Middle East And Africa Fast Food Market

Middle East and Africa Fast Food Market Size (2024 to 2032)

The fast food market size in the Middle East and Africa is estimated to be worth USD 52.26 billion by 2032 from USD 38.66 billion in 2024, growing at a CAGR of 3.84% from 2024 to 2032.

Fast food alludes to food that is effectively and immediately prepared; however, it refers to food that is set up from precooked or preheated parts and then packed and sold in stores or eateries. Fast food is bulk-delivered food; any food set up in less time is called fast food. Fast food is renowned for its lower costs, comfort, and taste. In any case, fast food is made with fewer quality items, which makes them undesirable and less nutritious.

Current Scenario of the Middle East and Africa Fast Food Market 

The fast food market in the Middle East and Africa is rapidly growing. The market needs to choose between seeking value and indulging in luxury, which is driven by personalised experiences and the necessity for a smooth mobile ordering process. All of these factors are shaping the restaurant landscape as consumer expectations and experiences progressively transform. Moreover, in 2023, it became clear that the lines between “dining out and ordering out” were blurring, as an increasing number of ME consumers aimed to enjoy eatry-style meals at home. This transition reflected a natural evolution of customer behaviour formed by post-pandemic trends. People continue to crave the dining experience, prompting them to adjust their spending patterns.  

Today, as consumers gradually shift to their pre-COVID-19 habits, certain behaviours have undergone lasting changes. In 2024, food chains in ME are prioritising enhancements to their online platforms and apps, revitalizing loyalty programs, expanding their menus and in-house delivery services, optimising technology, and implementing new strategies to fulfil the increasing demand for personalised experiences.  

The Kingdom of Saudi Arabia, the United Arab Emirates, and South Africa are the key markets in the region. In recent times in the Middle East, the market experienced a considerable rise in the trend of fast-casual dining. This is because it unites the convenience and speed of fast food with the freshness and quality of casual dining. It became extremely popular in ME nations, where eaters want speedy and healthy dishes. Also, the food service industry saw a rise in fast-casual restaurants, serving varied preferences and palates. 

• According to the study published in the National Center For Biotechnology Information, about 87.8 per cent of participants from Riyadh (Saudi Arabia) consumed fast food weekly and 45.6 per cent daily. Moreover, the lowest and highest frequency of weekly intake of Sudanese was 48.3 per cent, and Turkish was 99.6 per cent. 

In Africa, the retail industry has been evolving rapidly in recent years. With a growing consumer base and modifying eating habits, both domestic and foreign businesses are encountering new opportunities alongside various challenges. One of the factors influencing the African market is price-sensitive choices. Inflation remains a significant problem for businesses in the food and retail sphere across the continent in 2024. The previous year saw escalating inflation in several well-established supermarkets, including South Africa and Kenya, coupled with promising markets such as Nigeria. Additionally, over the past 3 years, urban food consumption patterns have evolved considerably. In various African nations, the adoption of home delivery services and digital business applications has surged, along with a notable surge in online sales.  

MARKET DRIVERS 

The changing consumer tastes, YoY growth in fast-food restaurants, and increasing adoption of international cuisines across the region are majorly propelling the MEA fast food market growth. According to studies, the number of fast food outlets in the Middle East is expected to surge by 4.3% annually in the next five years. The growing working population in the Middle East and Africa is promoting the demand for convenient and quick meal options, which is propelling the growth of the MEA fast food market. 

• For instance, as per the statistics published by the International Labour Organization (ILO), the working-age population in the Middle East and Africa is expected to reach 1.5 billion by 2025. 

The growing awareness of health among consumers and rising preference for healthier yet tasty food options are favouring regional market expansion. The growing urban population seeking quick meal options is further fuelling the growth of the Middle East and Africa's fast food market. The lifestyles, tastes, and preferences of people across the Middle East and Africa have changed over the last few years. The expansion of popular food chains in the MEA region contributes to this trend and propels regional market growth. 

• For instance, as per Ernst & Young's report, the Middle East and Africa experienced an investment of USD 2.6 billion in the F&B sector. 

The adoption of digital channels is another factor propelling the market growth. Restaurants have been boosting engagement through third-party aggregators, social media, virtual brands, and mobile applications. This trend is expected to persist for the next few years, although not all channels will be prioritised equally. Ultimately, the common goal for all restaurants remains the same i.e. to reach the largest audience possible. Moreover, as their reach expands, restaurant owners and managers in this market face heightened expectations from consumers. Minimizing friction across various channels is essential for effective engagement. Eating places that earlier did not emphasize the digital experience now find it necessary to establish connectivity across their customer touchpoints.  

• According to a study by DoorDash, consumer behaviour indicates that online ordering is a permanent fixture. With the rise of digital ordering, it reported a 80 per cent of diners are ordering online at the same rate or more than last year. So, fast food chains must prioritise accessibility, convenience, and user-friendliness. 

Health and wellness are on the rise, which also influences market growth. In Africa, similar to global trends, consumers are becoming more attuned to environmental and health concerns. As a result, there is a rising demand for healthier food and beverage choices that are viewed as natural. 

