Saudi Arabia's food services market expected to reach $45bn by 2030

28/11/2025 03:22 AST

Saudi Arabia's food services market is projected to reach approximately $44.67 billion by 2030, with a compound annual growth rate of 8.20 percent, according to Khalid Al-Ghamdi, chairman of the National Franchise Committee at the Federation of Saudi Chambers, who spoke to Al-Eqtisadiah.

Al-Ghamdi noted that the current market size is estimated at around $30.12 billion.

The Saudi food services market encompasses the entire supply chain - from agricultural production and processing to distribution, retail, restaurants, and cafes.

The Kingdom is rapidly expanding its national brands internationally, aiming to promote the Saudi model and position the "Saudi brand" as synonymous with quality and innovation.

This initiative aligns with Vision 200 goals to empower the private sector, increase non-oil exports, and broaden domestic and international demand.

International expansion strategy: Window to the Russian market
Al-Ghamdi said the National Franchise Committee coordinated with several Russian entities to facilitate the entry of Saudi brands into the Russian market. This included showcasing Saudi brands, exploring expansion opportunities, and holding workshops and B2B sessions that brought together investors from both sides.

He emphasized that these efforts are expected to lead to broad partnerships across the food, retail, services, and international distribution sectors. He added that cooperation with the Russian side opens direct channels for Saudi companies to capitalize on the vast potential of the Russian market.

He explained that the arrival of Saudi brands in markets like Russia represents the export of Saudi identity and culture even before the product itself. This, he noted, helps create new job opportunities, boost non-oil revenues, and strengthen the Kingdom's position as a regional hub for franchising.

Are technological transformations supporting sector growth?
Al-Ghamdi pointed out that the food services market is witnessing rapid technological shifts, most notably the rise of cloud kitchens, which have contributed to an 11.3 percent increase in delivery services, driven by consumer demand for ready-made meals and faster ordering.

Cloud kitchens are dedicated facilities for preparing and delivering food exclusively online, without on-site dining. They allow restaurants to expand or launch new brands at lower cost and typically operate in shared spaces that house multiple virtual restaurants.

Full-service restaurants still hold the largest market share, exceeding 50 percent, as they remain a top choice for families and gatherings. Meanwhile, cafes are the fastest-growing segment, fueled by the spread of coffee culture and the expansion of entertainment and social venues.

He also noted that growth is concentrated in major cities, while mega-projects such as NEOM and the Red Sea Project are providing additional momentum as these developments create modern communities requiring integrated food services.

Saudi Arabia accounts for half of the Middle East, Africa franchise market
Al-Ghamdi revealed that the Kingdom accounts for roughly half of the Middle East and Africa franchise market, estimated at around $30 billion.

He added that "the franchise market in Saudi Arabia has recorded unprecedented growth of 866 percent in the number of registrations over three years, bringing the number to 1,788 by the end of the third quarter of 2024, reflecting a qualitative leap in Saudi brands adopting franchise models and expanding both domestically and internationally."