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The Saudi Arabia Foodservice Market is expected to nearly double in value, growing from US$26.61 billion in 2024 to US$51.64 billion by 2033, with a compound annual growth rate (CAGR) of 7.66%. This growth reflects the market’s strong potential, driven by demographic and economic shifts.

The Saudi Arabia Foodservice Market is poised for substantial growth, as detailed in a recent report released by ResearchAndMarkets.com on April 7, 2025, titled “Saudi Arabia Foodservice Market Size and Share Analysis – Growth Trends and Forecast Report 2025-2033.” This analysis provides a deep dive into market dynamics, projections, and strategic insights, offering a comprehensive view of the sector’s evolution through 2033. Below, we explore the market size, growth drivers, challenges, key trends, and competitive landscape, ensuring a thorough understanding for stakeholders and interested readers.

The report projects that the Saudi Arabia Foodservice Market will expand from US$26.61 billion in 2024 to US$51.64 billion by 2033, achieving a compound annual growth rate (CAGR) of 7.66% from 2025 to 2033. This nearly doubling in value over nine years underscores the market’s robust potential, driven by demographic and economic shifts. The following table summarizes key attributes from the report:

Report AttributeDetails
No. of Pages200
Forecast Period2024 – 2033
Estimated Market Value (USD) in 2024$26.61 Billion
Forecasted Market Value (USD) by 2033$51.64 Billion
Compound Annual Growth Rate7.6%
Regions CoveredSaudi Arabia

This growth trajectory positions the market as an attractive opportunity for investors and operators, with the projection reflecting steady, significant expansion.

The report provides a detailed breakdown of the market by various segments, enhancing understanding of its structure. The following table outlines the segmentation:

SegmentDetails
By Foodservice TypeCafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants (QSRs)
By OutletChained Outlets, Independent Outlets
By LocationLeisure, Lodging, Retail, Standalone, Travel
By RegionNorthern & Central, Western, Eastern, Southern
  • Foodservice Type: QSRs, including bakeries, burgers, and pizza, are thriving due to their convenience, while full-service restaurants (FSRs) offer diverse cuisines like Asian, European, and Middle Eastern. Cloud kitchens are gaining traction for their cost-effective delivery model, catering to the growing demand for online orders.
  • Regional Dynamics: Big cities like Riyadh, Jeddah, and Dhahran are hotspots for fast-food franchises, casual dining, and fine-dining establishments, reflecting the urban population’s influence. The Western Region, including Jeddah, is particularly noted for its tourism-driven growth, while the Northern & Central Region, with Riyadh, sees significant activity due to its economic hub status.
  • Fluctuating Food Prices and Supply Chain Disruptions: The country’s heavy reliance on imports for food items like grains, meats, and dairy makes it vulnerable to global price fluctuations. Supply chain disruptions, caused by natural disasters, geopolitical events, or logistical issues, can delay essential materials, impacting profit margins. Foodservice companies must diversify sourcing, build strong supplier relationships, and implement flexible pricing strategies to mitigate these risks.
  • Growing Reliance on Delivery Services: While online delivery offers opportunities, it also increases operating costs. Restaurants need to invest in digital solutions (e.g., user-friendly apps, online ordering platforms) and delivery infrastructure, either independently or through partnerships. Managing customer expectations, tracking orders, and ensuring timely service are critical, yet these investments can strain profitability, requiring operators to balance convenience with cost efficiency.

Tourism has emerged as a key driver, with events like Riyadh Season and AlUla’s Winter at Tantora Festival promoting traditional foods alongside creative interpretations. Desert feasts and heritage village lunches immerse foreign visitors in Saudi culture, further boosting demand. In the first seven months of 2024, 4.2 million tourists traveled to the country for amusement and holidays, making it one of the most popular travel destinations worldwide, according to the Ministry of Tourism.

Company NameDetails
Al Tazaj FakeihKnown for grilled chicken
AlAmar Foods CompanySpecializes in casual dining options
ALBAIK Food Systems Company S.A.Prominent in QSRs, especially fried chicken
Americana Restaurants International PLCOperates multiple franchise brands
Apparel GroupDiverse portfolio, including foodservice
Fawaz Abdulaziz AlHokair CompanyInvolved in hospitality and foodservice
Galadari Ice Cream Co Ltd LLCFocus on desserts and ice cream
Herfy Food Service CompanyMajor player in QSRs, known for burgers
Kudu Company For Food And CateringOffers meat-based cuisines
LuLu Group InternationalRetail and foodservice conglomerate

These companies are adapting to market trends by enhancing their online presence, collaborating with delivery services, and innovating menus to meet health-conscious and experiential dining demands, positioning themselves to benefit from the market’s growth.

