This is a very important way to drive future prospects because some people avoid hypermarkets due to the chaotic nature and long queues. Alpen Capital´s latest report on the GCC Food Industry estimates that the per capita food consumption in the region will expand at a CAGR of 2.1% over 2011-15 (as against an estimated CAGR of 0.9% over 2007-10), mainly due to rising incomes in the region. The company offers private label products in consumer appliances as well as homewares, which are quite popular among price-sensitive consumers in the UAE. This creates a better shopping experience and reduces the barriers for time-strapped young consumers. Ready-to-eat meals with a focus on fresher ingredients are helping to fuel the prospects of this segment. Investing in state-of-the-art technology can help hypermarkets distinguish themselves from lower-end convenience stores and supermarkets. In addition, immigration has led to an imbalance between the male and female populations – there are two men for every woman in the UAE. should contact us. One way they are doing this is by appealing to consumers’ sensitivity to environmental sustainability. Dubai also plans to invest US$32 billion to develop one of the world’s largest aviation mega-hubs. The UAE is the largest U.S. consumer food export market in the Middle East and the 20 th largest overall. Delivery: Files are delivered directly into your account within a few minutes of purchase. As the frequency of largely weekly or monthly shopping decreases, this can be a source of worry for hypermarkets. Food Export–Midwest and Food Export–Northeast prohibits discrimination in all its programs and activities on the basis of race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, familial/parental status, income derived from a public assistance program, political beliefs, reprisal or retaliation for prior civil rights activity. The food consumption in the GCC, according to Alpen Capital, is expected to grow at a CAGR of 3.3% from an estimated 51.5 million MT from 2018 to 60.7 million MT in 2023. Long queues are very off-putting in a convenience store, and as the segment becomes more popular, self-checkout will help grow the segment. Al Maya has been in the Gulf region for the past 35 years and is pursuing further growth opportunities in the future. Economic momentum ebbed further in the first quarter of 2020 amid coronavirus-related disruption, after decelerating for two consecutive quarters in 2019. The storage facility will also help ensure freshness and keep prices competitive for the increasingly price-sensitive consumer base. U.S. consumer food products with good potential into the UAE and rest of the GCC-5 region include: Due to rising concerns regarding health and wellness among consumers in the UAE and the greater impact of consumption patterns shaped around calorie counting and the intake of vital nutrients, the industry has begun to see the development of functional food items with more foodservice operators introducing gluten-free options under regular menu items. Building on the three previous editions, the 2018 UAE Food and Beverage (F&B) report ‘Food for thought’, reflects the views of 25 industry stakeholders, operating throughout the Emirates, representing more than 120 brands and approximately 1,700 outlets. Adnoc Distribution’s C-suite personnel are entirely made up of Emiratis, a rarity for the private sector. 2020: 2023: 3,597,111$ UTF /UAE/010/UAE-F : Assessment and strategic analysis of the food control system in Abu Dhabi: 2020: 2021: 217,771$ Find out how KPMG's expertise can help you and your company. Apryl King 215.599.9753. The UAE also imported US$424.6 million of U.S. processed foods in 2019, an increase of 6%. FAX: 215.829.9777 Furthermore, newly-opened outlets in Dubai helped fuel growth. Food Export–Midwest and Food Export–Northeast are equal opportunity employers and providers. 309 W. Washington St., Suite 600 From poke bowls and frozen yoghurt to the Peruvian food craze, food trends are one of the drivers behind the success or set-back in the industry and here, Dubai Tourism, along with food writer Samantha Wood, list out the top 10 food trends that are set to make their mark in 2018. Since the last time you logged in our privacy statement has been updated. Foreign citizens make up around 88% of total population and are mainly responsible for the rapid gains in population. 