SAUDI ARABIA FOOD SERVICES MARKET

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MARKET INTELLIGENCE . CONSULTING www.techsciresearch.com

2016 – 2026

SAUDI ARABIA FOOD SERVICES MARKET

FORECAST AND OPPORTUNITIES

Published: May 2021

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S. No. Contents

1. Product Overview 2. Research Methodology 3. Executive Summary

4. Impact of COVID-19 on Saudi Arabia Food Services Market 5. Voice of Customer

5.1. Brand Awareness

5.2. Factors Influencing Purchase Decision 5.3. Source of Information

6. Global Food Services Market Overview 7. Saudi Arabia Food Services Market Outlook

7.1. Market Size & Forecast 7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type (QSR {Quick Service Restaurant}, Dining Services, Cafe and Others) 7.2.2. By Region

7.2.3. By Food Chain (2020) 7.3. Market Map (Type and Region) 8. Saudi Arabia QSR Market Outlook

8.1. Market Size & Forecast 8.1.1. By Value

8.2. Market Share & Forecast 8.2.1. By Region

List of Figures and Tables

Figure No. Title

Figure 1: Saudi Arabia Food Services Market Size, By Value (USD Billion), 2016-2026F Figure 2: Saudi Arabia Food Services Market Share, By Type, By Value, 2016-2026F Figure 3: Saudi Arabia Food Services Market Share, By Region, By Value, 2016-2026F Figure 4: Saudi Arabia Food Services Market Share, By Food Chain, By Value, 2020

Figure 5: Saudi Arabia Food Services Market Map, By Type, Market Size (USD Billion) & Growth Rate (%), 2020

Figure 6: Saudi Arabia Food Services Market Map, By Region, Market Size (USD Billion) & Growth Rate (%), 2020

Figure 7: Saudi Arabia QSR Market Size, By Value (USD Billion), 2016-2026F Figure 8: Saudi Arabia QSR Market Share, By Region, By Value, 2016-2026F Figure 9: Saudi Arabia Cafe Market Size, By Value (USD Billion), 2016-2026F

Figure 10: Saudi Arabia Urban Population as a Percentage of Total Population (%), 2015-2019 Figure 11: Saudi Arabia Cafe Market Share, By Region, By Value, 2016-2026F

Figure 12: Saudi Arabia Dining Services Market Size, By Value (USD Billion), 2016-2026F Figure 13: Saudi Arabia Dining Services Market Share, By Region, By Value, 2016-2026F Figure 14: Saudi Arabia Others Market Size, By Value (USD Billion), 2016-2026F

Figure 15: Saudi Arabia Gross National Income Per Capita (USD), 2015-2019

Figure 16: Saudi Arabia Imports of Food Products, By Value (USD Billion), 2015-2018 Figure 17: Saudi Arabia Exports of Food Products, By Value (USD Billion), 2015-2018

Table No. Title

Table 1: Major Food Chain Details, 2020

Table 2: Saudi Arabia Individuals Using the Internet (% of Population) Table 3: Saudi Arabia Food Products Imports, By Top 5 Countries, 2018 Table 4: Saudi Arabia Food Products Exports, By Top 5 Countries, 2018

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Product Overview

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Scope of Report

Sector of Interest: Food Service

Review Period 2016 – 2019

Base Year 2020 Estimated Year

2021 Forecast Period

2022 – 2026 Year Range

Food service is defined as a business, institution, or company which is responsible for preparing any meal outside the home. The food service market includes:

• Quick Service Restaurants: A quick service restaurant is one that focuses on delivering food to customers as quickly and efficiently as possible. This usually means that there is no table service and that food is prepared based on the order received in a short amount of time. E.g., McDonalds, KFC, AL BAIK, Herfy, Domino’s, etc.

• Dining Services: Dining Services encompasses all services associated with the main dining operation. E.g., Paitto, AL Khayam, etc.

• Café: A café is a place where coffee, meals, light meals, drinks, snacks, etc. are served.

Its ambience is that of a casual eating establishment. E.g., Elixir Bunn Coffee Roasters, Java Time,

• Others: It includes lounges and canteens which are there in corporate offices, hospitals, institutions, etc.

airports, etc.

