Beyond the kitchen: How technology is transforming Saudi Arabia’s food industry

Jul 31, 2025

Noha Gad 

 

The food and beverage (F&B) sector represents a key pillar in Saudi Arabia’s journey towards economic diversification and sustainable growth. This promising industry has witnessed a significant expansion with technology being a catalyst for seismic changes in the sector amid shifting market dynamics and evolving consumer demands.

A recent report by AstroLabs, the leading business expansion platform in MENA, revealed that the market value of the Saudi F&B industry reached $45 billion in 2024, presenting lucrative business opportunities across its segments and subsegments. The same report anticipated consumer spending on food services to rise by 6% annually over the next five years, while the food delivery market is projected to surge to $14.9 billion by 2028.

Technology has profoundly transformed every stage of the food value chain, from using advanced agricultural technologies that enhance farming and enable controlled environment agriculture, to shaping how food is accessed, prepared, and enjoyed. Integrating IoT and blockchain also enhanced supply chain transparency, food safety, and traceability, building greater consumer trust and reducing inefficiencies throughout the sector.

This synergy between tradition and modernity not only preserves Saudi Arabia’s culinary heritage but also ensures that technology remains at the heart of future growth, delivering resilient, sustainable, and world-class food systems for generations to come.

Another report by the global business consulting firm, Grand View Research, unveiled that the food technology (foodtech) market in Saudi Arabia is expected to reach $10.2 million by 2030, marking a compound annual growth rate (CAGR) of 10.5%.

Additionally, the latest report by the Saudi Central Bank (SAMA) highlighted that the point-of-sale (PoS) sales in the F&B sector surpassed SAR 165.7 billion during the second quarter (Q2) of 2025, backed by a humble increase in the number of transactions, which reached over 2.7 billion.

 

Critical things to consider for establishing a strong presence in the Saudi F&B sector

  • Testing the market first and prioritizing omnichannel retail. Companies that aspire to expand into Saudi Arabia must test their products in the market before making large investments. Also, omnichannel retail involving online and offline sales has become an important mainstay in the Saudi retail sector, while the growth of younger consumers has resulted in a shift from traditional trade to modern trade. 
  • Obtaining Halal certifications and forging partnerships with local players. Halal certification is necessary for food brands to gain a foothold in this market. They need to ensure compliance with Saudi Food and Drug Authority (SFDA) regulations.
  • Utilizing logistics and temperature-controlled delivery hubs to ensure products remain fresh.

 

The Saudi foodtech landscape is bustling with innovations and investment, with several startups leading the charge, notably Nana, the dark store grocery delivery startup and a key player in the digital shopping solutions sector; Foodics, the leading cloud-based technology and payments platform for restaurants; iyris, the innovative agriclimate tech company specializing in advancing commercial farming; Mr. Mandoob, a state-of-the-art delivery platform that connects consumers with various dark stores, and more. 

 

Key innovations that transform the F&B sector in Saudi Arabia 

 

Cloud Kitchens 

The cloud kitchen business is transforming the food service industry in Saudi Arabia, providing a unique blend of convenience and innovation to meet the evolving demands of consumers. Cloud kitchens, or virtual kitchens, operate exclusively for delivery orders without dine-in options, offering a cost-effective alternative to traditional restaurants. This model allows food entrepreneurs and established restaurant chains to launch multiple brands from a single kitchen space.

The boom in the cloud kitchen industry was driven by high demand for delivery services, notably during the COVID-19 pandemic, lower operational costs, flexible operations, and the emergence of e-commerce and delivery platforms, such as Jahez, HungerStation, and Talabat.

 

According to a survey conducted by Qoot, a subsidiary of management consulting firm Mukatafa, 44% of respondents believe that cloud kitchen businesses have lower operational costs than a normal restaurant. However, 56% said they saw fewer sales than a normal restaurant business, with only 17% reporting more sales.

The cloud kitchen market in Saudi Arabia is expected to hit $335.7 million by 2030, growing at a CAGR of 7.7% from 2021 to 2030, as stated by Al Taasis, a leading business incorporation and on-the-ground corporate solutions specialist.

Over the next five years, Saudi Arabia is anticipated to become one of the leading markets for cloud kitchens in the region, backed by urbanization, government support for entrepreneurship, and a growing appetite for digital services.

Establishing a cloud kitchen business offers various advantages, including the flexibility in menu changes, reduced financial burden, operational efficiency, and direct access to customer insights.