7-Eleven also partnered with soCash in 2018 to offer consumers the choice of “cardless” cash withdrawal via the soCash app as part of its efforts to enhance consumer convenience through digital means. Zoom’s expansion of food and beverage service through Pronto cafés in its outlets also attracted consumers who were interested in healthy and organic alternatives. UAE’s F&B industry believes worst is behind it Dubai has second highest number of restaurants as percentage of population, says KPMG Published: February 26, 2019 16:26 Staff Report Over the past few years, we have been overwhelmed by the interest and response we have received for our work. Paul Sorenson 312.334.9217, States: NH, NJ, PA RevPAR levels weakening over 2019. The non-oil sector steadily expanded as diversification of the economy proceeded. In addition, as lifestyles become ever busier and household size is reduced, hypermarkets will see sluggish growth over the forecast period (2024). Grandiose Supermarket will be the sole player in that space in close proximity to the car park, which will give consumers, added convenience because it will save them the hassle of having to travel through the mall to get to their car. Persons with disabilities who require reasonable accommodations or alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) Fresh food saw positive growth in 2019, driven by several factors. Over the course of 2018, the Central Bank of the UAE’s Overall Augmented Economic However, increased production after the breakdown of OPEC+ production cut agreements in early March will have softened the hit to revenues somewhat. The UAE is the 2nd largest U.S. export market for processed foods in the Middle East after Saudi Arabia. Printed in the United Arab Emirates. After years of aggressive expansion, Zoom consolidated its position as the leader in value share terms in 2019. Local dairies and poultry farms are not large enough to meet local demand. © 2020 KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. The UAE is the largest U.S. consumer food export market in the Middle East and the 20th largest overall. We want to make sure you're kept up to date. In the food-processing sector, U.S. ingredients are mainly used in the following product categories: flour and bakery products, vegetable oil, canned beans, carbonated and non-carbonated beverages, chicken franks, manufactured snack foods and reconstituted juices. In 2020, the total number was 9.9 million, up from just 3 million in 2000 (CIA World Factbook Est.). Grandiose, a supermarket that sells French brands such as Luchon and Cotterley has now opened in the new Dubai Mall Zabeel extension, the 9-storey retail space that is linked to the main mall with a footbridge. Conversations with F&B stakeholders explored current developments in the market and future perspectives. Export Essentials Online Investment could prove beneficial for chains in the region, as it certainly has in the US and around the globe. There are a greater number of players in this segment as brand-name supermarkets such as Spinneys and Carrefour expand their smaller format stores. TEL: 215.829.9111 When self-checkout was first introduced in the UAE, it usually required human assistance to get customers familiar with it. In MY 2019/20, Post forecasts UAE rice imports at 1.0 MMT, an increase of nearly 10 percent or 100,000 MT. Its non-oil industries now account for close to 50% of GDP. Although banks remain well capitalized, most are increasingly unwilling to lend to SMEs. Lead Qualification Service Food Export–Midwest and Food Export–Northeast reserve the right to deny services to any firm or individual which, in the sole opinion of Food Export– Midwest and Food Export–Northeast, does not comply with FAS, MAP or Food Export–Midwest and Food Export–Northeast regulations or policies, or otherwise offer the best opportunity to achieve its mission of increasing food and agricultural exports. The United Arab Emirates is a federation of absolute hereditary monarchies. The number of employees in the food and beverages industry counts to about 44 thousand, representing about 10% of the total number of employees in the industry sector. Rome. Email: Food Export-Northeast, States: IN, IA, MN, MO, OK U.S. exports of consumer ready food products totaled US$936.5 million in 2019, an increase of 20% from 2018. Post attributes this increase growing local consumption, exports, re-exports and government grain stocks. Imports net of re-exports in the food & beverage sector was around 43 billion AED in 2017 with a domestic consumption size of 112 billion AED. Dubai exports have 218 registered F&B members and led 28 food companies during 2017 to participate in world food exhibitions in Germany (Anuga), and Russia (WFM). From The Report: UAE: Dubai 2019 According to consultancy Oxford Economics, it is set to grow marginally faster — by another 34% — in the 10 years leading to 2027. Post estimates rice imports in MY2018/19 at 900,000 MT, similar to the USDA official estimate. Some locally produced foods are of very high quality with competitive prices compared to imported products. As the UAE’s economy has developed into a major services hub in the Middle East, its dependency on oil exports has declined. Interviews for the report were conducted during the third and fourth quarters of Dubai’s diversification efforts were slowed by problems in the financial industry and the real estate market. At last report about 430 food processing firms operate in the UAE and a smaller number of food processors in other Gulf countries such as Kuwait, Oman and to a much lesser extent in Qatar. It is expected that an increasing number of multinational food companies will look to link up with local processors. However, both sectors now appear to be on the way to recovery. The UAE is the second largest foreign direct investment (FDI) recipient among Arab countries after Saudi Arabia. According to this research, the Saudi Arabia Natural & Organic Food Market is projected to grow at a CAGR of 15.9% during 2019-2025. