Middle East And Africa Fast Food Market

Middle East and Africa Fast Food Market Size

The fast food market size in the Middle East and Africa was valued at USD 37.23 billion in 2023 and 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.

The Middle East and Africa fast food market is experiencing robust growth. The population of Middle East and Africa exceeded 1.5 billion in 2023, according to United Nations data and this includes a significant proportion of young and working-age individuals, which is a demographic that heavily contributes to the demand for fast food. The fast-food market in the Middle East and Africa is characterized by a diverse array of offerings that range from international chains such as McDonald’s, KFC, and Domino’s to local and regional brands catering to traditional tastes. In the Gulf Cooperation Council (GCC) region, particularly the UAE and Saudi Arabia, high disposable incomes and mall-centered lifestyles contribute to increased spending on fast food. As per the World Bank report, urbanization in the MEA region surpassed 58% in 2022, propelling the popularity of quick-service restaurants (QSRs).

MARKET DRIVERS

Urbanization and Demographic Growth

Rapid urbanization in the Middle East and Africa (MEA) is a primary driver of the fast food market in the Middle East and Africa. According to the United Nations Department of Economic and Social Affairs, more than 58% of the MEA population resided in urban areas by 2022 and urbanization rates projected to increase by 3.5% annually through 2035. This urban shift fosters a lifestyle demanding convenience, making fast food a preferred choice. Additionally, the growing young population in this regionis characterized by a higher propensity for dining out and digital engagement, which is boosting the demand for quick-service restaurants and online food delivery platforms.

Increasing Disposable Income and Consumer Spending

Rising disposable income across the MEA region is significantly boosting the regional market expansion. According to the International Monetary Fund (IMF), a 4.3% annual increase in real GDP per capita in Gulf Cooperation Council countries was observed between 2020 and 2023, which highlights stronger purchasing power. Similarly, household consumption expenditure in South Africa grew by 2.7% in 2022, as reported by Statistics South Africa. This financial growth enables consumers to allocate more to dining and lifestyle spending and support the expansion of international and regional fast-food chains. Furthermore, rising investments in fast food franchising and marketing in economically vibrant cities such as Dubai, Riyadh, and Johannesburg amplify consumer engagement and fast food market growth in this region.

MARKET RESTRAINTS

Health Awareness and Lifestyle Shifts

Increasing health consciousness among consumers is a key restraint for the Middle East and Africa fast food market. According to the World Health Organization (WHO), the prevalence of obesity in the region reached 30% in Gulf Cooperation Council countries and 27% in South Africa as of 2022. This has prompted consumers to pivot towards healthier meal options and reduces the appeal of traditional fast food offerings. Governments are also stepping in, with Saudi Arabia introducing a sugar tax in 2019, which expanded to cover sugary drinks and fast food items by 2021. This regulatory landscape, along with the growing awareness of diet-related illnesses, poses challenges to fast food chains, which must adapt by offering healthier alternatives to retain their customer base.

Economic Disparities and Market Volatility

Economic disparities and market volatility hinder the growth of the fast food market in some parts of the MEA region. According to the World Bank, approximately 33% of the population in Sub-Saharan Africa lived below the international poverty line of USD 2.15 per day in 2022 and limits consumer spending on non-essential items such as fast food. Moreover, rising food inflation, recorded at 16.2% in 2023 across the region, has increased operational costs for restaurants, as per data from the International Monetary Fund (IMF). These economic challenges and geopolitical instability in countries such as Sudan and Libya are disrupting supply chains and impacting the affordability and accessibility of fast food, especially in low-income markets.

MARKET OPPORTUNITIES

Rising Digital Transformation and Food Delivery Services

The growth of digital infrastructure in the Middle East and Africa presents significant opportunities for the fast food market in this region. As per the reports of the International Telecommunication Union (ITU), internet penetration in the region reached 65% in 2023, which is an increase from 50% in 2018. This expansion supports the rapid adoption of online food delivery platforms and mobile app-based ordering. For instance, as per the UAE Telecommunications and Digital Government Regulatory Authority, online food delivery services grew by 35% annually between 2020 and 2023 in the UAE. Such platforms not only expand customer reach but also enable fast-food chains to diversify revenue streams through promotions and partnerships with delivery aggregators to position them for sustained growth in this digital era.

