Saudi Arabia Foodservice Market SIZE & SHARE ANALYSIS – GROWTH TRENDS & FORECASTS UP TO 2030

Saudi Arabia Foodservice Market Analysis

The Saudi Arabia Foodservice Market size is estimated at 30.12 billion USD in 2025, and is expected to reach 44.67 billion USD by 2030, growing at a CAGR of 8.20% during the forecast period (2025-2030).

The Saudi Arabian foodservice industry is experiencing significant transformation driven by demographic shifts and changing consumer preferences. With 37% of the population under 25 years old in 2023, there is a strong influence from younger consumers who are increasingly seeking diverse dining experiences and international cuisines. The presence of a substantial expatriate population, reaching 13.5 million in 2022, has further diversified the culinary landscape and created demand for various international food options. This demographic composition has led to the emergence of fusion cuisines and modern dining concepts that blend traditional Saudi flavors with international influences. The industry is witnessing a notable shift towards experiential dining, with restaurants incorporating innovative concepts and themed environments to attract younger consumers.

Tourism has become a major catalyst for the foodservice industry’s expansion, with Saudi Arabia recording an impressive 93.5 million tourist arrivals in 2022, comprising 16.5 million foreign tourists and 77 million domestic travelers. This surge in tourism has generated substantial economic impact, with tourism spending reaching USD 49.33 billion in the same year. The government’s commitment to developing tourism infrastructure has created numerous opportunities for foodservice operators to establish a presence in new locations, particularly in emerging tourist destinations and entertainment districts. The industry is adapting to cater to international visitors while maintaining authentic local offerings, leading to a more diverse and sophisticated food and beverage industry in Saudi Arabia.

The coffee shop segment has emerged as a particularly dynamic sector within the foodservice industry, with Saudi Arabia hosting over 40% of the Middle East’s 8,800-plus branded coffee shops. This remarkable growth is supported by significant coffee imports, with the country importing USD 320 million worth of coffee, amounting to 80,000 tons in 2022. The proliferation of coffee shops extends beyond traditional beverage service, with many establishments evolving into social hubs and workspaces. These venues are increasingly incorporating modern design elements, advanced brewing techniques, and expanded food menus to create comprehensive dining and social experiences.

The hospitality sector’s expansion is creating new opportunities for foodservice operators, with the current inventory of over 400,000 hotel rooms expected to reach 854,000 by 2030. This growth is driving the development of diverse dining concepts within hotels and resorts, from casual cafes to upscale restaurants. The industry is witnessing increased investment in food and beverage offerings at hotels, with many properties partnering with renowned international restaurant brands or developing unique dining concepts. This expansion is accompanied by the integration of technology in service delivery, including digital ordering systems, loyalty programs, and personalized dining experiences to meet evolving consumer expectations.

Saudi Arabia Foodservice Market Trends

International and local fast-food chains compete for market share in Saudi Arabia

• QSR outlets held a major share of the market, amounting to 44.51% in 2022. Quick-service chains that offer burgers, pizza, fried chicken, and sandwiches are very popular in the country, including McDonald’s, KFC, Burger King, and Domino’s Pizza, with 168, 179, 63, and 118 outlets, respectively, in the country. In addition to international chains, there are also many popular local fast-food brands in Saudi Arabia, such as Al Baik, which is known for its crispy fried chicken and garlic sauce.
• The cafes & bars segment is the fastest-growing foodservice type segment in the market, and it is projected to grow by 5.44% during the forecast period. The Saudi Arabian government has been implementing reforms to modernize the economy and society, including loosening restrictions on entertainment, which has led to increasing demand for places to socialize and relax. An increasing number of young people in the country are looking for new and different experiences. Those under age 25 account for around 51% of the population, and when those under 29 are included, young people amount to two-thirds of Saudi Arabia’s population.
• Cloud kitchen is the second fastest-growing segment in the market, and it is projected to register a CAGR of 4.15% during the forecast period. The industry is expanding as a result of technological developments and the advantages offered by cloud kitchens over traditional kitchens, including higher profit margins and greater flexibility in location-based operations. Kaykroo and Sweetheart had 30 and 15 cloud kitchens, respectively, across Saudi Arabia in 2022. The market is also growing because of the significant integration of point-of-sale (POS), kitchen display systems (KDS), and inventory management technology.

