Middle East And North Africa (MENA) Out Of Home Dining (OOHD) Market: Analysis By Segment (Full-service Restaurants (FSR) & Casual Dining, Quick Service Restaurants (QSR), Coffee Shops, Indulgence Outlets And Others), By Region Size And Trends With Impact

Middle East And North Africa (MENA) Out Of Home Dining (OOHD) Market: Analysis By Segment (Full-service Restaurants (FSR) & Casual Dining, Quick Service Restaurants (QSR), Coffee Shops, Indulgence Outlets And Others), By Region Size And Trends With Impact Of COVID-19 And Forecast Up To 2028

The Middle East And North Africa (MENA) out of home dining (OOHD) market in 2022 was valued at US$44.80 billion. The market value is projected to reach US$81.82 billion by 2028. Out-of-home dining sector (OOHD) focuses on providing food services. It is one of the key components of the hospitality industry. Meals are generally served and eaten on the premises, but many Out Of Home Dining outlets/ restaurants also offer take-out and food delivery services.

The market value is expected to grow at a CAGR of 10.66% during the forecast period of 2023-2028, with full-service restaurants (FSR) and casual dining segment being the dominant segment owing to rising consumer’s disposable income. The rising demand for healthy food coupled with creative presentation is becoming a key trend in the global foodservice industry. Nowadays, consumers are more influenced by the food quality and service experience of a restaurant. Emergence of new communities and projects, favorable consumer demographics, changing consumer preferences, growing tourism sector and rising consumer demand for convenience and quality meals at affordable prices are the significant factors further expected to drive the MENA out of home dining market.

Market Segmentation Analysis:

By Segment: The report provides the bifurcation of the market into five categories based on the segment: full-service restaurants (FSR) and casual dining, quick service restaurants (QSR), indulgence outlets, coffee shops and others. In 2022, in terms of value, full-service restaurants (FSR) and casual dining segment held the major share in the market. Full-service restaurants can offer better customer service and healthy food according to the demand of the customers. High end restaurants for formal and casual dining are becoming the main choice of consumers in the recent years. In addition, lower cost and casual dining full service restaurants have been gaining increasing momentum, especially in developing economies, amid the spike in working population and rapid penetration of dine-out culture.

By Region: The report provides the bifurcation of the market into into four core regions: Kingdom of Saudi Arabia (KSA), Egypt, United Arab Emirates (UAE) and Kuwait. In 2022, Kingdom of Saudi Arabia (KSA) held the major share in the market, followed by UAE. The high levels of disposable income which prevail among the Saudi population, coupled with the harsh climatic conditions in the country and the relatively limited range of other pastimes and leisure activities, make eating out and shopping the entertainment of choice for a large segment of the Saudi population propelling the overall OOHD market.

The report also provides the detailed analysis of the Kingdom of Saudi Arabia (KSA), United Arab Emirates (UAE), Egypt and Kuwait Out Of Home Dining market by segments (full-service restaurants (FSR) and casual dining, quick service restaurants (QSR) and other OOHD). The makeup of the OOHD sector varies among markets. Owing to increased disposable income and growing tourism sector, FSR and casual dining are the largest segments in KSA and the UAE, followed by QSR. In contrast, QSR dominates in Kuwait and Egypt with FSR and casual dining coming in second as the Kuwait and Egypt has inclining young and urban poplation, thus exhibiting higher fast-food consumption among them.

Market Dynamics:

Growth Drivers: One of the most important factors impacting the MENA out of home dining market is the rising disposable income. High disposable income causes consumers to spend more on a variety of activities, including hotels and restaurants. GCC countries benefit from large government-led economic transformation and diversification projects, high purchasing power, extensive new infrastructure developments, and a high overall level of economic resilience, which is supported by stable currencies pegged to the US dollar. In addition to this, the market has been growing over the past few years, due to factors such as rapid urbanization, young demographics, flourishing tourism sector and many other factors.

Challenges: However, the market has been confronted with some challenges specifically, regulatory intervention & change in consumer tastes and preferences, etc.

Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as modernization of retail sector and increasing outdoor/entertainment, adoption of western-style meals, digitization of out of home dining, underpenetrated market, social media influencers, increasing share of chained (organized) QSR restaurants and increasing penetration of smartphones etc. Rising consumer purchasing power is a primary factor in increasing penetration of organised players in the Middle East and North African OOHD market. Besides, these organized chains offer affordable prices for their products and match the local consumer's tastes and preferences, thus making them a preferable choice. Furthermore, post COVID-19, the QSR segment has increasingly been a prominent choice among consumers as they provide convenient home delivery options. The share of chained (organized) QSR restaurants is thus expected to propel during forecasted years.

