Market Analysis - Food Quality 2017
The UAE is an internationally competitive market where products from all major food producing countries can be found. Manufacturing of high quality, competitive and value-added products, tax-free business system, investment friendly environment are contributing factors in propelling the UAE as a Food and Beverage manufacturing hub in the region. Rising global demand along with increasing domestic industrial output and a growing appetite for new export markets have created a favorable situation for the UAE foods sector. Dubai accounts for 10 per cent of the emirate’s industrial production.
The country’s growing population, thriving economy, and profile as one of the world’s hottest tourist destinations has only made the UAE’s appetite for quality food products and hospitality services. Gourmet food stores, organic supermarkets, spice souqs, specialty food stores, fish markets, international hypermarket chains and local convenience stores now stock everything from quail eggs to white truffle oil.
The UAE’s food and drink imports and exports grew at an annual rate of 18.5 percent from 2003 to 2013.
Based on UNCTAD statistics, the UAE’s major food & drink imports from 2011 – 2013 were fruits and nuts (11.4 percent - £1.45 billion), meat and meat preparation (10.4 percent - £1.24 billion), dairy products (8.9 percent - £1.04 billion), cereals and other cereal meals (8.4 percent - £1 billion) and oils and vegetables (8.2 percent - £1 billion).
The UAE is one of the world’s leading Food and Beverage markets, with market size measured by Euro monitor at 52.4 billion in 2015. The market has shown impressive resilience in a challenging environment. While there is evidence that the UAE's Food and Beverage market has been impacted by changing macroeconomic conditions, the sector continues to benefit from the UAE’s positioning as a major global tourism and retail destination with a diverse mix of cultures and ethnicities.
Spending on food and beverages in the UAE is expected to record a compound annual growth rate of eight per cent during the period 2012 to 2018. The expected compound annual growth rate of per capita consumption of fresh food in the emirate will amount to 5.5 per cent during the period 2012-2018. Food and Beverage sector is estimated to grow to £25.81 billion by 2018.
Dubai’s strategic position as the gateway between the three continents of Europe, Asia and Africa and the establishment of the many free trade zones have supported the growth in food & drink exports and re-exports from the UAE.The majority of the food & drink exports and re-exports from the UAE are to Iran, Oman, Iraq, Saudi Arabia and Qatar.