Saudi Arabia Foodservice Market Size and Trends by Profit and Cost Sector Channels, Consumers, Locations, Key Players, and Forecast, 2021-2025
All the vital news, analysis, and commentary curated by our industry experts.
The foodservice profit sector in Saudi Arabia was valued at $13.7 billion in 2020. The market is projected to grow at a CAGR of more than 8% during the period 2021-2025. The sector’s decline can be attributed to a substantial fall in the number of transactions as a result of the COVID-19 crisis, which led to the enforcement of a national lockdown from March 2020 to June 2020, as well as operational restrictions on foodservice outlets.
In the profit sector, full-service restaurants (FSR) was the leading channel in 2020 followed by quick service restaurants (QSR); and coffee & tea shop. The education segment dominated the cost sector, followed by military & civil defense; welfare & services; and healthcare. Overall, profit sector channels will record an increase in average transaction value in the coming years, mainly due to an increase in VAT. As the country returns to some semblance of ‘normality’, dine-ins will continue to dominate foodservice volumes.
Overview of Saudi Arabia’s foodservice profit sector
For more insights on this report, download the free report sample
What are the market dynamics in Saudi Arabia’s foodservice market?
Amid growing fears of COVID-19 infection, the Saudi Government imposed strict lockdown measures, including restrictions on travel and on-premise outlets. This had a major impact on foodservice sales in 2020. Consumers were forced to stay at home for large parts of the year, thus boosting the prevalence of home cooking and at-home consumption. Saudi consumers limited their visits to restaurants and other food outlets due to either dine-in restrictions or fear of COVID-19 infection. As a result, many consumers opted for food delivery services to enjoy meals at home.
Thanks to its strategic location, Saudi Arabia is a tourist hotspot. Therefore, strong value growth will encourage international brands to enter the market. Although local cuisine remains popular, Saudi consumers are becoming increasingly experimental. In response to this, operators are adding more unusual items to their menus. Growing health awareness will continue to drive consumers’ interest in healthy indulgence. Consumers’ desire for “better for you” options offer brands an opportunity to focus on menu innovation. As they spend more time at home amid the ‘new normal’, consumers are becoming more and more digitally connected.
What are the sector classifications in Saudi Arabia’s foodservice market?
The foodservice market is segmented into the profit sector and cost sector. The cost sector typically represents the state’s foodservice operators while the profit sector represents the commercial operators.
Quick service restaurants market in Saudi Arabia
Standalone establishments were most popular, followed by outlets in shopping arcades. McDonald’s was the largest quick-service restaurant operator, in 2020. Other key chains include The Savola Group, Domino’s Pizza, Yum Brands, and Restaurant Brands International. Online platforms helped the QSR channel immensely during the COVID-19 crisis. In the future, however, the focus will return to dine-in services as consumers shift back to their pre-pandemic habits.
Full-service restaurants market in Saudi Arabia
The FSR channel is fragmented. Yum! Brands, Inc.’s Pizza Hut was the largest brand in terms of sales in 2020, followed in a distant second place by AmoHamza Seafood Restaurants Company. After being in lockdown for most of 2020, Saudis will be eager to dine out more often and will visit FSRs that offer attractive menus and ambience. Restaurants offering international dishes, such as Nobu and Mamo’s, will prove especially popular, with tourism restrictions remaining in place.
Coffee & tea shop market in Saudi Arabia
Independent operators account for majority of outlets, and their penetration is gradually increasing. Dine-ins dominate the channel and will continue on an upward trajectory in the wake of the pandemic. Increasing transaction price will drive future value growth as key operators compete on quality and menu innovation, rather than simply price.
For more channel insights, download a free report sample
Healthcare foodservice market in Saudi Arabia
During 2020–2025, healthcare will record marginal growth in the number of transactions. The number of outlets will also be stagnant during the forecast period. Healthcare registered the highest growth rate in terms of the transaction number.
Education foodservice market in Saudi Arabia
Education is the largest channel in the Saudi cost sector. However, due to the closure of schools and educational institutions in 2020, it suffered a fall in outlet numbers during 2015–2020, while transaction numbers also dropped. In the coming years, the education channel is forecast to remain the largest channel in Saudi Arabia’s foodservice cost sector in terms of OBP value. Furthermore, during 2020–2025, the channel is set to achieve the highest growth in terms of transactions and outlet numbers.
Military & civil defense foodservice market in Saudi Arabia
Military & civil defense, the sector’s second-largest channel, posted transactional and outlet growth during 2015–2020. The military & civil defense channel is anticipated to record marginal growth in the number of transactions and number of outlets, during 2020–2025.
Welfare & services foodservice market in Saudi Arabia
Welfare & services registered the highest growth in outlet number during 2015–2020. The category also recorded notable growth in a number of transactions.