Saudi Arabia’s renowned fast-food chain, Albaik, has officially confirmed its expansion into Pakistan, with outlets expected to open in major cities soon. This move is expected to create job opportunities and strengthen economic ties between the two nations.

Economic and Trade Relations Between Pakistan and Saudi Arabia 2025

Albaik’s CEO, Rami Abu Ghazala, reconfirmed the company’s commitment to launching in Pakistan, stating that the expansion is in its final stages. The process began with the signing of a Memorandum of Understanding (MoU) between Albaik and Gas & Oil Pakistan Ltd (GO) last year, which laid the foundation for this significant move.

The company, known for its signature fried chicken, seafood, and garlic sauce, has gained immense popularity across the Middle East. With over 120 restaurants in Saudi Arabia and beyond, its entry into Pakistan is expected to enhance the country’s fast-food industry and offer consumers a taste of its globally loved menu.

Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, recently visited Albaik’s plants in Jeddah. During his visit, he toured the company’s operations and met Pakistani employees working at the fast-food giant. He appreciated their contributions to the brand and welcomed Albaik’s entry into Pakistan, emphasizing its potential to transform the country’s fast-food landscape.

The minister also held a high-profile meeting with Albaik’s leadership, where they discussed business collaborations and investment opportunities. The Ministry of Commerce later issued a statement confirming that Albaik’s expansion into Pakistan was progressing rapidly, with the first outlets set to open soon.

The minister’s visit to Jeddah was part of broader efforts to strengthen trade and investment ties between Pakistan and Saudi Arabia. His engagements took place during the first-ever “Made in Pakistan” exhibition, which focused on attracting Saudi investments and promoting Pakistani exports.

  • Bilateral Trade Growth: Pakistan’s exports to Saudi Arabia have seen a 22% increase, reaching $700 million.
  • Investment Opportunities: Saudi business leaders expressed strong interest in sectors like construction materials, textiles, food, IT, agriculture, energy, and healthcare.
  • Ease-of-Doing-Business Initiatives: Pakistan introduced measures like the Pakistan Single Window (PSW) and the National Compliance Centre to streamline trade regulations and improve export standards.
Albaik’s Pakistan Entry: New Jobs, Big Investments & Fast Food Revolution

Saudi investors showed a keen interest in collaborating with Pakistani businesses. Several proposals were discussed to enhance trade partnerships and industrial investment. The minister invited Saudi business leaders to visit Pakistan and participate in major trade exhibitions such as TEXPO, Food-AG, and the Healthcare & Mineral Show.

Additionally, Saudi businesses were assured of a business-friendly environment in Pakistan, featuring tax exemptions, investor protection laws, and access to a 240-million-strong consumer market.

Pakistan’s economic ties with Saudi Arabia go beyond trade and investment. The minister acknowledged the contributions of Pakistani expatriates in Saudi Arabia, highlighting:

  • 1.7 million Pakistanis have traveled to Saudi Arabia in the past five years, making it the top destination for Pakistani emigrants.
  • $7.4 billion in remittances were sent from Saudi Arabia last fiscal year, reinforcing the strong financial link between the two countries.
  • Pakistan Investor Forum in Jeddah was recently established to guide new businesses and strengthen Pakistani-Saudi collaborations.

To facilitate business exchanges, the Pakistani government has introduced a Revised Visa Policy, allowing GCC citizens to enter Pakistan visa-free for up to 90 days. This initiative is expected to make business travel more convenient and encourage further Saudi investments in Pakistan.

With Albaik’s expansion into Pakistan in its final stages, the country’s fast-food industry is set for a major transformation. The brand’s entry is expected to not only create employment opportunities but also attract further Saudi investment in Pakistan’s growing consumer market.

Minister Jam Kamal Khan’s visit to Jeddah and discussions with Saudi business leaders have reinforced Pakistan’s commitment to fostering strong economic ties with Saudi Arabia. With increasing trade volumes, new business collaborations, and Albaik’s imminent launch, the Pakistan-Saudi economic corridor is set to expand further, bringing exciting opportunities for both nations.

Stay tuned for official announcements regarding Albaik’s launch date and locations in Pakistan!

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