Saudi Arabia Foodservice Market Opportunity and Forecast 2016-2026
Posted by arshiyashaikh on May 12th, 2021
Market Reports on Saudi Arabia Provides the Trending Market Research Report on “Saudi Arabia Foodservice Market - Growth | Trends | COVID-19 Impact | Forecasts (2021 - 2026)” under Saudi Arabia Food And Beverage Market category. The Saudi Arabia Foodservice Market is projected to exhibit highest growth rate over report offers a collection of superior market research, market analysis, and competitive intelligence and industry reports.
The Saudi Arabia Foodservice Market was valued at USD 22.42 billion in 2020, and it is projected to register a CAGR of 12.22% during the forecast period, 2021-2025.
There has been a definite impact of the coronavirus outbreak on the overall foodservice business, with various segments being affected in varying degrees in Saudi Arabia. Foodservice operators and caterers are on the front line of rising inflation, as the Catering Price Index (that is affected by the price and sales of food products) rose by 2.0% from the previous year, boosted by food price hikes.
In-restaurant dining is the worst-hit segment, largely due to the travel curbs and a general avoidance of people in getting into larger gatherings and social distancing regulations, thereby closing the increasing number of restaurants in the country and reducing their profits subsequently. For instance, HerfyFood Services Company, a Saudi food service company, reported a 3.96% drop in net profit for 2019 to SAR 196.09 million (USD 52.29 million).
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However, the increasing demand for home delivery and foodservice providers is expected to drive the market’s growth. Increasing health consciousness and growing rate of obesity among the Saudi Arabian population are challenging the market.
The full-service restaurant segment accounted for the major share in the market, owing to the strong presence of the millennial population, the growing tourism industry, and acceptance of western culture across the country. Consequently, the US casual dining restaurants, such as Chili’s, Fuddruckers, TGI Fridays, Applebee’s, Sizzler, and On The Border, are very popular and located in all the major cities of Saudi Arabia.
Key Market Trends
The growth of the Saudi Arabian online food delivery market is driven by a young futuristic population, rising purchasing power, internet connectivity, and modern and changing lifestyles. As per the data published by ITU, Saudi Arabia ranks third in terms of smartphone penetration, globally, and it is ahead of countries, such as the United States, Britain, France, and Germany.
Moreover, in the country, the share of mobile payments is expected to increase in the near future, due to increased consumer confidence, mainly posed by the increasing safety measures taken by the Saudi Arabian government toward the security of online payments. Additionally, other key market indicators, such as consumer spending, are recording robust growth in the country, thereby providing widespread opportunities for the online food delivery market.
Thus, the Kingdom of Saudi Arabia represents a unique opportunity for unmatched growth in the online-food-ordering platform. The online food ordering industry is expected to continue to witness rapid growth, and it is expected to emerge as the fastest growing industry in the e-commerce arena.
Full-service Restaurants Led the Regional Market Growth
Consequently, the US casual dining restaurants, such as Chili’s, Fuddruckers, TGI Fridays, Applebee’s, Sizzler, and On The Boarder, are very popular and located in all the major cities of Saudi Arabia. Independent foodservice channels maintain a dominant position in the full-service restaurant segment, as they provide dine-in restaurant services with an extensive menu.During Ramadan, to attract consumers, full-service restaurants, including Hyatt Regency Tent and The Ritz-Carlton Residences, are trying to compete with local restaurants to provide a better culinary experience, which is driving the market further.
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Joined: February 5th, 2019
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