GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share

Dubai, United Arab Emirates -  September 11, 2019:    Alpen Capital (ME) Limited, Dubai-headquartered investment banking advisory firm, announced the publication of its report on GCC Food Industry for the year 2019. The report provides a comprehensive overview of the GCC food sector and outlines the recent trends, growth drivers and challenges in the sector. It also profiles some of the renowned food companies in the region.

“We anticipate the GCC food sector will continue to grow at a steady pace owing to factors such as growing population, higher per capita income, a vibrant tourism market and changing dietary habits and preferences. Upcoming MEGA events like EXPO 2020 and the FIFA World Cup 2022 are expected to further aid the growth of food consumption in the region. The food services industry continues to evolve with increasing penetration of food delivery channels and rising number of tech savvy millennials in the region”, says Sameena Ahmad, Managing Director, Alpen Capital (ME) Limited. 

“Over the next five years, we expect to witness a steady growth in the GCC food sector. Along with strong macro-economic variables, factors like changing demographics, increase in the number of working couples and growing influence of global culture are also supplementing growth of the food sector. Rising incidences of lifestyle related diseases would continue to drive the demand for organic and healthy food items. Despite regional and economic challenges, we saw significant M&A activity take place in the sector during the past two years. Inherent demand for self-sustenance coupled with government initiatives and investments aimed at augmenting domestic productivity and food security, makes the region attractive for investors”, says Krishna Dhanak, Executive Director at Alpen Capital. 

Industry Outlook 

According to Alpen Capital, food consumption in the GCC is expected to grow at a CAGR of 3.3% from an estimated 51.5 million MT in 2018 to 60.7 million MT in 2023. Increase in population, growing tourism, high per capita income and a sustained economic recovery are likely to drive the growth of the food sector in the region. 

Being the staple food of the region, cereals are expected to remain the most consumed food category with a share of 48.2% by 2023. Increasing demand for milk products will drive the growth of the Dairy sector and consumption of egg, fish, potatoes and fats & oil will contribute to the growth of the “Others” category. Consumption of healthy and organic food is likely to increase with growing awareness. However, the respective share of most food categories in the overall consumption is anticipated to remain broadly unchanged.

The country-wise food consumption share in the GCC is projected to largely remain unchanged through 2023. Saudi Arabia and the UAE are expected to remain the largest food consuming nations with their combined share of around 81% by 2023. Oman is expected to experience the fastest annualized growth at a CAGR of 4.6%.
 
The food consumption for the UAE and Saudi Arabia is estimated to reach 10.3 million MT and 39.0 million MT by 2023, respectively. The forecasted growth rates largely reflects the population and GDP projections for the countries.


Growth Drivers

Rapid Population Growth and Rising Urbanization: The GCC population is forecasted to grow at a CAGR of 2.3% during 2018-2023 to reach 63.4 million in 2023, thus adding 6.8 million individuals. An expanding consumer base will drive the growth in food consumption in the region. Increasing urbanization and a growing affluence of expatriates continue to drive the demand of packaged and international food.

Increasing Awareness of Healthy Eating Habits: Due to high prevalence of lifestyle diseases in the region, there is a growing awareness of healthy eating habits, which has boosted the demand for organic food and food items that are sugar &fat free, low in salt, and with no preservatives.

Increasing Investment to Boost Tourism: The GCC countries are devoting increasing levels of attention to tourism in an ongoing effort to diversify their oil-based economy. Collectively, they hosted about 38 million international tourists in 2017, which is seen as one of the key factors driving food consumption. Most of the countries are hosting seasonal events including sports, shopping festivals, recreational facilities and exhibitions with an aim to boost tourism in the country.

Flourishing Food Services Sector: The food services sector is estimated to witness a better-than-expected outlook on account of various international events, increasing deal activity and investments in the sector. The sector is expected to grow at a CAGR of 8.4% annually until 2023

Challenges

Due to unfavourable climate, limited water resources and arable land in the region, the GCC countries import around 85% of the total food consumed. This has exposed the region to food price fluctuations and any adverse changes in the socio-political environment in the source countries and vital trade routes could pose a threat to GCC food imports.

The recent economic slowdown in the GCC due to decrease in oil prices as well as the ongoing global trade disruption has widened the uncertainties and fiscal deficit of the GCC economies. Governments' measures to rationalize expenses and boost income have influenced the consumer sentiment in the countries. Some governments have introduced VAT thus indirectly affecting the food sector.  

Trends


Growth of Packaged Food Remains Intact: A high expatriate population, rising number of working couples and hectic lifestyles are driving demand for packaged food in the GCC.

Growing Private Label Segment: Growing popularity of modern retailing has strengthened the demand of private label products. As consumers become more price sensitive, retailers including large supermarkets, hypermarkets and even discounters continue to invest in private labels, which have emerged as an important source of revenue with high margins.

