Saudi Arabia Cafés Market, By Category (Bakery, (Breads, Cookies, Cakes, Others), Confectionery, (Chocolates, Dry Fruits, Others), Beverages (Coffee, Tea, Shakes, Others), Others; By Type (Seating Café, Take-Away Café); By Ownership (Chain Restaurants, Standalone Outlets, Others); By Sales Channel (Retail, Online), Trend Analysis, Competitive Market Share & Forecast, 2018-2028

Report Overview

Saudi Arabia Cafés Market - Industry Trends & Forecast Report 2028

Saudi Arabia Cafés Market was worth USD 6.27 billion in 2021 and is further projected to reach USD 12.64 billion by the year 2028, exhibiting a CAGR of 10.6% in the forecast period. The rapid expansion of the market is predominantly due to the increasing per capita income, growing western influence, rising number of tourists, changing consumer tastes and preferences as well as expansion in café services. Moreover, growing youth population is increasing the demand for café in the country, as they like to spend time at such places and 4demand quality food which is also propelling the Saudi Arabia Cafés Market during the forecast period. The demand for high-quality food is influencing the international brands to expand their chain of restaurants and hence easy availability of such cafés is impacting the growth of the Saudi Arabia Cafés Market during the forecast period.    

Cafés - Overview

Cafés are small restaurants serving simple and light food as well as beverages. A restaurant that generally serves tea and coffee along with some light snacks is called a café. The term ‘Café’ comes from the French word meaning ‘coffee’. The Saudi Arabia Cafés Market predominantly has chain outlets in the country like Chilis and TGI Fridays which are ruling the market. The changing taste and preferences of consumers and growing inclination towards adoption of western food items due to exposure through internet and social media is increasing influence as well as demand of cafés across the country. This is influencing the key market players to envisage and expand its chain outlets thus, increasing their hold on the Saudi Arabia Cafés Market during the forecast period.

Saudi Arabia Cafés Market Forecast and Trends

Growth Drivers

Surging Demand for Chain Outlets of Cafés

The Chain Outlets of Cafés has accounted for the majority share in the Saudi Arabia Cafés Market in comparison to Standalone Outlets. With the growing popularity of fast foods and casual hangouts amongst the growing youth population, chained outlets are growing at a fast pace. Chain Outlets are increasing in number with international brands making expansions like McDonald’s, KFC, Applebee’s, Chilis, Dominos, etc. marking their presence in the country. Furthermore, the global chains have followed the strategy of customization and localization through intelligent modifications in their menus to cater as per the changing taste preferences of its consumers.

Increasing Internet Penetration Boosting the Demand

Due to major technological advancements that facilitate the development of online platform has resulted in expansion of the online café services industry providing a better user experience and convenience. The rising use of online café services by the younger population as they have accessibility to internet facility and show major usage of internet has been a major driver for the growth of Saudi Arabia Cafés Market over the years.

Also, during the pandemic due to the government's strict regulations, all cafés were closed, forcing them to shift to home delivery services. And now, as most people have become addicted to the taste of a particular café, this has increased the overall demand for online food ordering from cafés.

Increasing Focus on Tourism Industry

The tourism industry in Saudi Arabia is undergoing a drastic change owing to the efforts of private and public sector to develop their tourist base and the purpose of visiting Saudi Arabia. Therefore, the number of tourists visiting the country is increasing, which is boosting domestic tourism. In 2019, there was an increase of 10% from the past in the number of tourists that visited the country. Many visited for pilgrimage purpose and the increasing number of foreign workers visiting the country has boosted the tourism industry, resulting in the growth of the Saudi Arabia Cafés Market during the forecast period.

Restraints

High Dependence on Online Platform

The increasing dependence on the online platform due to the pandemic to order food from cafés is restraining the growth of the Saudi Arabia Cafés Market. This is because consumers lack trust while making payments via digital platform. However, the online platform is projected to witness significant growth opportunities owing to contact-less buying or delivery and cashless transactions options during the forecast period.

Also, as per the Saudi Labor Law employers need to majorly employ Saudi nationals, with the remainder being filled by expats. But many positions remain unfilled because restaurant owners are not allowed to hire foreigners, thereby, negatively impacting the Saudi Arabia Cafés Market in the country.

