Qatar Food Service Market Overview

The Qatar food service market would experience significant growth due to the robust economy of the country, increasing urbanization, and a growing tourism sector. The demand for dining options across various segments – quick-service restaurants (QSR), full-service restaurants (FSR), and catering services – would drive market expansion in the coming years. The rising expats, coupled with the booming hospitality industry, is driving the demand for a variety of food services from fast food to gourmet.

This report covers the comprehensive analysis of the Qatar food service market, which includes vital trends, growth drivers, and challenges shaping the industry. The coverage ranges from market segmentation by service type, including delivery, dine-in, and takeaway, to end users such as hospitality, corporate, and healthcare sectors. In addition, reports highlight the impact of technological advancements, changes in consumer preferences toward healthier foods, and the impacts of government regulations toward changing the market. 

The Qatar food service market is expected to witness a positive growth trajectory; hence, this would provide opportunities in the sector for local as well as international players

Market Report Coverage:

The “Qatar Food Service Market Report—Future (2024-2029)” by Digiroads Research & Consulting covers an in-depth analysis of the following segments in the market.

Study Assumptions and Definitions

This report on the Qatar food service market is premised on several assumptions with regard to market trends, consumer behavior, and economic conditions. It presumes that Qatar would continue experiencing its trend of stable economic growth with continued urbanization, increasing influx of expatriates, and a growing tourism sector. Technological advancements, such as online ordering platforms and mobile applications, are also assumed to be factors contributing to shaping the development of the market, especially with regards to delivery and takeaway.

This report takes into consideration the short-term and long-term impacts of the shift in food choices, for example, greater demand for healthier and environmentally-friendly food. It is assumed that the regulatory measures initiated by the government to ensure food safety and quality will be a driving force for the market, as will be the growth in the hospitality sector caused by events like international conferences and festivals

Definitions of terms used below:

• Quick-Service Restaurants (QSR): Places offering speedy food or already prepared food for customers in need of quick service.
• Full-Service Restaurants (FSR): Places where customers are served at a table by waitstaff and often present an expansive dining experience.
• Catering Services: Food services for events, functions, and gatherings beyond the normal dining places.
• Delivery and Takeaway: Food from restaurants offered through delivery services or as carry-out.

The factors such as severe economic downturn or a world crisis are excluded in this study, which may change the market outlook.

Market Scope

The food service market in Qatar is analyzed in this report with a view to current market trends, growth drivers, and challenges, and forecasts are given for the period 2024-2029. It covers a wide range of service types, namely, quick-service restaurants, full-service restaurants, catering services, delivery, and take-aways. The market is segmented by end-users, namely, hospitality, healthcare, education, and corporate sectors, revealing different demands from each group.

Regional analysis breaks down the market into key markets in Ad Dawhah, Al Rayyan, and Al Wakrah, which gives detailed points of local consumption patterns and preferences. It also analyzes online ordering and mobile app usage as technological advances impacting the market growth.

These include, for instance, shifting consumption patterns as regards diet, the increasing concern for environmental sustainability, and government oversight concerning food safety. This report scope is aimed at providing insights to stakeholders to inform strategic decisions in Qatar’s food service market.

MARKET OUTLOOK

Executive Summary

The Qatar food service market is growing at a robust pace, largely due to the rising urbanization, booming tourist sector, and demand for more varied dining options. The growth of the market is attributed to an increasing number of expatriates, as well as an increasing preference for convenience-based dining solutions, besides hospitality industry growth.

The report classified the Qatar food service market into significant service types, which are quick-service restaurants (QSR), full-service restaurants (FSR), catering services, and delivery/takeaway options. In addition, it breaks down the market by end users, including hospitality, corporate, healthcare, educational institutions, and residential sectors, which are contributing to increasing demand for food service solutions. Moreover, cultural and corporate events are significant contributors to market expansion.

Regional segmentation includes prime areas such as Ad Dawhah, Al Rayyan, and Al Wakrah, which demonstrate varied consumption patterns across the country in Qatar. Technology dramatically impacts the nature of the industry, mainly through the increased use of platforms for ordering digitally and mobile apps that change consumer behavior and fuel delivery and takeaway service growth.

As the food service market continues to grow, enterprises are increasingly focusing on healthy dining, sustainability, and food safety in order to maintain a competitive position with current consumer demands. The government’s regulatory initiative has also ensured an inviting environment for market development. This report offers comprehensive insights on these trends in order to provide actionable intelligence to stakeholders in order to capitalize on emerging opportunities in the Qatari food service industry.

