GCC Food Service Market- Trend Analysis & Forecasts

Market/ Product Overview

The GCC food service market represents a structurally resilient and consumption-driven segment of the broader Middle East hospitality industry, underpinned by high per-capita spending and a youthful demographic profile where nearly 55% of the population is under 35 years. In 2024, total food service revenues across the region are estimated at US$ ** billion, up from US$ 52 billion in 2019, reflecting a post-pandemic recovery CAGR of over 7%. Saudi Arabia alone contributes around US$ ** billion, while the UAE follows with US$ ** billion, supported by dense urban clusters such as Riyadh, Jeddah, Dubai, and Abu Dhabi.

Food service penetration remains high due to limited home cooking in expatriate households, which account for nearly **% of the GCC population, and strong reliance on dining-out and takeaway formats. Average annual food service spend per capita in the UAE exceeds US$ 1,800, compared with a global average of about US$ 950, highlighting premium consumption patterns. The market is also characterized by a high share of imported food inputs, with over 80% of raw ingredients sourced internationally, increasing both cost sensitivity and supply chain exposure. Despite these challenges, margins for organized chains remain healthy at **% EBITDA, supported by scale efficiencies and standardized menus, making the GCC food service market attractive for both regional conglomerates and global QSR brands.

GCC Tourism Growth Trend

Tourism has emerged as a central demand engine for the GCC food service market, with international arrivals to the region growing at a CAGR of nearly 9% between 2021 and 2024. Saudi Arabia recorded over 27 million international tourists in 2023, up from just 18 million in 2019, following the launch of its tourism visa program and mega-projects under Vision 2030. The UAE continues to lead the region, attracting more than 28 million visitors annually, with Dubai alone accounting for almost 60% of inbound flows.

Tourist spending on food and beverages typically represents **% of total travel expenditure, translating into an estimated US$ 18–20 billion annual tourism-linked food service demand across the GCC. Major events such as Expo 2020 Dubai, the Qatar FIFA World Cup 2022, and rising religious tourism to Makkah and Madinah have further boosted demand for quick-service and casual dining formats. With GCC governments collectively committing over US$ 800 billion to tourism infrastructure through 2030, food service outlets remain one of the most scalable beneficiaries of sustained visitor inflows.

GCC Quick Service Restaurants Growth Trend

Quick service restaurants (QSRs) form the backbone of the GCC food service market, accounting for nearly 38–40% of total revenues in 2024, equivalent to roughly US$ 26 billion. The segment has consistently outperformed full-service restaurants, expanding at a CAGR of about 8.5% since 2019, driven by affordability, speed, and delivery-friendly menus. Saudi Arabia alone hosts more than 25,000 QSR outlets, while the UAE has close to 12,000, with international brands dominating prime urban locations.

Average transaction values in GCC QSRs range between US$ 6–10, but high footfall and strong delivery penetration, which accounts for nearly **% of QSR sales, sustain profitability. The rise of aggregators and in-house digital platforms has reduced customer acquisition costs by up to 15% for leading chains. Global players continue to expand aggressively, with regional master franchise agreements often involving investments exceeding US$ 100 million per brand over a five-year horizon, reinforcing the long-term growth outlook of the QSR segment.

GCC Food Service Market Segmentation

By service type, quick service restaurants dominate the GCC food service market with a revenue share of nearly **%, followed by full-service restaurants at around **%, cafés and bakeries at **%, and street kiosks and others accounting for the remaining **%. QSR dominance is particularly pronounced in Saudi Arabia, where value-oriented dining and high youth population drive volumes, while cafés command a higher share in the UAE due to strong café culture and premium beverage consumption.

By ownership structure, chained outlets represent **% of total revenues, reflecting a high degree of brand penetration and franchise-led expansion. Independent outlets, though numerically significant, contribute only **% of revenues due to lower average sales per outlet. In terms of cuisine, Western concepts account for about **% of sales, led by burgers, pizza, and fried chicken, while Middle Eastern cuisines contribute **%, and Asian cuisines make up the remaining **%, driven by South Asian expatriate demand.

From a consumption channel perspective, dine-in still represents nearly **% of revenues, but takeaway and delivery have grown rapidly to **%, compared with just **% in 2019. This structural shift underscores the increasing importance of delivery-optimized menus and centralized kitchens in the GCC food service ecosystem.

Country Analysis

Saudi Arabia is the largest GCC food service market, valued at US$ ** billion in 2024, supported by a population exceeding 36 million and rapid outlet expansion in secondary cities. Vision 2030 initiatives have increased entertainment-related food service demand by nearly 25% over the past three years. The UAE follows with a market size of around US$ ** billion, characterized by high per-capita spending and strong premium dining segments driven by tourism.

Qatar’s food service market, valued at about US$ ** billion, benefited from infrastructure built for the 2022 World Cup, sustaining a post-event CAGR of nearly 6%. Kuwait, Bahrain, and Oman collectively account for around US$ ** billion, with steady growth of **% annually driven by population growth and mall-based dining. While Saudi Arabia offers scale and volume, the UAE remains the most profitable market, with average outlet EBITDA margins exceeding 18% in premium locations, highlighting differing investment profiles across GCC countries.

Consumer Preference of Type of Food Service

Consumer behavior in the GCC food service market reflects a blend of convenience, affordability, and experiential dining. Surveys indicate that nearly 60% of consumers prefer quick service or fast-casual formats for weekday meals due to average meal prices of US$ 7–12, compared with US$ 25–40 at full-service restaurants. Youth and working professionals, who represent over 50% of the population, prioritize speed and digital ordering, driving app-based transactions that now account for nearly one-third of total orders.

Conversely, full-service restaurants and cafés dominate weekend and social dining, particularly in the UAE and Bahrain, where over 45% of consumers dine out for leisure at least twice a week. Café culture has grown strongly, with specialty coffee consumption increasing at a CAGR of 9% since 2020, supporting higher-margin beverage-led formats. Health-conscious dining is also gaining traction, with plant-based and calorie-labeled menus growing at double-digit rates, reflecting evolving consumer awareness and regulatory nudges toward transparency.

Future Outlook

Looking ahead, GCC’s food service sector is expected to sustain **% annual revenue growth, lifting market value toward US$ ** billion by 2032. Quick-service formats, premium casual dining, and delivery-linked models will outperform historical averages, potentially expanding 6–9% yearly.

Growth visibility is supported by demographic youthfulness, rising tourism, middle-income progress, and evolving digital behaviors. However, operators must integrate menu health shifts, cost escalation risk, regulatory reform, and informal competition.

Overall, despite complexities, GCC’s food service market stands as one of Latin America’s most attractive consumer-driven growth stories, rewarding stakeholders capable of scaling brands, tailoring menus, and modernizing service channels.