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Report Description

Report Description

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.

Saudi Arabia Catering services Market

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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.

 Saudi Arabia Catering services Market

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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 upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com

Table of content

Table of content

1.    Introduction

1.1.  Market Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Methodology Landscape

2.2.  Objective of the Study

2.3.  Baseline Methodology

2.4.  Formulation of the Scope

2.5.  Assumptions and Limitations

2.6.  Sources of Research

2.7.  Approach for the Market Study

2.8.  Methodology Followed for Calculation of Market Size & Market Shares

2.9.  Forecasting Methodology

3.    Executive Summary

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis

4.1.  Factor Influencing Availing Decision

4.2.  Challenges/Issues Faced

4.3.   Unmet Needs

5.    Saudi Arabia Catering Services Market Outlook

5.1.  Market Size & Forecast

5.1.1.    By Value

5.2.  Market Share & Forecast

5.2.1.    By Service Type Market Share Analysis (Contractual, Non-Contractual)

5.2.2.    By End User Market Share Analysis (Hospitality, Holy Sites, Onshore Rigs, Healthcare, Offshore Rigs, Education, Corporate, Others)

5.2.3.    By Regional Market Share Analysis

5.2.3.1.        Northern & Central Market Share Analysis

5.2.3.2.        Western Market Share Analysis

5.2.3.3.        Southern Market Share Analysis

5.2.3.4.        Eastern Market Share Analysis

5.2.4.    By Top 5 Companies Market Share Analysis, Others (2024)

5.3.  Saudi Arabia Catering Services Market Mapping & Opportunity Assessment

5.3.1.    By Service Type Market Mapping & Opportunity Assessment

5.3.2.    By End User Market Mapping & Opportunity Assessment

5.3.3.    By Region Market Mapping & Opportunity Assessment

6.    Saudi Arabia Hospitality Catering Services Market Outlook

6.1.  Market Size & Forecast      

6.1.1.    By Value

6.2.  Market Share & Forecast

6.2.1.    By Service Type Market Share Analysis

7.    Saudi Arabia Holy Sites Catering Services Market Outlook

7.1.  Market Size & Forecast      

7.1.1.    By Value

7.2.  Market Share & Forecast

7.2.1.    By Service Type Market Share Analysis

8.    Saudi Arabia Onshore Rigs Catering Services Market Outlook

8.1.  Market Size & Forecast      

8.1.1.    By Value

8.2.  Market Share & Forecast

8.2.1.    By Service Type Market Share Analysis

9.    Saudi Arabia Healthcare Catering Services Market Outlook

9.1.  Market Size & Forecast      

9.1.1.    By Value

9.2.  Market Share & Forecast

9.2.1.    By Service Type Market Share Analysis

10. Saudi Arabia Offshore Rigs Catering Services Market Outlook

10.1.            Market Size & Forecast        

10.1.1. By Value

10.2.            Market Share & Forecast

10.2.1. By Service Type Market Share Analysis

11. Saudi Arabia Education Catering Services Market Outlook

11.1.            Market Size & Forecast        

11.1.1. By Value

11.2.            Market Share & Forecast

11.2.1. By Service Type Market Share Analysis

12. Saudi Arabia Corporate Catering Services Market Outlook

12.1.            Market Size & Forecast        

12.1.1. By Value

12.2.            Market Share & Forecast

12.2.1. By Service Type Market Share Analysis

13. Market Dynamics

13.1.            Drivers

13.2.            Challenges

14. Market Trends & Developments

15. Policy & Regulatory Landscape

16. Supply Chain Analysis

17. Saudi Arabia Economic Profile

18. Competitive Landscape

18.1.            Company Profiles

18.1.1. Gulf Catering Company

18.1.1.1.     Company Details

18.1.1.2.     Products & Services

18.1.1.3.     Financials (As Per Availability)

