The Middle East’s food industry is undergoing a tech-driven revolution, with innovations in AI, sustainability, and supply chain optimization redefining how food is produced, distributed and consumed.
The Middle East’s food sector is undergoing rapid transformation, fuelled by population growth, rising incomes, and increasing demand for locally sourced food. The food service market alone in the region is projected to grow at a compound annual growth rate (CAGR) of 11.14% over the next decade, reaching $158.5 billion by 2034. Additionally, the broader food market is expected to expand by 4.39% from 2024 to 2028, with revenue anticipated to hit $135.5 billion this year.
This surge is driven by several factors: the growing spending power of young professionals leading fast-paced urban lifestyles, the rise of gastronomic hubs across the region, increasing consumer awareness of nutrition and healthy eating, and a record influx of tourists creating new customer segments. Moreover, governments are actively investing in local food production to enhance food security and build a more resilient regional food ecosystem.
Yet, despite its rapid evolution, foodtech is often mistakenly equated solely with food delivery apps. In reality, it encompasses a vast spectrum of innovations that are reshaping the food industry—from advancements in agri-tech and alternative proteins to supply chain optimization and AI-driven food waste reduction. As global concerns around food security, sustainability, and waste management intensify, foodtech is emerging as a crucial player in tackling these challenges, offering solutions that extend far beyond convenience-driven online ordering. As the sector continues to mature, understanding its broader impact is essential.
What Defines Foodtech?
Foodtech in 2025 is defined by its drive to create impact through innovation, sustainability, and digital transformation. No longer limited to food delivery, the ecosystem has expanded to include AI-driven personalisation, agri-tech, plant-based alternatives, and supply chain optimization. Several startups in the Middle East exemplify these advancements:
Tackling Food Waste and Sustainability: One standout example is Barakah, a Saudi-based online marketplace addressing commercial food waste. By connecting food retailers with consumers, Barakah facilitates the sale of surplus products and discounted meals, reducing waste while promoting affordability. As ESG principles are becoming a driving force in foodtech, with companies like Barakah showcasing how sustainability and technology intersect to create impact.
An image of Lola’s cake boxes used for delivery – Image Source: Lola
Expanding the Foodtech Ecosystem: Beyond sustainability, the foodtech sector in the region is growing in various directions. Portfolio companies like Lola are pioneering consumer-centric innovations, offering a seamless cake-ordering experience through an app and website. According to Othman Janahi, founder and CEO of Lola, “The FoodTech ecosystem is evolving beyond online ordering into a space where innovation meets personalization. Our vision is to lead the way in making FoodTech not just convenient, but deeply meaningful and sustainable for every customer.”
Furthermore, companies like Suplyd are transforming how restaurants source ingredients by tackling supply chain and B2B procurement. Suplyd, based in Egypt, is tackling one of the industry’s most fragmented sectors by helping restaurants optimize their supply chain and inventory management, connecting them to operators and suppliers.
AI & Automation – The Next Frontier: Advances in AI and automation are driving the evolution of the foodtech sector. Enver, CXO and Co-Founder of Growdash, highlights this shift, stating that “AI is transforming foodtech by making it easier than ever for restaurants to be truly data-driven.”
From cloud kitchens utilizing AI-powered order management to food robotics enhancing efficiency, automation is reshaping both food production and delivery. Othman underscores the impact of these technologies, explaining that at Lola, “AI and digital tools transform cake design into an interactive, waste-conscious experience.”
Growdash platform screenshot – Image Source: Growdash Website
Beyond kitchen automation, AI is also revolutionizing decision-making in the industry. Enver elaborates on Growdash’s approach, explaining that the company **“**leverages AI to provide restaurant operators with actionable insights that optimize pricing, promotions, and performance across delivery platforms—without the guesswork. In an industry where margins are tight and competition is fierce, AI ensures that every decision is backed by data, maximizing both efficiency and profitability.”
Health & Personalised Nutrition: The shift in consumer behaviour post-pandemic has also fuelled the rise of Calo, a meal delivery service that personalizes nutrition by tracking calorie intake and dietary needs. Operating across Bahrain, Saudi Arabia, Kuwait, Qatar, the UAE, and the UK, Calo offers a tech-driven approach to meal planning, aligning convenience with health-conscious choices.
