With one of the largest food and beverage sectors in the region, the UAE is unquestionably one of the most alluring markets in the Middle East for exporters of these goods, coming in second only to Saudi Arabia. According to the statistics, industry spending is projected to impressively reach $44.5 billion in 2023! And with over 90% of the nation’s food coming from abroad, the need for imported food is practically unparalleled. The market is extremely competitive, but it can also be very lucrative for the appropriate brand and product.
1. Consumers Who Travel Through Food
UAE customers are constantly eager to explore new cuisines and are developing a rising hunger for new international flavors and meals due to the country’s highly globalized economy and its large expat population. The popularity of international cuisine increased as a result of COVID-19’s two-year dampening of travel opportunities as a way to experience other cultures without leaving the country. Asian cuisine is particularly popular, with customers frequently visiting Thai, Chinese, and Japanese restaurants.
2. Expensive Foods Continue to Be Popular
With a projected GDP per capita of US$41,800 by the end of 2022, the UAE is one of the richest nations by international standards. The substantial, affluent Western expat population in the UAE can be partly blamed for this high income. The huge demand for imported, high-end foods results from this consumer base’s high income and Westernization. In the UAE, Australian goods currently enjoy a solid reputation for quality, particularly in the market for high-end processed foods, and demand is anticipated to increase as disposable incomes increase. The need for new speciality foods and niche items is also being fueled by a young, experienced consumer base, which furthers the premiumization process.
3. People Value Convenience Highly
The UAE has a very urbanized population—86% of people live in cities! Due to the rapid rate of urbanization and the restoration of normalcy following the COVID-19 shutdown, consumers are leading increasingly stressful and busy urban lifestyles. It therefore comes as no surprise that demand for convenience is increasing, particularly in the food and beverage industry. Pre-made ready meals and frozen foods are becoming more and more popular, and over the next five years, strong growth is predicted in this market as a result of rising demand, manufacturer innovations that result in more nutrient-balanced frozen foods, and investments in cold chain logistics.
4. How Popular Non-Alcoholic Beverages Are
In the UAE, which is predominately a Muslim nation, only specific retail and dining establishments are permitted to sell alcohol. As a result, customers increasingly choose non-alcoholic beverages, which have shown double-digit growth over the past two years. The foodservice industry has been keeping an eye on a recent trend that is increasing consumption, especially at the more upscale end of the market, and encouraging demand for higher-quality alcohol-free beverages: the popularity of non-alcoholic bars like The Virgin Mary Bar. Customers are specifically looking for beverages that may mimic the flavor and sensation of alcoholic drinks.
5. Trends in Organic, Health, and Plant-Based Foods Keep Growing
The UAE has adopted Western eating trends due to the presence of an expat community. The epidemic has considerably increased the demand for nutritious, useful, and organic foods and beverages, which is one of these trends. The pandemic has forced people to rethink their bad lifestyle choices and place a greater emphasis on health and wellbeing. Given the high rates of obesity—more than 30% of the population—in the UAE, this has assumed particular importance. Sales of goods including organic juices, low-calorie selections, and substitute milks have increased particularly. There is a strong focus on organic food in particular, which has become the UAE’s fastest-growing sector. The UAE also depends on organic imports due to its arid climate which represents a unique opportunity for exporters in space.
These developments are being driven by sustainability issues in addition to health concerns. Even though it’s still primarily just a trendy word, UAE consumers are paying more attention to the sustainability and origins of the food they eat. This can be seen in actions like cutting back on meat consumption or switching to a more flexible diet. In actuality, 35% of buyers increasingly prioritize sustainability when choosing a brand. Foodservice establishments are already reacting, and an increasing number are expanding their menus to include vegetarian and vegan options. As consumer awareness of plastic pollution grows, so are retailers, with supermarkets boosting their selection of plant-based, sustainably sourced goods as well as plastic-free products.
6. Gut-healthy foods and superfoods supported by wellness trends
Beyond more general health issues, a few substances in particular are grabbing the attention of consumers. For instance, people are becoming more aware of the advantages of “superfoods” like goji berries, kale, and chia seeds as they actively seek them out as sources of vitamins, minerals, and antioxidants. Natural foods, such as pure honey, wild salmon, or fresh fruits and vegetables, which each offer specific health advantages, are undoubtedly the focus. Ingredient lists are getting shorter and shorter in the packaged food industry as a result of this trend. Foods that support gut health, such as yoghurt and kimchi, are another area to monitor as probiotics and digestive health become popular buzzwords.
7. Increase in Sports Nutrition
As we’ve seen, the epidemic made the population of Emiratis more aware of the value of eating well. But the emphasis on leading an active lifestyle goes hand in hand with this trend. As a result, even prior to the pandemic, there has been a considerable increase in the demand for sports nutrition products. Products including protein powders, protein bars, ready-to-drink items, weight-management items, and dietary supplements are among the main areas of concentration here. This demand is a reflection of both the market’s exposure to Western culture and body standards as well as the rise in health consciousness. The expansion of health food stores like Holland & Barrett, which carry sports nutrition items along with a wide selection of vitamins and supplements, is one effect of this trend.