-->
Market Scenario
Saudi Arabia B2B catering services market was valued at US$ 2,471.9 million in 2024 and is projected to hit the market valuation of US$ 4,717.6 million by 2033 at a CAGR of 7.78% during the forecast period 2025–2033.
Today, Saudi Arabia B2B catering services market is moving beyond cyclical contracts to foundational, multi-decade partnerships driven by giga-projects. For instance, the NEOM workforce is set to exceed 200,000 people by 2025, creating immense, sustained demand. This is attracting high-value, long-term investments, such as BAAN Holding’s nearly SAR 436 million contract and Abdulmohsen Alhokair Group’s SAR 760 million agreement for NEOM residential complexes. The 20-year, SAR 6.3 billion provisional contract between Catrion and Red Sea Global underscores this shift towards long-term operational integration. With the Qiddiya project aiming to house over 600,000 residents, stakeholders must prepare for a demand profile built on immense volume sustained over decades.
Simultaneously, demand is diversifying rapidly across new, high-value verticals beyond construction sites. The Kingdom’s goal to attract 150 million visitors annually is fueling the development of 320,000 new hotel rooms by 2030, creating a massive need for hospitality-focused B2B catering services market. The aviation sector’s growth presents another lucrative front; Riyadh Air’s five-year, SAR 2.3 billion contract with Catrion, with financial impacts starting in Q4 2025, is a key indicator. The new Red Sea International Airport’s projection to handle 1 million passengers in its first year adds another layer of demand. This diversification requires market players to develop capabilities that span from high-volume industrial catering to premium, service-oriented offerings for travelers and tourists, including the more than 1.2 million business visa holders who arrived in 2023.
At last, a distinct shift towards quality, specialization, and regulatory compliance is defining the new demand paradigm in the B2B catering services market. It is no longer enough to simply provide mass catering. For the 2025 Hajj season, new rules mandate that caterers must prove the capacity to serve at least 3,000 pilgrims and hold a minimum share capital of SAR 2,000,000. A growing emphasis on wellness is also shaping menus, with over 300 medical facilities adopting personalized meal programs and caterers increasingly sourcing from over 800 organic farms. For industry players, this means that future success depends not just on managing scale, but on delivering specialized, high-quality, and compliant services tailored to a more discerning and diverse client base across the Kingdom.
Key Findings in Saudi Arabia B2B Catering Services Market
To Get more Insights, Request A Free Sample
Navigating the Boom: Top 3 Lucrative Trends in Saudi B2B Catering Services Market
Era of Giga-Contracts Define Scale and Longevity of Market Demand
The demand shaping the Saudi Arabia B2B catering services market is now defined by unprecedented project scale and contract longevity. This shift is creating a stable, high-volume foundation for the industry. The sheer size of the giga-projects is staggering. The workforce at NEOM is projected to exceed 200,000 people by 2025, while the Qiddiya giga-project is designed to eventually house over 600,000 residents. This has triggered a wave of high-value, multi-year contracts that redefine the nature of catering partnerships. For example, Abdulmohsen Alhokair Group secured a deal at NEOM valued at an estimated SAR 760 million. Similarly, BAAN Holding Co. signed a contract for NEOM worth nearly SAR 436 million, with its financial impact expected to begin in the second quarter of 2025.
This trend is not limited to construction. The most significant indicator of this new paradigm is the move towards integrated, long-term operational partnerships in the B2B catering services market. Catrion's 20-year contract with Red Sea Global, carrying a provisional value of approximately SAR 6.3 billion, exemplifies this deep integration. The aviation sector follows suit, with Riyadh Air’s five-year contract with Catrion valued at an estimated SAR 2.3 billion. The financial impact of this deal is anticipated to start in the fourth quarter of 2025. For market players, this means success is no longer about winning cyclical bids but about building the financial and operational capacity to become long-term, embedded partners in the Kingdom's development.
Premium Verticals and Specialization Are Creating Diverse New Demands
While giga-projects create a baseline of volume, the second defining aspect of demand in the B2B catering services market is the rapid diversification into premium and specialized verticals. This requires a fundamental shift in capabilities towards quality, service, and niche expertise. The Kingdom's revised tourism target to attract 150 million visitors annually is the main driver. This ambition is backed by a plan to add 320,000 new hotel rooms by 2030, representing a total development cost of US$ 37.8 billion. This creates immense demand within the hospitality sector, from large-scale hotel staff catering to premium guest services. Developments like Red Sea Global, which will operate 50 resorts with up to 8,000 hotel rooms by 2030, amplify this need.
