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