Middle East and Africa Fast Food Market Size (2024-2030)

The Middle East and Africa Fast Food Market was valued at USD 33.72 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 62.44 billion by 2030, growing at a CAGR of 9.2%.

Key Market Insights:

The Middle East and Africa fast food sector constitutes a dynamic and swiftly expanding market, marked by the amalgamation of fast food chains and indigenous, region-specific establishments. Driving forces behind this industry include a burgeoning and urbanizing population, shifting consumer preferences, and the adoption of faster-paced lifestyles. Established entities such as McDonald's, KFC, and Burger King stand alongside local competitors offering traditional fare and distinctive flavors. Fast food offerings in the Middle East and Africa frequently integrate indigenous ingredients and culinary customs to cater to diverse palates. As urbanization progresses and disposable incomes increase, there is anticipated growth in demand for convenient, economical, and palatable fast food choices, positioning the region as a focal point for market expansion, innovation, and rivalry in the fast food segment. Nonetheless, mounting concerns regarding health and dietary considerations are gaining prominence, prompting heightened attention toward offering healthier menu alternatives and transparent ingredient disclosures to align with evolving consumer preferences.

Middle East and Africa Fast Food Market Drivers:

Increasing living standards and changes in Consumer Behavior are driving market growth.

Increased household income and evolving consumer habits are the primary catalysts propelling individuals towards dining out more across many regions. Moreover, the swift proliferation of diverse food service establishments is gaining traction in both developed and developing markets worldwide, notwithstanding the enduring appeal of renowned brands like Domino's, Pizza Hut, McDonald's, KFC, and Burger King. With the burgeoning popularity of fast food among the youth demographic, fast-food chains are currently exploring opportunities in international markets. The uptick in fast food consumption can be attributed to its convenience, affordability, diverse menu offerings, and flavorful options. Factors such as heightened foreign investment, escalating household incomes, a burgeoning millennial population, increased tourism, and shifting consumer consumption patterns collectively contribute to the expansion of the fast food industry.

Rising Number of Quick Service Restaurants Increasing market growth.

The fast food industry is primarily propelled by its ability to swiftly deliver food, catering to the preferences of younger clientele. The shift in consumer inclination towards ready-to-eat meals and fast food has transformed the market landscape. The reduced time and effort needed to prepare fast food significantly drives the increasing demand for such offerings. As of 2020, the Quick Service Restaurant (QSR) channel dominated the industry in terms of outlet count. Notably, in India, quick-service restaurants represent the fastest-growing segment within the food services sector. Furthermore, the escalating discretionary income of consumers is poised to further fuel market expansion in the forthcoming years.

Middle East and Africa Fast Food Market Restraints and Challenges:

Health Concerns related to the Consumption of Fast Food hinder market growth.

The escalating consumption of fast food among young adults raises concerns due to its high fat content, which poses risks of obesity and related chronic diseases. Obesity is linked to a range of serious health conditions including cancer, diabetes, gallbladder disease, fatty liver, cardiovascular disease, arthritis, and joint disorders, as well as increased susceptibility to premature death and various illnesses. Fast food consumption has been identified as a potential contributor to childhood obesity, further exacerbating these health risks. Given the multitude of health concerns associated with fast food intake, it is anticipated that increased awareness of these risks will serve as a deterrent to the expansion of the fast food industry.

Middle East and Africa Fast Food Market Opportunities:

Fast food chains have been gradually embracing the trend towards healthier food options, albeit with varying levels of success. The objective behind enhancing their menus with lower-fat, lower-cholesterol, and lower-sodium offerings is twofold: to bolster sales and appeal to a broader customer demographic. Moreover, the anti-obesity movement has exerted pressure on fast-food establishments to revamp their menus. As these chains introduce healthier alternatives, it opens up avenues for suppliers and food processors to capitalize on emerging market demands.

MIDDLE EAST AND AFRICA FAST FOOD MARKET REPORT COVERAGE:

Middle East and Africa Fast Food Market Segmentation:

Middle East and Africa Fast Food Market Segmentation By food type:

• Burgers and Sandwiches
• Pizza
• Fried Chicken
• Mediterranean and Shawarma
• Ethnic and Local Cuisine
• Vegetarian and Vegan
• Desserts and Sweets
• Coffee and Beverages
• Others

During the forecast period, the burger and sandwich segment is anticipated to be the primary contributor to the market. Its substantial share can be attributed to the affordability and convenience of consumption while on the go. Key burger chains such as McDonald's and Burger King, have garnered significant popularity among both young adults and adults, owing to their diverse offerings and distinct flavors. The ubiquitous presence of McDonald's worldwide further bolsters the growth of the fast food market, attributed to its efficient service, high-quality burgers, and competitive pricing.