Shifting Food Preference towards a Healthy Lifestyle: High levels of obesity and increasing health awareness in the region continue to augment the demand for healthy and organic food.

Increased Focus on Food Processing Segment: An increasing number of companies are investing in major food processing facilities within the GCC. In addition to local producers, many international firms are also building facilities to serve the regional market.

Digital Innovations Driving Food Distribution Efficiencies: Technology is re-defining the F&B sector in the GCC as the rising youth population is more tech-savvy and values the access to information and convenience along with the experience.

Growing Attention on Food Security: To reduce dependency on imports and build a sustainable supply, the GCC countries are looking at ways to boost the domestic food production by investing in modern agriculture methods like aquaculture, hydroponics and vertical farms. Some of the countries are also investing in overseas farmlands. 

The GCC's demographics and robust macro-economic factors are expected to continue to bolster its food industry. Due to the inherent growth potential of the industry coupled with increasing investments towards food security by the regional governments, significant M & A activity is projected to take place in the sector. 



Posted by : GoDubai Editorial Team
Viewed 6429 times
Posted on : Wednesday, September 11, 2019  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Bake a cake and win cash prize up to Dhs 30,000
Next Story : Casa Mia's very own Chef Giuseppe to lead the kitchen as Chef de Cuisine
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Enjoy Smoother Skin with the current obsession from PMD - The Personal Microderm...
Saint Honore Haussman
Energize & Refresh Your Skin With the Foreo Luna 2 for Men
Hamdan bin Mohammed calls on the city to be ‘In It Together' for the Dubai Fitne...
The new urban warrior unleashed - Corum injects modernity and athleticism into ...
6 Ways To Wear The Houndstooth Print
Medusa Lock Icon
Middle East Retail Forum (MRF) 2019 focused on RetailNEXT
This visually-impaired Emirati knows no impossible
One stop shop for classifieds and deals in UAE- QUOODO.com
Heritage village at Global Village offers a glimpse into Emirati traditions
Marks & Spencer Launches Its New Sleepwear Collection for AW19
OMEGA's new Museum
Choithrams Customer lends her voice to World Food Day in support of The United N...
More than 1,900 beneficiaries at Al Mizhar and Umm Al Sheif Islamic Cultural cen...
Malabar Gold & Diamonds inaugurates its relocated outlet in Hamdan Street, Abu D...
Revving The Engines At Rallylegend 2019 With Eberhard & Co.
Expo Centre Sharjah announces winner of 1KG gold
The Workwear Edit
Diwali Feast at Purani Dilli at Four Points by Sheraton, Sheikh Zayed Road
Dubai-Based NRI business leader donates INR 10m to his Alma Mater to setup Innov...
KOBEYa - The First Japanese and Far Eastern Gluten Free Café opens in the UAE
Alno launches new products in UAE in strategic partnership with Diemme kitchen
DAFZA contributes 12% to Dubai's foreign trade in first half of 2019
Worldsteel Short Range Outlook October 2019
IFS lays out blueprint for new era of intelligent and autonomous enterprise solutions
Dubai Shopping Malls Group Announces “shop & Win Gold” Promotion for Diwali 2019
The Turtleneck Edit
Al Majid Motors Co. announces 15-day sale with generous discounts on latest Kia ...
Montegrappa Welcomes Back Hazzaa Al Mansoori and Marks the Historic Occasion by ...
WCO delegation visits Dubai Customs and views latest practices
The new Chronoswiss Regulator Classic – All-rounder in two sizes
Dubai Refreshment Company Wins First Prizeat the Dubai Green Industrial Award 2019
Baarish 2.0 is back by popular demand for a second run at Bollywood Parks™ Dubai
November Specials at Le Meridien Al Aqah
Middlesex University Dubai Leads The Way Being The 1st University In The UAE To ...
Commercial Bank of Dubai adopts the Microsoft Cloud to accelerate digitization
Celebrate Diwali with BurJuman
Hormann introduces faster and more energy efficient fourth generation garage doo...
The House of Karl Lagerfeld Announces “A Tribute to Karl”
KOTRA successfully wrapped up its K-Beauty Brand-up Seminar
EWEC and ACWA Power Announce the Financial Closing of the World's Largest Revers...
Golden Bridge Round 43 Art Deco: Two suspension points
Train like a Champ with Champion Cleaners
Tonino Lamborghini presents its luxury Home accessories at the Dubai experience ...
In Pictures: Dubai Fitness Challenge Starts Off Strong!
EWEC receives six proposals for Fujairah F3 power plant project
Daiso releases its collection of Halloween decorations!
France to introduce new operating models & capabilities at Gulfood Manufacturing 2019
ENEC and Rosatom continue cooperation in the peaceful use of nuclear energy