Impact of COVID-19 on Saudi Arabia Cafés Market

During the COVID-19 pandemic, cafés were negatively impacted due to lockdown measures. This is because many chained café outlets in Saudi Arabia faced temporary closures which greatly affected the business. Also, there was shortage of raw materials and labor due to complete lockdown. As social distancing was the norm at the time so café to be operational even after the lifting of national lockdown restrictions was next to impossible. And a significant number of outlets also closed permanently due to difficult economic conditions which they faced and found it impossible to sustain any further. However, the increasing use of online platform to order food from cafés from the convenience of home saw an upsurge and is expected to boost the demand for cafés influencing the growth of the Saudi Arabia Cafés Market during the forecast period.   

Saudi Arabia Cafés Market - By Category

Based on Category, the Saudi Arabia Cafes Market is segmented into Bakery, (Breads, Cookies, Cakes, Others), Confectionery, (Chocolates, Dry Fruits, Others), Beverages (Coffee, Tea, Shakes, Others), and Others. The Beverages segment comprising Coffee accounts for the largest market share due to its increasing popularity and demand over recent years as well as Asia and North America are the largest exporters of coffee across Saudi Arabia. Next Shakes in the Beverages segment is also of high demand among the consumers of the country but due to lockdown its sales dropped as the companies were unaware of the online platform and could not cater to it through online. But due to rising disposable incomes as well as changing tastes and preferences of consumers demand for shakes is likely to bounce-back and impact the growth of the Saudi Arabia Cafés Market during the forecast period.

Saudi Arabia Cafés Market - By Type

Based on Type, the Saudi Arabia Cafés Market is segmented into Seating Café and Take-Away Café. The Take-Away Café segment accounts for the largest market share due to its increasing popularity after the pandemic which imposed social distancing norm to avoid crowd at one place. Also, this segment has the convenience to eat at your own place avoiding the formality of an outside place occupied with people. Some international brands that are on an expansion spree are Applebee’s, Outback Steak House, Chili’s, and TGI Fridays, marking their presence. The demand for Seating Café falls just next to Take Away Café due to rising youth population who prefers fast food at some hangout joints. Hence, all these factors are surging the growth of the Saudi Arabia Cafés Market during the forecast period.

Saudi Arabia Cafés Market - By Sales Channel

Based on Sales Channel, the Saudi Arabia Cafes Market is segmented into Retail and Online.  The Retail segment accounts for the largest market share in the Saudi Arabia Cafés Market. But online platform is also catching-up with the retail sales and is likely to grow during the forecast period. The lack of trust while making payments via digital platforms is responsible for its gradual growth. However, the online channel is projected to witness significant growth opportunities owing to contact-less buying or delivery and cash-less transactions options during the forecast period. Hence, all these factors are likely to boost the demand for Cafés and impact the growth of the Saudi Arabia Cafés Market during the forecast period.

Saudi Arabia Cafés Market - Regional Insights

Geographically, the Saudi Arabia Cafés Market is segmented into Western, Central, Eastern, Southern and Northern region. The Western region segment accounts to hold the largest share in the market owing to the well-established chain restaurants and rising disposable income. This trend is followed by the central region and is expected to maintain its dominance in the forecast period due to changing lifestyle and preferences, rising per capita income, and growing population. Hence, all these factors are likely to increase the demand for cafés resulting in expansion of brands and impacting the growth of the Saudi Arabia Cafés Market during the forecast period.  

Competitive Landscape

Key players operating in Saudi Arabia Cafés Market are Sulalat Coffee, Applebee’s, Bateel, Starbucks, Elixir Bunn Coffee Roasters, T.G.I. Friday’s, Brew92, Chili’s, Bafarat Café, Java Time, Sizzler House, dr.CAFE COFFEE, Café Magad, Fuddruckers, Boho Café, Outback Steakhouse, Derby Coffee International and other prominent players

The Saudi Arabia Cafés Market is highly consolidated with the presence of several brands of chain restaurants in the country. The market leaders retain their supremacy by huge investments in expansion of their chain of restaurants, incorporating cutting-edge technology into their goods, and providing high-quality food to its customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Recent Development

In March 2022, AG Café, the master franchisee of Canadian restaurant chain Tim Hortons in the Middle East, announced that it plans to expand the brand’s presence in Saudi Arabia by reaching to more than 200 coffee shops by 2024.