Conversely, the pizza segment is projected to experience notable growth over the forecast period. The remarkable expansion of Domino's and Pizza Hut in developing nations has propelled the segment's growth. With pizzas being associated with celebrations and renowned for their delectable taste, the segment is poised to witness accelerated growth throughout the forecast period, buoyed by strong branding initiatives.

Middle East and Africa Fast Food Market Segmentation By Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail Stores
• Other Distribution Channels

Supermarkets and hypermarkets stand out as dominant segments within the market. The proliferation of advertising and marketing campaigns conducted by food chain restaurants and quick-service outlets significantly contributes to supporting market growth. With the rise in household disposable income, consumers are allocating more expenditure towards dining out at hotels, restaurants, and cafes. Furthermore, there is a notable surge in the adoption of online ordering systems by restaurants and caterers, driven by the increasing consumer demand for convenience and variety. In response to the escalating demand for convenience, current innovations, such as the utilization of mobile devices and prominent food delivery platforms like Uber Eats, Menulog, Swiggy, and Zomato, are gradually becoming standard practices in the industry.

Middle East and Africa Fast Food Market Segmentation- by region

• Saudi Arabia
• South Africa
• UAE
• Qatar
• Israel
• Nigeria
• Kenya
• Egypt
• Rest of the Middle East and Africa

The Middle East & Africa region is poised for rapid growth in the forecast period, buoyed by increasing tourism activities and expansive business ventures by key players in the region. Major players are implementing strategies such as advertising campaigns and brand marketing to facilitate business expansion. Furthermore, the influx of American fast food chains into countries like UAE, Kuwait, and Saudi Arabia, coupled with rising disposable incomes, is expected to fuel the growth of the fast food market in the region.

Among the countries, the United Arab Emirates has emerged as the fastest-growing market. Additionally, the substantial expatriate population in the Middle East significantly influences the demand for snack food products, with Qatar and the United Arab Emirates being prominent nations in this regard.

Moreover, the government of the United Arab Emirates is actively engaged in promoting various food and snack producers by organizing events and exhibitions. These initiatives offer a platform for local brands to exhibit their product portfolios to a broader audience. For instance, at the Dubai World Trade Centre, numerous local entrepreneurs are introducing and exhibiting a range of new-to-market items, including savory snacks. Notably, UAE-based Gulf Food offers savory snacks such as Toasted Corn, Wheat and Flour Tortillas, Nachos, and Popcorn, among others. All products from these companies hold certifications such as ISO14001, BRC, IFS, AIB, GMO-Free, and HALAL, among others. These factors collectively contribute to driving the market growth of the snack food sector in the UAE, promising robust growth during the forecast period.

COVID-19 Pandemic: Impact Analysis

The Middle East and Africa's fast food markets experienced a significant impact from the COVID-19 pandemic. Stringent lockdowns, government-imposed restrictions, and economic uncertainty collectively resulted in a decline in consumer spending, leading to reduced sales for fast-food establishments across the region. Measures such as social distancing requirements and heightened hygiene concerns notably affected dine-in services, prompting a notable shift towards alternative options such as takeout, delivery, and online ordering systems.

Furthermore, disruptions in the supply chain and increased operational costs due to implementing safety measures presented additional challenges for fast-food businesses during the crisis. However, the pandemic also catalyzed digitalization and the adoption of technology-driven solutions for contactless ordering and payments, underscoring the importance of adaptability and innovation within the industry.

As the region gradually recovers from the pandemic's impact, the fast food market is expected to rebound, driven by consumers' continued preference for convenient dining options. This resurgence emphasizes the ongoing importance of implementing robust safety measures and maintaining a strong online presence to meet evolving consumer preferences and market demand

Key Players:

These are the top 10 players in the Middle East and Africa Fast Food Market: -

1. Burger King
2. McDonald's
3. Pizza Hut
4. KFC
5. Hardee's
6. Nando's
7. Domino's Pizza
8. Subway
9. Steers
10. Checkers/Rally's