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Saudi Arabia Pizza Restaurants Market - Growth, Trends and Forecast (2020 - 2025)

Saudi Arabia Pizza Restaurants Market - Growth, Trends and Forecast (2020 - 2025)

  • September 2020
  • 68 pages
  • ID: 5974144
  • Format: PDF
  • Mordor Intelligence LLP
Up to $975 off Until Nov 30th 2020

Summary

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Saudi Arabia pizza restaurants market is anticipated to register a CAGR of 11.35% during the forecast period (2020-2025).

- The increasing demand for home delivery of pizza, aided by the increasing internet connectivity and consumer spending, is projected to extensively drive the market growth. Moreover, the strong influence of western culture, especially in the food sector, further assists the growth of pizza consumption in Saudi Arabia.
- However, the rising burger chains and other fast-food chains with more economical and satiating food offerings entice the larger share of consumers. As a result, it hampers the growth of the market studied.

Key Market Trends
Strong Influence Of Western Culture In The Market

The market studied has been experiencing rapid socio-cultural changes since the past few years, mainly due to the accelerating economy, which allowed people from the country to travel to western countries for tourism and education, thus, exposing them to western food and culture. Furthermore, the market studied unveiled a raft of major tourism initiatives. Thus, this proves that Saudi Arabia is moving toward becoming a world-class global tourism hub, backed by competitive advantages that attract international travelers looking for new experiences. Thus, this creates a huge opportunity for pizza restaurants in the country, as they are the convenient go-to option. As westernization is influencing consumers’ dietary habits, the KSA population is increasingly opting for pizza from international food chains, like Domino’s and Pizza Hut. As a result, international food chains are continuously expanding their stores in the country to continue dominating the market share.

Increasing Internet Connectivity And Consumer Spending

The growth of the online food delivery market is significantly driving the pizza restaurants market growth. This is due to the rising young futuristic population, enhanced purchasing power, internet connectivity, and modern and changing lifestyles. According to the International Telecommunication Union, in 2018, the individuals using the internet in Saudi Arabia rose to 93.3% of the total Saudi population, as compared to 60.5% in 2013, reflecting a sharp rise in internet connectivity. Thus, there is an improvement in terms of accessibly of the internet for ordering food through the online channel. This, in turn, is expected to propel the market’s growth. Moreover, the additional efforts put by the pizza restaurants in Saudi Arabia are further enticing the consumers to opt for a convenient online delivery system. For instance, in January 2019, Domino’s partnered with what3words, a location technology company, to improve its online pizza deliveries in Saudi Arabia. The partnership enabled customers to provide just three-words of their address in English or Arabic and eliminates the need for phone calls about lost deliveries. This resulted in the quick delivery of hot pizza to a precise location.

Competitive Landscape
The Saudi Arabian pizza restaurants market is competitive and fragmented and comprises regional and international competitors. The United States-based fast-food chains continue to dominate the pizza restaurant sector in this region, with food chains, like Domino’s Pizza and Yum! Brands Inc. accounting for a significant presence. However, few local players, such as Maestro Pizza and Pizza Inn, have also witnessed to invest heavily to compete with these leading international brands for the market share in the region.

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