Summary

Saudi Arabia's food service culture is deeply rooted in its heritage, with Arabian traditions playing a significant role in shaping culinary practices. The culture of warm hospitality, known as "Arabian hospitality" or "Diyafa," is a hallmark of Saudi dining. Guests are treated with generosity and respect, and food is an essential part of the welcome. Saudi Arabia boasts a rich tapestry of traditional dishes, such as kabsa (a flavorful rice dish with meat), mandi (slow-cooked meat and rice), and mutabbaq (savoury stuffed pastry). These dishes are often shared among family and friends. Offering dates and Arabic coffee (gahwa) is a customary gesture of welcome in Saudi Arabia. Dates are a staple in the Saudi diet and are often served with Arabic coffee during gatherings. The Saudi government's Vision 2030 initiative aims to diversify the economy, promote tourism, and enhance the hospitality sector. These efforts have led to increased investments in the food service industry. Saudi Arabia has a young and tech-savvy population. The younger generation is more open to trying new cuisines, embracing global food trends, and dining out, contributing to market growth. The rise of food delivery apps and online ordering platforms, such as HungerStation and Talabat, has made it convenient for consumers to enjoy restaurant-quality food in the comfort of their homes. There is a growing awareness of health and wellness among consumers. Restaurants offering healthier menu options, organic ingredients, and dietary accommodations are gaining popularity. Dining out is not just about the food; it's a social activity where family and friends gather to celebrate, network, and enjoy quality time together.

According to the research report "Saudi Arabia Food Service Market Overview, 2028," published by Bonafide Research, the Saudi Arabia Food Service market is expected to reach a market size of more than USD 95 Billion by 2028. Saudi Arabia is actively working to diversify its economy away from oil dependence through initiatives like Vision 2030. This has led to increased investment in various sectors, including tourism and hospitality, driving the growth of the food service industry. The Saudi government's efforts to promote tourism have led to the development of new tourist destinations and the easing of visa restrictions. As a result, the country is attracting a growing number of international tourists, increasing the demand for dining options. Saudi Arabia's urban population is on the rise, with more people living in cities. This trend has led to increased access to food service establishments, contributing to higher demand for dining out. The proliferation of food delivery apps and online ordering platforms has made it easier for consumers to order food from restaurants. This convenience has driven growth in the food delivery segment. There is a growing awareness of health and wellness among consumers in Saudi Arabia. Restaurants that offer healthier menu options, organic ingredients, and dietary accommodations are in demand. Dining out is a significant social activity in Saudi Arabia. Families and friends often gather to celebrate special occasions and enjoy quality time together at restaurants. The country hosts various events and festivals, attracting both locals and tourists. These events often feature diverse food offerings, further boosting the food service market.

According to the report, the sectors are segmented into commercial and non-commercial; among them, the non-commercial is a growing market. South Africa's evolving work and study patterns, particularly in urban areas, have led to an increased reliance on non-commercial food service options. As people spend more time at workplaces and educational institutions, there is a growing demand for convenient and on-site dining solutions. Non-commercial food service providers have adapted to the increasing emphasis on health and wellness. They often offer balanced and nutritious meal options to cater to the dietary needs and preferences of students, employees, and patients, aligning with South Africa's commitment to promoting healthier lifestyles. Non-commercial food service providers recognise the diverse cultural and dietary preferences of South Africa's population. They often offer a variety of menu options that reflect the nation's multiculturalism, respecting different culinary traditions and dietary restrictions. Government institutions and schools often implement initiatives aimed at improving the quality of meals served to students and patients. These initiatives include nutritional guidelines and procurement policies that support locally sourced and healthy ingredients. Corporations in South Africa are increasingly implementing wellness programmes for their employees. This includes providing access to nutritious meals within workplace cafeterias, promoting healthy eating habits, and supporting employee well-being.

Based on the system, it is segmented into the conventional foodservice system, the centralised foodservice system, the ready-prepared foodservice system, and the assembly-serve foodservice system. Among them, the centralised foodservice system has the second highest market share. By consolidating meal production in centralised kitchens, this system can achieve economies of scale, reduce operational costs, and maintain consistent quality across a large number of meals. This efficiency is crucial for institutions that need to provide nutritious and cost-effective meals to a significant number of people on a daily basis. Furthermore, centralised food service aligns with South Africa's commitment to ensuring food security and adequate nutrition for vulnerable populations, including schoolchildren and patients in healthcare facilities. The system allows for standardised and regulated meal planning, which ensures that meals are nutritionally balanced and meet specific dietary requirements, contributing to the well-being of those it serves. The culture of accountability and strict adherence to safety and hygiene standards is another key aspect of centralised food service. Given that these kitchens produce meals for a wide range of institutions, there is a strong emphasis on maintaining the highest food safety and hygiene standards. This commitment to safety and quality aligns with South Africa's dedication to the well-being and health of its citizens.

In terms of service, they are segmented into full-service restaurants, quick-service restaurants, institutes, and others. In the country, full-service restaurants are the leading market. Families, business groups, and other gatherings typically favour full-service restaurants because they offer a wide selection of foods to suit everyone's needs. Full-service restaurants are becoming more prevalent as family trips are happening more frequently. Full-service restaurants that serve alcohol in addition to meals are expanding. Each year, there is a rise in alcohol consumption, and to meet this need, restaurants are growing their networks. Major cities like Riyadh and Jeddah serve as business hubs, and full-service restaurants are often located near corporate offices, making them convenient choices for business lunches and dinners. The high level of hospitality and personalised service offered by full-service restaurants aligns with Saudi Arabia's culture of taking care of guests and ensuring a memorable dining experience. Full-service restaurants are popular choices for special occasions such as weddings, engagements, and anniversaries. These events often involve large gatherings and elaborate meals.

Considered in this report:
• Geography: Saudi Arabia
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• Saudi Arabia Food Service market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Sector
• Commercial
• Non- Commercial

By System
• Conventional Foodservice System
• Centralized Foodservice System
• Ready Prepared Foodservice System
• Assembly-Serve Foodservice System
By Type of Restaurant
• Full service restaurants
• Quick service restaurants
• Institutes
• Other

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Food Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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