Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 7.51 Billion
|
CAGR (2025-2030)
|
9.21%
|
Fastest Growing Segment
|
Contractual
|
Largest Market
|
Northern & Central
|
Market Size (2030)
|
USD 12.74 Billion
|
Market Overview
Saudi Arabia Catering Services Market was
valued at USD 7.51 Billion in 2024 and is anticipated to grow USD 12.74 Billion by
2030 with a CAGR of 9.21% during forecast period. The Saudi Arabia
catering services market is experiencing steady growth, driven by the expanding
hospitality, corporate, healthcare, and education sectors. Increasing tourism
under Vision 2030, rising disposable income, and demand for high-quality food
services contribute to market expansion. The growing preference for outsourced
catering in businesses and institutions further fuels demand. Additionally,
government initiatives promoting events, conferences, and mega projects such as
NEOM and the Red Sea Project are creating new opportunities.
Key Market Drivers
Expansion
of the Hospitality and Tourism Industry
The rapid expansion of Saudi Arabia’s hospitality and
tourism sector is a significant driver of the catering services market. The
country’s Vision 2030 initiative aims to transform Saudi Arabia into a global
tourism hub, leading to the development of numerous luxury hotels, resorts, and
entertainment destinations such as NEOM, the Red Sea Project, and Qiddiya. The
increasing influx of international visitors, religious pilgrims, and business
travelers has created a surge in demand for high-quality catering services
across hotels, restaurants, and event venues. In the first eight to nine months of 2024, the Kingdom of Saudi Arabia experienced an impressive surge in international tourist arrivals, marking a growth rate of over 61%. This remarkable expansion positioned Saudi Arabia as the third-fastest-growing destination globally in terms of inbound tourism. Additionally, government
initiatives to attract global events, such as the Formula 1 Saudi Arabian Grand
Prix and international summits, have further accelerated the need for
large-scale catering solutions. The growing number of restaurants, cafés, and
fine-dining establishments is also contributing to the demand for professional
catering services, ensuring high-quality food experiences for tourists and
residents alike.
Rising
Demand from Corporate and Industrial Sectors
The corporate and industrial sectors in Saudi Arabia
are witnessing a rising demand for catering services due to the growing number
of multinational companies, business hubs, and large-scale infrastructure
projects. As companies focus on employee welfare and productivity, they
increasingly opt for outsourced catering services to provide high-quality meals
to their workforce. This trend is particularly strong in industrial zones, oil
and gas companies, and construction sites, where large numbers of workers require
daily meals. Additionally, business meetings, corporate events, and conferences
have fueled the demand for premium catering solutions. The rise of business
parks and financial districts, particularly in cities like Riyadh and Jeddah,
has also contributed to this trend, with companies opting for customized meal
plans, health-conscious menus, and efficient food delivery systems. With an
increasing emphasis on workplace dining experiences, catering companies are
innovating to offer diverse menu options and technology-driven solutions,
ensuring efficiency and customer satisfaction.
Government
Support and Mega Infrastructure Projects
Saudi Arabia’s government is playing a crucial role in
driving the catering services market by launching and supporting various mega
infrastructure projects that require large-scale catering solutions. The
construction boom, led by projects such as NEOM, the Riyadh Metro, and the King
Salman Energy Park, has resulted in an increasing demand for catering services
to accommodate the workforce employed in these projects. Government investments
in healthcare, education, and public institutions have also contributed to
market growth, with schools, hospitals, and military establishments relying on
catering services for daily meal provisions. Moreover, state-sponsored
initiatives promoting events, exhibitions, and sporting activities have led to
a rise in event catering services. The Hajj and Umrah pilgrimages, which
attract millions of visitors annually, further boost demand for large-scale
catering operations to provide meals efficiently to pilgrims. With continuous
government funding and infrastructure development, the catering services market
is poised for sustained growth.
Growing
Consumer Preference for Customized and Health-Conscious Catering
The increasing consumer preference for customized,
healthy, and diet-specific catering services is another major driver of market
growth. As awareness of nutrition and wellness rises, both individuals and
businesses seek catering solutions that offer balanced, organic, and customized
meal options. The demand for specialized meal plans, such as vegetarian, vegan,
gluten-free, and keto diets, has surged, prompting catering companies to
diversify their offerings. Additionally, the corporate sector’s focus on employee
well-being has driven companies to provide healthier meal alternatives in
workplace cafeterias. The growing fitness and wellness culture in Saudi Arabia,
supported by government initiatives promoting healthier lifestyles, has further
fueled the shift toward nutritious meal options. Furthermore, the integration
of technology in food services, such as online meal subscriptions, digital
ordering platforms, and AI-based meal recommendations, is enhancing customer
convenience and satisfaction. As health-conscious dining continues to gain
traction, catering companies are adapting their menus to align with consumer
preferences, thereby driving market expansion.