Camel Milk from Desert Farms – Image Source: Desert Farms Website
Sustainability-Focused Innovation: Sustainability remains at the heart of foodtech, with companies like Desert Farms pioneering camel milk products that are paleo-approved, gluten-free, and non-GMO. As consumers embrace environmentally friendly alternatives, companies like Desert Farms highlight how traditional products can be reimagined for modern consumers.
As foodtech continues to evolve, its role in shaping the future of food in the Middle East extends far beyond convenience – it is about creating a more sustainable, efficient, and innovative food ecosystem that meets the needs of a rapidly growing and changing population.
Market Dynamics in 2025: Innovation vs Imitation
The Middle East’s foodtech sector is evolving rapidly, balancing between innovation and imitation. While some segments are maturing with established players consolidating their dominance, new entrants are finding opportunities in untapped niches. The food delivery space, once a hotbed for startups, has seen its share of copycat models. However, in this space, success isn’t just about being first – it’s about doing it best.
Image Source: Shutterstock
Food delivery technology in the region has reached a stage of maturity, marked by major IPOs and acquisitions. Talabat, originally founded in Kuwait in 2004, was acquired by Rocket Internet in 2015, and went public in 2024, making it one of the largest global technology IPO and the biggest MENA IPO of the yeari. Similarly, Saudi-based Jahez, which dominated its home market, became the first VC-backed company in Saudi Arabia to be publicly listed in 2022ii. These milestones highlight foodtech’s progression towards consolidation, signalling increased investor confidence and market refinement.
As food delivery platforms reach maturity, success increasingly depends on data-driven decision-making rather than just market presence. Companies like Growdash empower restaurants with deep market intelligence, helping them optimize pricing strategies, promotions, and customer acquisition in an increasingly competitive landscape.
Emerging niches such as food-as-medicine and hyper-local production are gaining traction. Consumers are becoming more health-conscious, fuelling demand for technology-driven solutions that cater to personalized nutrition and sustainable sourcing. Platforms like Suplyd are addressing inefficiencies in the B2B food supply chain by bridging the gap between restaurants and suppliers, a sector previously overlooked by tech disruption.
Beyond logistics and procurement, innovation is redefining consumer experiences. AI-driven meal kits, dynamic pricing based on food expiry, and hyper-personalized nutrition services are setting new standards. Lola, with its on-demand customizable cakes, and Desert Farms, a pioneer in camel milk-based products, exemplify how brands are leveraging technology to enhance convenience and health-focused offerings.
Another emerging trend is vertical integration, where companies control the entire food production and distribution chain – from fark to fork. This model ensures better quality control, cost efficiency, and a more sustainable supply chain. As foodtech in the region matures, those who innovate beyond conventional models will be the ones to define its next phase of growth.
Conclusion
As the foodtech landscape in the Middle East continues to evolve, the balance between innovation and market consolidation will shape the industry’s next phase of growth. While mature segments like food delivery have reached a turning point with major IPOs and acquisitions, emerging players are redefining foodtech.
Those who embrace genuine innovation—whether through waste reduction, AI-powered solutions, or consumer-centric convenience—will not only drive the industry forward but also create meaningful impact. In 2025 and beyond, foodtech in the region is no longer just about efficiency; it’s about transformation.
Sources
[1] Why the Middle East food service market is a big opportunity. Inflavour Expo.
https://www.insights.inflavourexpo.com/why-the-middle-east-food-service-market-is-a-big-opportunity-2/.
[2] Anthon Garcia (2024). Opportunities in the GCC’s food and beverage market. Middle East Economy.
https://economymiddleeast.com/news/gcc-food-beverage-industry-opportunities/
[3] MB Staff (2024). Talabat rasises over $2 billion, valued at $10.2 billion in the largest global tech IPO of the year. Menabytes. .
https://www.menabytes.com/talabat-final-ipo-price/
[4] Erika Welch (2023). Tracking Jahez’s five-year journey to become a unicorn in Saudi Arabia’s hypergrowth consumer-tech market. Entrepreneur Middle East.
https://www.entrepreneur.com/en-ae/growth-strategies/tracking-jahezs-five-year-journey-to-become-a-unicorn-in/447936