DUBAI

Trends and Opportunities

UAE Food and Beverage Market

February 2020

Economic Research Department

Dubai Chamber of Commerce and Industry 1
OUTLINE
Section I: Overview

Section II: UAE Food and Beverage Market

Section III: Dubai Trade of Food and Beverage Products

Section IV: Opportunities in Food and Beverage Market

Section V: Conclusions

2
 Overview
Food Security in UAE
According to FAO “food security exists when all people, at all times, have physical and economic access to sufficient, safe and
nutritious food that meets their dietary needs and food preferences for an active and healthy life”. UAE has taken several steps to
achieve food security, such as vertical farming, developing food storage facilities, investing in agricultural lands in some Asian and
African countries, and some other initiatives. According to EIU, the Food Security Index of UAE has always been improving over the
past 5 years. Furthermore, the data also show that the UAE is the best performer among the GCC countries in the improvement of
Global Food Security Index over the past 5 years.
UAE’s Global Food Security Index, 2014-2018 5-year change in score of Global Food Security
73 72.5 Index in GCC, 2014-2018

72 71.7
71.4 UAE 3.0
70.9
71 Bahrain 1.9
Score

70 69.5 Oman 1.8

69 Saudi Arabia 1.5

Kuwait -0.6
68
2014 2015 2016 2017 2018 Qatar -1.4
Note: Scores are out of 100

Source: Dubai Chamber based on EIU and Alpen Capital 3

 Overview
Driving Factors of Food Industry in UAE
Driving factors of the Food and Beverage (F&B) sector in UAE are population growth, high GDP per capita and rising tourist arrivals. In
particular, according to IMF, UAE population was around 10 mn, and the country had one of the highest GDP per capita in the world
in 2019. The Food Industry also being boosted by rising tourism, and the latest data show that in 2019, Dubai welcomed 16.7 mn
tourists.

Population Growth Rising Income Rising Tourist Arrivals

Total population of UAE was GDP per capita in UAE was In 2019, Dubai welcomed 16.7
around 10.7 million in 2019 around $39,749 in 2019 million tourists

Source: Dubai Chamber based on IMF World Economic Outlook and Dubai Media Office 4
Overview
UAE National Food Security Strategy 2051

UAE Target by 2021 Five pillars of National Food Security Strategy

Facilitate global agri-business
To make UAE within the top 10 in trade and diversify international
Global Food Security Index ranking. food sources.
Enhance sustainable technology-
enabled domestic food supply
Domestic production target of across the value chain.
food over 100,000 tons by 2021.
Reduce food loss and waste.
Creation of more than 16,000 jobs
in food sector in the country. Sustain food safety and improve
nutritional intake.
Achieving economic returns of up Enhance capacity to respond to
to AED 22 billion in food sector. food security risks and crises.

Source: UAE Food Security Agenda 5

OUTLINE
Section I: Overview

Section II: UAE Food and Beverage Market

Section III: Dubai Trade of Food and Beverage Products

Section IV: Opportunities in Food and Beverage Market

Section V: Conclusions

6
UAE Food and Beverage Market
Food
According to Euromonitor, in 2018, the retail sales value of fresh food and packaged food in UAE reached USD 8.0 bn and USD 5.5 bn,
respectively. Furthermore, between 2013 and 2018, UAE retail sales of fresh food grew with CAGR of 5.1% and retail sales value of
packaged food grew with CAGR of around 3.9%.

Fresh Food and Packaged Food Retail Sales Value (USD bn)

Packaged Food Fresh Food

9
8
7
USD bn

6
5
4
3
2
2013 2014 2015 2016 2017 2018

Source: Euromonitor 7
UAE Food and Beverage Market
Food by Categories
In 2018, staple foods had the highest retail sales value and growth rate among the packaged food categories, followed by dairy,
snacks, and cooking ingredients and meals. In the fresh food category, the largest sales value was observed for meat, vegetables
and fruits, but pulses had the highest CAGR of 7% between 2013 and 2018.

Packaged Food Retail Sales Value by Categories, Fresh Food Retail Sales Value by Categories, USD
USD bn (2018) and CAGR (2013-2018) bn (2018) and CAGR (2013-2018)
CAGR CAGR
Meat 2.1 5.6%
Staple Foods 1.8 4.8%
Vegetables 1.7 5.8%
Fruits 1.6 4.7%
Dairy 1.6 2.8% Nuts 0.7 5.4%
Fish & Seafood 0.6 3.8%
Pulses 0.6 7.0%
Snacks 1.3 4.2% Starchy Roots 0.3 2.0%
Eggs 0.2 3.0%
Cooking Ingredients Sugar & Sweeteners 0.1
0.7 2.8%
and Meals 4.3%

Source: Euromonitor 8
 UAE Food and Beverage Market
Beverages
As reported by Euromonitor, in 2018, UAE retail sales value of soft drinks reached USD 5.1 bn. From 2013 to 2018, UAE retail sales of soft
drinks grew with CAGR of around 5.7%. The largest category in this group was bottled water, juice and carbonated water. It is also
worth mentioning that Ready to Drink (RTD) coffee had the highest CAGR of 22% between 2013 and 2018.

