In 2022, the GCC food service market was valued at USD 31.80 billion. It is expected to expand from USD 34.33 billion in 2023 to reach USD 62.25 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.87% during the forecast period.

Sports tourism has become a major contributor to national growth, significantly impacting economic advancement. It plays an influential role in shaping tourism, lifestyle trends, and enhancing a city's global reputation. Over recent years, Gulf nations like the UAE, Saudi Arabia, and Qatar have established themselves as premier destinations for global sporting events. These countries have made substantial investments to strengthen their infrastructure and capabilities in the sports sector.

Information Source: https://www.fortunebusinessinsights.com/gcc-food-service-market-108024 

Market Segmentation

QSR Segment to Dominate Owing to Emerging Restaurant Formats

Based on service type, the market is segmented into full-service restaurants, quick-service restaurants (QSR), and others. The QSR segment holds the largest share, driven by competitive pricing and a wide variety of food and beverages. Additionally, the emergence of innovative formats like virtual and ghost kitchens—focused on food delivery—has further fueled the segment’s growth.

Geographically, the market is analyzed across Saudi Arabia, the UAE, Kuwait, Qatar, and the rest of the GCC.

Report Scope

The report offers a comprehensive review of major market segments and key trends. It thoroughly examines growth drivers, restraints, regional insights, the impact of COVID-19, and strategies employed by leading market players.

Market Drivers and Challenges

Rising Fast Food Consumption and Out-of-Home Dining to Boost Market Growth

The growing preference for fast food and dining outside the home is expected to significantly contribute to market expansion in the GCC. Fast food is particularly popular among younger demographics, and international brands are rapidly expanding across the region. Factors such as increased disposable income, foreign investments, a rising youth population, booming tourism, and evolving food habits are also driving demand. Additionally, the tourism sector is increasingly being recognized for its potential to generate employment and revenue.

Nevertheless, the market faces challenges such as dependence on food imports and limited natural resources, which may impede growth.

Regional Insights

Saudi Arabia to Dominate Due to Surge in Tourist Inflows

Saudi Arabia commands the largest share in the GCC food service market, propelled by a growing number of tourists and the rapid expansion of shopping centers featuring food courts and restaurants.

The UAE follows, with substantial market growth fueled by the thriving tourism industries in cities like Dubai, Abu Dhabi, and Sharjah.

Competitive Landscape

Expansion Plans by Key Players and Strategic Partnerships

Major market players include Starbucks, McDonald’s, and Yum! Brands, which are focused on expanding their service capacity to reach a broader audience. American Restaurants entered into an agreement with Yum! Brands to open and manage pizza outlets in Saudi Arabia, with plans to launch 30 new locations by 2023 and scale up to 100 branches within three years.

Leading Companies Profiled

• 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 (Saudi Arabia)
• Kitopi (UAE)
• Aura Group (Qatar)

Recent Industry Developments

• May 2022: CKE Restaurants Holdings, Inc. collaborated with Universal Pictures for the promotion of “Jurassic World Dominion,” launching limited-edition, movie-themed burgers as part of the campaign.