_What’s Driving the Growth in the GCC Food Scene: Global Brands or Local Favourites?

The food and beverage sector is crucial in many industries, and in the Gulf Cooperation Council (GCC) region, it’s experiencing rapid growth. With the market currently valued at US$ 94 billion, it’s on track to reach US$ 128 billion by 2029. This expansion is drawing interest from international food brands, eager to tap into the region's emerging opportunities. However, it's not just the global players making waves; local favourites are also rising to prominence.

September 09, 2024

International Food Brands in the GCC

The GCC has become a hotspot for global food brands like McDonald's, Starbucks, and KFC. These companies successfully adapt their offerings to local tastes while maintaining their core brand identities. This adaptability has made the GCC an attractive and profitable destination for F&B businesses, as in 2023, the F&B market hit US$ 94.4 billion, driven by a compound annual growth rate (CAGR) of 6.1%.

Dubai stands out with its diverse food scene, including Michelin-starred restaurants and innovative dining concepts. The UAE leads the MENA region in consumer spending on F&B, expected to hit US$ 38 billion by year-end. Meanwhile, Saudi Arabia’s F&B market, valued at US$ 28 billion in 2023, attracts tourists with its rich culinary heritage. About 90% of GCC consumers prefer branded imported food products, particularly from American, British, and European brands. In 2022, the GCC food service market was valued at US$ 31.8 billion and is projected to grow to US$ 62.25 billion by 2030, reflecting a CAGR of 8.87%.

Local Favourites Rising to Fame

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 favourites like Al Baik and Mama Noura, known for their fried chicken and shawarma, are gaining popularity. The evolving tastes of the region’s young population, who are increasingly open to diverse foods, are driving this trend. By 2026, the GCC food market is forecasted to reach 53.14 million MT, growing at a CAGR of 3.15% from 2022 to 2026.

One of the most exciting aspects of the GCC's food scene is its openness to international cuisines. From Turkish and Greek to Peruvian, these global flavours have been enthusiastically embraced. This culinary diversity reflects the cosmopolitan vibe of GCC cities, where different communities live together harmoniously, and the influx of tourists from various backgrounds is fostering a culture of culinary exploration, benefiting both residents and visitors alike.