trends and opportunities -...

Economic Research Department

Dubai Chamber of Commerce and Industry

Trends and Opportunities

UAE Food and Beverage market

Gulfood Breakfast briefing

27th February 2017

Section I: Overview and Growth Drivers

Section II: Past growth and possible outlook

Section III: Niche Markets

Section IV: Business Opportunities

Section V: Concluding Remarks

Expected Per Capita income and Real GDP Growth Rates (USD, y-o-y %)

UAE Economic OverviewStrong expected real GDP growth rate

Source: Dubai Chamber based on IMF, World Economic Outlook (WEO) database October 2016.

0

1

2

3

4

36,000

38,000

40,000

42,000

44,000

46,000

2017 2018 2019 2020

GDP per capita (USD, LHS) Real GDP growth, % (RHS)

8

9

10

11

12

2015 2016 2017 2018 2019 2020

Source: Dubai Chamber based on IMF, World Economic Outlook (WEO) database October 2016.

UAE expected population (millions)

UAE Demographic overviewRobust expected population growth

Source: Dubai Chamber based on IMF, World Economic Outlook (WEO) database October 2016.Actual data may be different from expectations/forecast

Annual Real GDP growth (%)

Growing Economies Strong growth in developing countries

2

3

4

5

6

2016 2017 2018 2019 2020

World Emerging market and developing economies Middle East and North Africa

Growing food retail sales value (AED Billion)

UAE Food Sales

Source: Euromonitor International, 2017. Data from 2016 onwards based on forecasts from Euromonitor

International. Actual data may be different from expectations/forecast

0

10

20

30

40

50

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Fresh Food Packaged food

Past

Expected Future

Source: Euromonitor International, 2017. Data from 2017 onwards based on forecast from Euromonitor International.

Actual data may be different from expectations/forecast

UAE Soft Drink sales

Growing soft drink retail sales value (AED billion)

0

5

10

15

20

25

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Soft drink Bottled water

Past

Expected Future

Source: Euromonitor International, 2017. Data from 2017 onwards based on forecast from Euromonitor

International. Actual data may be different from expectations/forecast

UAE Hot Drink sales

Growing packaged tea and coffee retail sales value(AED billion)

0

1

2

3

4

5

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Euromonitor International, 2017. Data from 2016 onwards based on forecast from Euromonitor

Intrenational. Actual data may be different from expectations/forecast

0

10

20

30

40

50

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Restaurants Fast food

Growing restaurant and fast food retail sales value (AED billion)

UAE Restaurant and Fast Food Sales

Past

Expected Future

Forecast for Global Muslim food market expenditure(USD billion)

Source: ‘State of Global Islamic Economy Report, 2015/16’, prepared by Thomson Reuters in collaboration

with DinarStandard.

Potential global demand for Halal FoodPopulation and income growth across Muslim countries expected to drive growth in demand

1,128

1,585

0

400

800

1,200

1,600

2,000

2014 2020

UAE Meat and Poultry expected sales

Source: Business Monitor International, Q4 2016. Actual data may be different from expectations/forecast

Meat and Poultry expected retail sales value (AED billion)

10.711.6

12.413.3

14.1

0

3

6

9

12

15

2016 2017 2018 2019 2020

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Demand for Organic FoodPast and possible future sales value of organic packaged food in UAE (Million AED)

Source: Dubai Chamber based on data from Euromonitor International, 2017. Actual data may be different

from expectations/forecast

Potential business opportunitiesPotentially fast growing Fresh Food Products in UAE (CAGR % expected sales volume growth, 2017 to 2020)

Source: Euromonitor International, 2017. Actual data may be different from expectations/forecast

8%

7%

6%6%

5%

5%

0%

2%

4%

6%

8%

10%

Meat Nuts Vegetables Pulses Fresh foodaverage

Eggs

CA

GR

, %

Potential business opportunitiesPotentially fast growing Packaged Food Products in UAE (CAGR % expected sales volume growth, 2017 to 2020)


9%8% 8%

7%

6% 6%

0%

2%

4%

6%

8%

10%

Savoury snacks Processed foodand vegetables

Confectionery Sweet biscuits,snack bars/fruit

snacks

Dairy Packaged foodaverage

CA

GR

, %

Potential business opportunitiesPotentially fast growing Soft Drink products in UAE (CAGR % expected sales volume growth, 2017 to 2020)


12%

9%

8%7%

7%6%

0%

2%

4%

6%

8%

10%

12%

14%

RTD coffee Bottled water Soft drinksaverage

RTD Tea Juices Sports andenergy drinks

CA

GR

, %

Potential business opportunitiesPacked Tea and Coffee products potential growth rates in UAE (CAGR % expected sales volume growth, 2017 to 2020)


7%

6%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Coffee Tea

CA

GR

, %

Trends Opportunities

Concluding Remarks

Growth of population and incomeacross developing countries.

Growth in per-capita income andpopulation in UAE.

Growing Health awareness.

Growing demand for food andbeverages in UAE and across Asia andAfrica

Growth of local demand for packagedand fresh food. Halal meat and Ready-to-Drink (RTD) coffee could possibly besome of the fastest growing productcategories.

Growth in demand for Organic food in

UAE and in foreign markets.

Trends Opportunities

Consumers preference for certified,branded goods.

Potential opportunity to create new andinnovative brands.

Potential opportunities for verticalintegration and halal certification acrossthe entire value chain.

Potential for increased local sales,exports and re-exports of halal foodproducts.

Concluding Remarks

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