The demand is also becoming more nuanced. The new Red Sea International Airport, forecasting 1 million passengers in its first year, and the influx of over 1.2 million business travelers in 2023 require sophisticated aviation and corporate catering. Regulation and wellness are also creating specialized demand. For the 2025 Hajj, caterers in the country’s B2B catering services market must prove they can serve 3,000 pilgrims at once and hold a share capital of at least SAR 2,000,000. Furthermore, a focus on health is evident, with over 300 medical facilities adopting personalized meal programs and caterers sourcing from over 800 organic farms. This diversification compels players in the Saudi Arabia market to evolve from mass-producers into specialized providers of high-quality culinary solutions.
Segmental Analysis
Vision 2030's Mega-Projects Propel Contract Catering to Unprecedented Market Dominance
With an overwhelming market share of over 78.28%, contract catering is the undisputed leader in the Saudi Arabia B2B catering services market. This dominance is a direct consequence of the Kingdom's ambitious Vision 2030, a transformative economic and social reform blueprint. The sheer scale of development, encompassing over 1,502 initiatives and at least 24 mega-projects like NEOM and The Red Sea Project, necessitates specialized, large-scale food service solutions. Organizations are increasingly outsourcing their catering needs to ensure efficiency, quality control, and consistent service for their vast workforces. This strategic move allows companies to focus on their core operations while professional caterers manage the complex logistics of feeding thousands of employees daily, a critical function for maintaining productivity on these long-term, nation-building projects.
This trend is further amplified by a booming corporate landscape. The influx of 184 foreign companies establishing regional headquarters in the first half of 2024 and a 60% surge in new commercial registrations, reaching 521,969, has significantly expanded the client base. With a total of 1,606,169 active commercial registrations, the addressable market for contract caterers is immense. Projects driven by the Public Investment Fund (PIF), such as the Diriyah Gate development which plans for 38 new hotels and six museums, create long-term, high-volume demand. These dynamics firmly establish the contract-based model as the engine of the Saudi Arabia B2B catering services market, catering to both the immense construction sites and the burgeoning corporate sector.
Corporate Growth and Wellness Initiatives Brighten the Future for Catering Services
Corporate catering is a particularly vibrant segment, shining brightly with over 18.75% of the market share within the Saudi Arabia B2B catering services market. This growth is directly fueled by the Kingdom's successful initiatives to diversify its economy and attract significant foreign investment. As a result, the number of national and multinational corporations is expanding rapidly, creating a parallel demand for high-quality, professional food services. Companies increasingly recognize that providing excellent catering is a key component of employee welfare, directly impacting productivity and talent retention. This is evidenced by the 127 international firms that relocated their regional headquarters to the Kingdom in early 2024 and the fact that Riyadh, a premier corporate hub, accounted for 38% of new commercial registers issued.
The client base for corporate caterers in the Saudi Arbia B2B catering services market is both broad and deep. The staggering 521,969 new commercial registrations issued in 2024 contribute to a massive pool of 1,606,169 active businesses across the Kingdom. This growth coincides with a cultural shift towards corporate wellness, where providing healthy and nutritious meals is becoming a standard employee benefit. Furthermore, the rising number of large-scale business events, like the Saudi Smart Logistics conference, creates consistent demand for both daily office catering and specialized event services. This confluence of rapid corporate expansion and a greater focus on employee well-being ensures that the corporate segment remains a dynamic and lucrative part of the market.
Construction Boom: Building the Foundation for Dominant Catering Market Revenue Share
The construction industry is the undisputed revenue leader, contributing more than 17.23% to the Saudi Arabia B2B catering services market. This dominance is driven by an unprecedented wave of construction activity, the likes of which are rarely seen globally. From world-famous giga-projects to extensive residential and commercial developments, the sector requires on-site catering for massive workforces, often in remote locations. The sheer human scale is staggering, with projections indicating the creation of over one million new construction jobs by 2025 simply to meet project demands. This figure translates directly into millions of meals required every single day, making construction sites the single largest concentration of B2B catering consumers and a foundational pillar of the industry's revenue.
The future of this segment is secured by a powerful and well-funded project pipeline. The total value of ongoing construction projects is estimated to exceed a colossal $1.5 trillion. Activity is accelerating, with construction contract awards surging by 47% in the first half of 2024 to a total of $49.3 billion. Major infrastructure works, including the Riyadh Metro and King Salman International Airport, are already at advanced stages, while plans for 362,000 new hotel rooms by 2030 ensure long-term, sustained demand. This relentless pace of building and development cements the construction sector's dominant and enduring role in shaping the Saudi Arabia B2B catering services market for the foreseeable future.
Access only the sections you need—region-specific, company-level, or by use-case.
Includes a free consultation with a domain expert to help guide your decision.
