Market Research Reports - Ken Research Corporate Wedding Catering Market - Ken Research

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.