The strength of consumer demand in Saudi Arabia’s food and beverage sector makes it an appealing market for international brands. The development of regulations and legislation has created an investment framework that facilitates foreign companies’ expansion and achievement of their goals in the Kingdom.
Point-of-sale operations using “Mada” cards in Saudi Arabia have shown a 13.6 percent annual growth in the restaurant and café sector, increasing from SAR 78 billion ($20.8 billion) in 2022, to SAR 89 billion (%23.7 billion) over the past year. The growth indicates a promising future for the market, which is experiencing strong consumer demand.
Amro Bagedo, the founder and CEO of Kraiv, said: "The continuous and remarkable growth in the food, beverage, and hospitality sector in the Kingdom is driven by the younger generation. Their desire to experience renowned international brands without traveling abroad has created opportunities for stakeholders from the America, Europe, and Asia to invest in Saudi Arabia. This has led to gradual and exponential growth in local business opportunities."
“The Kingdom’s hosting of the FIFA World Cup in 2034 has created an urgent need for its host cities -Riyadh, Jeddah, Al-Khobar, Abha, and NEOM - to expand their dining and hotel options to accommodate visitors attending the tournament,” Bagedo told Asharq Al-Awsat.
He added that tourism will be a major focus for the Kingdom in the coming years, and hospitality will play a crucial role in strengthening the sector.
The restaurant market in the Kingdom is expected to double annually, reaching approximately SAR 168 billion ($44.8 billion) by 2030.
This growth is driven by strong consumer demand and the increasing presence of renowned brands investing in the local market.
Recent rapid social and cultural changes in restaurant services, fueled by a booming economy, indicate that Saudi Arabia is on track to become a global hub for entertainment and tourism. This growth is supported by restaurants and outlets that cater to the high demand from both local and international visitors.