The Saudi Arabian specialist coffee market is growing, driven by the emergence of home-grown brands.

• In Saudi Arabia, the average order value was the highest among full-service restaurants in 2022 compared to other foodservice types, amounting to USD 23.25. The demand for FSR increased due to the increase in tourists preferring to explore the local cuisine of the country. Also, professionally trained chefs offer more innovative menus, international cuisine, and proprietary recipes to satisfy the taste buds of tourists. In the country, Middle Eastern restaurants amount to 16% of the total restaurants in Riyadh and 17% in Jeddah. Full service restaurants opened their first pop-up branches in Saudi Arabia as part of the recent Jeddah and Riyadh Seasons, e.g., Zuma, Scalini, and Catch.
• Cloud kitchens in the country are growing at a faster pace. Many cloud kitchens in Saudi Arabia are partnering with popular food delivery platforms, such as Talabat, HungerStation, and Careem NOW, to expand their customer base. This allows them to reach a wider audience and increase their sales. Independent cloud kitchens are leveraging technology to streamline operations and provide better customer service. Popular dishes offered by cloud kitchens in the country are kabsa and shawarma, priced at USD 8.4 and USD 5.8 per 300 grams, respectively, in 2022.
• The Saudi Arabian branded coffee market grew by 18.5% over 2022, exceeding 3,550 outlets, making it the largest in the Middle East. International coffee chains are laying the ground for café experiences and espresso-based beverages, and consumers in Saudi Arabia are increasingly exploring specialist coffee. International brands, like France’s Café Kitsuné and the UK’s EL&N, have gained a strong consumer base alongside a growing domestic specialist segment, including Barn’s, Half Million, and Address Café.

Segment Analysis: Foodservice Type

Full Service Restaurants Segment in Saudi Arabia Foodservice Market

Full Service Restaurants (FSR) dominate the Saudi Arabian foodservice industry, commanding approximately 54% market share in 2024. The segment’s strong position is driven by the increasing emphasis on hospitality and communal dining experiences, particularly among the younger population, which makes up about 37% of Saudi Arabia’s total population. The popularity of Asian cuisines has expanded significantly, especially Chinese, Japanese, Indian, traditional Cantonese, and Taiwanese offerings. Middle Eastern restaurants continue to maintain a strong presence, accounting for about 16% of total restaurants in Riyadh and 17% in Jeddah. The segment’s growth is further supported by rising urbanization, increasing disposable income, and the growing tourism sector in the country.

Cafes & Bars Segment in Saudi Arabia Foodservice Market

The Cafes & Bars segment is projected to experience the fastest growth in the Saudi Arabian foodservice industry, with an expected CAGR of approximately 12% during 2024-2029. This remarkable growth is primarily attributed to the increasing demand for socializing in relaxed atmospheres and the government’s ongoing efforts to promote tourism. The segment’s expansion is particularly evident in the rising number of specialty coffee shops, with Saudi Arabia hosting more than 40% of the Middle East’s 8,800-plus branded coffee shops. The growth is further supported by the emergence of coworking spaces and remote work trends, creating increased demand for venues where people can gather to work, socialize, and network. The government’s initiatives to modernize the economy and society have also contributed to the segment’s growth, particularly appealing to the country’s young population.

Remaining Segments in Foodservice Type

The Quick Service Restaurants (QSR) and Cloud Kitchen segments complete the Saudi Arabian foodservice market landscape. QSR maintains a significant presence in the market, particularly through international chains and local establishments offering traditional fast food options. The segment is characterized by its focus on meat-based cuisines, burgers, and local quick-service offerings. Meanwhile, the Cloud Kitchen segment represents an emerging business model in the Saudi foodservice industry, leveraging technology and delivery partnerships to serve customers efficiently. This segment has gained particular relevance with the increasing adoption of food delivery services and changing consumer preferences toward convenient dining options.