COMPETITIVE LANDSCAPE

The Qatar Food Service Market is moderately fragmented, with regional and multinational players competing fiercely for market share.

Key Market Players

• • Qatar Airways Catering
  • Doha Catering Company
  • Chowking Qatar
  • Fuddruckers Qatar
  • McDonald’s Qatar

• Khalid Bin Ahmed Catering

• The Ritz-Carlton, Doha – Food & Beverage Services

• Aramex Food Delivery Services

• Foodies Qatar

• Al Meera Consumer Goods Company

Market Share Analysis

Qatar food service market is quite competitive, with international and national players that ensure broad growth. QSR dominates the most significant portion of the market with high demand for quick, affordable dining options. Global brands like McDonald’s, KFC, and Pizza Hut are a dominant player in the market because they have spread themselves across the country, thus presenting a strong brand along with a vast customer base, comprising expatriate and local consumers.

The Full-service restaurants also attract a significant share of the market, primarily from the demand for more formal dining experience, along with growth in the hospitality industry of Qatar. The luxury players such as The Ritz-Carlton and Bateel attract high-value customers, which are increasing this segment further. The culture of fine dining and other events has increased the market share of elite dining places.

Catering services and delivery have exponentially grown due to the growth in urbanization as well as preference for convenience. Catering segment is headed by companies such as Chowking and Foodies Qatar, while delivery services of Aramex and domestic food delivery applications have risen in demand further deepening the market penetration.

To that end, by regional presence, Ad Dawhah represents the largest share with its concentrated urban base and commercial activities, followed by Al Rayyan and Al Wakrah, whose demand for food services is growing steadily. These developments represent a well-balanced market but with opportunities in all segments of food services.

MARKET DYNAMICS

Market Drivers and Key Innovations

The Qatar food service market has been rapidly growing, with several fundamental factors driving this rise.

Urbanization and Population Growth: Qatar’s rapidly urbanizing population, with urban areas housing nearly 99.4% of the population, is a major driver for the food service market. As cities like Doha expand, the demand for quick, convenient dining options is on the rise. Busy professionals and residents are increasingly turning to food service providers for office lunches, corporate events, and personal gatherings.

Growth in Tourism: Tourism is a main sector in Qatar, with the country expecting up to millions of tourists by the year 2029. Hotels, resorts, and cultural events need some catering services, hence steady demand for various food options. International events and conferences also promote high-quality catering demands.

Health and Diet Trends: Consciousness about healthy eating is dominating the food service market. Consumers are now more prone to consume healthier and more sustainable organic food. Demand for healthier meal options, therefore, continues to escalate, especially in quick-service and full-service restaurants.

Technological Changes: Food delivery platforms and mobile applications are changing the face of the market. New developments in online ordering systems, contactless payment solutions, and AI-driven delivery models have improved consumer experience, making food services accessible and efficient.

Key Innovations:

Resource Conservation: Sustainable packaging and sourcing by food service companies are on an uptrend to address surging ecological issues.

Virtual Kitchens: Cloud kitchens and ghost kitchens are proliferating, enabling companies to roll out multiple food brands without incurring much overhead. The growing demand for convenience and quality, with such innovations, is supporting the growth of the Qatar food service market.

Market Challenges

1. High Operational Costs: Raw material, labor, and energy costs still remain quite high in Qatar, which could pose a problem on the profitability front for food service business ventures. Operational overheads require continuous cost control to not compromise the quality and service standards.
2. Competition from Global Brands: International food service brands flooding the market increase market saturation, which is a race. It is challenging for local and regional players to differentiate themselves and compete with the giant chains on price, quality, and customer loyalty.
3. Changing Consumer Preferences: Consumers in Qatar increasingly opt for healthier, organic, and sustainably produced food. Changing to meet these preferences comes at a resource cost due to new menu offerings, sourcing, and marketing.
4. Labor Shortages: The food service sector is heavily dependent on expatriate labor, and the ongoing issues in managing labor shortages or changes in labor laws affect service and operational efficiency.
5. Food Safety and Regulatory Compliance: The operations must adhere to strict food safety regulations and hygiene standards, meaning constant investment in staff training, certification, and operational protocols to ensure compliance. Failure to comply with these regulations will attract fines and badly damage the reputation.
6. Seasonal demand: Tourism and events are a variable source of demand. Therefore, seasonal peaks and troughs in demand hit foodservice businesses. This demand volatility leads to financial instability in most such businesses.
7. Intensifying competition in the delivery segment: While food delivery services are growing so rapidly in size, the number of platforms and delivery services has increased significantly, thereby intensifying competition, which impacts pricing and profit margins.

