UAE food and beverage sector achieved sales of US$ 16.4 billion during 2023
Dubai International Chamber highlights opportunities
for growth in emirate’s vibrant F&B sector at Gulfood
* Mohammad Ali Rashed Lootah: “Dubai is continuing to strengthen its position
as a significant global hub for the worlds food and beverage trade, which creates
promising opportunities for companies operating in the sector to expand and
grow. The sector is developing innovative solutions to contribute to global food
security while ensuring it keeps pace with the global drive for sustainability.”
*Dubais food and beverage sector attracted US$ 577 million in new foreign directcinvestment from 48 companies in 23 countries between 2019 and 2023,according to FDI Intelligence data.
* The UAE accounted for the largest regional share of venture capital investmentsin restaurant technology from 2018 – 2023.
* Local consumers spent approximately US$ 1.1 billion on purchasing food via e-commerce platforms during 2023.
Dubai(News Desk)::Dubai International Chamber, one of the three chambers operating under the umbrella of Dubai Chambers, has successfully hosted a business event on the sidelines of Gulfood, the world’s largest conference and exhibition dedicated tothe food and beverage (F&B) sector. The five-day event is taking place from 19 – 23February at Dubai World Trade Centre.
Aimed at equipping participants with essential information on the latest trends shaping Dubai’s F&B landscape, the event attracted the attendance of 400 delegates from local and international businesses. The session highlighted the promising opportunities Dubai offers to companies operating in the sector, which are supported by the emirate’s advanced logistics capabilities and favourable business
environment.
According to data from Euromonitor, the UAE’s F&B sector generated US$ 16.4 billion in retail sales, including both fresh food and packaged food. Consumer spending on food via e-commerce platforms reached a value of US$ 1.1 billion in 2023 and is expected to increase at a Compound Annual Growth Rate (CAGR) of 9.5% between 2023 and 2027.
Dubai’s F&B sector attracted new foreign direct investment worth US$ 577 million from 2019 to 2023, according to data from FDI Intelligence. These investments were made by 48 international companies from 23 countries.
His Excellency Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, commented: “Dubai is continuing to strengthen its position as a significant global hub for the world;s food and beverage trade, which creates promising opportunities for companies operating in the sector to expand and grow. The sector is developing innovative solutions to contribute to global food security while ensuring it keeps pace with the global drive for sustainability.”
His Excellency added:Organising Gulfood – the worlds largest F&B event – in Dubai creates an ideal platform for producers, suppliers, and traders from across the globe to connect and build cross-border partnerships. Dubai International Chamber is committed to accelerating the growth of the industry by supporting the expansion of Dubai-based F&B companies into promising global markets, as well as attracting foreign investors to leverage the rewarding opportunities available in the emirate in this vital sector.
Regional Leader in Investment Attraction
The UAE accounted for the largest share of venture capital investments in the Middle East’s restaurant tech sector from 2018 to 2023. The country attracted investments exceeding US$ 1 billion in this area according to data from PitchBook. The UAE also ranked second among Middle Eastern countries in terms of the value of venture capital investments in the agritech sector during the same period, attracting investments worth US$ 335.4 million.
Fresh Food
According to data from Euromonitor, retail sales of fresh food in the UAE will rise from US$ 9.8 billion in 2023 to US$ 12.4 billion in 2028, achieving a CAGR of 4.7%.Meat accounts for the largest share of sales in this category; the value of meat retail sales reached US$ 2.6 billion in 2023 and is expected to achieve a compound annual growth rate of 5.8% from 2023 to 2028. Vegetables followed in second place with sales of US$ 2.4 billion in 2023 and a compound annual growth rate of 4.3% forecast during the same period.
Packaged Food
Retail sales of packaged food in the UAE are expected to rise from US$ 6.6 billion in 2023 to US$ 8.3 billion in 2028, achieving a CAGR of 4.6%. Staples such as corn, rice, and wheat account for the largest share of sales in this category, with sales of staple foodstuffs reaching US$ 2.3 billion in 2023 and an expected CAGR of 5% between 2023 and 2028. These were followed by dairy products, with sales of US$ 2 billion in 2023 and an anticipated compound annual growth rate of 4% in the same period.
Beverages
Retail sales of beverages in the UAE are forecast to rise from US$ 1.6 billion in 2023 to US$ 2 billion in 2028, representing a CAGR of 4.6%. Bottled water accounts for the largest share of sales in this category, recording sales of US$ 635 million in 2023 with an expected CAGR of 5.4% from 2023 to 2028. This was followed by soft drinks, with sales of US$ 422 million in 2023. Ready-to-drink coffee sales are expected to achieve a CAGR of 14.2% from 2023 to 2028, after recording sales of US$ 32 million last year, while sales of ready-to-drink tea – which amounted to US$ 8 million in 2023 – are expected to record a CAGR of 13.9% during the same period.
Growing Demand
Dubai International Chamber’s presentation revealed that continuous growth in Dubais population and increases in tourism flows to the emirate are contributing to a growing demand for high-quality F&B products and services. The emirate is on course to continue to strengthen its position as a major commercial hub for the F&B sector at both the regional and global levels, creating rewarding opportunities for companies across all categories of the sector.The presentation also highlighted steady growth in retail sales of basic foods, meat,and beverages, both in terms of market size and quantities sold, together with
growing demand among UAE consumers for locally produced food products, creating opportunities for local manufacturers to increase their market share.
The business meeting featured a panel discussion with the participation of Saleh Lootah, Chairman of the UAE Food and Beverage Manufacturers Business Group,which operates under the umbrella of Dubai Chamber of Commerce. During the session, Mr. Lootah underlined the important role played by the Business Group in enhancing the sector’s competitiveness.(-End-)