GCC food & beverage market set to hit $128 billion by 2029

The GCC's food and beverage (F&B) market is projected to grow to $128 billion by 2029, according to a report by Knight Frank. The UAE and Saudi Arabia are leading this growth, with the market set to expand from its current valuation of $94 billion over the coming decade.

While international F&B giants dominate the scene, local brands are increasingly making their mark.

Growth in GCC F&B sector

Knight Frank noted that global food brands such as McDonald’s, Starbucks, and KFC have successfully adapted their offerings to suit local tastes, maintaining strong brand identities. This adaptability has made the region highly profitable for F&B businesses, with the market reaching $94.4 billion in 2023, growing at a compound annual growth rate (CAGR) of 6.1%.

Dubai, in particular, stands out with its vibrant food scene, including Michelin-star restaurants and innovative dining concepts. The UAE leads the MENA region in F&B consumer spending, which is expected to reach $38 billion by the end of the year.

In Saudi Arabia, the F&B market was valued at $28 billion in 2023, with 90% of GCC consumers showing a preference for imported branded food products, particularly from the U.S., U.K., and Europe.

The GCC’s food service market, valued at $31.8 billion in 2022, is expected to more than double to $62.25 billion by 2030, reflecting a CAGR of 8.87%.

Local brands on the rise

Local F&B brands are also thriving alongside international chains. Knight Frank highlighted the growing success of homegrown favorites like Al Baik and Mama Noura, which are gaining popularity with their offerings of fried chicken and shawarma. This trend is driven by the region's young population, which is increasingly open to trying diverse cuisines.

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.
Knight Frank also emphasized the region’s embrace of international flavors, from Turkish and Greek to Peruvian cuisines.

This culinary diversity reflects the cosmopolitan nature of GCC cities, where a mix of cultures and a steady influx of tourists create a vibrant environment for food exploration. This openness benefits both residents and visitors, enriching the F&B landscape across the region.