Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by location;
Consumer foodservice by type; Consumer foodservice by type and
chained/independent Executive summary
Impressive overall growth in 2007
Dining out is a prevalent trend in Saudi Arabia due to the country' s religious
and social constitution. With the absence of other sources of entertainment
like cinemas, bars and theatres, eating out remains the only available source
of socialising. Driven by changing lifestyles and population growth fuelled by
high birth rates as well as immigration, the impact on all sectors within the
foodservice market has been positive. The market therefore witnessed rapid
growth over the review period.
Health awareness resulting in menu changes
Saudi Arabia is one of the most obese countries in the world. However,
consumers in Saudi Arabia are becoming increasingly aware of their health and
are adopting a healthier lifestyle and diet. This, as a result, has prompted
consumer foodservice outlets to change their menu offerings and adopt
healthier, fresher ingredients and a healthier way of cooking. Many fast food
outlets, including burger and chicken joints, are offering grilled instead of
fried meat as well as introducing new types of salads and juices to replace
chips and carbonated drinks.
Fast food outlets lead the market
Over the review period, international fast food chains dominated sales in
consumer foodservice due to the massive variety of the offerings available,
from burger to chicken etc. Moreover, Saudi Arabian consumers are attracted to
well-known international players' branding strategies. Convenience, affordable
price and, most recently, the healthy offerings in line with consumers' new
healthy lifestyles are major factors behind the success of fast food in the
Kingdom. Other reasons include the huge number of outlets spread across the
Kingdom, which puts fast food ahead of the competition.
Stronger growth for chained outlets
Chained outlets witnessed stronger growth within consumer foodservice compared
to independents. The stronger performance by chained outlets was fuelled by
the brands' effective management and expansionist policies as well as their
wide presence across the Kingdom. Moreover, the marketing policies and huge
budgets allocated to advertising are further key reasons for strong growth
among chained players. While independent outlets are less popular in some
areas, such as full-service restaurants, they are the only representative for
European full-service outlets, as chained outlets do not exist in this
category.
Consumer foodservice is expected to register further growth
Consumer foodservice is projected to perform well over the forecast period,
registering further healthy growth. Population growth and an increase in the
number of expatriates as well as the high disposable income fuelled by high
oil prices will be the main factors behind the growth. Furthermore, with
legislation banning the consumption of alcohol and limitations on
entertainment, expenditure on consumer foodservice is expected to remain high
over the forecast period.
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