Saturday, 30 August 2025

Upbeat outlook for UAE catering services

The UAE catering services market is set for sustained expansion from 2025 to 2030 with a CAGR of about 6% over the forecast period.

According to a report from MarkNtel Advisors, the momentum is underpinned by the UAE's growing tourism base, more international events and exhibitions, a rebound in air travel, and the presence of globally-recognised catering service providers. 

At the same time, changing consumer preferences—toward healthier, fresher, and premium dining options—are reshaping menu innovation and pushing operators to differentiate through compliance, customer experience, and sustainable practices, the consultancy said. 

MarkNtel Advisors said the UAE catering industry is witnessing a new phase of growth, driven by shifting consumer preferences, technological advancements, and rising demand across the events, tourism, and corporate sectors. 

Customers are increasingly seeking hygienic, health-conscious, and customised meal options, while caterers are integrating innovations like digital ordering, cloud kitchens, and automation to enhance efficiency. 

With the country strengthening its position as a global hub for weddings, exhibitions, and meetings, incentives, conferences, and exhibitions (MICE), opportunities for catering providers are expanding rapidly. At the same time, sustainability initiatives such as ecofriendly packaging and dietary flexibility—including vegan, organic, gluten-free, and halal-certified menus—are reshaping offerings, making adaptability and innovation essential for market competitiveness. 

Drivers of market growth include:  

Tourism and events

The UAE's global positioning as a tourism hub is a central growth pillar. Large-scale international events—such as Expo, Intersec, and GITEX—alongside year-round trade fairs, conventions, and exhibitions generate steady demand for banquet and corporate catering. With Dubai and Abu Dhabi cementing their reputations as regional MICE capitals, event-driven catering volumes are expected to remain robust.  

Non-contractual catering is primarily linked to events, weddings, and short-term engagements. While cyclical and seasonal, it remains lucrative during peak tourism and event cycles.   

Aviation and in-flight catering

The UAE is home to leading global carriers such as Emirates and Etihad Airways. The surge in air passenger traffic, coupled with fleet expansion initiatives, translates directly into higher demand for in-flight catering. 

Emirates Flight Catering (EKFC), for instance, operates one of the world's largest culinary facilities, producing more than 250,000 meals daily across 160,000 sq m of space. Partnerships between airlines and catering providers are set to deepen, with opportunities for service differentiation around menu innovation and sustainability.  

Corporate and institutional demand

The rapid pace of corporate expansion in the UAE—driven by free zones, low corporate tax regimes, and foreign direct investment—has fuelled demand for contract catering in office complexes, schools, and hospitals. Contract-based catering services are particularly favoured for their long-term cost efficiency, menu flexibility, and reliability.  

The corporate segment is largest in this market, fuelled by the increasing establishment of MNCs and regional HQs. Caterers targeting corporates are increasingly offering customised, health-focused menus to match employee wellness initiatives. 

Healthcare growth

The healthcare sector is becoming a powerful demand centre for catering services. Hospitals are increasingly outsourcing patient meals, clinician catering, and canteen management to specialised providers. Post-COVID, the emphasis on nutrition, hygiene, and timely delivery has become even more prominent, positioning hospital catering as both a growth driver and a compliance-critical domain. 

Hospitals are emphasising specialised dietary plans aligned with patient recovery and clinical nutrition requirements, MarkNtel Advisors said.

Other significant sectors include:

Education

Schools and universities are investing in nutritious meal programs, particularly in Abu Dhabi and Dubai.
Healthcare: 

Defense and offshore

Demand for robust, HACCP-compliant food solutions in defense bases, mining, and offshore oil rigs.
Event Management & Leisure: Weddings, conferences, sports events, and cultural festivals drive this segment. 

Mining and engineering, procurement and construction (EPC) projects

Contracted services for remote sites, particularly for oil and gas exploration as well as infrastructure projects. 

With UAE's active oil and gas as well as EPC projects, remote and industrial catering demand is expected to rise further. 

Top players mentioned in the report include EKFC, ADNH Catering, Royal Catering, National Catering Company (NCC), Abela & Co., WLL, KEITA, Al Jazeera International Catering, Kelvin Catering, Baguette Catering Services, and Emirates Catering Services.

This diverse roster of players compete across corporate, healthcare, aviation, hospitality, and remote site catering. Competition is increasingly driven by menu innovation, compliance excellence, sustainability commitments, and ability to scale across multiple sites. 

On the geographical front, Dubai is the lead region due to its strong tourism ecosystem, the presence of major catering companies like EKFC, and an active events calendar. Urban lifestyles and casual dining trends also fuel catering demand here.

Abu Dhabi and Al Ain host significant demand from the healthcare, defence, and corporate sectors, complemented by megaproject activity.

Sharjah and the Northern Emirates may have a smaller share but are also growing, supported by regional universities, mid-size corporates, and community events. 

Opportunities and trends in the UAE catering services industry include: 

Growing air traffic

With iconic tourist attractions such as Burj Khalifa, Sheikh Zayed Mosque, and Palm Jumeirah, alongside rising business travel, UAE's air traffic is expanding rapidly. This directly boosts the demand for in-flight catering, positioning it as one of the most dynamic sub-segments of the market.  

Health and wellness revolution

Caterers are rapidly adapting to the shift toward healthier meals. Trends include: 

  • Organic and locally sourced ingredients
  • Vegan and plant-based options
  • Reduced reliance on frozen/prepared foods
  • Customised dietary menus for corporate and hospital clients

Automation and technology

The adoption of automated kitchens and digital tools for menu planning, inventory, and HACCP compliance logging is transforming operations. Internet of Things (IoT)-enabled fleet management and kitchen robotics are gradually being tested to reduce turnaround time and enhance food safety.  

Sustainability 

UAE catering operators are integrating sustainable practices, including waste reduction programmes, ecofriendly packaging, and local sourcing partnerships (e.g., vertical farms like Bustanica). These initiatives align with both corporate environmental, sustainability and governance (ESG) mandates and government sustainability agendas.  

On the down side, input cost volatility, which can include imported food items and energy prices, are impacting pricing models. There are also labour management challenges due to the reliance on an expatriate workforce, as well as seasonal volatility linked to event-driven catering cycles. Caterers also need to navigate complex compliance requirements with multiple regulatory bodies and legislation: the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), Dubai Municipality, and the Federal Food Safety Law among them. 

Details

Explore the UAE Catering Services Market Research Report at https://www.marknteladvisors.com/research-library/uae-catering-services-market.html