How the Saudi Arabia Catering Services Market Is Expanding With Institutional Growth and Local Policy Support

The Saudi Arabia Catering Services Market was valued at over SAR 20 billion in 2023 and is projected to grow at a CAGR of around 6% by 2028. This growth is being driven by a surge in institutional contracts, rapid expansion of sectors such as healthcare and education, and government initiatives focused on improving food safety and employment localization.

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Market Segmentation Driving Growth in Saudi Arabia Catering Services Market

The catering services market in Saudi Arabia is segmented based on service type, end-user industry, and contract model, enabling customized solutions across sectors.

  • By Service Type: Includes contractual catering and non-contractual (ad-hoc or event-based) catering, with contractual services dominating due to institutional demand.

  • By End-User Industry: Healthcare, education, corporate offices, oil & gas, and defense sectors are the primary drivers of large-volume catering contracts.

  • By Contract Model: Fixed price, cost-plus, and performance-based models are utilized depending on client requirements and service level agreements.

  • By Region: Major demand centers include Riyadh, Jeddah, and Dammam, with growing contracts in emerging cities near industrial zones and educational hubs.

Government Policies Supporting Market Expansion

Infographic illustrating Saudi Government's policies for the catering services industry, including Saudization regulations, health and safety mandates, public sector catering standards, and SME support.


The Saudi government is introducing policies to boost employment and quality assurance in the catering space, creating structured growth.

  • Saudization Regulations: Catering companies must hire a percentage of local talent, increasing costs but improving national employment.

  • Health and Safety Mandates: Strict food safety laws under the Saudi Food and Drug Authority have made quality assurance systems mandatory.

  • Public Sector Catering Standards: State-run institutions require adherence to regulated procurement models, favoring organized players.

  • Support for SMEs: Policies are encouraging domestic SME catering companies to bid on large contracts, intensifying competition.

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Key Players Dominating Saudi Arabia Catering Services Market

The market comprises a mix of international giants and regional leaders competing for institutional dominance.

  • Saudi Airlines Catering Company (SACC): One of the largest players offering services across aviation, healthcare, and corporate sectors.

  • Tamimi Group: Stronghold in industrial and remote site catering, especially in oil & gas and defense.

  • Accuro Specialist Support Services: Known for catering in the healthcare and education sectors.

  • Gulf Catering Company: Focuses on government and military catering contracts.

  • National Catering Services & Foodstuff: Offers services across multiple cities and segments.

Competitor Analysis of Saudi Arabia Catering Services Market

Competition is shaped by pricing, logistics capabilities, and food safety compliance, with companies positioning themselves through service consistency and innovation.

  • Contract Renewal and Retention: Institutional clients prefer vendors with proven track records, making renewal metrics a key differentiator.

  • Price Sensitivity: Many companies operate on low margins due to bulk, long-term contracts, requiring high operational efficiency.

  • Localized Supply Chain: Players with established vendor networks across regions outperform due to reduced logistics delays.

  • Service Customization: Companies offering meal plans suited to client profiles (e.g., diabetic meals in hospitals) retain larger contracts.

Future Prospects of Saudi Arabia Catering Services Market

The market is poised for steady growth supported by economic diversification and increasing institutional demand.

  • Vision 2030 Goals: Growth of sectors such as tourism, education, and healthcare will boost institutional catering demand.

  • Private Sector Involvement: Rising privatization of public services will open new B2B catering contracts.

  • Technological Integration: Digital meal tracking, automated inventory, and cloud kitchens will optimize service delivery.

  • Sustainability Trends: Eco-friendly packaging and food waste reduction initiatives will become a future differentiator.

Conclusion

The Saudi Arabia Catering Services Industry is undergoing a structured transformation driven by institutional demand, supportive government policies, and rising compliance standards. With key players leveraging scale and innovation, and a robust future outlook supported by Vision 2030, the market is well-positioned for long-term growth.

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