Soft Drinks Retail Sales Value, USD bn (2018) and Soft Drinks Retail Sales Value by Categories, USD
CAGR (2013-2018) million (2018) and CAGR (2013-2018)

6 CAGR
Bottled Water 2,201 9%
Juice 1,378 2%
5
Carbonates 974 4%
4 Energy Drinks 458 10%
Concentrates 54 3%
3 RTD Tea 6%
16
Sports Drinks 13 14%
2
2013 2014 2015 2016 2017 2018 RTD Coffee 6 22%

Source: Euromonitor 9
UAE Food and Beverage Market
New Trends in Food
UAE Sales Value in 2018 (USD m) and CAGR (2013-2018)
Naturally Healthy Food Organic Food Free-From Food

$473 m $31 m $29 m

9.7% 17.7% 18.3%

Nuts & Seeds $162 m 20% Dairy $10 m 30%

Dairy Free $15 m 13%
Dairy $128 m 6% Baby Food $9 m 22%
High Fibre Gluten Free $8 m 35%
$48 m 8% Sauces &
$4 m 7%
Dressings
Fruit Snacks $43 m 4% Allergens
Meat, Fruit & $3 m 10%
$3 m 8% Free
Olive Oil $36 m 7% Vegetables

Honey $35 m 7% Biscuits & Snacks $3 m 14% Lactose Free $1 m 10%

Source: Euromonitor 10
UAE Food and Beverage Market
E-commerce in Food Industry
UAE has one of the highest internet penetration rates in the world, with almost 99% of its population using the internet. Moreover,
many people in UAE use smartphones. This gave a push for the growth of food and drink internet retailing in UAE over the past few
years. According to Euromonitor, between 2014 and 2019, UAE F&B internet retailing more than tripled and reached USD116 million
in 2019. In general, there are many e-commerce websites or mobile applications in UAE which offer food delivery services or they
connect big supermarkets to consumers. Moreover, this market in UAE is growing very fast and there are also some specialized e-
commerce websites that focused only on for instance, in organic products, or meat and seafood products.

Food and Drink Internet Retailing in UAE, USD million, 2014-2019

115.9
98.1
82.1
71.5
55.7

31.6

2014 2015 2016 2017 2018 2019e

Source: Euromonitor 11
OUTLINE
Section I: Overview

Section II: UAE Food and Beverage Market

Section III: Dubai Trade of Food and Beverage Products

Section IV: Opportunities in Food and Beverage Market

Section V: Conclusions

12
Dubai Trade of Food and Beverage Products
Total trade
The Dubai Customs’s latest data show that in the first three quarters of 2019, Dubai imports of F&B products from the world reached
USD 9.6 bn, and it grew with CAGR of 1.7% from 2012 to 2018. Furthermore, in 2019 (Q1-Q3), re-exports of F&B products reached USD
2.9 bn, and had a CAGR of 4% between 2012 and 2018. The data also indicate that the share of re-exports in imports of F&B products
of Dubai with the world grew from 22% in 2012 to 30% in 2019, 8 percentage point growth.

Dubai Trade of Food and Beverage Products with Dubai’s re-export share in imports of Food and
the World (USD bn) and CAGR (%, 2012-2018) Beverage products from the world (%)
Export Import Re-export
30%
16 CAGR=1.7% +8%
14
12 22%
10
8
USD bn

6 CAGR=4.0%
4
2
0
CAGR=0.1%
2012 2013 2014 2015 2016 2017 2018 2019
Q1-Q3
2012 2019 Q1-Q3
Note: Food and Beverage Trade includes all products from HS01 to HS23, excluding HS05 (Products of animal origin) and HS06 (Live trees, flowers etc.).

