Saudi Arabia Food Services Market Grow with a CAGR of 9.04% through 2030F

The Saudi Arabia Food Services market is driven by growing urbanization, rising disposable incomes, evolving consumer preferences, increasing tourism, and a strong youth demographic.

According to TechSci Research report, “Saudi Arabia Food Services Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Saudi Arabia Food Services market stood at USD 31.45 Billion in 2024 and is anticipated to grow USD 59.87 Billion by 2030 with a CAGR 9.04% during forecast period owing to the rising youth demographic across the region. With a significant portion of the population under the age of 30, young consumers are shaping the demand for dining options, particularly those that offer convenience, innovation, and unique experiences. This generation is more inclined to explore diverse cuisines, experiment with food trends, and engage with digital platforms for online ordering and delivery. Young Saudis are also more health-conscious, seeking out nutritious, plant-based, and sustainable food options, driving the demand for healthier menu choices in restaurants. Also, the younger population is heavily influenced by social media and food influencers, which encourages food service brands to focus on visually appealing, Instagram-worthy dishes that can be shared online. Also, the youth demographic is driving the popularity of casual dining, fast food, and quick-service restaurants (QSRs), which cater to their desire for affordable, quick, and accessible meals. As this demographic continues to grow, their preferences for digital engagement, convenience, and unique dining experiences will continue to shape the food services market in Saudi Arabia.

The Saudi Arabia Food Services market is driven owing to the changing consumer preferences across the region. As the population becomes more health-conscious, there is a growing demand for healthier food options, including organic, low-calorie, and plant-based meals. Consumers are increasingly opting for sustainable dining choices, such as locally sourced ingredients and eco-friendly packaging, reflecting a shift toward more environmentally responsible consumption. Also, there is a rising interest in diverse and international cuisines, with consumers seeking unique dining experiences that go beyond traditional offerings. This trend has led to an increase in fusion cuisine, where different culinary traditions are creatively blended to appeal to adventurous palates. In addition, convenience plays a crucial role, with consumers turning to online ordering and food delivery services for quick and hassle-free meals. The younger generation is heavily driving this shift, favoring brands that offer flexibility, customization, and easy access through digital platforms. These changing preferences are prompting foodservice providers to adapt their menus and service models to stay competitive and meet evolving consumer demands.

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The Saudi Arabia Food Services market is segmented into type, ownership, brands, and region.

Based on the type, the quick service restaurants segment is the fastest growing in the Saudi Arabia Food Services market, driven by changing consumer preferences for convenience, affordability, and speed. With a young, tech-savvy population that values fast and accessible dining options, QSRs have become a popular choice for busy individuals and families. The demand for quick, affordable meals is further amplified by the rise of food delivery services, which has increased the reach of QSRs beyond physical locations. Also, the growing presence of international fast-food chains, coupled with local innovations, has fueled competition and attracted a diverse consumer base. QSRs are also adapting to health-conscious trends by offering healthier menu options, such as salads, wraps, and plant-based items, catering to the evolving tastes of Saudi consumers. The fast-paced lifestyle and increased focus on digital ordering and delivery platforms make the QSR segment a key growth driver in the Saudi food services market.

Based on the region, Eastern is the fastest-growing region in the Saudi Arabia Food Services market, driven by its strategic location, economic development, and rising consumer demand. Key cities like Dammam, Khobar, and Al-Ahsa are seeing increased investments in infrastructure, tourism, and commercial projects, which have boosted the demand for diverse dining options. The region’s proximity to major oil industries and ports further contributes to its economic activity, attracting both residents and expatriates. The growing middle class and disposable income in the Eastern region are fueling a shift toward dining out and delivery services. Also, the influx of tourists, especially with developments in areas like the Red Sea Project, has increased the demand for a variety of food services, from fine dining to quick-service restaurants. The Eastern region’s vibrant population and continued urbanization make it a key driver of growth in Saudi Arabia’s food services market.

Major companies operating in the Saudi Arabia Food Services market are:

• Olayan Saudi Holding Company
• Alamar Foods Company
• McDonald’s
• Herfy Food Services Company
• Shawaya House Company
• Tanmiah Food Company
• Starbucks Coffee Company
• Americana Restaurants International Plc
• Deli & Meal LLC
• D.ream international

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“The Saudi Arabia Food Services market is expected to grow in the future owing to the technological advancements across the region. The integration of digital platforms for online ordering and delivery has transformed consumer behavior, with a significant shift toward convenience and efficiency. Mobile apps and websites have become essential for both consumers and businesses, enabling seamless ordering, real-time tracking, and personalized experiences. Artificial intelligence (AI) and machine learning are also making waves in the industry by improving customer service through chatbots, optimizing inventory management, and enabling targeted marketing strategies. Automation and digital kitchen solutions are streamlining operations, reducing labor costs, and ensuring consistency in food preparation. Also, the adoption of contactless payments and QR code-based ordering systems is enhancing customer convenience and safety, especially considering the pandemic. As technology continues to evolve, it enables foodservice providers in Saudi Arabia to enhance operational efficiency, improve customer engagement, and stay competitive in a rapidly changing market, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Saudi Arabia Food Services Market By Type (Full-Service Restaurants, Quick Service Restaurants, Others), By Ownership (Standalone Outlets, Chained Outlets), By Brands (Domestic, International), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Saudi Arabia Food Services market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Food Services market.

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