The GCC F&B sector is poised for remarkable growth, projected to reach $128 billion by 2029, as evidenced by a recent report from Knight Frank. This surge reflects a dynamic shift within the market, where local brands increasingly challenge established international giants, reshaping the food and beverage landscape in the Gulf region.
According to the commercial real estate specialist, the UAE and Saudi Arabia are leading the charge in the GCC F&B sector, signaling a robust growth trajectory from its current valuation of $94 billion over the coming years.
While international F&B brands enjoy significant popularity, local players are making a notable mark on the market, offering fresh competition and resonating with consumers’ preferences.
Dynamics of GCC F&B Growth
Knight Frank notes: “The GCC has become a hotspot for global food brands like McDonald’s, Starbucks, and KFC, which successfully adapt their offerings to local tastes while maintaining their core brand identities.”
The adaptability of these international players has turned the GCC into a lucrative destination for food and beverage enterprises, with the market hitting $94.4 billion in 2023, propelled by a compound annual growth rate (CAGR) of 6.1%. Dubai is particularly noteworthy, showcasing a vibrant food scene that includes Michelin-starred restaurants and innovative dining concepts. The UAE is projected to lead consumer spending in the MENA region, expected to reach $38 billion this year.
On the other hand, Saudi Arabia’s F&B market was valued at $28 billion in 2023, with approximately 90% of GCC consumers preferring branded imported food products, especially from American, British, and European brands. Additionally, the GCC food service market, valued at $31.8 billion in 2022, is forecasted to expand to $62.25 billion by 2030, reflecting a CAGR of 8.87%.
Emergence of Local Brands
Homegrown brands are increasingly making their presence felt in this rapidly evolving sector. Knight Frank emphasizes: “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 favorites such as Al Baik and Mama Noura, celebrated for their fried chicken and shawarma, are rising in popularity. The shift in tastes among the region’s youthful demographic, who are increasingly open to exploring diverse culinary offerings, is driving this trend. By 2026, the GCC food market is expected to reach 53.14 million metric tons, growing at a CAGR of 3.15% from 2022 to 2026.
Culinary Diversity in the GCC
One of the most exciting facets of the GCC F&B sector is its embrace of international cuisines. As Knight Frank highlights, “From Turkish and Greek to Peruvian, these global flavors have been enthusiastically embraced.” This culinary diversity mirrors the cosmopolitan atmosphere of GCC cities, where various communities coexist harmoniously, and the steady influx of tourists fosters a culture of culinary exploration.
The GCC F&B sector’s growth trajectory reveals an evolving marketplace where local brands are not only complementing but also competing with global giants. This phenomenon is not merely enriching the food scene but also fostering a vibrant cultural exchange, ultimately benefiting both residents and visitors alike as they navigate an increasingly dynamic culinary landscape.