Source: Dubai Customs 13

 Dubai Trade of Food and Beverage Products
Trade Partners
In 2019 (Q1-Q3), Dubai had diversified imports of F&B products and major import partners include the USA, India, Brazil, Australia and
others. The data also indicate that during the same period, Dubai also had diversified exports of F&B products, and major export
partners in this product group include Oman, Iraq, Saudi Arabia, China, Somalia and other countries. In general, both figures indicate
that Dubai mainly imports F&B products from far countries such as the USA, Brazil and Australia, and exports them to the Middle East
and African countries.
Dubai’s Major Partners in Imports of Food and Beverage Dubai’s Major Partners in Total Exports of Food and
Products from the World, % share, 2019 Q1-Q3 Beverage Products to the World, % share, 2019 Q1-Q3
USA
Oman
11% India
11% Iraq
Brazil
Saudi Arabia
10% Australia 8% China
47% New Zealand
6% Somalia
9% France
Egypt
Canada 3%
56% India
UK 3%
4% Kuwait
Netherlands 3%
4% Yemen
3% China 3%
3% Maldives
3%
3% 3% 3%
Others 2% 2% Others
Note: Food and Beverage Trade includes all products from HS01 to HS23, excluding HS05 (Products of animal origin) and HS06 (Live trees, flowers etc.).

Source: Dubai Customs 14

Dubai Trade of Food and Beverage Products
Major Traded Products
Dubai Customs data also indicate that Dubai traded with many types of products with the world in 2019 (Q1-Q3). In imports, the
major products included fruits and nuts, meat, dairy, beverages and other products. In exports/re-exports major products are fruits
and nuts, beverages, dairy, meat and others.

Dubai’s Major Imported Food and Beverage Products Dubai’s Major (Re-)Exported Food and Beverage Products
from the World, % share, 2019 Q1-Q3 to the World, % share, 2019 Q1-Q3
Fruits and nuts Fruits and nuts
Meat (bovine, sheep, chicken) Beverages (soft drinks, spirits)
15% Dairy Dairy
22% 16%
Beverages (soft drinks, spirits) 22% Meat (bovine, sheep, chicken)
Coffee, tea, spices Other edible food
13% 11%
5% Cereals 4% Coffee, tea, spices
5% Other edible food 4%
8% 10% Animal or vegetable fat
5%
6% Vegetables Cereal preperations
7% 5%
6% Cereal preperations 9%
6% 7% 7%
7% Vegetable preperations
Cocoa & products of it Meat preparations
Others Others
Note: Food and Beverage Trade includes all products from HS01 to HS23, excluding HS05 (Products of animal origin) and HS06 (Live trees, flowers etc.).

Source: Dubai Customs 15

OUTLINE
Section I: Overview

Section II: UAE Food and Beverage Market

Section III: Dubai Trade of Food and Beverage Products

Section IV: Opportunities in Food and Beverage Market

Section V: Conclusions

16
 Opportunities in Food and Beverage Market
Forecast for F&B Products Sales in UAE
According to Euromonitor’s forecast, from 2018 to 2023, UAE sales of packaged food, fresh food and soft drinks will grow with CAGR of
around 3.5%, 5.2% and 1.2%, respectively. In packaged food, the growth of retail sales value will be the highest in staple food,
followed by cooking ingredients, snacks and dairy. In fresh food, the largest growth is expected in meat, pulses, nuts and vegetables.
Moreover, in soft drinks category, the largest growth will be in ready to drink (RTD) coffee, bottled water, concentrates, tea and other
products.

Forecast for UAE’s Packaged Food Forecast for UAE’s Fresh Food Retail Forecast for UAE’s Soft Drinks Retail
Retail Sales Value, CAGR (2018-2023) Sales Value, CAGR (2018-2023) Sales Value, CAGR (2018-2023)
Staple Foods 5.1% Meat 7.0% RTD Coffee 8.3%
Pulses 5.5% Bottled Water 4.4%
Cooking Ingredients Nuts 5.4%
4.3% Concentrates 3.9%
& Meals Vegetables 5.0%
RTD Tea 3.3%
Sugar and… 4.3%
Juice 2.1%
Snacks 2.6% Eggs 4.0%
Fruits 4.0% Sports Drinks -3.6%

Fish and Seafood 3.7% Carbonates -4.9%

Dairy 1.7%
Starchy Roots 1.9% Energy Drinks -8.6%

Source: Euromonitor 17
 Opportunities in Food and Beverage Market
EXPO 2020
The growth of F&B sector in UAE is expected to continue with the upcoming mega event EXPO 2020. In particular, this event will offer
large opportunities in F&B sector. EXPO 2020 expected to host 25 million visitors, and estimated onsite sales of F&B products expected
to be $545 million. Moreover, around 85,000 meals will be served per hour during the six months event.

