Report Overview
A spurring demand for catering services from an increasing number of corporate events, the government?s supportive initiatives promoting tourism, and expanding hospitality and healthcare sectors are expected to drive Saudi Arabia Catering Services Market during the forecast period between 2024 and 2030.

Saudi Arabia Catering Services Market- Industry Trends & Forecast Report, 2030

Saudi Arabia Catering Services Market size by value was estimated at USD 6.8 billion in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Catering Services Market size is expected to expand at a CAGR of 7.90% reaching a value of USD 11.2 billion by 2030. Saudi Arabia Catering Services Market is driven by increasing disposable income, rapid urbanization, and a thriving hospitality industry. The growing demand for convenience, coupled with a rising preference for diverse cuisines, fuels market growth. Additionally, technological advancements like online booking platforms and economic diversification efforts under Vision 2030 contribute significantly.

Saudi Arabia Catering Services Market

Catering Services - Overview

Catering services encompass the provision of food and beverages for various events and gatherings, such as weddings, corporate functions, parties, and more. They offer a range of services including menu planning, food preparation, and delivery, along with on-site staff for serving and cleanup. The industry caters to diverse culinary preferences, ensuring quality and convenience for clients. It's integral to the hospitality sector, enhancing the overall experience of events with professional and customized culinary offerings.

Saudi Arabia Catering Services Market

Growth Drivers

Booming Tourism and Hospitality Industry

The booming tourism and hospitality industry across the Kingdom is a significant driver for Saudi Arabia Catering Services Market. With the introduction of tourist visas and the development of major tourism destinations like NEOM and the Red Sea Project, the Kingdom is attracting international visitors. The surge in tourism increases the demand for diverse culinary experiences, prompting catering companies to offer a wide range of traditional and international cuisines. The expansion of the hospitality sector, including hotels, resorts, and event venues, further fuels the need for high-quality catering services to enhance guest experiences.

Challenges

Strict Food Safety and Health Regulations

Strict food safety and health regulations could pose a restraint on the growth of Saudi Arabia Catering Services Market. Stringent norms require rigorous monitoring of food quality and standards, increasing operational costs for providers. Compliance with these regulations demands significant investment in training, equipment, and processes, which can be challenging for smaller businesses. Consequently, stringent regulations could limit market growth.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Catering Services Market

Intensifying geopolitical tensions among countries in the Middle East and further spreading acorss the regions could significantly impact the growth of Saudi Arabia Catering Services Market. Increased instability may deter tourists and business travelers, leading to reduced demand for catering services at hotels, resorts, and event venues. Additionally, supply chain disruptions may affect the availability and cost of ingredients, driving up operational expenses for catering companies. Heightened security concerns can also necessitate additional investments in safety measures, further straining resources. Overall, geopolitical tensions can create a challenging environment for the growth and stability of the catering services market in Saudi Arabia.

Saudi Arabia Catering Services Market

Segmental Coverage

Saudi Arabia Catering Services Market - By Type

By type, Saudi Arabia Catering Services Market is divided into Contractual and Non-Contractual segments. The contractual segment holds a larger market share of Saudi Arabia Catering Services Market, due to the growing demand from businesses, educational institutions, healthcare facilities, and industrial sectors, which rely on long-term catering agreements to ensure consistent food quality and cost-effectiveness. Additionally, the expansion of corporate offices and government initiatives to enhance public services further bolsters this segment. Its reliability, scalability, and ability to meet diverse dietary needs make it the preferred choice in the market.

Saudi Arabia Catering Services Market Size

Saudi Arabia Catering Services Market - By Model

Based on model, Saudi Arabia Catering Services Market is divided into Client Pay B2B, Consumer Pays/Retail, and B2C segments. The client-pay B2B segment emerges as the largest model in Saudi Arabia Catering Services Market, due to a significant demand from corporate clients, government institutions, and industrial sectors, which frequently outsource catering services for employee meals, events, and conferences. The preference for cost-effective, large-scale catering solutions ensures steady growth in this segment. Moreover, the rise in business activities and infrastructure projects further fuels the demand for reliable and efficient catering services in the B2B space.

Saudi Arabia Catering Services Market Share

Saudi Arabia Catering Services Market - By End User

On the basis of end user, Saudi Arabia Catering Services Market is divided into Corporate, Educational Institutes, Healthcare, Defense and Offshore, Mining & EPC, Sports & Leisure, and other segments. The corporate sector is the largest end user segment in Saudi Arabia Catering Services Market, owning to an increasing demand for catering services in corporate events, conferences, and employee meals, as companies focus on enhancing employee satisfaction and productivity. Additionally, the expanding number of businesses and industrial hubs in Saudi Arabia contributes to this segment's growth. Corporate catering is characterized by high-volume orders, tailored menu options, and premium service quality, making it the preferred choice in the market.

Saudi Arabia Catering Services Market Trend

Competitive Landscape

Key players in the highly competitive Saudi Arabia Catering Services Market include Gulf Catering Company, Tamimi Global Company Ltd, Saudi Catering & Contracting, Algosaibi Services, Nesma Catering, Saudi Airlines Catering, Al-Suwaiket Catering, Al-Suwaidi Services, Support Services Company Ltd, and Al-Karam Al-Arabi. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Key Players

Gulf Catering Company, Tamimi Global Company Ltd, Saudi Catering & Contracting, Algosaibi Services, Nesma Catering, Saudi Airlines Catering, Al-Suwaiket Catering, Al-Suwaidi Services, Support Services Company Ltd, Al-Karam Al-Arabi

By Type
Contractual
Non-Contractual

By Model
Client Pay B2B
Consumer pays/retail
B2C

By End User
Corporate
Educational Institutes
Healthcare
Defense & Offshore
Mining & EPC
Sports & Leisure
Others