 

Subscription Meal Services

The subscription meal services industry in Saudi Arabia is gaining momentum as consumers increasingly seek convenient, healthy, and personalized dining options. This service offers customers the ability to subscribe to meal plans that deliver ready-to-eat or easy-to-prepare meals regularly, catering to varying dietary needs and preferences. 

The rising awareness of nutrition and wellness, urban lifestyles that limit time for cooking, and the integration of digital platforms that enhance user experience have accelerated the growth of subscription meal services in the Kingdom.

The ‘KSA Subscription-based Meals Market Research’ report, published by MarkNtel, stated that the subscription-based meals market in Saudi Arabia reached $254 million in 2024, and is expected to hit $383.5 million by 2030, with a CAGR of around 7.11% during 2025-2030.

Figures released by the global data and business intelligence platform, Statista, revealed that revenue in the Saudi meal delivery market is projected to surpass $10 billion in 2025 to reach $11.7 billion by 2030.

Calo is one of the key players that revolutionizes personalized meal subscriptions in Saudi Arabia. In 2024, it delivered 10 million meals across the GCC, reinforcing growing demand for data-driven, personalized nutrition.  

Other Saudi subscription meals platforms, such as Freshhouse, Right Bite, and Dailymealz, allow users to update their meal plans, pause or skip deliveries, and provide feedback, creating a highly user-centric experience. They provide consumers flexibility in meal selections, customizable menus, and streamlined delivery schedules, making it easier for them to maintain consistent healthy eating habits.  

 

AI-Powered Food Applications

Technology is a game-changer in the online food delivery market in Saudi Arabia. Platforms invest heavily in new tools that make things easier for users and run their operations better. They also utilize artificial intelligence (AI) and data to tailor their services, predict consumer preferences, and find the best routes for delivery. A recent report published by IMARC Group stated that the online food delivery market in Saudi Arabia is expected to record $5.71 billion by 2033, marking a CAGR of 13.6 during 2025-2033.

The AI-powered food applications in Saudi Arabia operate within a rapidly growing multi-billion-dollar online food delivery market, backed by high-tech infrastructure, a high internet penetration rate (99%), a large base of digital consumers, and heavy use of AI for personalization, logistics, and operational efficiency

Finally, the emergence of a digital food landscape has created opportunities for new delivery systems. The ongoing digitization of the food delivery space reflects a dynamic scene with potential shifts and increased business activities, contributing to the development of the Saudi tech sector and the realization of Vision 2030’s objective of localizing 85% of its food industry by 2030. 

 

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The Rise of Saudi Biotech: Startups Driving the Kingdom’s HealthTech Revolution

Ghada Ismail

 

Saudi Arabia’s push to diversify its economy under Vision 2030 has brought several sectors into sharp focus, but few are as strategically significant as biotechnology. Once viewed largely as a research-driven niche, biotech has now become a national priority—one that sits at the intersection of healthcare resilience, economic diversification, food security, and advanced manufacturing. At the heart of this shift is a growing cohort of startups working to translate scientific research into scalable, locally relevant solutions.

While Saudi Arabia’s biotech startup ecosystem remains relatively young compared to established global hubs, momentum is building quickly. Government-backed accelerators, evolving regulatory frameworks, and stronger collaboration between academia, hospitals, and industry are laying the foundations for a homegrown life sciences sector with regional—and potentially global—reach.

 

Why Biotech Matters to Saudi Arabia

Biotechnology holds a unique position in Saudi Arabia’s long-term economic planning. Beyond innovation, it addresses structural national challenges. The Kingdom faces a high prevalence of chronic conditions such as diabetes, cardiovascular disease, and inherited disorders, while remaining heavily dependent on imported pharmaceuticals and biologics—an exposure highlighted during recent global supply chain disruptions.

In response, Saudi Arabia launched its National Biotechnology Strategy in January 2024, aiming to localize biopharmaceutical manufacturing, strengthen research and development capabilities, and attract global partnerships. Closely aligned with Vision 2030, the strategy supports broader goals, including knowledge transfer, high-value job creation, and non-oil GDP growth.

Startups play a central role within this framework. Unlike large pharmaceutical companies, early-stage ventures are inherently agile, able to experiment with novel technologies and address niche or underserved health needs. In Saudi Arabia, many are focusing on solutions tailored to regional disease profiles, giving them both local relevance and long-term competitive potential.