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Key Market Challenges
High
Operational Costs and Supply Chain Disruptions
One of the major challenges faced by the catering
services market in Saudi Arabia is the high operational costs associated with
sourcing, storage, and logistics. The reliance on imported food ingredients due
to the country’s arid climate and limited agricultural production increases
costs for catering businesses. Fluctuations in global food prices, supply chain
disruptions, and currency exchange rates further add to the financial burden.
Additionally, maintaining high food quality and hygiene standards requires
significant investment in advanced storage facilities, temperature-controlled
transportation, and strict compliance with food safety regulations. Labor costs
also contribute to operational expenses, as hiring skilled chefs, kitchen
staff, and service personnel requires competitive salaries and benefits. The
recent increase in the Value-Added Tax (VAT) from 5% to 15% has further
escalated costs for businesses, making it challenging to maintain profitability
while keeping prices competitive for consumers. Many catering companies
struggle to balance cost-efficiency with maintaining high service standards,
impacting their ability to scale operations and expand into new markets.
Intense
Market Competition and Price Wars
The Saudi Arabia catering services market is highly
competitive, with numerous local and international players vying for market
share. The presence of well-established catering firms, hotel-based catering
services, and independent food service providers has created a saturated
market, leading to aggressive price competition. To attract clients, many
catering companies are forced to lower their prices, which reduces profit
margins and makes it difficult to sustain long-term growth. Additionally,
customer expectations for premium-quality food, timely delivery, and customized
meal options add to the pressure, requiring continuous investment in innovation
and service enhancement. Small and medium-sized catering businesses often find
it difficult to compete with large-scale companies that benefit from economies
of scale, better supplier networks, and advanced technological infrastructure.
The rise of cloud kitchens and meal delivery services has also intensified
competition, as customers now have more options for affordable and high-quality
food. This environment of price wars and competitive service offerings creates
financial strain on catering businesses, making it harder for them to sustain
profitability and market dominance.
Workforce
Shortages and Strict Labor Regulations
The catering industry in Saudi Arabia heavily depends
on a skilled and semi-skilled workforce for food preparation, delivery, and
customer service. However, workforce shortages and stringent labor regulations
pose significant challenges to market growth. The government’s Saudization
policy, which mandates a higher percentage of local employment in various
sectors, has made it difficult for catering businesses to find and retain
qualified Saudi nationals willing to work in the food service industry. Many
catering jobs, particularly in kitchens and delivery services, are
traditionally filled by expatriate workers, but the tightening of visa
regulations and increased fees for hiring foreign labor have impacted
recruitment. Additionally, catering businesses must adhere to strict labor laws
concerning wages, working hours, and employee welfare, increasing operational
complexities. High employee turnover rates, especially among lower-wage
workers, further contribute to staffing challenges. Training and retaining a skilled
workforce while complying with regulatory requirements remain a significant
hurdle for catering companies, affecting their ability to maintain consistent
service quality and operational efficiency.
Key Market Trends
Increasing
Adoption of Technology and Digital Solutions
The Saudi Arabia catering services market is
witnessing a rapid transformation with the integration of technology and
digital solutions to enhance efficiency, streamline operations, and improve
customer experience. Catering companies are increasingly adopting cloud-based
kitchen management systems, artificial intelligence (AI)-driven meal planning,
and automated inventory tracking to optimize resources and reduce waste. The
rise of online catering platforms and mobile applications has simplified the
booking and ordering process, allowing customers to customize their meals,
track deliveries, and provide real-time feedback. Additionally, digital payment
solutions and contactless transactions are becoming standard practices,
aligning with Saudi Arabia’s Vision 2030 initiative to create a cashless
economy. The use of data analytics to understand consumer preferences and
predict demand trends is helping catering businesses offer personalized meal
plans and promotional offers. As technology continues to advance, catering
companies are expected to further invest in robotics for food preparation,
AI-powered customer service, and blockchain for transparent food supply chain
management, revolutionizing the industry.
Rising
Popularity of Healthy and Specialty Diet Catering
With increasing health consciousness among Saudi
consumers, the demand for nutritious, organic, and customized meal plans is
growing significantly. Catering companies are responding by offering a wider
range of health-focused options, including vegan, gluten-free, keto, and
low-calorie meals to cater to various dietary preferences and medical
conditions such as diabetes and hypertension. The government’s focus on
promoting healthier lifestyles through initiatives like the Saudi Food and Drug
Authority’s (SFDA) regulations on sugar and salt consumption has further
influenced this trend. Corporate clients are also prioritizing employee
wellness by providing balanced meal plans in workplace cafeterias.
Additionally, fitness centers, hospitals, and educational institutions are
increasingly partnering with catering services to provide nutritionally
optimized meals. With this shift in consumer preferences, catering companies
are investing in expert nutritionists, ingredient sourcing from organic farms,
and innovative meal packaging that preserves freshness. The growing demand for
diet-specific catering services is expected to remain a key trend, shaping the
market’s future offerings.