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online https://www.ascr.usda.gov/filing-program-discrimination-complaint-usda-customer. It has won the award UAE Superbrand for five consecutive years. Traditionally, such choices have been exclusively the realm of premium offerings and hypermarkets are continuing to address demand by offering more choice. According to the Economic Report 2018 released by the UAE's Ministry of Economy, the UAE attracted about USD 10.4 billion of foreign direct investment during 2017 with an average growth rate of 1.6 per cent during the period from 2012-2017. Soybeans are sourced from the U.S. and Latin America. The Middle East’s Venture Capital industry is forecast to be worth $5 billion by 2019 (an enormous jump from $200 million in 2016). Top U.S. exports of processed food products to the UAE in 2019 included: Euromonitor has estimated 2019 retail sales in the UAE packaged food market to be US$5.7 billion. Featured Products in our U.S. Foodlink global newsletter (complimentary), Food Export Association of the Foreign Ag Service GAIN Report: United Arab Emirates: FAIRS Export Certificate Report. U.S. exports of consumer ready food products totaled US$936.5 million in 2019, an increase of 20% from 2018. Email: Food Export-Midwest, Food Export USA - Northeast Abu Dhabi and Dubai together account for about 80% of the UAE’s income. The UAE’s food and beverage (F&B) market remains vibrant, with the number of restaurants per million residents in Dubai alone ranking second only to Paris, according to global audit firm KPMG. The Dutch supermarket offers a fresh bakery, a fish counter and butcher. As the country prepares for Expo 2020, with it continuing to attract a global tourist audience through the development of real estate, leisure and entertainment experiences it is expected that this will help support a positive turnaround within the consumer foodservice industry. This allows the rest of the staff members to focus on consumer service and create a better shopping experience. The UAE’s automobile sector is steadily shifting gears to pick up speed and is likely to reach 2019 level in 2022 or a year later after slumping 30 per cent this year, say industry executives. Discover the latest market trends and uncover sources of future market growth for the Consumer Foodservice industry in United Arab Emirates with research from Euromonitor's team of in-country analysts. Philadelphia, PA 19103 Market Builder (Market Scan) Virtual Consultations Proceeding from the definition, the food industry of the United Arab Emirates includes the following sectors: According to Euromonitor, leaders in hypermarkets are creating buzz by bringing cutting-edge technology to their brick-and-mortar stores. © 2015 Food Export Association of the Midwest USA and Food Export USA - Northeast. Submission of any false or misleading information may be grounds for rejection or subsequent revocation of any application or participation. Please note that your account has not been verified - unverified account will be deleted 48 hours after initial registration. Furthermore, promoting the in-store experience is a way for hypermarkets to compete with the growing entrenchment of discounters, competition that is expected to intensify as more players enter the market. Click anywhere on the bar, to resend verification email. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. High growth products in the forecast include: Euromonitor reports that when it comes to modern grocer retailing, omnichannel is becoming a growing trend in the UAE. According to Euromonitor the real value of inbound tourist and business travel receipts rose by 4% in 2019 and growth of 2.3% is forecast for 2020. At 1.5 million sq ft. (140,000 sq m), the storage warehouse will be the largest fmcg warehouse ever built in the region (four times larger than any of the previous Carrefour distribution centers). This click-and-collect model has been particularly convenient for people who have busy working lives and prefer to have their groceries delivered in the evenings. Adnoc Distribution, one of the largest players in the UAE in the fuel and convenience store space, outperformed its competitors and stated that this was due to