Saudi Arabia foodservice market Overview:
The Saudi Arabia food service market is expected to experience a CAGR of 6% throughout the forecast period (2021-2026). The food service industry includes all companies that offer meals prepared outside the home, such as restaurants, school and hospital cafes, and food outlets. Mobile food services, such as the food truck industry, are also expanding in developing countries due to the increasing penetration of fast food restaurants. The fluctuation in oil prices has had a major impact on Saudi Arabia's GDP, which has led the government to fundamentally reform public spending.
Recent Developments
Market Drivers and Restraints:
The growth will be mainly driven by the increase in the number of transactions and the increase in prices, with the growth of the points of the sale being slow. Urbanized and busy young consumers seek food services to satisfy their food cravings, as the changing roles of women and westernized lifestyles encourage more meals away from home. The expanding urge for home delivery and foodservice providers is supposed to stir demand in this market. The increasing health awareness and increasing obesity rate among the Saudi population is a challenge for the market. Companies are preparing new and innovative healthy foods with organic and natural ingredients to overcome the challenges facing industry players. With the increasing popularity of fast food and casual dining, restaurant chain services are growing rapidly. In addition, global channels have followed the customization and localization strategy through smart changes to their menus, for example, the addition of McArabia Grilled Chicken Sandwich to their menu by McDonald's.
New entrants have a lot of potentials to enter in this locale, as it is determined by three main aspects, i.e., higher disposable income, international exposure, and limited sources of entertainment. Also, the rise in the number of shopping malls in the country also supports the business extension. The trend of eating outside food in KSA is developing rapidly and has become a significant attraction in the GCC area. The outside meal model in the GCC region has a significant impact on the KSA foodservice market. Due to Saudi Arabia's increasing trend towards Saudi Arabia and the constant support and encouragement of local companies by the Saudi government, investments are increasing in various industries, including the restaurant industry.
Market Segmentation:
Based on location type, full-service restaurants had the highest market share of 36.0% in 2017 and recorded a CAGR of 4.3% during the forecast period. In contrast, the market share of fast-food restaurants is constantly increasing at a rate of 31.90% due to urbanization and the hectic lifestyle of the population living in metropolitan areas. The upward trend in mobile restaurants, such as food trucks, is also contributing to the positive growth of fast-service restaurants. As the government creates a complex regulatory landscape, restaurateurs focus more on the quality of food and services. Several players in the food service industry are focusing on digital media marketing and other innovative tactics to put exceptional quality in the spotlight. Furthermore, the concept of personalization is one of the main factors helping industry players to generate more income from fitness fanatics and diet consumers.
Impact of COVID-19 on Saudi Arabia Food Service Market
Covid-19’s impact on the food and beverage sector is immense. The strict government implementations like lockdown in Saudi Arabia resulted in the shutdown of manufacturing units and distribution channels, affecting the foodservice market to its deepest. The same is likely to continue until the end of 2020 as consumers prefer to consumer foods prepared at home rather than going out. This will be a major threat to the foodservice industry, and it is estimated that it will take some time in the future to recover.
Regional Analysis:
Consumers across the country, including a large number of ex-pats and tourists alike, are oriented towards casual Western-style restaurants, especially European and American cuisine. Therefore, casual American restaurants, such as Chili's, Fuddruckers, TGI Fridays, Applebee's, Sizzler, and On the Border, are very popular and are located in major cities in Saudi Arabia. Independent restaurant chains maintain a dominant position in the country the full-service restaurant segment, as they provide catering services with a full menu. During Ramadan, market giants like Hyatt Regency Tent and The Ritz-Carlton Residences offer a better dining experience to compete with small and medium foodservice providers.
Leading Company
McDonald had the largest share of the Saudi Arabia Food Service Market in terms of sales and revenue in 2020.
Key Players
American fast-food chains such as KFC, McDonald's, Pizza Hut, Burger King and Domino's Pizza are very present in the country. Other local chains, such as Shawaya House, Dajen, Al-Beck, Herfy, Kudo, and Taza, are gaining popularity in main urban areas.
1. Introduction
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.1.1 Drivers
4.1.2 Restaints
4.1.3 Opportunities
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.2 Products/Service
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Food Service Market, By Place Type
6.1.1 Full Service Restaurants
6.1.2 Quick Service Restaurants
6.1.3 Food Junctions Cafeterias/Buffets
6.1.4 Bars
6.1.5 Managed Food Service
6.1.6 Market Size Estimations & Forecasts (2019-2024)
6.1.7 Y-o-Y Growth Rate Analysis
6.1.8 Market Attractiveness Index
6.2 Food Service Market, By End-User
6.2.1 Industrial Premises
6.2.2 Commercial and Office Premises
6.2.3 Hospital & Nursing Homes
6.2.4 Educational Premises
6.2.5 In-transit Food Service
6.2.6 Sports Centers/Malls
6.2.7 Market Size Estimations & Forecasts (2019-2024)
6.2.8 Y-o-Y Growth Rate Analysis
6.2.9 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 Middle East and Africa
7.2.1 By Country
7.2.1.1 Middle East
7.2.1.2 Africa
7.2.2 By Place Type
7.2.3 By End-User
8. Key Player Analysis
8.1 KFC
8.1.1 Business Description
8.1.2 Products/Service
8.1.3 Financials
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 McDonald's
8.3 Pizza Hut
8.4 Burger King
8.5 Electrolux
8.6 Hoshizaki Electric Co
8.7 Starbucks Corp
8.8 Yum! Brands Inc
8.9 Dunkin 'Donuts
8.10 Papa John's
9. Market Outlook & Investment Opportunities
Appendix
List of Tables
List of Figures
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