Key Takeaways
- The Saudi Arabia food and beverage market was valued at USD 24.53 billion in 2023 and is projected to reach USD 38.92 billion by 2030, growing at a CAGR of 7.2%.
- Saudi F&B sector revenue reached SAR 150 billion in 2022, marking a 12% year-on-year increase driven by post-COVID recovery.
- The foodservice market in Saudi Arabia generated SAR 45.6 billion in 2023, with quick service restaurants accounting for 35% of the total.
- 65% of Saudi consumers aged 18-34 dine out at least twice a week, per 2023 survey.
- 72% of Saudis prefer healthy and organic food options, up 15% from 2020.
- Online food ordering penetration among Saudi youth reached 68% in 2023.
- Number of QSR outlets in Saudi Arabia reached 12,500 in 2023, 25% growth since 2019.
- Full-service restaurants in KSA generated SAR 18.2 billion revenue in 2023.
- Cafe sector in Saudi Arabia expanded to 15,000 outlets, with 40% in Riyadh.
- Saudi non-alcoholic beer market volume 150 million liters in 2023.
- Bottled water sales in KSA hit 8.5 billion liters annually in 2023.
- Energy drinks consumption grew 18% to 450 million units in 2023.
- FDI inflows into Saudi beverage manufacturing SAR 1.2 billion in 2023.
- Government subsidies for local F&B production SAR 2.5 billion in 2023.
- Export value of Saudi processed foods USD 1.8 billion in 2023.
Saudi Arabia's rapidly expanding F&B market shows strong growth and evolving consumer trends.
Beverage Sector
- Saudi non-alcoholic beer market volume 150 million liters in 2023.
- Bottled water sales in KSA hit 8.5 billion liters annually in 2023.
- Energy drinks consumption grew 18% to 450 million units in 2023.
- Juice market revenue SAR 4.1 billion, with 60% fresh squeezed preference.
- RTD tea and coffee segment valued at USD 1.2 billion in 2023.
- Saudi milk consumption per capita 180 liters/year in 2023.
- Functional drinks market CAGR 9.5% projected to SAR 2.8 billion by 2028.
- Carbonated soft drinks volume 3.1 billion liters, down 5% due to health trends.
- Plant-based milk sales up 35% to SAR 450 million in 2023.
- Coffee shop beverage sales average SAR 25 per transaction.
- Import of beverages to KSA totaled USD 2.3 billion in 2023.
- Local production of soft drinks covers 75% of market demand.
- Yogurt drinks market size SAR 1.8 billion with 12% CAGR.
- Sports drinks volume 120 million liters annually in gyms/hotels.
- Energy drink market share 12% of beverages, youth driven.
- Herbal tea imports USD 150 million, 20% CAGR.
- Bottled water brands 45 local, 55% market share.
- Coffee imports volume 45,000 tons in 2023.
- Smoothie outlets grew to 1,200, health trend led.
- Low/no alcohol beer CAGR 15% to 2028.
- Dairy alternatives volume 250 million liters annually.
- Vending machines for beverages 25,000 units deployed.
- Kombucha market nascent at SAR 50 million.
- Per capita soda consumption 120 liters/year.
Beverage Sector Interpretation
Consumer Trends
- 65% of Saudi consumers aged 18-34 dine out at least twice a week, per 2023 survey.
- 72% of Saudis prefer healthy and organic food options, up 15% from 2020.
- Online food ordering penetration among Saudi youth reached 68% in 2023.
- 55% of Saudi women lead F&B purchasing decisions in households as of 2023.
- Demand for plant-based alternatives in KSA grew 40% YoY in 2023 among millennials.
- 48% of Saudis seek international cuisines, with Italian leading at 22% preference.
- Coffee consumption per capita in Saudi Arabia hit 2.5 kg in 2023, up 20% since 2018.
- 61% of Saudi consumers prioritize local and sustainable brands in F&B purchases.
