Saudi Arabia’s food services market is expected to reach about $44.67 billion by 2030, growing at a compound annual rate of 8.2%, according to Khalid Al-Ghamdi, chairman of the National Franchise Committee at the Federation of Saudi Chambers.

Al-Ghamdi said the market is currently valued at roughly $30.12 billion. The sector covers the full supply chain — from agricultural production and processing to distribution, retail, restaurants, and cafes.

He noted that Saudi Arabia is accelerating the international expansion of its national brands in an effort to promote the Saudi model and position the “Saudi brand” as a marker of quality and innovation. The strategy aligns with Vision 2030 objectives to strengthen the private sector, boost non-oil exports, and expand domestic and global demand.

Al-Ghamdi said the National Franchise Committee has worked with several Russian institutions to support the entry of Saudi brands into Russia, through brand showcases, expansion discussions, and B2B meetings. 

He noted that these efforts are expected to unlock partnerships across food, retail, services, and distribution, creating direct channels for Saudi companies to tap into the Russian market.

He added that the presence of Saudi brands abroad helps export elements of Saudi identity and culture, supporting job creation, non-oil revenue growth, and the Kingdom’s standing as a regional franchising hub.

Al-Ghamdi also pointed to rapid technological change in the food services sector, particularly the rise of cloud kitchens, which have driven an 11.3% increase in delivery services. These facilities, dedicated to online-only food preparation, allow restaurants to expand at lower cost and often operate multiple virtual brands under one roof.

Full-service restaurants still dominate with over 50% market share, while cafes remain the fastest-growing segment due to the spread of coffee culture and new entertainment venues. Growth is concentrated in major cities, though mega-projects such as NEOM and the Red Sea Project are creating additional demand for integrated food services.

He said Saudi Arabia represents about half of the Middle East and Africa franchise market, valued at roughly $30 billion. The sector has seen an 866% increase in registrations over three years, reaching 1,788 by the end of the third quarter of 2024.