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DUBAI/ WAM
The 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 to the food and beverage sector.
The five-day event is from 19th to 23rd February at the Dubai World Trade Centre.
Aimed at equipping participants with essential information on the latest trends shaping Dubai’s food and beverage landscape, the event attracted 400 delegates from local and international businesses. It highlighted Dubai’s promising opportunities to companies operating in the sector, supported by the emirate’s advanced logistics capabilities and favourable business environment.
According to data from Euromonitor, the UAE’s food and beverage sector generated $16.4 billion in retail sales, including fresh food and packaged food. Consumer spending on food via e-commerce platforms reached $1.1 billion in 2023 and is expected to increase at a Compound Annual Growth Rate (CAGR) of 9.5 percent between 2023 and 2027.
According to data from FDI Intelligence, the sector in the emirate attracted new FDI worth $577 million from 2019 to 2023, which was made by 48 international companies from 23 countries.
“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 that it keeps pace with the global drive for sustainability,” Lootah said.
“Organising Gulfood, the world’s largest food and beverage 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 industry’s growth by supporting the expansion of Dubai-based food and beverage companies into promising global markets and attracting foreign investors to leverage the rewarding opportunities available in the emirate in this vital sector,” he added.
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. It attracted investments exceeding $1 billion in this area, according to data from PitchBook. The UAE also ranked second among Middle Eastern countries regarding the value of venture capital investments in the agritech sector during the same period, attracting investments worth $335.4 million.
Fresh Food
According to data from Euromonitor, retail sales of fresh food in the UAE will rise from $9.8 billion in 2023 to $12.4 billion in 2028, achieving a CAGR of 4.7 percent. Meat accounts for the largest share of sales in this category, with the value of meat retail sales reaching $2.6 billion in 2023 and expected to achieve a compound annual growth rate of 5.8 percent from 2023 to 2028. Vegetables followed in second place with sales of $2.4 billion in 2023 and a forecasted compound annual growth rate of 4.3 percent during the same period.
Packaged Food
Retail sales of packaged food in the UAE are expected to rise from $6.6 billion in 2023 to $8.3 billion in 2028, achieving a CAGR of 4.6 percent. Staples such as corn, rice, and wheat account for the largest share of sales in this category, reaching $2.3 billion in 2023 and an expected CAGR of five percent between 2023 and 2028. These were followed by dairy products, with sales of $2 billion in 2023 and an anticipated compound annual growth rate of 4 percent in the same period.
Beverages
Retail sales of beverages in the UAE are forecasted to rise from $1.6 billion in 2023 to $2 billion in 2028, representing a CAGR of 4.6 percent. Bottled water accounts for the largest share of sales in this category at $635 million in 2023, with an expected CAGR of 5.4 percent from 2023 to 2028, followed by soft drinks with sales of $422 million in 2023.
Ready-to-drink coffee sales are expected to achieve a CAGR of 14.2 percent from 2023 to 2028 after recording sales of $32 million last year, while sales of ready-to-drink tea, which amounted to $8 million in 2023, are expected to record a CAGR of 13.9 percent during the same period.
Growing Demand
Dubai International Chamber’s presentation revealed that the continuous growth in the emirate’s population and tourism flows contribute to a growing demand for high-quality food and beverage products and services. Dubai is on course to continue to strengthen its position as a major commercial hub for the food and beverage sector at both the regional and international 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 Emirati 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 Lootah, who underlined the key role played by the Business Group in increasing the sector’s competitiveness.