Food consumption in Saudi Arabia estimated to grow to a collective value of SR91.9 billion ($24.5 billion) by 2018 - Foodex Saudi
Published 2017-09-12 08:14:21
Saudi Arabia’s recent
total food service sales was estimated at SR33.3 billion ($8.87 billion),
accounting for nearly half of the GCC market. Source: Trade Arabia News Service
The GCC food services market, which recently stood at SR70.5 billion ($18.8 billion), is estimated to grow to a collective value of SR91.9 billion ($24.5 billion) by 2018, according to industry research.
The casual dining segment has emerged as the second fastest growing within the food sector market with potential for growth.
Most of the major branded restaurants with multiple branches are concentrated in primary and secondary cities. Urbanized population, globally-exposed younger generation who are inspired by food, shopping festivals, exhibitions and events become stimulus to food industry. In combination with high disposable incomes and significant investments in new malls, restaurants and hotels, Saudi Arabia is particularly ripe for global investments in the food service sector notably in casual dining segment to cater to young population.
Industry experts predict significant growth in both revenues and number of outlets in the sector. The current count of full-service chain restaurants, which includes casual dining and fine dining outlets, in the Kingdom stands at almost 1,200, and accounts for a greater part of revenues in the sector.
Despite the slowdown in economy, Saudi Arabia’s food consumption is forecast to grow by 7.3 percent in 2016, to SR224.5 billion and projected to reach SR259.4 billion in 2018. In sum, capital spending in the food sector will expand further, while the value of the casual dining sector will increase at a growth rate of 3 percent per annum.
Source: Trade Arabia News Service