Foodservice market in Saudi Arabia, by cost sector
For more channel insights, download a free report sample
Who are the major market players in the foodservice market in Saudi Arabia?
In the QSR channel, Mcdonald’s is the leading market player followed by The Savola Group, Domino’s Pizza, Yum Brands, and Restaurant Brands International. Yum! Brands, Inc. dominates the FSR channel, followed by AmoHamza Seafood Restaurants Company. The coffee & tea shop channel comprises players such as Dunkin’ Brands Group, Al Yemni Group, and Starbucks Corporation.
QSR foodservice market in Saudi Arabia, by key players
To know more about key players, download the free report sample
Market report scope
|Market size of profit sector (Year – 2020)||$13.7 billion|
|Growth rate of profit sector||CAGR of >8% from 2021 to 2025|
|Base year for estimation||2020|
|Market segments by profit sector||Quick Service Restaurants (QSR), Full-Service Restaurants (FSR), and Coffee & Tea Shop|
|Market segments by cost sector||Education, Healthcare, Military & Civil Defense, and Welfare & Service|
|Key players||McDonalds, The Savola Group, Domino’s Pizza, Yum Brands, Restaurant Brands International, AmoHamza Seafood Restaurants Company, Dunkin’ Brands Group, Al Yemni Group, and Starbucks Corporation|
This report provides a comprehensive analysis of the foodservice market in Saudi Arabia.
- Overview of Saudi Arabia’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on Saudi Arabia’s foodservice market including GDP per capita, consumer price index, population growth, and annual household income distribution.
- Growth dynamics: In-depth data and forecasts of key channels (QSR, FSR, and coffee & tea shops) within Saudi Arabia’s foodservice market, including the value of the market, number of transactions, number of outlets, and average transaction price.
- Customer segmentation: Identify the most important demographic groups, buying habits, and motivations that drive out-of-home meal occasions among segments of Saudi Arabia’s population.
- Key players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
- Case Studies: Learn from examples of recent successes and failures within Saudi Arabia’s foodservice market.
Reasons to Buy
- Specific forecasts of the foodservice market will give readers the ability to make informed business decisions by identifying emerging/declining markets.
- Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, and coffee & tea shops) will allow readers to understand the wants and needs of their target demographics.
- Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within Saudi Arabia’s foodservice market.
The Savola Group
Dominos Pizza Inc.
Yum Brands! Inc.
Restaurant Brands International
Brinker International Inc.
Dunki' Brands Group Inc.
Al Yemni Group
The Coca-Cola Company
Derby Coffee International
Table of Contents
Table of Contents
Profit Sector Impact of COVID 19
Profit Sector Metrics
Key Metric Highlights
Value Share and Growth by Channel
Outlets and Transactions Growth by Channel
Operator Buying Volumes and Growth by Channel
Channel Historic and Future Growth Dynamics
Outlet Type and Type of Ownership Growth Dynamics
Quick Service Restaurant (QSR)
Summary and Key Take-Out
Coffee & Tea Shop
Summary and Key Take-Out
Full-Service Restaurant (FSR)
Summary and Key Take-Out
Cost Sector Metrics
Cost Operator Trends – Historic and Future Growth
Data and Channel Share Breakdown
Frequently asked questions
What is the value of the foodservice market in Saudi Arabia in 2020?
The foodservice profit sector in Saudi Arabia was valued at $13.7 billion in 2020.
What is the growth rate of the foodservice market in Saudi Arabia?
The foodservice profit sector in Saudi Arabia is projected to grow at a CAGR of more than 8% during the period 2021-2025.
What are the key channels in Saudi Arabia’s foodservice market by profit sector?
Key channels in Saudi Arabia’s foodservice profit sector include quick service restaurants (QSR), full-service restaurants (FSR), and coffee & tea shop.
What are the key channels in Saudi Arabia’s foodservice market by cost sector?
Key channels in Saudi Arabia’s foodservice cost sector include education, healthcare, military & civil defense, and welfare & service.
Who are the key market players in the foodservice market in Saudi Arabia?
In the QSR channel, McDonald’s is the leading market player while Yum! Brands, Inc.’s Pizza Hut dominates the FSR channel. Dunkin’ Brands Group leads the coffee & tea shop channel.
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.
Business Intelligence & Marketing Manager, SAL Heavy Lift
“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.
GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”
Market Analyst & Management, Liebherr-Werk
“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”
Head of Key Accounts, Saab AB
Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.
Marketing Intelligence Manager, Portugal Foods
Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.
Head of Customer Insight and Research, Standard Chartered
Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.
I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.
I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.
Head of Consumer Sensory Insights, Givaudan
“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.
Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”
Senior Account Manager, TSYS
GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise. The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.
I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.
One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.