Expansion into Emerging Markets and Localized Offerings

Emerging markets in Sub-Saharan Africa, such as Nigeria, Kenya, and Ghana offer substantial growth opportunities for fast food chains. According to the World Bank, the population of Nigeria is projected to exceed 230 million by 2030, accompanied by a burgeoning middle class that is expected to constitute 35% of the population. This demographic shift increases demand for accessible and affordable dining options. Moreover, the localization of menus to reflect regional tastes, such as incorporating halal-certified ingredients in the Middle East or traditional African flavors in Sub-Saharan markets, enhances brand appeal. Governments such as the Ministry of Tourism of Kenya have also encouraged foreign investments in urban centers to provide a favorable environment for international fast-food franchises to establish a foothold.

MARKET CHALLENGES

Supply Chain Disruptions and Rising Costs

Supply chain challenges that are compounded by geopolitical instability and inflation are a significant hurdle for the Middle East and Africa fast food market. According to the International Monetary Fund (IMF), food price inflation in the region reached 16.2% in 2023 and impacting the cost of raw materials and operations. Additionally, as per the reports of the United Nations Office for the Coordination of Humanitarian Affairs, conflicts in countries such as Sudan and Libya are disrupting the availability of imported ingredients and packaging materials. These disruptions create logistical inefficiencies and increased operational expenses for fast food chains, particularly those reliant on international supply chains. Such challenges necessitate innovative sourcing strategies and localization of supply to ensure business continuity and cost management.

Cultural and Regulatory Barriers

Cultural sensitivities and evolving regulations present challenges for fast-food brands operating in the region. For instance, religious dietary laws in Middle Eastern countries necessitate halal certification, which requires brands to adapt their offerings and operations. The Saudi Food and Drug Authority mandates stringent compliance for halal certification and creates operational complexities. Furthermore, as introduced by the governments in 2021, rising regulatory measures to combat non-communicable diseases, such as sugar taxes in Saudi Arabia and the UAE, limit the appeal of high-calorie menu items. According to the World Health Organization (WHO), 60% of deaths in the region are attributed to non-communicable diseases, which are further driving stricter regulations.

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

Saudi Arabia is dominating the fast food market in the Middle East and African region over the forecast period due to its high disposable income and increasing young and urbanized population. According to the General Authority for Statistics in Saudi Arabia, 68% of the population lives in urban areas, and a significant portion is aged under 30. The Kingdom’s fast food market benefits from cultural acceptance of dining out and is fueled by malls and entertainment hubs. Furthermore, Vision 2030 initiatives have spurred investments in the hospitality sector and boosted the presence of international and local fast-food chains.

The UAE is a notable regional segment in the Middle East and African fast food market. The high-income economy and advanced digital infrastructure are propelling the regional market growth. According to the reports of the Federal Competitiveness and Statistics Authority, 86% of the UAE's population resides in urban areas, which fosters a strong, fast food culture. Additionally, the online food delivery market of UAE expanded by 35% annually from 2020 to 2023 and was majorly driven by widespread internet penetration exceeding 99% in 2023. With its status as a global tourism hub, fast food consumption is driven by both residents and tourists. The government’s focus on diversifying its economy has also encouraged foreign fast-food franchises to expand in the country.

South Africa is a key market in the regional market due to its relatively high consumer spending and diverse urban population. According to Statistics South Africa, household consumption expenditure grew by 2.7% in 2022, with food and beverages accounting for a significant share. South Africa's fast food market is supported by a mix of local and international brands, with quick-service restaurants (QSRs) widely available in urban centers like Johannesburg and Cape Town. The country’s adoption of digital food delivery platforms surged post-2020, with 28% of urban South Africans using online food delivery services regularly, as reported by the South African Council of Shopping Centres.

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