The food and beverage industry in the UAE has been growing steadily for some time. Because to the consistent growth throughout the years, fresh and packaged food sales reached USD 13.5 billion in 2018. Since then, this increase has accelerated due to the government’s food policy, a wealthy and diversified people, and a demanding desire for novel foods.
Today, the UAE’s food business alone generates USD 37.9 billion in revenue. Elaborate tasting menus, sustainable produce, and free-from meals are becoming more popular as the UAE solidifies its position as a worldwide culinary hub.
There is a vast amount of potential opportunity for ambitious businesspeople. So, if you’re ready to dive in, stay reading to learn how to make the most of this enormous and expanding market.
In recent years, the UAE has made significant progress toward economic diversification. Because of this, the food and beverage sector in the nation is one of its most rapidly expanding ones, and it currently ranks sixth in the MENA region in terms of overall consumer spending.
Due to increasing disposable incomes, an increase in tourists, and a growing, diversified population, the UAE market lead the way in the Middle East closer to home. The UAE food and beverage industry expects per capita spending to reach USD 3,900 by 2025. Several trends are fueling increased revenues in this huge and expanding business.
Top chefs from all over the world are flocking to the Emirates as a new culinary hub to create new restaurants and attract customers with innovative and eye-catching meals. Tourists are actively advertised these high-end fine dining experiences, and with the number of visitors to the UAE set to top 30 million annually for the foreseeable future, demand is never been stronger.
The non-alcoholic segment of the beverage market is also expanding significantly. Revenues are anticipated to reach USD 1.6 billion in 2023 and experience yearly increase of roughly 3% through 2027, mostly due to a switch from traditional sweetened beverages to healthier alternatives.
This is only one reason for the rising demand for products that are healthful, environmentally friendly, and free of artificial ingredients that to be major growth in coming years.
A significant market for international food imports, exports, and re-exports continues to be the UAE.
The commerce in food and beverages in the first three quarters of 2021 totaled more than USD 20 billion. Around USD 12.8 billion of this total was made up of imports, next to exports (USD 4.1 billion) and re-exports (USD 3.3 billion). As the UAE moves to diversify its import sources and boost its emphasis on locally grown goods as part of its National Food Strategy 2051, we can anticipate an increase in these statistics. By enhancing local output, expanding international relationships, and utilizing resilient agricultural methods, the program seeks to elevate the UAE to the top rank in the Global Food Security Index by 2051.
Anyone with the means to produce or put together food and beverages ready for sale has a great potential with a greater focus on local agriculture. This could entail starting from beginning in farming or manufacturing, packing products for local retail sales, selling at wholesale to restaurants, or getting food ready for export.
For individuals wishing to procure and re-export foodstuffs and drinks around the world, the National Food Strategy’s goal to diversify imports and establish new international trading connections is encouraging.
The market for upscale restaurants also has substantial development potential. With 12 restaurants with Michelin stars and 18 listed in the Top 50 restaurants in MENA, the fine dining sector in the UAE is thriving. Those who have access to them will have no trouble finding clients as the market for more upscale and exclusive foods and drinks expands along with it.
However, eco-friendly goods and procedures may currently present the highest market opportunity in the food and beverage sector in the UAE.
As part of their commitment to “sustainable food production via the use of modern technologies,” the UAE’s leaders have made large investments in this sector and will keep doing so.
This emphasis on innovation and environmental sustainability is probably going to open up more prospects for vertical and hydroponic farming, as well as for the growth of drought-, heat-, and salt-tolerant crops.
Growth in this industry will also be fueled by rising customer demand for environmentally friendly solutions. Revenues from greener options like organic produce reached USD 34 m in 2020, and by 2025, this industry is predicted to increase at a compound annual growth rate of 9%.
Beyond food and drink, the need for greater sustainability also includes how they are packaged and enjoyed. By 2024, the UAE intends to outlaw single-use plastic bags, and by 2026, plastic cups, plates, and silverware.
This action is a symptom of changing views toward waste and offers a substantial potential for companies that can find or produce environmentally friendly substitutes. The possibility includes environmentally appropriate storage and delivery containers made of wood, cardboard, or bamboo as well as sustainable food packaging.
The MENA region’s gastronomic and sustainability evolution is strongly centered in the UAE. Therefore, enterprises in this region are best positioned to anticipate market developments and take advantage of the numerous opportunities presented by the nation’s burgeoning food and beverage sector.
Our knowledgeable team at RAKEZ can assist you if you want to learn more about opening a F&B business in the UAE. From selecting and applying for your company’s license to receiving the permits and approvals necessary to trade, we’ll walk you through every step of the process. This includes knowing the advantages of investing in Ras Al Khaimah.