 

The Rise of Saudi Biotech Startups

Although still limited in number, Saudi biotech startups are expanding rapidly in scope, spanning diagnostics, therapeutics, genomics, regenerative medicine, and antimicrobial innovation. Many have emerged from university research environments or were founded by Saudi scientists returning from abroad with international experience.

One of the most closely watched areas is diabetes innovation, driven by the Kingdom’s high disease prevalence and the strategic need to localize essential treatments. Plansulin, a Riyadh-based startup founded in 2020, is developing plant-based insulin as an alternative to conventional biologics manufacturing. By using plants as biofactories, the company aims to reduce production costs, lower environmental impact, and improve the sustainability of insulin supply. Plansulin is part of the inaugural cohort of startups selected for the Ministry of Health’s Biotech Accelerator, reflecting its alignment with national healthcare and innovation priorities.

Another startup attracting attention is cellNUA, which operates at the intersection of nanomedicine and immunotherapy. The Saudi arm of the Ireland-based company draws inspiration from natural immune mechanisms—particularly those found in honeybees—to inform its therapeutic development. Through its Beemar platform, cellNUA explores comparative genomics and bio-inspired nanomolecules to develop next-generation vaccines, antivirals, and immune-modulating therapies. While still in early development stages, the company exemplifies the type of science-driven innovation policymakers are keen to nurture.

Vaccine development is also gaining traction. SAGEbio is working on next-generation vaccine and therapeutic protein platforms designed to improve efficacy and scalability. Its novel antigen platform, co-developed with King Abdullah University of Science and Technology (KAUST), aims to enhance vaccine manufacturing and delivery. The startup’s lead COVID-19 vaccine candidate is advancing toward Phase 1 clinical trials, highlighting efforts to build local capabilities for future pandemic preparedness.

 

Genomics and Precision Medicine Take Center Stage

Genomics has emerged as one of Saudi Arabia’s most promising biotech verticals, supported by initiatives such as the Saudi Genome Program, which is building one of the region’s largest population-specific genetic databases. This infrastructure is creating fertile ground for startups focused on precision diagnostics and personalized medicine.

Novo Genomics, founded in 2022, is one such company. Based in Riyadh, it specializes in advanced genetic diagnostics, including circulating tumor DNA testing and polygenic risk scoring tailored to Saudi and Middle Eastern populations. By grounding its technology in local genomic data, Novo Genomics addresses a key limitation of imported diagnostic tools that are often trained on non-representative datasets.

Similarly, NanoPalm is developing advanced delivery technologies, including lipid nanoparticle systems that improve the effectiveness of genetic and RNA-based therapies. As global biotech increasingly shifts toward gene-based treatments, delivery mechanisms have become as critical as the therapies themselves, making NanoPalm’s focus particularly timely.

Early detection is another growing focus. KaRama Bio is working on early-stage disease detection technologies, reflecting a broader shift toward preventive and predictive healthcare. Early diagnosis remains one of the most effective ways to reduce long-term healthcare costs and improve patient outcomes, particularly in oncology and chronic disease management.

 

Regenerative Medicine and Novel Therapeutics

Beyond diagnostics, Saudi biotech startups are also exploring regenerative medicine and alternative therapeutic approaches. MammoStem focuses on stem cell-based solutions aimed at tissue regeneration and recovery, particularly following surgical or chronic conditions. While regenerative medicine is complex and heavily regulated, it holds significant long-term potential as populations age and demand for restorative therapies increases.

Antimicrobial resistance represents another strategic frontier. With antibiotic resistance widely recognized as a global health threat, PhageTech is developing bacteriophage-based solutions as alternatives to conventional antibiotics. Although phage therapy remains relatively niche, renewed global interest suggests that local innovation in this space could position Saudi Arabia as a regional leader.

 

Building the Ecosystem: Accelerators and Institutions

Biotech startups do not operate in isolation, and Saudi Arabia has begun addressing one of the sector’s biggest barriers: ecosystem support. A major milestone was the launch of the Kingdom’s first dedicated Biotech Accelerator by the Ministry of Health in partnership with global life sciences incubator BioLabs. Announced at the BIO International Convention, the accelerator provides mentorship, lab access, commercialization guidance, and global networking opportunities.

Earlier-stage support has also come from the Badir Biotechnology Incubator, under King Abdulaziz City for Science and Technology (KACST), which has played a foundational role in translating research into viable biotech companies through funding, technical support, and industry connections.