MARKET RESTRAINTS 

On the other hand, the side effects associated with the consumption of fast food are hindering the growth of the fast food market in the Middle East and Africa. Concerns about the health effects of fast food, such as overweight and obesity, have been causing some people to switch to healthier alternatives, and this shift is affecting the regional market growth. In addition, high operating costs and rising health consciousness among consumers are further impeding the growth rate of the fast food market in the Middle East and Africa. 

MARKET OPPORTUNITIES 

Artificial Intelligence (AI) presents potential opportunities for the expansion of the Middle East and Africa fast food market. It is swiftly transforming the restaurant industry throughout the ME region. This technology operates subtly in the background, leveraging data to make informed decisions that enhance customer satisfaction, minimise waste, and boost efficiency. Moreover, smart demand forecasting tools exemplify this market trend. By examining historical sales data, these AI systems can accurately predict future demand, enabling restaurants to optimize inventory management, prevent over-purchasing, and reduce waste. This approach benefits both operations and the environment, ultimately boosting market growth. Besides these, another way AI is utilised in fast food chains is through dynamic pricing, in which menu costs to change in real time according to customer preferences and demand.  

In addition to AI, automation and robotics are essential in revolutionising the food industry. Robots are increasingly employed to perform repetitive tasks, including drink preparation, dish assembly, and learning recipes tailored to specific requirements.  

MARKET CHALLENGES 

High inflation in food prices is decreasing the growth rate of the Middle East fast food market. 

• According to the regional assessment report of the World Bank, the MENA region witnessed double-figure inflation in food prices in 2023, resulting in a decline in growth to 3 percent from 5.8 percent. 

The World Bank also said that the average rate of increase in food prices in 16 MENA countries was 29 percent between March and December 2022. It exceeded the headline inflation rate of 19.4 percent. The negative effect of high food costs on nutrition can have a prolonged impact on children's progress and future outlook. The elevated costs are anticipated to increase the danger of childhood impede by 17 percent to 24 percent in emerging MENA countries, putting approximately 200 thousand to 285 thousand newborns at risk of stunting. These prices are influenced by fluctuating oil and gas prices, supply chain disturbances in sourcing nations, and war between Israel and Gaza. The conflict is also causing a decline in sales due to boycotts of foreign companies because of their stance on the war. Hence, volatile food prices remain a key challenge to market growth. 

REPORT COVERAGE

SEGMENTAL INSIGHTS

By Type Insights

Of these, the pizza/pasta segment is foreseen to hold the major share of the Middle East and Africa fast food market during the forecast period. Social media has been instrumental in boosting the consumption of pizza and pasta in the Middle East region. Moreover, food influencers and bloggers regularly highlight creative recipes of these and inventive pasta dishes, encouraging consumers to explore new flavours and combinations.  

Nevertheless, the burger/sandwich segment is anticipated to account for a noteworthy MEA fast food market share during the forecast period. 

By Distribution Platform Insights

The quick service restaurants (QSR) segment is quickly expanding in the Middle East and Africa fast food market. Fast food remains one of the major sources within the customer food service industry in the MENA region. The market in MENA is primarily propelled by rising urbanization, swift population growth, shifting food habits, and modern lifestyles. Moreover, the escalating figures for shopping malls also have a notable effect on the performance of the segment. For instance, the restaurant and cafe sector in Saudi Arabia is witnessing rapid expansion influenced by growing disposable income and the young population. 

REGIONAL ANALYSIS

The Middle East holds the major share of the Middle East and African fast food market during the forecast period owing to the presence of a population with busy lifestyles, rising preference for convenient food options, and the availability of healthier menu options in fast-food restaurants. On the other hand, Africa is anticipated to register a healthy CAGR in the MEA fast food market during the forecast period. Factors such as favorable demographics, increased urbanization, and widespread adoption of Western culture in Africa are boosting the African fast food market growth. 

The fast food market is thriving in Saudi Arabia. 

The growing youth population, rapid urbanization, and increasing disposable incomes are major contributors to the growth of the Saudi Arabian industry. In addition, as per research, one in three young people in the country eat fast food over two times a week, raising concerns that the region's swift economic progress is resulting in significant shifts in dietary habits. Moreover, about 85 percent of young Saudi Arabian residents said to like fast foods to home-made meals. 

• A cross-sectional survey was carried out on kids between 11 and 18 years of age for food intake and incidence of fast-food consumption in a usual week, which discovered that 28.5 percent of attendees consume fast food twice a week, with a larger portion of male students, i.e., 32.8 percent being regular customers. And females accounted for 24.8 percent. 

Further, students with the most significant monthly household income, i.e., SAR 21000 and more, were discovered to have a considerably higher fast food consumption rate than those with a reduced income. 

The United Arab Emirates is considered a hub for fast food chains. 

The presence of a multicultural population and a high number of expatriates are contributing to the growing consumption of fast food items in the UAE and propelling the UAE market expansion. Besides this, Dubai people are price-sensitive in terms of eating out, favoring fast food over fine dining and other drive-ins like all-day and relaxed dining. This inclination for cheapness strengthens the fast food industry's notable place in Dubai's catering market. 

