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Four types of restaurants make up Saudi Arabia’s food and beverage (F&B) industry: full-service, quick-service, cafés, and catering, also known as the institutional food sector. According to a 2022 report, this region’s F&B market is the biggest.
The food service industry in Saudi Arabia was worth $27.8 billion USD in 2017; from 2023 to 2027, it is anticipated to grow at a compound annual growth rate (CAGR) of 7.71%.
The lockdowns imposed during the COVID-19 pandemic severely hurt every sector of Saudi Arabia’s food and beverage industry. Travel restrictions and laws enforcing social distance had the greatest negative effects on the in-restaurant dining industry.
The rise in demand for home delivery and other services started to propel market expansion in Saudi Arabia during this period, and it is anticipated that this growth will continue in the medium term.
What does Saudi Arabia’s food service industry have in store for the future? What possibilities exist for F&B companies looking to expand or enter the market? Businesses should seize this opportunity as soon as possible because Saudi Arabia’s F&B market will only continue to grow exponentially.
Vision 2030 and the Foodservice Market
Driving the tourism and entertainment sectors in Saudi Arabia is one of the main tenets of Vision 2030, the country’s national development plan for diversifying the economy and expanding its public service sectors. The Saudi Arabian food and beverage sector saw a significant change as a result of the roadmap and a chance to grow significantly.
Food is a symbol of friendliness in the Arabian Gulf, according to a cookbook author. The country can invite more diners to experience Saudi Arabia’s F&B industry as it opens up to more visitors and events. Now that Saudi Arabia’s food service industry’s future appears more promising, the nation can showcase its appeal as a location for both domestic F&B companies and large international food chains.
Experiences are now essential in the food service industry in Saudi Arabia. Instead of the typical stalls, the industry is moving toward providing a wider variety of food options through food halls.
In order to meet consumer demand for healthy food options and preferences, new technologies must be introduced. Last but not least, distinctive offerings made through traditional indigenous dishes as part of the promotion of food tourism will also enable local brands to engage in healthy competition with foreign rivals.
Current Trends in Saudi Arabia’s F&B Industry
The kingdom’s food service industry has already undergone a number of changes. A growing number of well-known Saudi chefs are starting their own eateries, and speciality third-wave coffee shops are also gaining popularity there. Famous fine dining establishments from around the world also opened temporary locations in Riyadh to test the market.
In the past few years, Riyadh and Jeddah have seen an increase in the number of American and British casual dining establishments. Additionally, more upscale eateries are opening in the kingdom. The nation is now home to restaurants with Michelin stars like Rasoi by Vineet.
The F&B sector in Saudi Arabia has more room for expansion than ever before thanks to supportive government policies and modifications in consumer behaviour. Customers who are eager for luxurious dining experiences wait, and healthy competition and increased market interest are encouraging brands that want to enter the country.
How we can help
Since the food and beverage sector is expanding quickly, now is your chance to launch your company in Saudi Arabia and maximize your revenue and growth.
We at Thinkdirect BPO can make it easy for you to establish your business in Saudi Arabia. You only need to get in touch with us; the rest will be taken care of by the pros.