Complementing these initiatives, Dammam Valley launched its Biotech Startups Programme to bridge the gap between research and commercialization. Developed in partnership with Imam Abdulrahman bin Faisal University, Saudi Aramco, multiple ministries, the Future Investment Initiative Institute, and Sadara Petrochemical Company, the program supports startup creation, technology localization, and access to investment aligned with the National Biotechnology Strategy.

On the manufacturing front, Saudi Biotechnology Manufacturing Company (SaudiBio) is laying the groundwork for scalable biopharmaceutical production. The company operates the Kingdom’s first GMP-certified sterile fill-and-finish facility for biologics, including insulin and biosimilars, enabling startups to transition from lab-scale innovation to commercial readiness.

Private capital is also beginning to play a larger role. Founded in 2024, Biotech Innovations Co (BIC) represents a new wave of private-sector investment into biologics, vaccines, and gene therapy R&D, helping anchor startups within a broader industrial value chain.

 

Regulatory Progress and Remaining Challenges

Despite rapid progress, Saudi Arabia’s biotech ecosystem still faces structural challenges. Biotechnology is capital-intensive, with long development timelines and complex regulatory requirements. Access to late-stage funding, particularly for clinical trials, remains limited, and navigating approvals can be challenging for first-time founders. Talent availability is another constraint, as advanced biotech R&D requires specialized expertise that is still developing locally.

These challenges, however, are not unique to Saudi Arabia. What distinguishes the Kingdom is the scale of state commitment to addressing them through coordinated policy, funding, and international collaboration.

 

Looking Ahead: From Emerging Market to Regional Hub

Saudi Arabia’s biotech startup scene may still be emerging, but its trajectory is clear. With strong government backing, growing private-sector involvement, and a focus on locally relevant health challenges, the Kingdom is laying the foundations for a sustainable life sciences economy.

Over the next decade, success will depend on startups’ ability to scale, attract long-term investment, and integrate into global biotech value chains. If these conditions are met, Saudi Arabia could evolve from a consumer of biotechnology into a regional—and eventually global—contributor to life sciences innovation.

In that sense, biotech startups represent more than another Vision 2030 initiative. They signal a deeper shift in how the Kingdom approaches health, science, and economic resilience.

When Industry Grows, So Does a Nation

By Dr. Mohanad AlShaikh

CEO, Johnson Controls Arabia

 

Saudi Arabia’s industrial sector continues to stretch its wings, and the recent robust performance in October is a clear signal that the Kingdom’s economic transformation is succeeding in both depth and direction. According to official data from the Ministry of Industry and Mineral Resources, 95 new industrial licenses were issued in October 2025, representing more than SR 2.4 billion in planned investment. Meanwhile, 81 factories moved into actual production with about SR 1.3 billion in investment and nearly 2,000 new jobs created, a testament to momentum at the grassroots of the non‑oil economy.

 

This growth matters far beyond the numbers themselves. It shows that Saudi Arabia’s strategy to re-engineer its industrial landscape is working, not just in broad ambition, but in real factories, real jobs, and real economic impact. At the heart of this transformation is Vision 2030’s call for localization, empowered talent, and export-ready production. The idea is simple yet profound: a country that makes what it uses and exports what it makes gives its people sovereignty in their livelihoods and its economy greater resilience. Growing industrial output and factory activation are essential steps in creating a manufacturing base that can compete regionally and internationally.

 

I witnessed this momentum firsthand during the Ministry of Industry and Mineral Resources’ Standardized Incentives for the Manufacturing Sector event recently in Riyadh, where an official signing ceremony was held to award incentives to select manufacturers. Johnson Controls Arabia was honored to be among the recipients, with a project focused on localizing production of advanced water-cooled centrifugal chillers.

 

His Excellency Bandar Alkhorayef, Minister of Industry and Mineral Resources, opened the event by announcing that SR 2 billion has been earmarked to support new and expanding factories across the Kingdom. His speech was followed by mine, where I shared a belief deeply held across our company:

“A country that manufactures is a country that holds its destiny in its own hands.”

 

This vision is moving from words to implementation and the results are visible not only in industrial licensing and factory activation but also in trade performance. Saudi Arabia’s non-oil exports reached a record SAR 307 billion in the first half of 2025, marking the highest level in the Kingdom’s history. This achievement underscores the link between industrial growth and global competitiveness: every new factory and every localized product strengthen the Kingdom’s ability to compete internationally.

