Saudi Arabia Catering Services Market, By Region, Competition, Forecast and Opportunities, 2020-2030F

Saudi Arabia Catering Services Market was valued at USD 7.51 Billion in 2024 and is anticipated to grow USD 12.74 Billion by 2030 with a CAGR of 9.21% during forecast period. The Saudi Arabia catering services market is experiencing steady growth, driven by the expanding hospitality, corporate, healthcare, and education sectors. Increasing tourism under Vision 2030, rising disposable income, and demand for high-quality food services contribute to market expansion. The growing preference for outsourced catering in businesses and institutions further fuels demand. Additionally, government initiatives promoting events, conferences, and mega projects such as NEOM and the Red Sea Project are creating new opportunities.

Key Market Drivers

Expansion of the Hospitality and Tourism Industry

The rapid expansion of Saudi Arabia’s hospitality and tourism sector is a significant driver of the catering services market. The country’s Vision 2030 initiative aims to transform Saudi Arabia into a global tourism hub, leading to the development of numerous luxury hotels, resorts, and entertainment destinations such as NEOM, the Red Sea Project, and Qiddiya. The increasing influx of international visitors, religious pilgrims, and business travelers has created a surge in demand for high-quality catering services across hotels, restaurants, and event venues.

In the first eight to nine months of 2024, the Kingdom of Saudi Arabia experienced an impressive surge in international tourist arrivals, marking a growth rate of over 61%. This remarkable expansion positioned Saudi Arabia as the third-fastest-growing destination globally in terms of inbound tourism. Additionally, government initiatives to attract global events, such as the Formula 1 Saudi Arabian Grand Prix and international summits, have further accelerated the need for large-scale catering solutions. The growing number of restaurants, cafés, and fine-dining establishments is also contributing to the demand for professional catering services, ensuring high-quality food experiences for tourists and residents alike.

Key Market Challenges

High Operational Costs and Supply Chain Disruptions

One of the major challenges faced by the catering services market in Saudi Arabia is the high operational costs associated with sourcing, storage, and logistics. The reliance on imported food ingredients due to the country’s arid climate and limited agricultural production increases costs for catering businesses. Fluctuations in global food prices, supply chain disruptions, and currency exchange rates further add to the financial burden. Additionally, maintaining high food quality and hygiene standards requires significant investment in advanced storage facilities, temperature-controlled transportation, and strict compliance with food safety regulations.

Labor costs also contribute to operational expenses, as hiring skilled chefs, kitchen staff, and service personnel requires competitive salaries and benefits. The recent increase in the Value-Added Tax (VAT) from 5% to 15% has further escalated costs for businesses, making it challenging to maintain profitability while keeping prices competitive for consumers. Many catering companies struggle to balance cost-efficiency with maintaining high service standards, impacting their ability to scale operations and expand into new markets.

Key Market Trends

Increasing Adoption of Technology and Digital Solutions

The Saudi Arabia catering services market is witnessing a rapid transformation with the integration of technology and digital solutions to enhance efficiency, streamline operations, and improve customer experience. Catering companies are increasingly adopting cloud-based kitchen management systems, artificial intelligence (AI)-driven meal planning, and automated inventory tracking to optimize resources and reduce waste. The rise of online catering platforms and mobile applications has simplified the booking and ordering process, allowing customers to customize their meals, track deliveries, and provide real-time feedback.

Additionally, digital payment solutions and contactless transactions are becoming standard practices, aligning with Saudi Arabia’s Vision 2030 initiative to create a cashless economy. The use of data analytics to understand consumer preferences and predict demand trends is helping catering businesses offer personalized meal plans and promotional offers. As technology continues to advance, catering companies are expected to further invest in robotics for food preparation, AI-powered customer service, and blockchain for transparent food supply chain management, revolutionizing the industry.

Key Market Players

• Gulf Catering Company
• Saudi Airlines Catering Company
• Sodexo FZE
• Unique Catering Services Ltd.
• Algosaibi Services Company
• Gulf Mahmal Support Services Co. Ltd.
• Al-Karam Al-Arabi for Catering Services Ltd.
• Rezayat Catering & Support Services
• Almays Catering Solutions
• Arabian Gannas Ltd. Co.

Report Scope:

In this report, the Saudi Arabia Catering Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Saudi Arabia Catering Services Market, By Service Type:

• Contractual
• Non-Contractual

Saudi Arabia Catering Services Market, By End User:

• Hospitality
• Holy Sites
• Onshore Rigs
• Healthcare
• Offshore Rigs
• Education
• Corporate
• Others

Saudi Arabia Catering Services Market, By Region:

• Northern & Central
• Western
• Southern
• Eastern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia Catering Services Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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