Impact Analysis of COVID-19 and Way Forward:

The sudden outbreak of the COVID-19 pandemic has caused a significant strain on the growth of the Middle East and North Africa out of home dining market. Strict measures to contain the spread of the virus during the pandemic adversely impacted tourism, consumer mobility, and purchasing behaviors. The subsequent economic shock, which was accompanied by store closures and global supply-chain disruptions, temporarily halted the rise in the OOHD consumer demand. Within OOHD, the pandemic had a more detrimental impact on FSR than on QSR. FSR struggled to adapt to the needs of the home delivery and drive through channels. In 2020, FSR experienced a sharper fall in sales than QSR.

Competitive Landscape:

The market for OOHD is severely fragmented. The largest players control only a small portion of the market, and there are many small participants.

The key players in the MENA out of home dining market are:

Americana Restaurants Ltd.
Alshaya Group
Herfy Food Services Co Ltd
Emirates Fast Food Co.
Al Maousherji Catering Company
Alamar Foods Company
AlBaik
Al Farooj Fresh
Al Tazaj
Cenomi Retail (Alhoikar)
Seazen Group
Caesars Group Of Companies

The MENA restaurant industry has low entry barriers, as evidenced by the modest capital requirements and straightforward operations. Consequently, small, or sole proprietorship operations dominate the industry. Food preferences are typically determined by local consumer demand, thereby adding to the fragmentation of a largely local business. The diverse nature of the GCC population generates high demand for ethnic food specialties and international cuisine, further contributing to a localized, segmented market.

Middle East And North Africa (MENA) Out Of Home Dining (OOHD) Market: Analysis By Segment (Full-service Restaurants (FSR) & Casual Dining, Quick Service Restaurants (QSR), Coffee Shops, Indulgence Outlets And Others), By Region Size And Trends With Impact Of COVID-19 And Forecast Up To 2028 - Report Summary

Report Metrics	Details
Years Considered	2018-2028
Base Year	2022
Forecast Period	2023-2028
Page Count	118
Units Referenced	US $
Segments/Key Topics	By Segment, By Region
Key Companies Mentioned	Americana Restaurants Ltd., Alshaya Group, Herfy Food Services Co Ltd, Emirates Fast Food Co., Al Maousherji Catering Company, Alamar Foods Company, AlBaik, Al Farooj Fresh, Al Tazaj, Cenomi Retail (Alhoikar), Seazen Group and Caesars Group Of Companies

Five FAQs about the Report

What is the size of this market?
The MENA out of home dining market in 2022 was valued at US$44.80 billion.

What is the forecasted growth for this market?
The market would reach US$81.82 billion by 2028, growing at a CAGR of 10.66 %, during the forecast period of 2023-2028.

What are key factors driving this market?
The MENA out of home dining market is majorly driven by factors such as urbanization, shift in consumer preferences from prepare-at-home to the OOHD market, increasing internet/smartphone penetration, rise of off-premise/home delivery channels accelerated post COVID-19, and adoption of Western-style meals into day-to-day life. Emergence of new communities and projects, growing tourism sector and rising consumer demand for convenience and quality meals at affordable prices are the significant factors further expected to drive the MENA out of home dining market. Also, MENA region has become an attractive tourism destination which is expected to flourish post COVID, thereby increasing the food and beverage industry. This is expected to directly impact the out of home dining market in the region

How is this market segmented in this report?
In the report, the MENA out of home dining market is segmented based on segment (full-service restaurants (FSR) and casual dining, quick service restaurants (QSR), indulgence outlets, coffee shops and other).

What is the definition of this market in this report?
Out-Of-Home Dining sector (OOHD) focuses on providing food services. It is one of the key components of the hospitality industry. Meals are generally served and eaten on the premises, but many Out Of Home Dining outlets/ restaurants also offer take-out and food delivery services. Out-Of-Home Dining sector vary greatly in appearance and offerings, including a wide variety of cuisines and service models ranging from inexpensive fast-food restaurants and cafeterias to mid-priced family restaurants, to high-priced luxury establishments.

What are the major influences driving the growth/decline of this market?
The MENA out of home dining market growth is predicted to be supported by rising disposable income, rapid urbanization, young demographics and flourishing tourism sector and many other factors. Conversely, the market growth would be negatively impacted by various challenges such as regulatory intervention & change in consumer tastes and preferences, etc.