• According to a study, there are more than 26795 cafes and restaurants, each providing something different. 

Moreover, the Abu Dhabi region has the greatest number of restaurants and cafes in the UAE; Dubai is in second place, and Sharjah Province is third. Moreover, over 8881 restaurants are present in Abu Dhabi cafes in Dubai, which have over 8726, and the Sharjah area has 3541. Further, the province of Umm al-Quwain has the least populace of eateries and cafes, with 564 counts, succeeded by the Fujairah region with 1096 cafes and restaurants. 

Qatar is also a notable fast food market. 

Qatar is capitalizing on the nation's economic progress, increasing spending power, and shifting customer behavior. Likewise, in May 2024, Jasmi, a popular Bahrain fast-food chain, and West Walk entered into a partnership for the Qatar industry. The regional market share was boosted significantly by the successful organization of the FIFA Football World Cup. Apart from this, the market player has been investing substantial money in tourism operations, surging the volume of travelers to the nations. Visitors usually prefer comfort and fast eating choices, making quick-service restaurants a famous option. Besides this, cloud kitchen joints are expected to witness a rapid rise in the market at a higher pace during the estimation period. The country's market size has surged because of the growth of food delivery websites and platforms and mobile ordering, and customers are demanding more handy and quick ways to approach their favorite meals. For example, In May 2024, Pickl, the latest burger shop in the city, is entering with the newest, delicious, and fully personalizable 'bespoke' burgers for food lovers at West Walk. It provides new, quick foodstuff and an innovative menu, including fried-chicken Sandos, shakes, plant-based burgers, and smashed burgers without additives. 

South Africa is expected to post a healthy CAGR during the forecast period. 

The rising preference for fast food from urban dwellers and working professionals and the presence of global food chains and local brands to address consumers' various tastes and preferences are driving the South African fast food market. Moreover, the country has about more than 850 franchises, approximately 85000 restaurants, and a massive demand for Indigenous merged with the international food industry. Additionally, several South African market players, like Nando's and Steers, have an innovative flavour profile that is not generally discovered in other fast food chains. This has assisted them in differentiating and attracting a broad range of consumers, delivering a regional palette worldwide. 

KEY MARKET PLAYERS

Companies playing a notable role in the Middle East and Africa fast food market include Domino's Pizza, Burger King, KFC, Subway, Dunkin' Donuts, McDonald's, Hardee's, Pizza Hut, Firehouse Subs and Auntie Anne's.

RECENT HAPPENINGS IN THE MARKET

• In November 2024, Dog Haus, the fast casual restaurant brand, revealed its opening in the Kingdom of Saudi Arabia. It offers a selection of gourmet hot dogs, fried chicken sandwiches, burgers, and sausages, each featuring inventive toppings and served on grilled Hawaiian rolls.  
• In July 2024, Miraculous Corp reported that it had renewed its licensing contract with Spacetoons Events to provide enhanced entertainment-focused initiatives for the brand to the Middle East and North America region via themed meet and greets, live shows, events, and more. Also, this month Herfy, one of the biggest food chains in the ME, will introduce a program called Miraculous "Chibi" Happy Meal.
• In April 2024, McDonald's Corporation press released the acquisition of Alonya, which owns 225 McDonald's restaurants in Israel and has 5000 employees.
• In April 2024, Meituan, a Chinese company of on-demand local services, announced that it would introduce a platform called Keeta for food delivery in Riyadh, Saudi Arabia. This will be the company's foremost attempt into foreign markets during a decline in domestic growth. It is a broader strategy of Meituan to tap the growth opportunities outside China due to fierce competition amid a drop in local consumption.
• In January 2024, Patty&Bun, a London-based burger chain, reported opening its first store in Dubai outside the United Kingdom. Big Belly Hospitality facilitates the brand's entry into the region. Moreover, Patty&Bun will operate from Mirdif and Hessa Street the two cloud kitchens through Deliveroo.  
• In May 2024, Saudi Arabia's Ministry of Municipal and Rural Affairs and Housing released an instruction for food service shops and restaurants to enforce a tracking system for all raw materials and packing utilized in food cooking. This feature is vital for easy goods or item recalls or helping examinations or probes in case of violation of food safety laws.
• In May 2024, Chipotle Mexican Grill Press released the opening of its first restaurant in Kuwait in collaboration with Alshaya Group, a prominent multinational franchise retail chain. It is the first market player to enter, after more than 10 years, this place in Kuwait in "The Avenues."
• In June 2023, McDonald's reported introducing a 234-dollar wedding package. This includes 100 packs of four-piece chicken nuggets and 100 chicken sandwiches.

MARKET SEGMENTATION

This research report on the Middle East and Africa fast food market is segmented and sub-segmented into the following categories.

By Type

• Burgers & Sandwiches
• Pizzas & Pasta
• Asian/Latin American Food
• Chicken/Seafood

By Distribution Channel

• Quick Service Restaurant (QSR)
• Street Vendors
• Food Delivery Services
• Online Food Delivery

By Country

• KSA
• UAE
• Israel
• rest of GCC countries
• South Africa
• Ethiopia
• Kenya
• Egypt
• Sudan
• Rest of MEA