- Average monthly F&B spend per Saudi household rose to SAR 1,200 in 2023.
- 75% of Gen Z Saudis use apps for food discovery and ordering in 2023.
- Preference for ready-to-eat meals among working Saudis increased to 52% in 2023.
- 42% of Saudis follow low-sugar diets, driving 18% sales growth in sugar-free products.
- Delivery preference for meals rose to 58% post-pandemic among urban Saudis.
- Saudi expats (35% of population) favor Asian cuisines at 30% adoption rate.
- 67% of Saudis snack 2-3 times daily, boosting savory snacks market.
- Women aged 25-40 show 55% interest in vegan options in 2023 surveys.
- 70% of Saudis value hygiene certifications in F&B choices post-2022.
- Functional beverages consumption up 25% among fitness enthusiasts.
- Quick service restaurant visits average 4.2 times/month per Saudi consumer.
- 78% of Saudi consumers aged 18-24 prioritize delivery apps for F&B orders.
- Organic food sales surged 28% to SAR 2.1 billion in urban areas.
- 53% of Saudis reduced sugar intake, favoring zero-calorie drinks.
- Home cooking frequency dropped to 3.5 days/week among professionals.
- Luxury dining experiences sought by 32% of high-income Saudis.
- Pet food integration in F&B trends, market SAR 800 million.
- 69% prefer contactless payments in F&B outlets post-2023.
- Regional cuisine loyalty at 45%, Shawarma top at 28% orders.
- Elderly (55+) show 40% growth in cafe visits for socialising.
- 76% of tourists rate Saudi F&B hygiene as excellent in 2023.
Consumer Trends Interpretation
Economic and Investment
- FDI inflows into Saudi beverage manufacturing SAR 1.2 billion in 2023.
- Government subsidies for local F&B production SAR 2.5 billion in 2023.
- Export value of Saudi processed foods USD 1.8 billion in 2023.
- Private equity deals in F&B sector totaled 15 transactions worth SAR 4 billion.
- Vision 2030 allocation for F&B infrastructure SAR 10 billion by 2025.
- Number of F&B SMEs registered 25,000, employing 300,000 Saudis.
- Tax incentives attracted 120 new F&B investors in 2023.
- Return on investment average 18% for F&B franchises in KSA.
- Supply chain investments in cold chain logistics SAR 3.2 billion.
- Job creation in F&B sector 120,000 new positions in 2023.
- IPOs in F%B companies raised SAR 1.5 billion on Tadawul in 2023.
- Venture capital funding for food tech USD 180 million YTD 2023.
- Public-private partnerships for F&B parks valued at SAR 5 billion.
- Inflation impact on F&B costs averaged 4.2% in 2023.
- F&B sector multiplier effect on economy 2.5x GDP contribution.
- 45 new F&B industrial zones approved under NIS.
- Crowdfunding platforms raised SAR 200 million for F&B ventures.
- Cost of living F&B share 28% of household budget.
- Blockchain pilots in F&B supply chain 12 projects.
- Export promotion grants SAR 500 million disbursed.
- M&A activity 22 deals valued USD 1.1 billion.
- Sustainability bonds issued SAR 800 million for green F&B.
- Tourism F&B spend USD 4.5 billion from 100 million visitors.
- Digital transformation grants SAR 1 billion to F&B firms.
Economic and Investment Interpretation
Market Size and Growth
- The Saudi Arabia food and beverage market was valued at USD 24.53 billion in 2023 and is projected to reach USD 38.92 billion by 2030, growing at a CAGR of 7.2%.
- Saudi F&B sector revenue reached SAR 150 billion in 2022, marking a 12% year-on-year increase driven by post-COVID recovery.
- The foodservice market in Saudi Arabia generated SAR 45.6 billion in 2023, with quick service restaurants accounting for 35% of the total.
- Saudi F&B market is expected to grow from USD 25.1 billion in 2024 to USD 35.8 billion by 2029 at a CAGR of 7.4%.
