Saudi Arabia's food and beverage sector is experiencing rapid growth driven by the annual Hajj pilgrimage , as rising demand for meals and catering services opens new investment opportunities linked to the kingdom's expanding "pilgrim meals economy".
According to data from the Saudi Central Bank, the sector processed financial transactions totalling 3.7 billion Saudi riyals ($986 million) in a single week in March, ahead of the Hajj season, highlighting the scale of spending on food services for pilgrims and visitors.
Some sub-sectors within the food industry are recording annual growth rates of up to 54%, while Saudi authorities are also accelerating digital transformation measures through the rollout of the second phase of electronic invoicing regulations for businesses generating more than 375,000 riyals in revenue.
Industry analysts say the move could create wider opportunities for local entrepreneurs and small businesses to join the Hajj supply chain.
As logistical pressure intensifies during the five-day Hajj pilgrimage in Mecca , major retailers are introducing flexible operating models, including temporary 24-hour stores to ensure pilgrims have access to food and ready-made meals amid heavy congestion and extreme heat.
While large companies have successfully managed the distribution of millions of chilled water bottles and food products using advanced cooling supply chains, the seasonal market has also exposed logistical gaps that smaller local businesses and family-run producers could help fill.
A report published by retail and business analysis platform BriefGlance noted that local producers often have greater flexibility in preparing traditional home-cooked meals and delivering fresh food more quickly than large centralised kitchens located far from pilgrim accommodation sites.
Economist Hossam Ayesh described the pilgrim meals sector as a model of Saudi Arabia 's growing "event economy", where seasonal demand can support small producers, entrepreneurs and families alongside major corporations.
"This approach helps distribute economic returns more broadly and strengthens participation between large and small businesses," Ayesh told The New Arab .
He argued that government policies should gradually increase participation quotas for small businesses in future Hajj seasons to encourage entrepreneurship and reduce monopolisation by major food companies.
Ayesh compared the process to integrating new players into sports teams, saying smaller operators could eventually grow into year-round businesses after gaining seasonal experience through Hajj-related contracts.
Meanwhile, economist Mohammed al-Nair said the Hajj catering sector requires more than 30 million meals during the pilgrimage season, with around 280 to 300 companies competing for contracts worth billions of riyals.
Although he said it would be difficult to hand the entire project to small businesses immediately due to limited experience and resources, he argued that allocating even a partial share of contracts to entrepreneurs and family-run businesses would represent a major economic boost for emerging sectors.
Al-Nair also proposed establishing a dedicated fund to channel charitable donations towards financing small producers who prepare free meals for pilgrims, thereby turning individual donations into more structured institutional support.
Over 1.5 million Muslims have begun filling a vast tent city in the holy city of Mecca on Monday, and that's a lot of people to feed already.