The GCC F&B market is tipped to grow to $128bn by 2029, according to research shared by Knight Frank.
The commercial real estate specialist said that the UAE and Saudi Arabia lead the F&B sector in the GCC region and that the market is set to grow rapidly from its current $94bn market value across the rest of the decade.
Despite the popularity of international F&B giants, local players are having a significant impact on the market.
GCC F&B growth
Knight Frank said: “The GCC has become a hotspot for global food brands like McDonald’s, Starbucks, and KFC. These companies successfully adapt their offerings to local tastes while maintaining their core brand identities.
“This adaptability has made the GCC an attractive and profitable destination for F&B businesses, as in 2023, the F&B market hit $94.4bn, driven by a compound annual growth rate (CAGR) of 6.1%”.
Dubai stands out with its diverse food scene, including Michelin-starred restaurants and innovative dining concepts. The UAE leads the MENA region in consumer spending on F&B, expected to hit $38bn by the end of the year.
Meanwhile, Saudi Arabia’s F&B market, was valued at $28bn in 2023. About 90 per cent of GCC consumers prefer branded imported food products, particularly from American, British, and European brands.
In 2022, the GCC food service market was valued at $31.8bn and is projected to grow to $62.25bon by 2030, reflecting a CAGR of 8.87 per cent.
Home grown brands are also making a significant impact on the growing sector.
Knight Frank said: “While global chains are making their presence felt, local culinary stars are also shining bright. The growing number of visitors and businesses is giving local brands a chance to thrive.
“Popular local favourites like Al Baik and Mama Noura, known for their fried chicken and shawarma, are gaining popularity. The evolving tastes of the region’s young population, who are increasingly open to diverse foods, are driving this trend.
“By 2026, the GCC food market is forecasted to reach 53.14 million MT, growing at a CAGR of 3.15 per cent from 2022 to 2026.
“One of the most exciting aspects of the GCC’s food scene is its openness to international cuisines. From Turkish and Greek to Peruvian, these global flavours have been enthusiastically embraced.
“This culinary diversity reflects the cosmopolitan vibe of GCC cities, where different communities live together harmoniously, and the influx of tourists from various backgrounds is fostering a culture of culinary exploration, benefiting both residents and visitors alike”.
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