- Organized foodservice outlets in Saudi Arabia contributed SAR 62 billion to the economy in 2023, up 15% from 2022.
- The overall F&B industry in KSA saw a 10.5% growth in 2023, reaching a market value of SAR 165 billion.
- Saudi non-alcoholic beverage market valued at USD 5.2 billion in 2023, projected CAGR of 6.8% to 2030.
- F&B e-commerce sales in Saudi Arabia hit SAR 4.8 billion in 2023, growing 25% YoY.
- Saudi dairy market size stood at SAR 12.3 billion in 2022, expected to reach SAR 18.7 billion by 2028.
- The confectionery segment of Saudi F&B market was worth USD 1.8 billion in 2023.
- Saudi F&B market penetration of international chains reached 28% in 2023, up from 22% in 2020.
- Total F&B outlets in Saudi Arabia exceeded 45,000 in 2023, a 18% increase since 2019.
- Saudi packaged food market valued at USD 10.5 billion in 2023, CAGR 5.9% forecasted.
- Food delivery market in KSA reached SAR 6.2 billion in 2023, 30% YoY growth.
- Saudi bakery products market size was SAR 8.1 billion in 2022.
- The halal F&B market in Saudi Arabia contributed SAR 120 billion in 2023.
- Saudi meat processing industry revenue hit SAR 25 billion in 2023.
- F&B sector GDP contribution in KSA was 2.8% in 2023, valued at SAR 90 billion.
- Saudi soft drinks market volume reached 4.2 billion liters in 2023.
- Cloud kitchen market in Saudi Arabia valued at USD 450 million in 2023, CAGR 22% to 2028.
Market Size and Growth Interpretation
Restaurant and Hospitality
- Number of QSR outlets in Saudi Arabia reached 12,500 in 2023, 25% growth since 2019.
- Full-service restaurants in KSA generated SAR 18.2 billion revenue in 2023.
- Cafe sector in Saudi Arabia expanded to 15,000 outlets, with 40% in Riyadh.
- Hotel F&B revenue in Saudi tourism cities hit SAR 5.6 billion in 2023.
- Average check size in Saudi casual dining rose to SAR 85 in 2023.
- Fine dining establishments grew 12% YoY to 1,200 outlets nationwide.
- Street food vendors licensed outlets reached 8,000 in major cities in 2023.
- Occupancy rate for F&B spaces in malls hit 92% in Q4 2023.
- Labor force in Saudi F&B sector totals 850,000 employees in 2023.
- Saudization rate in restaurants achieved 45% target in 2023.
- Average restaurant profit margins in KSA stood at 15.2% in 2023.
- Cloud kitchens operated by 200 brands, handling 20% of deliveries.
- Riyadh's restaurant density is 1 per 1,200 residents in 2023.
- Banquet and catering services revenue SAR 3.4 billion in 2023.
- Ghost kitchens market share in urban deliveries 28% in 2023.
- Cafe per capita in Jeddah is 1 per 2,500 people.
- Food trucks licensed nationwide reached 2,500 in 2023.
- Hospitality F&B staff turnover rate dropped to 22% in 2023.
- Casual dining footfall up 22% in entertainment zones.
- Buffet restaurants revenue SAR 2.9 billion, 15% YoY growth.
- Female-only sections in 65% of family restaurants.
- Peak dining hours shift to 9 PM-12 AM in 70% outlets.
- Tech adoption: 82% restaurants use POS systems.
- Outdoor seating demand up 35% in coastal cities.
- Loyalty programs retention rate 62% in chain restaurants.
- Waste reduction initiatives in 55% mid-tier eateries.
- Drive-thru lanes expanded to 40% of QSRs in highways.
- Wedding catering average spend SAR 250,000 per event.
- Pop-up restaurants hosted 450 events, revenue SAR 120 million.
- Health score compliance 88% in inspected outlets.
Restaurant and Hospitality Interpretation
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