Scope of the Report

By Category

Bakery

• Breads
• Cookies
• Cakes
• Others

Confectionery

• Chocolates
• Dry Fruits
• Others

Beverages

• Coffee
• Tea
• Shakes
• Others

By Type

• Seating Café
• Take-Away Café

By Ownership

• Restaurant Chains
• Standalone Outlets
• Others

By Sales Channel

• Retail
• Online

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Saudi Arabia Cafés Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. PESTEL Analysis
   5. Number of Cafés in Saudi Arabia, 2021-2028
   6. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Saudi Arabia Cafés Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Category
         1. Bakery
            1. Breads
            2. Cookies
            3. Cakes
            4. Others
         2. Confectionery
            1. Chocolates
            2. Dry Fruits
            3. Others
         3. Beverages
            1. Coffee
            2. Tea
            3. Shakes
            4. Others
         4. Others
      2. By Type
         1. Seating Café
         2. Take Away Café
      3. By Ownership
         1. Restaurant Chains
         2. Standalone Outlets
         3. Others
      4. By Sales Channel
         1. Retail
         2. Online
6. Competitive Landscape
   1. List of Key Players and their Offerings
   2. Players’ Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Business Expansion, Agreement, Partnership and Product Launch)
7. Impact of COVID-19 on Saudi Arabia Cafés Industry
8. Saudi Arabia Cafés Industry Opportunity and Assessment
9. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
   1. Sulalat Coffee
   2. Applebee’s
   3. Bateel
   4. Starbucks
   5. Elixir Bunn Coffee Roasters
   6. T.G.I. Friday’s
   7. Brew92
   8. Chili’s
   9. Bafarat Café
   10. Java Time
   11. Sizzler House
   12. dr.CAFE COFFEE
   13. Café Magad
   14. Fuddruckers
   15. Boho Café
   16. Outback Steakhouse
   17. Derby Coffee International
   18. Other Prominent Players
10. Key Strategic Recommendations

Note:

1. Financial Information of non-listed companies will be provided as per the availability
2. The segmentation and the companies are subjected to modification based on in-depth secondary for the final deliverable.

List of Figures

Figure 1   Saudi Arabia Cafés Segmentation

Figure 2   Saudi Arabia Cafés Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2021

Figure 4   Saudi Arabia Cafés Market Size, By Value (USD Billion), 2018-2028

Figure 5   Saudi Arabia Cafés Market Share, By Category, By Value, 2018-2028

Figure 6   Saudi Arabia Cafés Market Share, By Type, By Value, 2018-2028

Figure 7   Saudi Arabia Cafés Market Share, By Ownership, By Value, 2018-2028

Figure 8   Saudi Arabia Cafés Market Share, By Sales Channel, By Value, 2018-2028

List of Tables

Table 1     Saudi Arabia Cafés Market Size, By Category, By Value, 2018-2028

Table 3     Saudi Arabia Cafés Market Size, By Type, By Value, 2018-2028

Table 4     Saudi Arabia Cafés Market Size, By Ownership, By Value, 2018-2028

Table 5     Saudi Arabia Cafés Market Size, By Sales Channel, By Value, 2018-2028

Table 6     Sulalat Coffee Company Overview

Table 7     Sulalat Coffee Financial Overview

Table 8     Applebee’s Company Overview

Table 9     Applebee’s Financial Overview

Table 10  Bateel Company Overview

Table 11  Bateel Financial Overview

Table 12  Starbucks Company Overview

Table 13  Starbucks Financial Overview

Table 14  Elixir Bunn Coffee Roasters Company Overview

Table 15  Elixir Bunn Coffee Roasters Financial Overview

Table 16  T.G.I. Friday’s Company Overview

Table 17  T.G.I. Friday’s Financial Overview

Table 18  Brew92 Company Overview

Table 19  Brew92 Financial Overview

Table 20  Chili’s Company Overview

Table 21  Chili’s Group Financial Overview

Table 22  Bafarat Café Company Overview

Table 23  Bafarat Café Financial Overview

Table 24  Java Time Company Overview

Table 25  Java Time Financial Overview

Table 26  Sizzler House Company Overview

Table 27  Sizzler House Financial Overview

Table 28  dr.CAFE COFFEE Company Overview

Table 29  dr.CAFE COFFEE Financial Overview

Table 30  Café Magad Company Overview

Table 31  Café Magad Financial Overview

Table 32  Fuddruckers Company Overview

Table 33  Fuddruckers Financial Overview

Table 34  Boho Café Company Overview

Table 35  Boho Café Financial Overview

Table 36  Outback Steakhouse Company Overview

Table 37  Outback Steakhouse Financial Overview

Table 38  Derby Coffee International Company Overview

Table 39  Derby Coffee International Financial Overview