“Changes are anticipated in Saudi Arabia. Regulations on visas are expected to soften and we need to accept and be convinced that change will take time. However, in terms of the food industry, we anticipate growth in new investment in food productions facilities.”
Certainly there is a lot to factor in when considering operating in Saudi Arabia, whether it be securing a franchise for a QSR, supplying a product or launching a food service — and it may take time to see the rewards from the investment.
Yet — with the investment in infrastructure, the large and still growing youth demographic and the gradual steps towards tourism — those companies willing to plan carefully and invest for the long-term could well find expanding in the Kingdom to be a highly profitable venture.
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Top 10 trends in the F&B sector in KSA:
- Higher consumption of non-traditional products due to the greater availability of products combined with an increasing interest in new foods, particularly amongst the younger generation of Saudis.
- Organic foods and products are capturing the attention of many consumers and this phenomenon is expected to grow further.
- Price rises on many imported products (due to the declining US $).
- Quick-service restaurants (fast food) will continue to grow in popularity, especially locally-owned chains.
- The continued growth of Middle Eastern and fusion cuisine.
- Local expansion of coffee shops and international chains.
- Larger foodservice operators are bypassing local distributors, to deal directly with manufacturers locally and overseas. Strong growth in takeaway and home delivery.
- The growth of malt-based beverages (non alcoholic) and other drinks.
- Long-term projects supporting internal tourism, regional tourism and international tourism that will have a large impact on F&B.
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