Market Segmentation PRODUCT TYPE

• Dining Services

• Café

• QSR (Quick Service Restaurants)

• Others

REGION

• Eastern

• Central

• Western

• Southern

• Northern

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Research Methodology

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Research Methodology

✓ Identifying Key Opinion Leaders

✓ Questionnaire Design

✓ In-depth Interviews Data Collection Developing List

of Respondents Formulating

Questionnaire Market

Profiling Data

Validation

Data Analysis

In-depth secondary research was conducted to

determine overall market size, segmental market size

and top players in Saudi Arabia food services

market.

In order to conduct industry experts’

interviews, TechSci formulated a detailed

discussion guide.

List of industry players and industry

specialists was developed.

TechSci conducted interviews with industry experts and

industry players for data collection and

verification.

Data obtained as a result of primary

and secondary research was validated through

rigorous triangulation.

The data was scrutinized using MS-Excel, statistical

tools and internal proprietary database to

obtain qualitative and quantitative insights about Saudi Arabia food services

market.

Data Collection

Data Filter

& Analysis Research &

Intelligence

Actionable

Insights Business Solution

Primary Research Desk Research Company Analysis

✓ Recent Developments

✓ Market Changing Aspects/Dynamics

✓ Government Policies

✓ Final Conclusion

✓ Market Participants

✓ Key Strengths

✓ LinkedIn

✓ TechSci Internal Database

✓ Factiva

✓ Hoovers Paid Sources

✓ Company Websites

✓ Company Annual Reports

✓ White Paper Study

✓ Financial Reports

✓ Investor Presentations

✓ Regulatory Body

✓ Associations, etc.

Secondary Research Primary Research

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Our dedicated team of industry experts has monitored and analyzed various aspects of Saudi Arabia food services market. The team has analyzed the outlook of various segments of this market, while considering the major influencing factors such as increasing per capita disposable income coupled with the growth of tourism industry over the next five years. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in Saudi Arabia food services market.

Methodology Followed for Calculation of Market Size:

• Market Size by Value: Market size, in terms of value, for the year 2020 was calculated based on information collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as food service providers, raw material suppliers, end users, industry experts and other industry participants.

• The team interviewed 20-25 food chains, 300 end users, and 15–20 industry experts and other stakeholders in Saudi Arabia food services market to obtain the overall market size from 2016 to 2020, which was validated by the Delphi technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data during 2016-2020.

• Respondents were asked about the current and future market growth rates, market shares by type and by region. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from the responses received from stakeholders depending upon the type of food service.

Research Methodology

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• Market shares by type, by region and by food chain were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares or revenue generated from various types of food services. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers.

Methodology Followed for Forecasting:

• TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software.

• Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast Saudi Arabia food services market, TechSci Research used various forecast techniques such as:

✓ Moving Average

✓ Time Series Analysis

✓ Regression Analysis

✓ Econometric and Judgmental Analysis

Research Methodology

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© TechSci Research 12 TechSci Research used its own forecast tool, which is based on the growth of various allied industries in Saudi Arabia. TechSci Research also used the impact analysis during short, medium and long term period to estimate the demand emanating in the market. It should be noted that the figures compiled are only for the organized market including market share data.

Partial List of Food Chains Interviewed Key Secondary Sources

▪ McDonald's

▪ Herfy

▪ AL BAIK

▪ KUDU

▪ KFC

▪ Domino’s

▪ Pizza Hut

▪ Burger King

▪ Shawaya House

▪ Tony Roma’s

▪ World Bank

▪ TechSci Research Proprietary Database & Knowledge Repository

▪ Company Annual Reports

▪ Industry Magazines

▪ Industry Reports

▪ Statista

▪ News Dailies

▪ Credible Paid Databases

Research Methodology

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Industry Brief

According to TechSci Research report,“Saudi Arabia Food Services Market, By Type (QSR (Quick Service Restaurants), Dinning Services, Café and Others (Canteens, Lounges, etc.)), By Region, Competition, Forecast & Opportunities, 2026F”, the Saudi Arabia Food Services Market grew at a significant pace in the past few years and is expected to register strong growth with a CAGR of over 7% till 2026, owing to increasing population and changing preferences of young and dynamic generation that is highly active on digital media and has awareness on various options of food services. One of the main factors driving the Saudi Arabia Food Service Market is the growing demand for customization and creativity in food menu choices. Other factors such as the advancement of e-commerce/online platforms and on-the-go food services also contribute to the growth of this market. Moreover, rising urban population is offering huge growth opportunities to manufacturers by catering to demand for food services, in the country. Furthermore, the rising urban class population base, strong brand awareness and increasing disposable income are augmenting demand for good quality of food services across the country.

