Report

Kuwait Foodservice Market Analysis

The Kuwait Foodservice Market was valued at USD 3.54 billion in 2025 and estimated to grow from USD 3.83 billion in 2026 to reach USD 5.64 billion by 2031, at a CAGR of 8.07% during the forecast period (2026-2031). Driven by a young, affluent, and digitally savvy populace, along with government initiatives for economic diversification, the market is experiencing significant growth. Agencies like the Public Authority for Industry (PAI) are supporting the expansion of the non-oil private sector, focusing on hospitality and food and beverage. This support includes new commercial permits, streamlined processes, and the development of commercial and entertainment hubs, attracting local and global brands. Social media influence and a preference for food delivery further amplify growth, with demand for innovative concepts, global cuisines, and premium casual dining. For instance, Sultan Center Food Products Co. launched a private label organic food brand in early 2024, achieving sales of over 700,000 units within six months. The beverage sector introduced over 180 new formulations in 2024, focusing on sugar-free and low-calorie options. Coffee brands responded to health trends with innovations like nitrogen-infused cold brews and matcha lattes. Additionally, City Group Co. expanded delivery models by launching 22 virtual brands in 2023, highlighting the rise of cloud kitchens.

Kuwait Foodservice Market Trends and Insights



Growth of cloud kitchens transforms market dynamics

Cloud kitchens are reshaping Kuwait's foodservice landscape, pivoting the emphasis from traditional dining establishments to models centered on delivery and efficiency. This shift is largely fueled by Kuwait's tech-savvy populace, who, bolstered by high smartphone penetration, frequently turn to online delivery platforms such as Talabat, Deliveroo, and Cravez. With operational and overhead costs significantly lower than those of full-service restaurants, cloud kitchens can offer competitive pricing and scale rapidly. The Kuwaiti government has bolstered this evolution, instituting clearer regulations for delivery-only entities and championing SMEs in the food-tech arena. Notably, the count of operational cloud kitchens surged from 77 in 2022 to 120 in 2024. Illustrating the market's agility, companies are adopting multi-brand strategies, efficiently managing multiple virtual concepts from a single kitchen to meet varied consumer tastes. A case in point: City Group Co. unveiled 22 virtual brands in Q2 2023, achieving a milestone of 1.2 million online orders by mid-2024. The trend leans towards specialization and health-conscious choices, evidenced by brands rolling out over 180 new low-calorie or sugar-free beverages in 2024. Packaging innovations are also in the spotlight, with 38% of new products in 2024 opting for eco-friendly or smart packaging, ensuring food quality during transit and aligning with sustainability objectives. In essence, cloud kitchens are not just a trend but a catalyst, driving innovation, intensifying competition, and enhancing convenience, thereby redefining the culinary experience for Kuwaitis.

Diversification of cuisine reflects cultural complexity

Kuwait's foodservice market showcases a rich tapestry of cuisines, mirroring the nation's intricate cultural landscape. This complexity is largely shaped by a substantial expatriate community, making up over two-thirds of the population, and a local populace keenly attuned to global trends. As a result, there's a burgeoning appetite for diverse international culinary experiences, extending well beyond the traditional Kuwaiti and Middle Eastern offerings. Bolstering this culinary expansion, the government, alongside relevant associations, has rolled out supportive policies. These initiatives not only aim for economic diversification but also seek to draw foreign investments into the hospitality realm. A testament to this is the Ministry of Commerce and Industry's streamlined licensing process for international franchises, paving the way for a surge of new brands. Highlighting the trend, the Kuwait Chamber of Commerce and Industry reported in 2024 a 15% uptick in food and beverage business registrations, specifically those focusing on niche ethnic cuisines. Further underscoring this culinary evolution, a well-known local chain debuted an authentic Peruvian dish line in mid-2024, witnessing a sales spike in the subsequent quarter. Simultaneously, major hypermarkets, including Sultan Center, broadened their ready-to-eat offerings, introducing specialized Asian and European meal kits. This move underscores the sophisticated palate of Kuwaiti consumers, eager for global flavors. As of late 2024, expatriates in Kuwait numbered around 3.3 million, accounting for roughly 68.6% of the total populace, as per reports from Gulf Labour Markets, Migration and Population (GLMM). This diverse demographic, hailing from regions like South Asia, the Middle East, Europe, and North America, fuels a consistent demand for authentic international cuisines. Such a rich cultural blend not only challenges food and beverage entrepreneurs to innovate but also propels the market's growth, pushing boundaries beyond traditional Middle Eastern offerings.