Market Opportunities

1. Expansion of Delivery and Online Ordering: Increased utilization of food delivery services provides huge opportunities for a food service to leverage expanding demand for convenience and contactless dining. Leveraging food delivery platforms and branded mobile applications can enhance reach and customer engagement.
2. Health-Conscious Menu Offerings: Given increasing consumer pressure for healthy and organic food choices, food service companies see an opportunity to innovate in this direction by launching healthy, plant-based, and sustainable menu offerings.
3. Catering Services to Tourism: With the growth of tourism in Qatar, especially during major international events and exhibitions that are soon to occur, there is a huge potential catering service targeting tourists, such as authentic Qatari dishes and finest food service in accommodation establishments, resorts, and cultural events.
4. Cultural and Corporate Events: There is an increasing demand for food services during corporate and social events, including conferences, weddings, cultural festivals, and so on. Such a large event is a source of remarkable market share for specialized service providers.
5. Sustainable and Eco-Friendly Practices: Increasingly, sustainable food sourcing and eco-friendly packaging are dominating the trends. Food service business owners have the opportunity to tap into the market of environmentally-conscious consumers while ensuring brand loyalty through embracing green practices and sustainability.
6. Growth in Virtual and Cloud Kitchens: The rise of cloud kitchens and virtual kitchens provides an opportunity to operate multiple food brands under one roof with lower overhead costs, targeting niche markets and expanding reach through delivery services.
7. Premium and Fine Dining Concepts: As the local population as well as expatriates look for more upscale experiences, premium restaurants and niche food concepts would have an opening in Qatar’s highly competitive market.

RECENT STRATEGIES & DEVELOPMENTS IN THE MARKET

• Partnerships for Enhanced Customer Experience

Qatar Airways Catering Partnership: Qatar Airways formed a strategic partnership with Gategroup in February 2024. Through the partnership, the two firms are set to improve healthy eating, sustainability, and food sourcing. This partnership will help enhance the carrier’s catering services and its in-flight services. This reflects a wider industry trend towards premium dining services in the airline industry.

• Celebrity Chef Collaborations

Qatar Airways and Chef Ton Cooperation Qatar Airways joined hands with Thai celebrity chef Chef Ton in September 2023 to launch a refreshed menu of Thai-inspired dishes for premium passengers on flights between Thailand and Doha. This is one of the trends where food service businesses are using celebrity chefs to offer unique culinary experiences and attract high-end customers.

• Focus on Digital and Delivery Platforms

Increased investment in Delivery Services: Restaurants and other food service operators will also continue to enhance their digital presence with investments in food delivery apps and third-party platforms such as Talabat and Zomato. The trend is fast-paced and gaining traction, thanks to increasing consumer demand for convenience and contactless dining. Talabat’s data indicates that there is considerable growth in food delivery services in Qatar, particularly post-pandemic, with year-over-year growth in online orders.

• Sustainability Initiatives

Eco-Friendly Packaging: More and more food service providers are embracing green practices such as biodegradable packaging and locally sourced ingredients. For instance, McDonald’s Qatar has implemented recyclable packaging for takeaway in an effort to reduce plastic waste and improve the overall sustainability of its operations.

• Cloud Kitchens Expansion

Virtual kitchens growth In Qatar, the virtual and cloud kitchen space is becoming more in vogue among food service firms that want to reduce overhead. The likes of Kitchen United and local operators are taking advantage of operating multiple virtual brands under the rubric of delivery-only models for convenience and quick meals.

• Healthier menu focus

Introducing Health-Consumer Products: Restaurants and QSR chains in Qatar have been progressively introducing health-conscious food items, that are plant-based meals, low-calorie products, and organic offerings. In 2023, Chick-fil-A Qatar introduced a series of healthier wraps and salads products due to the strengthening demand for healthier fast-food products.

• Rapid Digitization of Business Operations

AI and Automation in Kitchens: Increasing numbers of Qatari food service companies now incorporate AI-driven tools and automation within their businesses. Several local chains have begun to test robotic chefs and automated ordering systems in an effort to improve kitchen efficiency, minimize human error, and consequently increase service speed and consistency.

