The food service sector in Saudi Arabia is currently a massive SAR 100 Bn market that has displayed resilience and rebounded swiftly. The market witnessed a COVID-led decline because of reduced mobility/ operational hours and restaurant closures. During this time, an emerging trend of in-home consumption emerged which created a unique opportunity for food delivery players to capitalize on.

Currently, the food delivery market in KSA is experiencing rapid growth, driven by high consumer satisfaction and Net Promoter Scores (NPS) for food aggregators in the region. This growth is driven by evolving consumer preferences, as there is a notable transition towards prioritizing convenience over mere affordability, especially after the pandemic. The market is currently dominated by two key players: Hungerstation and Jahez, collectively responsible for ~70% of the food aggregator market.  The emergence of new players in the market underscores its vast potential and the expanding addressable market. Despite being new, players like Noon Food and Ninja warrant close attention to the market’s future growth potential.

The food aggregators market is projected to reach 1 million daily touchpoints by 2024, providing numerous opportunities to offer multiple services, including q-commerce, SaaS, dark store, and dark kitchen models. This can also enable a favorable environment for super apps and super brands to co-exist.