Segment Analysis: Outlet

Independent Outlets Segment in Saudi Arabia Foodservice Market

Independent outlets dominate the Saudi Arabian foodservice market, holding approximately 58% market share in 2024. The segment’s strong position is primarily driven by its ability to provide personalized and authentic dining experiences that cannot be replicated by larger chains. Independent restaurants have a strong connection to the communities they serve, offering multicultural menu options including Vietnamese, Indian, Italian, and other exotic cuisines. These establishments particularly appeal to the millennial generation, which represents around 27% of Saudi Arabia’s population, through their authentic ethnic food offerings. Independent outlets can experiment with menu items, promotions, and community outreach programs that build long-term customer loyalty among locals with less corporate oversight. The segment’s success is also attributed to the operators’ ability to quickly adapt to changing consumer preferences and local tastes.

Chained Outlets Segment in Saudi Arabia Foodservice Market

Chained outlets are projected to demonstrate robust growth in the Saudi Arabian foodservice industry from 2024 to 2029. The segment’s expansion is driven by several factors, including the increasing demand for standardized and consistent services and quality food across multiple locations. Chained consumer foodservice channels continue to set up self-service kiosks, achieving ambitious values by enhancing cost-effectiveness and service speed. The growth is further supported by the low capital requirements and reduced risk involved with franchising compared to company-operated locations. Major international chains are actively expanding their presence through franchising models, with initial investments ranging from USD 4,500 to USD 34,500 for McDonald’s franchises and USD 140,050 to USD 342,400 for Subway franchises. The segment’s growth is also bolstered by rapid infrastructure development, including new airport terminals and highways, which creates opportunities for chain establishments to open new branches.

Segment Analysis: Location

Standalone Segment in Saudi Arabia Foodservice Market

The standalone segment dominates the Saudi Arabian foodservice market, commanding approximately 72% market share in 2024. This significant market position is driven by the rapid expansion of standalone quick-service restaurants (QSRs), cafes, and full-service restaurants across major cities like Riyadh and Jeddah. The segment’s growth is supported by the increasing demand for diverse dining experiences, with consumers showing strong preferences for both international and local cuisine options. Standalone establishments are particularly successful due to their ability to offer customized dining experiences and adapt quickly to changing consumer preferences. The segment has also benefited from the growing coffee shop culture, with many homegrown brands establishing a strong market presence. The success of standalone outlets is further enhanced by their strategic locations in high-traffic areas and their ability to cater to the increasing demand for both dine-in and takeaway services.

Leisure Segment in Saudi Arabia Foodservice Market

The leisure segment is projected to be the fastest-growing location segment in the Saudi Arabian foodservice market, with an expected growth rate of approximately 11% during 2024-2029. This growth is primarily driven by the country’s expanding entertainment sector and increasing consumer spending on leisure activities. The segment is benefiting from the rising number of entertainment venues, sports facilities, and cultural centers being developed across the country. The King Abdullah Sports City stadium and other major sports venues are contributing significantly to this growth by offering diverse foodservice channels during events. The segment is also getting a boost from various food festivals and cultural events, including the Saudi Feast Food Festival and Saudi Food Expo, which attract numerous restaurants and visitors. The government’s continued focus on developing the entertainment sector as part of Vision 2030 is expected to create more opportunities for food service marketing operators in leisure locations.

Remaining Segments in Location

The other location segments in the Saudi Arabian foodservice market include retail, lodging, and travel, each playing a distinct role in the market’s development. The retail segment encompasses food companies in Riyadh in shopping centers, malls, and commercial buildings, benefiting from the country’s expanding retail infrastructure. The lodging segment is driven by the robust growth in the hospitality sector, with numerous international hotel chains expanding their presence in the country. The travel segment, which includes airports, railway stations, and other transportation hubs, is gaining momentum due to the country’s increasing focus on developing its transportation infrastructure and growing tourist arrivals. These segments collectively contribute to the diverse restaurants sector in Saudi Arabia, each catering to specific consumer needs and preferences.