High operating costs challenge profitability

In the Kuwait foodservice market, soaring operating costs, fueled by pricey commercial real estate, ongoing labor shortages, and erratic supply chain logistics, are posing significant challenges to profitability. Prime urban rental costs, especially in bustling areas like Kuwait City and shopping malls, can account for over 20% of a restaurant's revenue, tightening profit margins even amidst robust demand. The industry faces a labor crunch, exacerbated by visa restrictions and a national inclination towards public sector employment. This labor scarcity drives up wage demands and results in high turnover rates, compelling restaurants to invest heavily in training. Reports from the Kuwait Chamber of Commerce and Industry underscore these challenges, particularly spotlighting the vulnerabilities of small and medium enterprises (SMEs). In response, the government is championing technology adoption as a means to bolster efficiency.

Other drivers and restraints analyzed in the detailed report include:

Government food-security push reshapes supply chainsInfluence of expatriate population sustains premium growthStringent regulations increase compliance burden

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

In 2025, Quick Service Restaurants commanded a dominant 62.02% share of the market, underscoring Kuwait's inclination towards convenient and budget-friendly dining. This trend caters not only to the fast-paced local lifestyle but also to the diverse tastes of its expatriate community. Meanwhile, Cloud Kitchens are making waves as the industry's fastest-growing segment, boasting a notable 8.74% CAGR from 2026 to 2031. Their rise is attributed to asset-light business models, which not only curtail capital demands but also facilitate swift expansion across a variety of culinary concepts. Full-service restaurants, holding a steady market share, grapple with tightening margins. This strain is largely due to escalating labor costs, especially for skilled front-of-house personnel, where the art of personalization plays a pivotal role in retaining customers. Meanwhile, Cafes and Bars, capturing a prominent share of the market, thrive on Kuwait's rich coffee culture and its penchant for social dining. Urban hubs like Salmiya and Hawalli are witnessing a surge in specialty coffee shops.

This evolving landscape mirrors a broader embrace of technology. For instance, operators like BBT are rolling out QR parking menu solutions, a move designed to combat Kuwait's sweltering heat. This innovation slashes staff outdoor exposure from a taxing 5 hours to a mere 45 minutes daily, all while efficiently handling hundreds of orders. Yet, for Cloud Kitchens, achieving profitability is no small feat. Industry insiders suggest a robust scale is essential, with 15-30 locations deemed necessary to secure sustainable margins. This is particularly crucial given the commissions levied by aggregator platforms. On the regulatory front, the Public Authority for Food and Nutrition is ensuring stringent food safety compliance across the board. Starting May 2025, new service fees were introduced, which encompassed inspection, licensing, and certification activities.

In 2025, independent outlets captured a commanding 74.35% of the market share, underscoring Kuwait's vibrant entrepreneurial foodservice scene and the agility of local operators in tuning into neighborhood tastes and cultural subtleties. Chained outlets, holding a 25.65% share, are on a growth trajectory, expanding at a robust 10.05% CAGR from 2026 to 2031. This surge is fueled by the ambitions of international franchises and the scaling aspirations of local players. Notably, major franchise entities like Americana Restaurants and Kout Food Group are reaping the benefits of economies of scale across procurement, marketing, and operations. Kout stands out with over 260 restaurants and a workforce exceeding 4,500, spanning multiple global brands. Meanwhile, independent operators shine in serving traditional Kuwaiti dishes and specialized ethnic cuisines. In governorates such as Farwaniya, budget-conscious diners gravitate towards smaller eateries, particularly those offering Asian and Middle Eastern fare.

Chains are strategically positioning themselves in bustling locales, such as The Avenues mall. A testament to this trend is Chipotle's April 2024 debut, facilitated by a partnership with Alshaya, highlighting the confidence international brands have in Kuwait's market. Further underscoring this momentum, Kout Food Group inaugurated a distribution center in February 2024 at Agility Logistics Park in Sulaibiya, signaling a commitment to bolster supply chain efficiency and support their expansion. While independent operators enjoy the advantages of reduced overheads and flexible menus, they grapple with the challenge of securing prime locations, often priced beyond their financial reach.

The Kuwait Foodservice Market is Segmented by Foodservice Type (Cafes and Bars, Cloud Kitchen, Full-Service Restaurants, Quick-Service Restaurants), by Outlet (Chained Outlets, Independent Outlets), by Location (Leisure, Lodging, Retail, Standalone, Travel), and Service Type (Dine-In, Takeaway, and Delivery). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

Americana Restaurants

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support