Growth
of Sustainable and Eco-Friendly Catering Practices
Sustainability is becoming a core focus in the Saudi
Arabia catering services market as both businesses and consumers seek
environmentally friendly solutions. The push for reducing food waste,
minimizing single-use plastics, and adopting eco-friendly packaging is gaining
traction in the industry. Catering companies are implementing waste management
strategies such as composting food scraps, donating surplus meals to charities,
and utilizing biodegradable containers to align with Saudi Arabia’s sustainability
goals. Additionally, there is a growing preference for locally sourced
ingredients to reduce the carbon footprint associated with imported food items.
The adoption of plant-based menus and energy-efficient kitchen equipment is
also on the rise as part of green catering initiatives. Government support for
sustainable food practices, along with corporate social responsibility (CSR)
initiatives among businesses, is encouraging catering providers to integrate
more environmentally responsible strategies. As sustainability awareness
increases, catering companies that prioritize eco-friendly practices are likely
to gain a competitive advantage and attract environmentally conscious clients.
Expansion
of Event and Large-Scale Catering Services
The demand for large-scale catering services is
expanding due to the increasing number of corporate events, entertainment
festivals, government functions, and international conferences hosted in Saudi
Arabia. With the country positioning itself as a global business and tourism
hub under Vision 2030, major events such as the Riyadh Season, Jeddah Season,
and Saudi Arabian Grand Prix are driving growth in the catering sector. The
hospitality industry, including luxury hotels and convention centers, is witnessing
higher demand for premium event catering services that provide customized
gourmet menus, live cooking stations, and themed dining experiences.
Additionally, wedding catering is a booming segment, with affluent families
seeking high-end culinary experiences and personalized services. Religious
tourism also plays a vital role in large-scale catering, with millions of
pilgrims attending Hajj and Umrah requiring well-organized food services.
Catering companies are expanding their capabilities to handle bulk orders,
improve logistics, and enhance service quality to meet the growing demand for
event-based catering. This trend is expected to continue as Saudi Arabia
attracts more global events and international visitors.
Segmental Insights
End
User Insights
The contractual catering segment is the
fastest-growing in the Saudi Arabia catering services market, driven by the
rising demand from corporate offices, industrial sites, educational
institutions, and healthcare facilities. Businesses and organizations are
increasingly outsourcing food services to specialized catering providers to
ensure consistent quality, cost efficiency, and compliance with hygiene
standards. Large infrastructure projects, such as NEOM and the Riyadh Metro,
require long-term catering contracts to serve thousands of workers daily.
Additionally, the growing focus on employee welfare and nutrition in workplaces
has led to customized meal plans. This trend is expected to continue as
companies seek reliable, large-scale catering solutions.

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Regional Insights
The Northern and Central regions of Saudi Arabia
dominate the catering services market, primarily due to the presence of major
cities like Riyadh, the capital and economic hub, and significant
infrastructure developments. Riyadh, located in the Central region, is home to
a high concentration of corporate offices, government institutions, and
industrial projects, driving strong demand for contractual and event catering.
The Northern region, with mega-projects like NEOM and The Line, requires
large-scale catering for construction workers and employees. Additionally,
these regions host major business summits, entertainment events, and religious
gatherings, further fueling the demand for high-quality catering services.
Recent Developments
- Saudi Arabia's Vision 2030 for
diversification and competitiveness has released nearly USD1.00 trillion in
infrastructure and real estate projects around the kingdom, aiding the market's
expansion. The investment has led to an increase in the number of employees and
labor workforce in the country's industrial sector. This would further lead to
a rise in the demand for catering services by different industries
- According to Saudi Arabia's Ministry of
Tourism, the tourism sector is expected to grow by 3.7% by 2029, for which the
government has taken several steps, including establishing the Tourist
Investment Fund with a capital of USD 4 billion to promote and support tourist
activities, which will allow the catering services sector to evolve and capture
market share.
Key Market Players
- Gulf Catering Company
- Saudi Airlines Catering Company
- Sodexo FZE
- Unique Catering Services Ltd.
- Algosaibi Services Company
- Gulf Mahmal Support Services Co. Ltd.
- Al-Karam Al-Arabi for Catering Services
Ltd.
- Rezayat Catering & Support Services
- Almays Catering Solutions
- Arabian Gannas Ltd. Co.
By Service Type
|
By End User
|
By Region
|
- Contractual
- Non-Contractual
|
- Hospitality
- Holy Sites
- Onshore Rigs
- Healthcare
- Offshore Rigs
- Education
- Corporate
- Others
|
- Northern & Central
- Western
- Southern
- Eastern
|
Report Scope:
In this report, the Saudi Arabia Catering Services
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Saudi Arabia Catering
Services Market, By Service Type:
o Contractual
o Non-Contractual
- Saudi Arabia Catering
Services Market, By End User:
o Hospitality
o Holy Sites
o Onshore Rigs
o Healthcare
o Offshore Rigs
o Education
o Corporate
o Others
- Saudi Arabia Catering
Services Market, By Region:
o Northern & Central
o Western
o Southern
o Eastern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Catering Services Market.
Available Customizations:
Saudi Arabia Catering Services Market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Saudi Arabia Catering Services Market is an
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