Saudi Arabia Food Service Market Size Set to Cross USD 57 Billion by 2031

Published | 16 May 2025

Saudi Arabia Food Service Market is flourishing because of the thriving tourism and hospitality sector driven by increasing disposable income, rapid urbanization, and the escalating presence of international brands.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Saudi Arabia Food Service Market size at USD 32.33 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Saudi Arabia Food Service Market size to expand at a CAGR of 8.5% reaching a value of USD 57.23 billion by 2031. The expansion of Food Service Market in Saudi Arabia is propelled by an increasing demand for takeaway and home delivery services, the growing popularity of dining out, and the expansion of food outlets, particularly in tier 2 and tier 3 cities. Demographic shifts, rapid urbanization, and evolving consumer preferences are shaping the market. With nearly 37% of the population under 25, younger consumers are driving the demand for diverse global dining experiences and modern culinary concepts. The presence of over 13 million expatriates has enriched the food landscape, fueling interest in international cuisines and fusion dishes. Tourism, with 93.5 million visitors and USD 49.33 billion in spending in 2022, further boosts the sector, especially in entertainment zones and tourist hotspots. The rise of experiential dining, including themed restaurants, is attracting younger audiences. Additionally, Saudi Arabia leads the Middle East in branded coffee outlets, with cafés evolving into social and workspaces. The growing hospitality sector, expected to increase from 400,000 to 854,000 hotel rooms by 2030, is driving investments in diverse dining formats and tech-driven innovations, positioning the market for continued growth.

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Impact of Escalating Geopolitical Tensions on Saudi Arabia Food Service Market

Intensifying geopolitical tensions could disrupt the growth of Saudi Arabia Food Service Market. The potential disruption of global supply chains stemming from escalated conflicts could trigger shortages and inflate the prices of imported food staples, a cornerstone of the Kingdom's food security. It, in turn, would exert pressure on the operational budgets of foodservice providers and constrain the variety of their offerings. Furthermore, political instability may deter foreign direct investments and postpone tourism-centric developments, consequently diminishing patronage at restaurants, cafés, and leisure destinations. A shift towards cautious consumer behavior could also curtail discretionary spending on dining experiences. These interwoven challenges have the capacity to impede market expansion, compelling businesses to strategically reassess their procurement networks, pricing models, and customer engagement strategies within an increasingly volatile landscape.

Cloud Kitchen/Ghost Kitchen Segment Holds Largest Market Share

The full-service restaurants segment is expected to maintain its dominance in Saudi Arabia Food Service Market by type of food service during the forecast period. The dynamic growth is propelled by their extensive and varied menus that appeal to a wide spectrum of culinary preferences. These establishments are a preferred choice for family occasions, social engagements, and corporate gatherings, owing to their capacity to cater to diverse palates. The increasing prevalence of family dining further propels the growth in the number of full-service restaurants. Moreover, establishments offering alcoholic beverages are gaining momentum, with rising alcohol consumption contributing to the expansion of networks within this segment to effectively meet evolving consumer demands.

Competitive Landscape

Major companies in Saudi Arabia Food Service Market include Hardee’s Restaurants LLC, Americana Restaurants International PLC, Starbucks Corporation, Herfy Food Services Co. JSC, Yum! Brands, Inc., KUDU Company for Food and Catering, Riyadh International Catering Corporation, McDonald’s Corporation, Restaurant Brands International Inc., Shahia Food Limited Company, M.H. Alshaya Co. WLL, Domino’s Pizza, Inc., Papa John's International, Inc., and ALBAIK Food Systems Company. The presence of high number of companies intensify the market competition as they compete to gain a significant market share. These companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches to further enhance their market share.

Don’t miss the business opportunity in Saudi Arabia Food Service Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and Saudi Arabia Food Service Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Saudi Arabia Food Service Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

Scope of the Report

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