significant increase in volume and improvements in cost efficiencies in Abu Dhabi and the Northern Emirates. Abu Dhabi’s diversification program has made impressive progress. Dubai Chamber's annual reports can be downloaded from here. According to experts, this sector has a latent potential for manufacturers growth. These initiatives are projected to ensure 7-Eleven’s dominance in the years to come, despite similar initiatives from rival Cheers. Emirate’s (UAE) Food & Beverage (F&B) industry. But now after a couple of years, the self-checkout system has found its footing and convenience store consumers appreciate how quick and time saving it is. One Penn Center and labelling the calorie intake for menu items. According to investment bank Alpen Capital’s GCC Food Industry Report 2015 released on Tuesday, food consumed in the region is likely to reach 51.9 million metric tonnes by 2019. However, greater diversification meant that the UAE was hit more severely by the global financial crisis than its neighbors. Hypermarkets will have to appeal to consumers’ new behavior in order to keep themselves relevant over the forecast period. Macroeconomic overview The United Arab Emirates’ GDP increased by 0.8% in 2017, down from 3.0% in 2016. 2018, United Arab Emirates, abbreviated as UAE, is a country located in the southeast end of the Arabian Peninsula on the Persian Gulf, bordering Oman to the east and Saudi Arabia to the south, as well as sharing sea borders with Qatar, Iran and Pakistan. This inaugural year's theme Transforming Our World of "Food and Beverage Manufacturing" is more than a tagline. The UAE halal sector has a great potential worldwide, as the value of the global halal food industry is estimated to have reached USD 1.1 Trillion in 2013 according to recent literature, accounting for more than 16% of the global food market. Furthermore, in a bid to compete with the convenience offered by convenience stores, more and more supermarkets such as Al Maya are being open around the clock. 2019 Food Outlook - Biannual Report on Global Food Markets – November 2019. While food processors often started small, the UAE’s strategic location, excellent ports, and strong infrastructure have helped many to expand. The just-released GCC Food Industry report 2019 provides an overview of the food sector and outlines the recent trends, growth drivers and challenges in the industry. Firstly, the UAE government supported the growth of the fresh food industry in several ways. The consumer trend of rising health consciousness continues to grow in the UAE as more people, especially millennials, look for products that are positioned as increasing wellbeing. Rapidly developing tourism and diversity in the population makes the UAE a very attractive market for expansion for both big and small international players from all around the world, given that a number of enterprises specializing in the Middle East are ready to provide franchise support and investment to new brands and malls looking to increase their presence through a greater number of foodservice outlets. However, almost all immigrants are young or middle-aged adults and their presence ensures a relatively high median age (38.4). 2 Dubai Chamber Annual Report 2019 3 They mostly crush canola seed for the production of oil and meals, targeting the European Union (EU) market. One of the reasons for the success of this Dubai-based business is its location in high-density residential areas. The building represents an AED300 million (US$82.2 million) investment by Majid Al Futtaim, and plans are in the pipeline to automate the sourcing and delivery process for Carrefour in the next 2-3 years. We want to ensure that you are kept up to date with any changes and as such would ask that you take a moment to review the changes. and included both qualitative and quantitative data collection. Title: The Food and Beverage Market Entry Handbook: United Arab Emirates (UAE) Linguistic version Media/Volume Catalogue number ISBN DOI EN PDF PDF/Volume_01 EB-06-18-191-EN-N 978-92-9478-003-4 10.2818/168202 UAE 2018 Food and Beverage report: Food for thought, 83% of operators expect growth in the medium-term due to bolstered trends such as delivery-led revolution and expectations around Expo 2020. This report provides a deep insight into the UAE pet food market covering all its essential aspects. Another reason it is the leader in the channel is the success of the Carrefour private label. The delivery segment is growing year-on-year and the use of rental kitchens is a trend that is increasing in the UAE, Driven by market conditions, quick-service restaurants appear to have outperformed other formats, The UAE continues to lead the Food and Beverage market in the Middle East region. The standard of living in the United Arab Emirates is one of the highest in the world. 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