 

Localization is a foundation for scale, quality, and global relevance, never a move toward isolation. A product labeled “Made in Saudi” becomes more than an economic input. It becomes a statement of national capability. The ability to export high-value, high-quality Saudi products is essential to the Kingdom’s ambitions to expand its role among the world’s industrial powers.

 

As the Kingdom sets its sights on elevating its global industrial standing, this kind of growth and investment is not just a metric of success, it’s a strategic necessity. Industrialization supports diversification, anchors value chains, and enables the very sovereignty that Vision 2030 envisions.

 

When factories expand, licenses multiply, and production lines hum with activity, we witness a nation accelerating toward a future it is building with its own hands.

 

How to farm a desert? Saudi Arabia bets big on autonomous robotics

Noha Gad

 

Emerging technologies are reshaping the future of agriculture and farming in the Middle East. Advanced technologies, such as artificial intelligence (AI), computer vision, and IoT-powered sensors, are pivotal in transforming crop scanning speeds and harvest precision, addressing challenges including water scarcity, labor shortages, and arid conditions. In Saudi Arabia, autonomous farming robots are used to sow, fertilize, and apply pesticides in a single pass, enabling round-the-clock operations while cutting labor costs, aligning with Vision 2030's push for innovation.

Farming in the Kingdom is becoming more efficient and sustainable than ever before, thanks to AI-powered technologies. For instance, predictive systems could help farmers avert up to 30% of crop losses due to pests and disease before an outbreak goes out of control, according to a report released by Tanmeya Capital. In high-tech farms, AI-powered robots have increased harvesting efficiency by 50% and broader AI-driven automation has reduced labor costs by up to 35%, addressing the Kingdom’s labor shortages and rising operational expenses.

The agricultural autonomous robots market in Saudi Arabia is seeing significant growth, triggered by the urgent need for enhancing agricultural productivity and sustainability. According to recent estimates released by Mobility Foresight, one of the global market research firms specializing in mobility and tech domains, the market size is valued at nearly $100 million and is expected to expand at a compound annual growth rate (CAGR) of nearly 20% over the next five years. In 2028, the Saudi market is anticipated to hit $250 million, driven by the integration of AI and machine learning into agricultural robots, which will ultimately enhance their capabilities, making them indispensable for modern farming operations. 

This growth will be fueled by increasing investments in agricultural technology (agri-tech), and the adoption of innovative farming practices will play a vital role in ensuring food security and economic diversification.

The increasing amount of data generated by autonomous systems paves the way for developing analytics platforms that help farmers make informed decisions based on real-time data. Additionally, supporting startups and companies that focus on innovative solutions in the agri-tech space can yield high returns, especially those that integrate robotics and automation into farming practices.

 

How autonomous robots revolutionize agriculture and farming in Saudi Arabia

Various types of autonomous robots transform agriculture and farming in Saudi Arabia. For example, drones are used for aerial monitoring, crop spraying, and data collection, while harvesting robots can identify ripe crops and harvest them with precision. IoT-powered sensors can also monitor soil health and nutrient levels, providing valuable data for farmers. Additionally, automated tractors can carry out planting, tilling, and other field operations without human intervention. The use of autonomous robots in agriculture is expected to revolutionize traditional farming methods, leading to sustainable practices, improved crop management, and higher productivity. 

One of the key benefits of integrating smart robotics in agriculture is that it targets labor-intensive tasks, like planting, harvesting, and monitoring, using AI, sensors, and drones to enhance precision in arid conditions. For planting automation, autonomous robots plant seeds at optimal depth and spacing, applying fertilizers and pesticides precisely during sowing, which reduces waste and frees farmers for strategic tasks. They operate 24/7 and adapt to soil data for uniform crop establishment, especially vital in Saudi Arabia's vast farmlands. Robotic harvesters use high-precision visual sensors to identify ripe fruit, navigate trees, and pick without damage, operating continuously to increase output. 

Earlier this year, King Abdullah University of Science and Technology (KAUST) developed a new robotic system designed to automate date palm harvesting, aiming to disrupt the agriculture industry and position Saudi Arabia as a leader in agriculture innovation.  The project, headed by KAUST Assistant Prof. Shinkyu Park, focused on automating critical tasks in date palm cultivation, including harvesting, pollination, and tree maintenance. By integrating robotics with AI, the project is expected to improve efficiency and deliver higher yields of more nutritious dates, fulfilling the need to modernize and automate traditional practices in the date palm industry in the Kingdom.