Visitors F&B Sales Meals

Expo 2020 expected to host Estimated onsite F&B sales

Around 85,000 meals will be
25 million visitors during the event worth
served per hour in EXPO 2020
USD 545 million

Source: Alpen Capital and EXPO 2020 Dubai 18

Opportunities in Food and Beverage Market
MENA
It was mentioned before that the Middle East and North African countries have a significant share in Dubai’s total exports of F&B
products to the world. The region will continue to be the major trade partner, due to a high expected consumption growth of F&B
products in the world, according to Euromonitor. In particular, MENA countries expected to have high sales value growth in meat and
poultry, seafood, pulses, grain and cereals and other products over the next five years.
Forecast of F&B Consumption in the World by Region, Forecast of F&B Value Sales in MENA by Categories,
CAGR (2018-2023) CAGR (2018-2023)
Middle East & North Africa 9.9% Meat & Poultry 5.2%

Sub-Saharan Africa 8.8% Seafood 5.2%

Latin America 7.4% Pulses, Grains & Cereals 3.8%

Beverages 3.6%
Asia Pacific 6.7%
Fats and Oils 3.4%
Europe 4.4%
Confectionery & Snacks 3.3%
Australasia 4.3% Cooking Ingredients 3.2%
North America 3.4% Dairy 2.9%

Source: Euromonitor 19
Opportunities in Food and Beverage Market
Potential Products for Imports
Potential F&B Products for Dubai imports
Dubai F&B imports volume (2019 Q1-Q3) vs. YoY Short Term Growth of Long Term
change, 2018-2019 (Q1-Q3) Dubai Imports, 2019 (Q1- Growth of Dubai
60% 1 Q3), YoY change imports
change in volume
2019 (Q1-Q3), YoY

40% 2
Volume Value CAGR of volume
20% 63 5 4 7 Growth Growth (2011-2018)
0%
Meat (bovine, sheep,
-20% 48% 52% 4%
1. chicken)
-40%
Beverages (soft drinks,
-60% 2. spirits) 42% 6% 5%
0 1,000 2,000
Thousand ton 3. Cereal preparations 9% 12% 4%

Dubai F&B imports value (2019 Q1-Q3) vs. YoY change, Vegetable & fruits
4. 8% 6% 1%
preparations
2018-2019 (Q1-Q3)
60% 5. Products of the milling
1 8% 0.5% 15%
2019 (Q1-Q3), YoY

industry
change in value

40% 6.
3 Cocoa & products of it 8% 2% 11%
20% 5 4 2 7
6 7. Fruits and nuts 7% 3% 4%
0%
-20% These figures and table show Dubai’s imported food and beverage products from the
world which had a high short term (2018 vs 2019) volume and value growth rate. In
-40% addition, these products also had high long term import growth rates. For instance,
- 1 2 3 4 5 6 between Q1-Q3 of 2018 and 2019, Dubai import volume and value growth of meat
AED Billion products from the world grew by 48% and 52%, respectively. Besides, Dubai import volume
of meat from the world grew with CAGR of 4% from 2011 to 2018.

Source: Dubai Chamber based on Dubai Customs data 20

 Opportunities in Food and Beverage Market
Potential Products for Re-exports
Potential F&B Products for Dubai re-exports
Dubai F&B re-exports volume (2019 Q1-Q3) vs. YoY change, Short Term Growth of Dubai Long Term
2018-2019 (Q1-Q3) re-exports, 2019 Q1-Q3, Growth of
800% YoY change Dubai re-exp
1 CAGR of
Value
change in volume
2019 (Q1-Q3), YoY

600% Volume Growth volume (2011-

Growth
2018)
400% 2 1. Meat (bovine, sheep,
3 747% 1155% 14%
chicken)
200% 2.
6 4 7 5 8 Fish and Seafood 289% 108% 5%
9
0% 3.
Oil seeds and oleaginous fruits 220% 207% -12%
- 100 200 300
-200% 4.
Cocoa & products of it 67% 54% 9%
Thousand ton
5. Dairy
52% 64% 20%
Dubai F&B re-exports value (2019 Q1-Q3) vs. YoY change,
6. Meat preparations 26% 21% 3%
2018-2019 (Q1-Q3)
7. Coffee, tea, & spices 9% 26% 0%
1600%
1 8. Beverages (soft drinks, spirits) 8% -2% 10%
2019 (Q1-Q3), YoY
change in value

1200%
9. Cereal preparations 8% 66% 1%
800%
These figures and table show Dubai’s re-exported food and beverage products to the
400% 3 world which had a high short term (2018 vs 2019) volume and value growth rate. In
2 46 5
9 7 8 addition, these products also had high long term re-export growth rates. For instance,
0%
between Q1-Q3 of 2018 and 2019, Dubai re-export volume and value growth of meat
0.0 2.0 4.0 products to the world grew by 747% and 1,155%, respectively. Besides, Dubai re-export
-400%
AED Billion volume of meat to the world grew with CAGR of 14% from 2011 to 2018.

