Saudi Arabia Catering Services Market Outlook to 2022

Overview

Executive Summary

The implementation of Saudi Arabia Vision 2030 and the National Transformation Program has benefitted the catering services with the increasing number of construction projects and rising tourism. The Saudi Arabia Catering services market has grown from USB 4.2 billion in 2012 at a CAGR of 6.2% during the period 2012–2017.

Saudi Arabia prioritizes construction activities and invests heavily on developing its infrastructure to reduce the dependence of the economy on oil sectors. This presents a huge opportunity for the catering companies creating prospects for contract catering in the hospitality and industrial/construction sector.

Surging Consumer Spending 
In Saudi Arabia total spending of consumers, showcased an increase of 8.3% against SAR 84.1 billion in May 2017. Under its ambitious Vision 2030 plan the country’s reform thrust remains strong.
The Vision Realization Programs (VRPs) is one of the new reform initiatives designed to achieve Vision 2030 objectives. These are developed every 5 years to execute the set of strategic objectives evolved under the program. These initiatives have endorsed an increase in consumer spending which would be an impetus for the catering services market, as majority of consumer spending are made on Food and Beverages.

Hospitality Catering Services-The Dominant End Users
Saudi Arabia Catering Services Market is segmented by End Users into Hospitality, Industrial/Construction and Remote Sites, Flight Catering, Healthcare, Corporate, Educational Institutions and Others.

Saudi Arabia hospitality catering accounts for the prevalent revenue share of 47.0% in the Saudi Arabia Catering Services Market in 2017. Growth of tourism sector has boosted the market and it is majorly centered on rising number of religious tourists over the last 5 years.

The growing population, robust need to develop transport network, renewable energy infrastructure and strong growth of the non-oil sector has augmented the demand for housing, industrial/commercial construction. These industrial and construction sector has been dominated by expatriates who demand catering services.

Demand for hospitals in Saudi Arabia has increased considerably in the past five years which has escalated the requirement of catering services for patients, staff and visitors. The rising number of passengers has led to increased demand for in-flight catering services.

 
Contractual Catering Services-The Foremost Segment
The Saudi Arabia Catering Service Market is segmented on the basis of Type into Contract Services and Non-Contract Services.
Contract Catering Services accounted for the majority of the revenue share in 2017 and is expected to continue to dominate. Contract Catering Services witnessed rapid expansion owing to the shift in focus of the Saudi Government from oil sector to non-oil sectors. This has supported the industrial and construction sector which is one of the largest contributors to the contract catering services demand and revenue.

Contract Catering Services involves various terms of contracts from 1 year, 2 years, 5 years and others. Among the contracts 1 year dominates the category owing to the prevalence of its high demand from schools, offices and hospitals in 2017.

The sturdy economic growth, increasing disposable income, altering consumer preferences and booming tourism and hospitality sector is further expected to increase demand for catering services in the next five years.
 

Scope of the Study
The synopsis presented has been derived from the report titled “Saudi Arabia Catering Services Market: An Outlook to 2022” published by Makreo Research And Consulting Firm. The report deep dives into market assessment on various parameters, discusses major segments and accessing the impact of economic, political, technological & demographic factors on the market.

The study also discusses market dynamics which offer an understanding of industry trends, driving forces, and major challenges hampering the growth. The report gives an understanding of future opportunities prevailing in the market which may help market players to leverage untapped business potential.

Key Players in the Saudi Arabia Catering Services Market:
Gulf Catering Company; Nesma Trading Co. Ltd; Algosaibi Services; Saudi Airlines Catering Company; Saudi Catering & Contracting Company; Tamimi Global Company Ltd; Al-Suwaidi Services Company; and Saudi Zoom Catering Co.
 

The report helps readers to gain insights on following areas:

• What are the market trends and future performance of the Saudi Arabia Catering Services Market?
• What are the factors enabling the growth of Contract and Non-Contract Catering Services?
• What is the role of catering services in Hospitality, Industrial/Construction and Remote Sites, Flight Catering, Healthcare, Corporate, Educational Institutions and Others to assess the market revenue?
• How does the importance of the catering services market impact the key sectors?
• How the key dynamics drive the catering services market in Saudi Arabia?
• What are the major challenges affecting the market growth?
• How the Strategic Profiling of Major service providers in the catering services market impacts the market?
• What role does government play in framing policies and shaping up the catering services market?