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The food and beverage (F&B) industry in Saudi Arabia is currently the largest in the Middle East for a total value of SAR 165 billion ($45 billion), according to a recent report by JLL.
“With the rapidly changing demographics, including a larger younger population with high disposable income, there are many opportunities for developing the F&B industry in Saudi Arabia,” Alexis Marcoux-Varvatsoulis, Foodservice Consulting Lead at JLL MENA, said.
Looking ahead for the rest of 2020, JLL examined the food and beverage trends set to lead the way in Saudi Arabia:
Overall experience
The increased emphasis on experience is likely to drive a shift in the market dynamics away from fast-food to fast-casual formats, as consumers attach greater weight to quality experience rather than convenience.
Saudi Arabia will likely see a shift from the current food courts in malls to a wider range of food halls, market places and other dining and entertainment options.
Heathy lifestyle
Consumers are becoming increasingly concerned with health & wellness, which has clear implications on food choices. Therefore, many fast-food chains have responded by introducing healthier options, while new brands are emerging with a specific focus on healthiness and wellbeing.
Homegrown brands
As the Kingdom continues to develop its capabilities to become a tourist destination, the market is increasingly attracting interesting brands as consumers are now more selective and striving for unique experiences.
Consequently, there is room for additional local or ‘homegrown’ concepts, particularly for those offering healthy options utilizing locally sourced ingredients.
Dark kitchens
There is a growing interest in ‘dark kitchens’ or what is so-called kitchens without dining facilities across major Saudi cities, which will lead to a growth in food delivery services.
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