18.1.1.4.     Key Market Focus & Geographical Presence

18.1.1.5.     Recent Developments

18.1.1.6.     Key Management Personnel

18.1.2. Saudi Airlines Catering Company

18.1.2.1.     Company Details

18.1.2.2.     Products & Services

18.1.2.3.     Financials (As Per Availability)

18.1.2.4.     Key Market Focus & Geographical Presence

18.1.2.5.     Recent Developments

18.1.2.6.     Key Management Personnel

18.1.3. Sodexo FZE

18.1.3.1.     Company Details

18.1.3.2.     Products & Services

18.1.3.3.     Financials (As Per Availability)

18.1.3.4.     Key Market Focus & Geographical Presence

18.1.3.5.     Recent Developments

18.1.3.6.     Key Management Personnel

18.1.4. Unique Catering Services Ltd.

18.1.4.1.     Company Details

18.1.4.2.     Products & Services

18.1.4.3.     Financials (As Per Availability)

18.1.4.4.     Key Market Focus & Geographical Presence

18.1.4.5.     Recent Developments

18.1.4.6.     Key Management Personnel

18.1.5. Algosaibi Services Company

18.1.5.1.     Company Details

18.1.5.2.     Products & Services

18.1.5.3.     Financials (As Per Availability)

18.1.5.4.     Key Market Focus & Geographical Presence

18.1.5.5.     Recent Developments

18.1.5.6.     Key Management Personnel

18.1.6. Gulf Mahmal Support Services Co. Ltd.

18.1.6.1.     Company Details

18.1.6.2.     Products & Services

18.1.6.3.     Financials (As Per Availability)

18.1.6.4.     Key Market Focus & Geographical Presence

18.1.6.5.     Recent Developments

18.1.6.6.     Key Management Personnel

18.1.7. Al-Karam Al-Arabi for Catering Services Ltd.

18.1.7.1.     Company Details

18.1.7.2.     Products & Services

18.1.7.3.     Financials (As Per Availability)

18.1.7.4.     Key Market Focus & Geographical Presence

18.1.7.5.     Recent Developments

18.1.7.6.     Key Management Personnel

18.1.8. Rezayat Catering & Support Services

18.1.8.1.     Company Details

18.1.8.2.     Products & Services

18.1.8.3.     Financials (As Per Availability)

18.1.8.4.     Key Market Focus & Geographical Presence

18.1.8.5.     Recent Developments

18.1.8.6.     Key Management Personnel

18.1.9. Almays Catering Solutions

18.1.9.1.     Company Details

18.1.9.2.     Products & Services

18.1.9.3.     Financials (As Per Availability)

18.1.9.4.     Key Market Focus & Geographical Presence

18.1.9.5.     Recent Developments

18.1.9.6.     Key Management Personnel

18.1.10.              Arabian Gannas Ltd. Co.

18.1.10.1.  Company Details

18.1.10.2.  Products & Services

18.1.10.3.  Financials (As Per Availability)

18.1.10.4.  Key Market Focus & Geographical Presence

18.1.10.5.  Recent Developments

18.1.10.6.  Key Management Personnel

19. Strategic Recommendations

19.1.            Key Focus Areas

19.2.            Target Service Type

19.3.            Target End User

20. About Us & Disclaimer

Figures and Tables

Frequently asked questions

Frequently asked questions

The market size of the Saudi Arabia Catering Services Market was estimated to be USD 7.51 Billion in 2024.

The Saudi Arabia Catering Services Market is driven by digital transformation, rising demand for healthy and specialty diets, sustainability initiatives, and expanding event catering services due to increasing corporate, entertainment, and religious gatherings.

The Saudi Arabia Catering Services Market faces challenges such as high operational costs, intense market competition, workforce shortages due to labor regulations, and supply chain disruptions, impacting profitability, service quality, and the ability to scale operations efficiently.

The key drivers of the Saudi Arabia Catering Services Market include rising demand from corporate sectors, large-scale infrastructure projects, increasing event-based catering, government initiatives promoting tourism, and growing consumer preference for outsourced, high-quality, and customized food services.

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