Crop monitoring drones with cameras and sensors fly over fields to detect pests, diseases, and health issues early, enabling rapid interventions and minimizing losses. Meanwhile, autonomous ground robots are used to analyze soil for nutrients, pH, and moisture, recommending precise fertilizer applications to maximize yields without excess. This data-driven approach enhances soil health in the long term, reducing costs and promoting efficient resource use in Saudi farms.

For Saudi farmers, agricultural robotics can deliver substantial benefits by tackling core challenges, such as water scarcity, labor shortages, and low productivity in arid environments, ultimately advancing food security under Vision 2030. This includes:

  • Reducing costs and labor expenses by automating repetitive tasks.
  • Conserving water by utilizing precision irrigation systems from robots to deliver water where needed.
  • Improving yields through AI-powered monitoring and harvesting.
  • Reducing chemical runoff through targeted spraying, which contributes to protecting soil and biodiversity while complying with the Saudi's green initiatives. 

 

Humans and agricultural robotics

The transition from traditional farming to smart agriculture demands a fundamental shift in the skills base, creating both a challenge of displacement and an unprecedented opportunity for new, high-value employment. 

The automation of repetitive, labor-intensive tasks will inevitably reduce demand for low-skilled seasonal labor. While addressing labor shortages, this shift creates a pressing social and economic imperative: the need for large-scale reskilling and upskilling of the existing agricultural workforce. Government, tech providers, and institutions could offer certified, hands-on training modules, ensuring the current farming community has the required digital literacy to deal with innovations such as tablet-based control systems, dashboards, and software platforms. Therefore, new high-tech agri-tech professions will emerge, redefining what it means to work in agriculture. The sector will no longer employ farmers, but a suite of science, technology, engineering, and mathematics (STEM) professionals, data analysts, drone operators, agronomy pilots, agricultural robot fleet managers, and agri-tech support technicians.

Finally, the landscape of agricultural autonomous robots in Saudi Arabia is highly competitive and rapidly evolving, driven by a combination of local startups and established global players who develop innovative solutions tailored to the Kingdom’s unique agricultural challenges. By focusing on advanced technologies, like AI, machine learning, and robotics, these companies play a crucial role in creating efficient systems for harvesting, monitoring, and managing crops.

The successful integration of autonomous farming in Saudi Arabia will be measured not only in yield increases and water savings but also in its transition for the workforce. By investing heavily in reskilling programs for today's farmers, the Kingdom can ensure its agricultural revolution builds human capital alongside technological capital. 

 

How community-driven approaches redefine startups’ growth

Noha Gad

 

Traditional top-down models often struggle to scale amid economic uncertainties in today’s fast-evolving startup landscape; hence, the shift towards community-driven startups gained significant momentum. This transformative model redefines success by democratizing the creation process, empowering users not just as buyers but as active participants to co-shape products, amplify voices, and propel growth through authentic connections and collective energy.

While traditional startups often launch polished products into a silent vacuum, community-driven ventures build their roadmap out in the open, alongside their first users.

Community-driven startups heavily rely on their user base who actively participate in shaping the product, culture, and growth trajectory, rather than serving as mere end-users. These startups build platforms or services centered on fostering closed networks of enthusiasts who contribute ideas, content, feedback, and even governance. Unlike passive consumer applications, community-driven startups prioritize ongoing collaboration, including think forums for feature requests, user-generated templates, or member-led events that evolve the offering organically. 

 

Community-driven vs. Traditional startups

Traditional startups follow a top-down blueprint where founders design a product in isolation, launch via paid ads or influencers, and iterate based on metrics such as acquisition cost. Unlike traditional models, where users act as passive consumers reliant on marketing budgets and virality hacks for growth, community-driven approaches make users co-creators and advocates through real-time forums, beta testing, and organic referrals. This model can increase the community engagement rate fivefold as users feel ownership, eventually reducing churn and boosting lifetime value.

 

How to build a strategy as a community-driven startup

Community-driven startups employ strategic steps to cultivate engaged user bases that propel product evolution and sustainable growth. 

