DUBAI
Reaching $196 billion by 2021, the food and beverage sector in the Gulf is expected to continue to grow by 7.1 per cent annually, according to MENA Research Partners, a regional research company.
The company, which is publishing the report ahead of next week’s Gulfood event in Dubai, says that the market is currently valued at around $130 billion.
As a percentage, Saudi Arabia alone accounts for more than half of that, followed by the UAE with 31 per cent.
Kuwait, which is the third largest food and beverage market in the region, is set to be the fastest growing market, at 9.6 per cent per year.
In terms of products, the segment is characterised by a large presence of international brands, the report says, either manufactured regionally through local factories or imported through distributors.
These foreign brands account for the majority of the market at 70 per cent.
However, the food service segment, led by international chains represented by regional franchise partners, is set to outperform the sector’s growth, expanding by 8.4 per cent annually until 2021.
“This surge is driven by the growth in disposable income, a shift from dining-in to dining-out and a trading up in the dining-out habits and preferences,” Anthony Hobeika, chief executive at MENA Research Partners, said in a statement on Thursday.
He added that catering concepts fuelled by home and office delivery and online food ordering are gaining popularity.
According to Hobeika, a higher awareness of health, as a result of the prevalence of chronic diseases in the GCC, has led to a growing demand for healthy foods and allergen-free products. This has been spurred on by the introduction, in the UAE and Saudi Arabia, of a 50 per cent tax on carbonated soft drinks, and a 100 per cent tax on energy drinks.