The COVID-19 outbreak has had a significant impact on the Saudi Arabia food services market, which saw a decline in fine dining services in 2020 as a result of the countrywide lockdown imposed to stop the spread of the disease. The fine dining sector has yet to fully recover, whereas quick service restaurants have recovered partially as a result of increased demand for home delivery services. Even after being vaccinated against COVID-19, consumers may continue to prefer eating at home and avoid fine dining services until 2021. Moreover, the COVID-19 pandemic has altered the country's food consumption pattern. People prefer eating healthy home cooked food over restaurant food in order to maintain strong immunity and avoid becoming infected with the coronavirus. Such a shift in people's food consumption habits is expected to stifle the growth of the Saudi Arabia food services market to some extent.

Food Service market in Saudi Arabia is categorized into by type, by region and by company. In terms of by Type, the Saudi Arabia food services market is segmented into QSR (Quick Service Restaurants), Dinning Services, Café & Others (Canteens, Lounges, etc.). Among which QSR (Quick Service Restaurants) market has accounted for the majority share in Saudi Arabia Food Service Market in 2020 followed by Cafés. With the growing popularity of fast foods and casual dining, chained consumer food services are growing at a fast pace. Cafés are increasing in number in Saudi Arabia, with international brands, likeApplebee’s, Outback Steak House, Chilis, etc. marking their presence. Moreover, the global chains have followed the strategy of customization and localization through intelligent modifications in their menus.

In terms of region, the Saudi Arabia Food Service market is categorized into Western, Central, Eastern, Southern and Northern region respectively. The market of food service in Western region was the largest in 2020 due to better product availability, increasing tourism in the region, brand expansion by many companies and a hub for the nearby cities followed by Central region. This is mainly because of the increasing tourism in this region every year and growing awareness of having healthy lifestyle.

In terms of Company, some of the major players operating in the Saudi Arabia Food Services market areMcDonald’s, Herfy, Al Baik, KUDU, KFC, etc. and others. In 2020, McDonald holds the major market share in thecountry’s food service market, and the company is expected to continue its dominance through 2026F. Leading players are focusing on expanding their food product portfolio to maintain sustainable growth in the market. A new investor still has vast potential to enter this space as it is positively influenced by three major factors, namely higher disposable income, global exposure and limited sources of entertainment, together with the ever-increasing number of malls in the country. Moreover, the global chains have followed the strategy of customization and localization through intelligent modifications in their menus. An example of this is the McArabia Grilled Chicken sandwich offered byMcDonald’s.

Saudi Arabia Food Service market is expected to grow at a rapid pace due to increasing urbanization, increasing tourism every year, likeliness towards international brands in Saudi Arabia. Also, due to the increasing number of working women, changing customer tastes & preferences for high-end product quality, international brand expansion are other reasons for the growth of thecountry’s food service market. Dual-income families and working-class, are also likely to contribute to the market growth as they are also the targeted consumer segments for the major players operating in the market.”, said Mr Karan Chechi, Research Director with TechSci Research, a research-based global management consultingfirm.

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Sample Data - Snapshot

2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F

Value (USD Billion)

Saudi Arabia Food Services Market Size, By Value (USD Billion), 2016-2026F CAGR 2016-2020

By Value: xx%

CAGR 2021E-2026F By Value: xx%

Saudi Arabia Food Services Market Share, By Type, By Value, 2016-2026F

2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F QSR (Quick Service Restaurants) 10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%

Café 20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%

Dining Services 30.00%30.00%30.00%30.00%30.00%30.00%30.00%30.00%30.00%30.00%30.00%

Others 40.00%40.00%40.00%40.00%40.00%40.00%40.00%40.00%40.00%40.00%40.00%

Saudi Arabia Food Services Market Share, By Region, By Value, 2016-2026F

2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F

Western 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%

Central 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%

Eastern 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Southern 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Northern 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

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Report Name: SAUDI ARABIA FOOD SERVICES MARKET FORECAST AND OPPORTUNITIES

2016 – 2026

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About Us & Disclaimer

TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research provides market research reports in number of areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’

model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market.

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SAUDI ARABIA FOOD SERVICES MARKET

2016 – 2026