KEY BENEFITS FOR STAKEHOLDERS

1. Thorough Market Intelligence: Detailed insights for stakeholders on the Qatar food service market, including a detailed breakdown of trends, market segmentation, and growth outlook. This will provide enterprises and investors with pertinent information on how to enter a market, expand its reach, and invest.
2. Opportunities for Growth Identification : This report identifies emerging market opportunities such as online food delivery, cloud kitchens, and healthier food options, allowing stakeholders to capitalize on these trends and adapt offerings accordingly.
3. Competitive Landscape Understanding: By analyzing the competitive landscape, the stakeholders can identify the key players involved, the competitive positioning of the players, and the successful strategies employed by the companies in the market. This will further enable businesses to refine and differentiate their strategies in the competitive market.
4. Better Decision Making: Detailed segmentations of the market based on service types, end-users, and region help stakeholders focus on the right groups of customers to whom their products or services should be marketed and sold. This enables better resource targeting and provides better support to make informed decisions.
5. Strategic Guideline for Future Expansion: The report outlines current and projected market trends, helping stakeholders understand the market’s growth trajectory and plan for future expansion. Whether entering new regions, launching new services, or diversifying their product portfolio, businesses can use this data to mitigate risks and seize opportunities.
6. Regulatory and Compliance Awareness: Highlight of the regulatory environment and food safety standard in Qatar as key to internal stakeholders. This is fundamental for complying with these standards, avoiding penalties, and aligning business operations with government regulation for long-term sustainability.
7. Consumer Trends and Behavioral Insights: These include changes in consumer preferences, like the desire to eat healthier and have more eco-friendly practices. This allows food service businesses to tailor their products according to the changing needs and desires of customers, increased brand loyalty through customer satisfaction, and higher customer satisfaction.
8. Access to Post-Sale Analyst Support: Ongoing support is also provided in the form of analyst consults following a sale for stakeholders as the market continues to evolve and unwinds uncertainty, providing added insight.

At DigiRoads Research, we emphasize reliability by employing robust market estimation and data validation methodologies. Our insights are further enhanced by our proprietary data forecasting model, which projects market growth trends up to 2029. This forward-thinking approach ensures our analysis not only captures the current market landscape but also anticipates future developments, equipping stakeholders with actionable foresight.

We go a step further by offering an exhaustive set of regional and country-level data points, supplemented by over 60 detailed charts at no additional cost. This commitment to transparency and accessibility allows stakeholders to gain a deep understanding of the industry’s structural and operational dynamics. By providing exclusive and hard-to-access data, DigiRoads Research empowers businesses to make informed strategic decisions with confidence.

In essence, our methodology and data delivery foster a collaborative and data-driven decision-making environment, enabling businesses to navigate industry challenges and capitalize on opportunities effectively.

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Table of Contents

• INTRODUCTION

  • Market Overview
  • Years Considered for Study
  • Market Segmentation
  • Study Assumptions and Definitions
  • Market Scope

• RESEARCH METHODOLOGY

• MARKET OUTLOOK

  • Executive Summary
  • Market Snapshot)

• Market Segments 

• service Type:
  1. Quick-Service Restaurants (QSR)
  2. Full-Service Restaurants (FSR)
  3. Catering Services
  4. Delivery
  5. Dine-in
  6. Takeaway
• End User:
  1. Hospitality (Hotels, Resorts, and Restaurants)
  2. Corporate (Offices, Business Parks)
  3. Healthcare (Hospitals, Clinics)
  4. Education (Schools, Universities)
  5. Residential (Expatriates, Families, etc.)
  6. Events (Weddings, Conferences, Cultural Gatherings)
• By Region:
  1. Ad Dawhah
  2. Al Rayyan
  3. Al Wakrah
  4. Others

• COMPETITIVE LANDSCAPE

  • Recent Strategies (Key Strategic Moves)
  • Market Share Analysis
  • Company Profiles
    • Qatar Airways Catering
    • Doha Catering Company
    • Chowking Qatar
    • Fuddruckers Qatar
    • McDonald’s Qatar
    • Khalid Bin Ahmed Catering
    • The Ritz-Carlton, Doha – Food & Beverage Services
    • Aramex Food Delivery Services
    • Foodies Qatar
    • Al Meera Consumer Goods Company
    • Pizza Hut Qatar
    • Carrefour Qatar – Food Services
    • Gulf Catering
    • Spoons Catering
    • Dunkin’ Donuts Qatar
    • Bateel Qatar
    • KFC Qatar
    • Starbucks Qatar

• MARKET DYNAMICS

  • Market Drivers
  • Market Challenges
  • Market opportunities
  • Porter’s Five Forces’ Analysis
    • Bargaining Power of Suppliers
    • Bargaining Power of Buyers
    • Threat of New Entrant
    • Threat of Substitutes
    • Competitive Rivalry

• GLOSSARY OF PROMINENT SECODNARY SOURCES

• DISCLAIMER

• ABOUT US