.

Outlook
By 2032, the UAE food service market is projected to reach US$ ** billion, nearly doubling from 2024 levels. Quick service restaurants are expected to generate US$ ** billion, while delivery and cloud kitchens could account for **% of total sales. Premium dining and concept-driven restaurants are set to expand their share, with wellness-oriented menus projected to contribute **% of full-service revenues. Per capita dining spends in Sharjah and Ajman are forecast to double from US$ ** to US$ **, narrowing the gap with Dubai. Improved logistics and government-backed food parks are expected to reduce input cost inflation to 2–3% annually, strengthening long-term profitability and positioning the UAE as a regional hub for F&B growth.

Scope of the Report:
• Historical Years: 2018-2023
• Base Year: 2024
• Forecast Period: 2025-2032
• Units: Value (US$ Million)
• Segments Covered:
By Type (Full-Service Restaurants, Quick Service Restaurants, Institutes, and Others)
By Restaurant Type (Chained and Independent)
By Service Type (Dine-In, Takeaway, and Delivery)
• Companies Profiled: The market players include, Al Baik, Al Islami Foods, Al Khaja Group, McDonald’s UAE, Starbucks UAE, Restaurant Brands International Inc., Alshaya Group, Kitopi, Talabat, Zomato UAE, Pizza Hut UAE, KFC UAE, Burger King UAE, Nobu, Zuma (UAE), Comptoir 102, and Others.

Please note: It will take 4-5 business days to deliver the report upon receipt the order. Show more