Source: Dubai Chamber based on Dubai Customs data 21

Opportunities in Food and Beverage Market
Investment Opportunities

F&B Business Environment Food Manufacturing Agriculture Halal Food

$1,863 bn
1st/18th 13%/17% >1,000 $1,303 bn

According to Fitch Dubai’s F&B manufacturing There are around 1,000 2017 2023
Connect Risk Reward contributes 13% of the hydroponic projects in Global halal food
Index, UAE ranked 1st in manufacturing value UAE. expenditure will reach
MENA, and 18 globally in
th added and 17% of the $1,863 bn by 2023 and
F&B investment manufacturing output. Opportunities: drought, Dubai wants to become a
environment attractiveness heat, and salt-tolerant hub in ‘halal’ food.
in 2020 (Q1) Opportunities: Processed crops, vertical and
cereals, meat, fruits and hydroponic farming
vegetables

Source: Fitch Connect, Dubai Exports, Dubai FDI, Thomson Reuters 22

Opportunities in Food and Beverage Market
Finding Potential Buyers: Case Study for Frozen Chicken Exports to Oman

1. Open www.trademap.org 2. In the next page, select the 3. Get the list of companies in
and type HS code of the product category you want to product and country you are
product (e.g. HS020714-Frozen export (e.g. Poultry and poultry interested in (e.g. 20 importing
chicken), and country you want products). companies of poultry products
to export (e.g. Oman), and in Oman).
press Companies.

Note: Register first on the website and it is free.

Source: Trademap 23
OUTLINE
Section I: Overview

Section II: UAE Food and Beverage Market

Section III: Dubai Trade of Food and Beverage Products

Section IV: Opportunities in Food and Beverage Market

Section V: Conclusions

24
Conclusions

The UAE remains the most attractive market in the region for food and beverage.

In UAE, the consumption of staple food, meat, and beverages is growing strongly by
value and volume.

Health, taste, nutrition, convenience and online shopping are becoming a new driving
factors of food industry in UAE and MENA region.

There are also large investment opportunities in food manufacturing, halal food and
innovative agriculture.

UAE is becoming a major hub for F&B trade in the MENA region.

Dubai Chamber International Offices can help importers and re-exporters of food and
beverage products to grow in their respective countries and regions.

25
References and useful links
• Alpen Capital. “GCC Food Industry Report 2019” http://www.alpencapital.com/industry-reports.html# (accessed February 2020).
• Dubai Customs. “Dubai Trade Statistics” https://www.dubaicustoms.gov.ae/en/TradeStatistics/Pages/default.aspx (accessed January
2020).
• EIU. “Global Food Security Index” https://foodsecurityindex.eiu.com/Index (accessed February 2020).
• Euromonitor. “Global Industry Outlook Report - Gulfood 2020”. https://www.gulfood.com/outlook-report (accessed February 2020).
• Euromonitor. “Food and Drink Internet Retailing in United Arab Emirates 2018”. https://www.euromonitor.com/food-and-drink-internet-
retailing-in-the-united-arab-emirates/report (accessed February 2020).
• Euromonitor. “Fresh Food in United Arab Emirates 2018”. https://www.euromonitor.com/fresh-food-in-the-united-arab-emirates/report
(accessed February 2020).
• Euromonitor. “Naturally Healthy Packaged Food in United Arab Emirates 2018”. https://www.euromonitor.com/naturally-healthy-
packaged-food-in-the-united-arab-emirates/report (accessed February 2020).
• Euromonitor. “Packaged Food in United Arab Emirates 2018”. https://www.euromonitor.com/packaged-food-in-the-united-arab-
emirates/report (accessed February 2020).
• Euromonitor. “Soft Drinks in United Arab Emirates 2018”. https://www.euromonitor.com/soft-drinks-in-the-united-arab-emirates/report
(accessed February 2020).
• Fitch Solutions. “United Arab Emirates Food & Drink Report” https://store.fitchsolutions.com/all-products/united-arab-emirates-food-drink-
report (accessed February 2020).
• IMF “World Economic Outlook by Country” https://www.imf.org/external/pubs/ft/weo/2019/02/weodata/weoselgr.aspx (accessed
February 2020).
• Trademap “Bilateral Trade Statistics” https://trademap.org/ (accessed February 2020).
• UAE Food Security Agenda. “National Food Security Strategy”
https://foodsecurity.gov.ae/en/download_report/jgSIGpzpofgXCw2VSCSC9hvhmAdDNPoc5I1TWqAW.pdf (accessed February 2020).

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