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. 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. Foreign citizens make up around 88% of total population and are mainly responsible for the rapid gains in population. Investing in state-of-the-art technology can help hypermarkets distinguish themselves from lower-end convenience stores and supermarkets. It includes many products of private label, SPAR Own Brand products are sourced both regionally and internationally. After years of aggressive expansion, Zoom consolidated its position as the leader in value share terms in 2019. Consequently, a number of local companies reconstitute dairy products from milk powder, primarily sourced from Europe, New Zealand, and Australia. 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. Lead Qualification Service Many of the changes in the market are driven by millennials and beyond, generations led by experiences rather than materialistic behaviors. UTF /UAE/009/UAE : Transforming the food and agriculture sector to achieve the SDGs for enhanced Food Security and Nutrition. Ready-to-eat meals with a focus on fresher ingredients are helping to fuel the prospects of this segment. Please take a moment to review these changes. 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. Hypermarkets are seeking ways to distinguish themselves from competitors. The opening up of various projects in the capital city of Abu Dhabi has also gained global attention, which will likely drive investment in new concepts, thereby raising the profile of the UAE as a provider of unique culinary experiences and thus being able to attract global audiences. FocusEconomics panelists forecast Gross Domestic Product (GDP) to increase 1% in 2020, which is down 1% from the March estimate, and 2.9% in 2021. 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. With its first outlet in Abu Dhabi, it opened a second outlet in Dubai in 2019 which caters to a more multi-ethnic basket of consumers. 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. Some of these supermarkets are called “Mini Marts”. This creates a better shopping experience and reduces the barriers for time-strapped young consumers. The UAE is the largest U.S. consumer food export market in the Middle East and the 20th largest overall. In MY 2019/20, Post forecasts UAE rice imports at 1.0 MMT, an increase of nearly 10 percent or 100,000 MT. Jeremiah Jaimes 312.334.9229, States: KS, MI, SD, WI Charcoal toothpaste has become a ubiquitous trend in hypermarkets, a niche product that appeals to consumers’ desire for novelty and products with more nature-based ingredients. With each year’s report, our endeavor is to listen to the voice of the industry, analyze upcoming trends and address some of the challenges faced by owners and operators. Emirate’s (UAE) Food & Beverage (F&B) industry. © 2015 Food Export Association of the Midwest USA and Food Export USA - Northeast. FAX: 312.334.9230 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 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. Traditionally, such choices have been exclusively the realm of premium offerings and hypermarkets are continuing to address demand by offering more choice. Macroeconomic overview The United Arab Emirates’ GDP increased by 0.8% in 2017, down from 3.0% in 2016. 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. 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. We want to make sure you're kept up to date. Soybeans are sourced from the U.S. and Latin America. TEL: 312.334.9200 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. Dubai Chamber's annual reports can be downloaded from here. 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. 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). It is expected that an increasing number of multinational food companies will look to link up with local processors. 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. While food processors often started small, the UAE’s strategic location, excellent ports, and strong infrastructure have helped many to expand. One way they are doing this is by appealing to consumers’ sensitivity to environmental sustainability. Get the latest KPMG thought leadership directly to your individual personalized dashboard. 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