  • Clarify the community’s purpose. Identify ideal members through persona research via surveys or outreach on platforms, then choose accessible channels and launch with a small group of 50-100 founding members recruited personally. Hosting weekly events like AMAs (Ask Me Anything), polls, or feedback sessions will help ignite participation and build trust through visible responsiveness.
  • Encourage contributions early with low-friction tools, such as dedicated forums for feature ideas, user-generated content templates, or beta testing invites. Recognizing active members via shoutouts, badges, exclusive access, or revenue-sharing perks will foster a sense of ownership and culture.
  • Expand tactics via referrals and incentives. Introduce scalable events such as mentorship circles, expert webinars, or hackathons to deepen connections without diluting intimacy. Integrate feedback loops continuously to ensure that growth aligns with community needs rather than vanity metrics.
  • Achieve long-term sustainability. Survey members regularly, refine based on data, and foster network effects through peer connections and ambassador programs. This would help startups adapt to changing dynamics and cultivate sub-communities for specialized interests to prevent stagnation.

 

Key benefits

Community-driven startups deliver remarkable advantages by embedding users as core stakeholders, transforming potential costs into self-reinforcing growth engines. Engaged communities foster deep ownership, yielding up to 5x higher retention rates compared to traditional models. Additionally, crowdsourced feedback loops accelerate innovation and help startups minimize product development cycles, while ensuring relevance and delighting early adopters with tailored features.

Loyal members promote the startup through personal referrals and recommendations, which greatly reduce the cost of gaining new customers. Thus, startups will no longer need to launch expensive advertising campaigns, relying on members who naturally increase reach and create network effects that add value with each new member.

Community-based startups are more likely to handle economic challenges among passionate communities that offer stability through ongoing participation. This promotes users’ loyalty and makes them a strong defense against competitors who rely on short-lived trends.

While traditional models focus on isolated polish and paid reach, community-driven startups unlock a more resilient path: turning users into passionate partners who co-build products and fuel growth. This shift significantly redefines how startups grow by prioritizing purpose over polish and collaboration over campaigns, ultimately enabling founders to cultivate not only a wide user base but also a vested community that innovates, retains, and defends together.

Hectocorns: When Companies Hit the $100 Billion Mark

Ghada Ismail

 

For years, the startup world celebrated unicorns—private companies valued at more than $1 billion—as the ultimate success story. Over time, valuations grew, capital became more available, and expectations shifted. This gave rise to decacorns, companies worth over $10 billion.

Now, a much rarer group sits at the very top: hectocorns.

A hectocorn is a company valued at $100 billion or more. The word comes from “hecto,” meaning one hundred, and it describes businesses that have reached an extraordinary level of size and influence. These companies are not just growing fast; they are powerful enough to shape markets and industries.

 

How rare are hectocorns?

Hectocorns are extremely rare. While there are hundreds of unicorns around the world, only a small number of companies ever reach a $100 billion valuation.

Most hectocorns are global giants that dominate their sectors. Examples often include Apple, Microsoft, Saudi Aramco, Amazon, and Nvidia. Their valuations are so large that they are sometimes compared to the economies of entire countries.

 

What makes a hectocorn different?

The difference between a $10 billion company and a $100 billion company is not just an extra zero. Hectocorns usually share a few clear characteristics.

They tend to:

  • Operate at a global scale, not just in one market
  • Serve hundreds of millions, or even billions, of users
  • Offer products or services that people and businesses rely on every day

At this level, competition is no longer only about building a better product. It becomes about managing scale, regulations, supply chains, and long-term strategy.

 

Are there private hectocorns?

Most hectocorns are public companies, meaning they are listed on stock exchanges. Staying private while reaching a $100 billion valuation is very rare.

To do this, a company would need to:

  • Dominate a very large global market
  • Earn exceptional trust from investors
  • Maintain strong growth without public market support

Companies like ByteDance are often mentioned as rare private firms that come close, depending on market conditions. Still, private hectocorns are the exception, not the rule.

 

Will we see more hectocorns?

As technology, artificial intelligence, and emerging markets continue to grow, more hectocorns will likely appear, but slowly, as reaching a $100 billion valuation requires:

  • Long-term resilience
  • Global relevance
  • The ability to survive multiple economic cycles

 

Wrapping Things Up…

In simple terms, hectocorns represent the very top of the global business pyramid. They are not defined by rapid growth alone, but by long-term scale, resilience, and influence. While unicorns capture attention and decacorns signal ambition, hectocorns show what happens when a company becomes deeply embedded in the global economy. For most founders, reaching this level is not the goal, but understanding how hectocorns are built helps clarify where real power, value, and impact ultimately concentrate.