The GCC food service market size was valued at USD 31.80 billion in 2022 and is projected to reach a valuation of USD 34.33 billion in 2023. The market is expected to reach USD 62.25 billion by 2030 with a CAGR of 8.87% during the forecast period. Sports have played an important role in the region and is one of the major drivers for the market growth. Emerging trend of cloud kitchens in GCC countries is setting market opportunities for the future. Improving demand for ethnic foods is also increasing the market growth.
List of Key Players Profiled in the Report:
- Starbucks Corporation (U.S.)
- Yum! Brands, Inc. (U.S.)
- McDonald’s Corporation (U.S.)
- Restaurant Brands International Inc. (Canada)
- Domino’s Pizza, Inc. (U.S.)
- Papa John’s International, Inc. (U.S.)
- ALBAIK Food Systems Company Ltd. (Saudi Arabia)
- Herfy Food Services Co. JSC, KSA. (Saudi Arabia)
- Kitopi (United Arab Emirates)
- Aura Group (Qatar)
Browse Detailed Summary of Research Report with TOC:
https://www.fortunebusinessinsights.com/gcc-food-service-market-108024
COVID-19 Impact:
Pandemic Affected Food Security in the GCC Countries
The COVID-19 pandemic impacted the Gulf Cooperation Council (GCC) countries. Additionally, the restrictions imposed on travel to lower the spread rate of the virus resulted in GCC countries taking up several fiscal and economic measures that included stimulus packages to aid healthcare spending, social assistance, and support for small businesses affected by the outbreak. Moreover, the pandemic also affected food security in GCC countries.
Segments
QSR to Lead Due to the Popularity of New Forms of Restaurants
On the basis of type, the market is divided into full service restaurants, quick service restaurants, and others. The Quick Service Restaurants (QSR) segment dominates with the largest market share due to availability of a variety of food and beverage prices set according to competition of the market. Furthermore, there is popularity of new forms of restaurants, such as virtual kitchens and ghost kitchens, which specialize in delivering food to consumers.
By country, the market is studied across Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, and the Rest of GCC.
Drivers and Restraints
Increasing Spending to Consume Fast Food and Out of House Consumption to Surge the Demand for the Service
Increasing spending to consume fast food and out of house consumption is anticipated to drive the GCC food service market growth. The popularity of fast foods amongst young population has been increasing and the presence of brands and restaurants are also expanding in the Gulf countries. Foreign investments, rising incomes, high aspiration levels, growing young population, rising tourism, and changing food consumption patterns are also driving the market growth. The tourism industry has witnessed a significant trend for getting revenues and creating jobs for men and women.
However, increasing reliance on food imports and limited availability of natural resources are expected to hamper the market growth.
Country Insights
Saudi Arabia to Lead Due to Increasing Number of Tourists in the Country
Saudi Arabia holds the largest GCC food service market share due to increasing number of tourists in the country. Increasing number of shopping and food malls has expanded rapidly in Saudi Arabia with the trend of opening food outlets in shopping malls.
The UAE holds the second-highest share in the GCC market. The UAE market growth is mainly attributed to the growing tourism industry in Dubai, Abu Dhabi, and Sharjah.
Competitive Landscape
American Restaurants Signed an Agreement with Yum! Brands for Establishing and Operating Pizza Restaurants
The key food service players are Starbucks, McDonald’s, and Yum Brands and they have been expanding their production capacity to serve to a larger customer base. American Restaurants signed an agreement with Yum! Brands for establishing and operating pizza restaurants in Saudi Arabia. The company has plans to open 30 new pizza restaurants by the year 2023 and 100 branches in a span of three years.
Key Industry Development
- May 2022- CKE Restaurants Holdings, Inc. strategically partnered with Universal Pictures for the promotion of movie “Jurassic World Dominion.” The company used this partnership to introduce new movie-themed burger products.
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