Long-Term Contracts: The Bedrock of Stability in Saudi Arabia’s Catering Sector
Capturing over 44.75% of the market, long-term contracts of more than one year are the foundational operating model in the Saudi Arabia B2B catering services market. This preference for extended agreements is intrinsically linked to the long-range timeline of Vision 2030 and its associated giga-projects. These multi-year commitments provide catering companies with the necessary financial stability and predictability to invest heavily in infrastructure, advanced kitchen technology, and skilled personnel. For clients, particularly those managing decade-long construction and development schedules, these contracts ensure consistent service quality and predictable operational costs. Prime examples include a seven-year catering contract for a residential complex in NEOM and a six-year agreement secured by BAAN Holding Group, both set to run for many years, underscoring the symbiotic relationship between long-term projects and long-term catering partnerships.
The very structure of the Kingdom's development institutionalizes these extended partnerships in the B2B catering services market. Red Sea Global’s landmark 20-year contracts with Saudi Airlines Catering exemplify the depth and duration of commitment sought for these national projects. This long-term outlook is further supported by the planned development of over 70 new luxury hotels in the coming decade and the establishment of 127 new regional headquarters in just the first quarter of 2024. The entire Vision 2030 framework encourages and rewards long-range planning, making multi-year agreements not just a preference but a strategic necessity for any serious player in the Saudi Arabia market.
To Understand More About this Research: Request A Free Sample
Regional Analysis
Makkah is Epicenter of High-Volume Pilgrimage Catering Demand
Makkah's B2B catering services market is driven by the colossal and consistent demand from religious tourism. In 2024 alone, the Kingdom welcomed a historic 18.5 million pilgrims, a figure that included 16.9 million for Umrah and 1.6 million for the Hajj. This sheer volume creates a foundational, non-stop need for large-scale catering. The recent expansion of the Grand Mosque, now able to host two million worshippers, further cements this high-volume requirement. To manage this influx, authorities are enforcing stricter quality controls for the 2025 Hajj season, now requiring catering companies to demonstrate the capacity to serve at least 3,000 pilgrims at a time and maintain a share capital of no less than SAR 2,000,000.
This demand is amplified by massive infrastructure and hospitality projects. At the close of 2024, Makkah had a hotel pipeline of 22 projects accounting for 16,232 rooms. Major developments in the B2B catering services market like the Masar Destination are set to add over 1,000 new luxury hotel rooms, backed by a $667 million investment announced at the 2024 Hajj and Umrah Services Conference. The Golden Tulip Umm Al Qurah is also scheduled to open in the first part of 2025, adding another 454 rooms specifically for pilgrims. Further data for 2025 shows 1,673,230 total pilgrims, of which 1,506,576 were external, underscoring the massive international scale. Other key stats defining the market include the 13 million visitors to Al-Rawdah Al-Sharif in 2024, the Makkah Taxi service's plan to have 1,800 vehicles by the end of 2025, and the Doyof Al-Rahman Program's goal to host 30 million Umrah pilgrims annually.
Riyadh Become A Dynamic Hub of Corporate, Aviation, and Event-Driven Catering
Riyadh's B2B catering services market demand is defined by its rapid transformation into a global business and aviation hub. A primary driver is the Regional Headquarters (RHQ) Program; in the first quarter of 2024, 127 foreign companies established their regional headquarters in Riyadh, with the total number of European firms alone reaching 350. This corporate influx is filling premium office space, with Grade A occupancy hitting 98% in early 2024. The King Abdullah Financial District (KAFD) is a focal point, with plans to add 3,000 housing units by 2028 and three new five-star hotels with a total of 630 rooms. This growing corporate population creates consistent, high-end demand for daily workplace catering and corporate events.
The aviation sector provides another pillar of growth for the Saudi Arabia B2B catering services market. The upcoming 2025 launch of Riyadh Air is underpinned by a five-year, SAR 2.3 billion catering contract with Catrion. This is part of a larger vision centered on the new King Salman International Airport, which aims to handle 120 million passengers by 2030 and will feature six parallel runways. The hospitality pipeline is equally robust, with Riyadh leading the Middle East with 87 hotel projects representing 17,584 rooms in the pipeline at the end of 2024. Events like Riyadh Season and the upcoming Expo 2030 will further amplify short-term, high-volume catering needs. Supporting these developments, the city expects over 650,000 square meters of new Grade A office space by the end of 2025.
Fueling Growth: Top 10 Strategic Investments Shaping Saudi Arabia B2B Catering Services Market
Top Players in Saudi Arabia B2B Catering Services Market
Market Segmentation Overview:
By Type
By Contract length
By Services
By End User
By City
LOOKING FOR COMPREHENSIVE MARKET KNOWLEDGE? ENGAGE OUR EXPERT SPECIALISTS.
SPEAK TO AN ANALYST