Saudi Arabia Catering Services Market Outlook to 2021: Ken Research The Saudi Arabia Catering services market has grown from USD ~ billion in 2011 to USD ~ billion in 2016 at a CAGR of ~%. This growth was driven by increase in number of religious tourists and rise in construction activities as the government invested in developing the infrastructure of the economy to reduce the dependence of Saudi Arabia on oil sectors. Furthermore, Saudi Arabia has also seen rising number of tourist in the last five years especially for religious purposes. This encouraged growth in number of hotels and other hospitality infrastructure. This presented huge opportunity for the catering companies creating prospects for catering in hospitality sector and industrial/construction which contributed ~% and ~% respectively in the revenue share in 2016. At the same time, the catering industry also saw an increase in number of players which put pressure on the prices. As the tourism sector developed, number of passengers catered by airline companies also increased which augmented the sales for in flight catering services. The number of passengers increased by ~% in 2016 as compared to 2015 and flight catering contributed ~% in the Saudi Arabia catering services market. Further due to rising population, urbanization & need for skilled workforce, Saudi Arabia also saw an increase in number of schools amounting to ~ in 2016 as compared to ~ in 2015. How Have The Different Segments In The Saudi Arabia Catering Service Market Performed? Contract catering services have accounted for ~% of the revenue share in 2016 and non contract catering services contributed ~% in the revenue share in 2016. Only marriages in personal spaces are non contractual whereas all other end users hire catering services on contractual basis which include airline, schools, corporate offices, hotels, hospitals, industrial and labor camps. Therefore, the share of contract catering services is higher. The industrial and construction sector which is a major end user of contract catering services saw rapid expansion as the Saudi Arabia government shifted its focus from oil sector to non oil sectors which supported the demand for catering services in this sector. Furthermore, Saudi Arabia is dominated by expatriates that amounted to ~ million in 2016 with ~% domination in the construction sector. Such expats living in construction labour camps demand catering services at competitive prices for 3 meals a day. The contract catering services were mainly dominated by 1 year long contracts as they accounted for ~% of the catering contracts revenue in 2016. Non contract catering accounted for ~% of the market share. This was majorly due to increase in number of divorce rates in Saudi Arabia and people tend to remarry Company Profile of Major Players Saudi Arabia has over ~ catering service providers as of 2016. The major players in the industry are Gulf Catering Company, Nesma trading Co. Ltd., Algosaibi Services, Saudi Airlines Catering Company, Saudi Catering and Contracting Company and Tamimi Global Company Ltd.
These major players invest in technology to ensure premium quality food and service. Since major clients hire on contractual basis, these players compete to achieve contracts for longer duration to ensure regular orders and increase profits. They offer different menus and customization services tailored for different end users. Trends Developments and Restraints In Saudi Arabia Catering Services Market Saudi Arabia has seen rising number of religious tourism which presents a huge opportunity for the catering service companies. The Hajj pilgrimage contributes USD ~ billion annually. Rising number of tourist has also facilitated growth in the hospitality sector has the number of hotels in Saudi Arabia has increased. Premium hotels dominate the supply in the three cities Makkah, Jeddah and Madina and given the increasing number of business tourists in the cities, luxury brands should continue to prosper. There are about ~ million expatriates residing and working in Saudi Arabia. Most of the ex-pats are blue-collar workers and majority of them are singles who live on large labor camps, where sponsoring companies provide them with three meals a day at very low costs. Saudi Arabia Catering Services Market Future Outlook and Projections The Saudi Arabia catering service market is expected to grow from USD ~ billion in 2016 to USD ~ billion in 2021 at CAGR of ~%. The major growth driver is expected to be the construction and hospitality sector as government plans such as Saudi Vision 2030 and National Transformation Program create opportunities and the economy develops its non oil sector. The NTP includes ~ projects and is estimated at SAR ~ billion aims to improve services for Hajj and Umrah pilgrims and developing the education, healthcare and infrastructure scenario. The Saudi Arabia catering services market is expected to grow from USD ~ billion in 2016 to USD ~ billion in 2018 at a CAGR of ~%. The catering service revenue is expected to augment at a higher rate from USD ~ billion in 2018 to USD ~ billion in 2021 at a CAGR of ~%. Moreover, this sector will see an increase in number of new entrants in major cities such as Riyadh, Jeddah and Madinah as religious tourism is expected to reach ~ million by 2020. Industrial catering sector will continue to take up the highest market share of ~% in 2021 followed by the hospitality sector which is expected to contribute ~million in the revenue share in 2021 Analyst Recommendation Considering the Saudi Arabia market, catering services are expected to benefit from the increased investment in construction activities and rising number of religious tourism. Catering services should keep tracking government tenders for capturing contracts for catering at remote industrial sites. As setting up catering business does not require huge investment, it can be operated from home as well, therefore the industry is expected to witness rising number of small players. This will increase competition which will further put pressure on prices. The
catering business involves bulk production, so the main aim of a caterer is to reduce cost as the quantity produced increases. This involves integrating various processes in the supply chain from procurement of raw materials to delivery of finished products to the client. A service oriented catering supply chain has to be efficient in terms of agility which means that a catering service should have the ability to deal with variable demand and production flexibility. In order to do so, the catering service needs to keep a track of all the orders/contracts which involves proper scheduling of various processes. Companies Cited In the Report List of Companies
Companies Covered in the Report
Gulf Catering Company Nesma Trading Co. Algosaibi Services Saudi Airlines Catering Company Saudi Catering & Contracting Company
Major Players
Tamimi Global Company Limited Al-Suwaidi Services Company Al-Suwaiket Group Saudi Arabian Catering Enterprise Ltd SATCO Amha Catering Co. Gulf Mahmal Support Services Key Topics Covered in the Report: Saudi Arabia Catering Services Market Size Saudi Arabia Hajj Catering Industry Saudi Airline Catering Market Share Market size and segmentation of Catering Services Market on the basis of major End Users, Type of Contract
Corporate Wedding Catering Market Saudi Airlines Catering Company Revenue Saudi Arabia Catering Services Value Chain Market Size Share Saudi Catering Saudi Arabia Catering Companies Government Regulation, Decision Making Process of Customers and Trends and Developments in Saudi Arabia Catering Services Market Catering Business in KSA Catering Services Market Future Outlook for Saudi Arabia Catering Services Market on the basis of major End Users Company Profiling of Major Players Saudi Arabia Catering Services Market For further reading click on the link below: https://www.kenresearch.com/food-beverage-and-tobacco/food-services/saudi-arabiacatering-services-market/129370-11.html Related Reports by Ken Research https://www.kenresearch.com/food-beverage-and-tobacco/food-services/india-futurefoodservice-2020/128589-11.html https://www.kenresearch.com/food-beverage-and-tobacco/food-services/spain-futurefoodservice-2020/128588-11.html https://www.kenresearch.com/food-beverage-and-tobacco/food-services/brazil-futurefoodservice-2021/128592-11.html Contact: Ken Research Ankur Gupta, Head Marketing & Communications query@kenresearch.com +91-124-4230204