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Saudi Arabia Foodservice Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)
The Saudi Arabian Foodservice market was valued at USD 27. 8 Billion in 2021 and is projected to grow at a CAGR of 7. 71% during the forecast period, 2022-2027. There has been a definite impact of the coronavirus outbreak (COVID-19) on the overall foodservice business, with various segments being affected in varying degrees in Saudi Arabia.
New York, June 09, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Saudi Arabia Foodservice Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06101213/?utm_source=GNW
In-restaurant dining is the worst-hit segment, largely due to the travel curbs and a general avoidance of people 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 16.40% drop in its revenue from 2019 to 2020 due to the impact of COVID-19 in the country (as per the annual report of Savola Group).
Over the medium term, the increasing demand for home delivery and foodservice providers is expected to drive the market’s growth. Increasing health consciousness and the 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 United States 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
Strong Influence of Western Culture in the Market
Saudi Arabia’s food service has been experiencing rapid socio-cultural changes over the past two years, mainly due to the accelerating economy, which allowed people to travel from the country to western countries for tourism and education, thus exposing them to western food and culture. The market studied unveiled a raft of significant tourism activities in Saudi Arabia, thus proving that the country is moving toward becoming a world-class global tourism hub. With limited options available for entertainment, the culture of eating at restaurants/food trucks gained higher preference in the country. This augmented the demand for global cuisines, thus boosting the number of foodservice outlets.
Dining at quick service and fast-food restaurants or going to cafes/coffee shops emerged as a primary way to socialize with friends. Dining at fast-food chains is considered a key driver enabling rapid expansion of the fast-food industry in the kingdom. As a result, international food chains are continuously expanding their stores in the country. For instance, in May 2021, CEC Entertainment, the parent company of American fast-food brand Chuck E Cheese planned to open 100 new outlets around the world over the years, with at least 25 in Saudi Arabia. Hence, the industry gained momentum, and the market studied witnessed strong growth in all foodservice categories.
Full-service Restaurants Led the Market Growth
The full-service restaurant segment is highly competitive in Saudi Arabia, owing to the presence of a large number of small and major players. The country’s consumers, including the high number of ex-pats and tourists, are tilted toward western-style casual dining, especially the European and American cuisines.
Consequently, the United States 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.
Competitive Landscape
The Saudi Arabian foodservice market is a fragmented and competitive market with numerous players existing in the market. Key players in the market include Mc Donald’s Corporation, Yum! Brands Inc., Herfy Food Services Co., Albaik Food Systems Co. SA, and Domino’s Pizza Inc., among others. There exists stiff competition among the foodservice providers based on pricing, quality of food service, calorie intake per meal, and healthier menu options. Restaurants across foodservice channels have started changing their business strategies such as expansion, partnership, and innovation. The players are boosting sales by venturing into home delivery and online foodservice channels, thereby gaining popularity.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06101213/?utm_source=GNW
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