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ALKESH SHARMA / Emirates Business
Backed by zooming economy and diverse communities, the GCC cafe and bakery industry is all set undergo a robust growth in the next couple of years. This particular segment, out of the overall food industry, has registered an annual billing of nearly $1.9 billion, exhibiting strong growth during 2012-14.
“Food market, especially cafe and bakery, in UAE is going very strong. Even during the time of financial crisis in 2008, cafe and bakery division did not face much trouble while floating out of the difficult phase. However, this was not true for other segments of food industry. Enthused with the market response during meltdown, I decided to venture into the flourishing bakery industry in Dubai,†Aleksandar Petkovic, a Serbian expert who stepped into bakery business in Dubai around two years ago, told Emirates business.
“Since 2012, my bakery business is undergoing annual growth rate of over 30 percent. We are one of the few brands in the UAE offering authentic Serbian cakes and cookies. We have plans to open one branch in Abu Dhabi this year and to take our growth rate to around 50 percent,†added Petkovic, who is also running a property renting firm.
According to Al Masah Capital Ltd, the region’s leading investment firm, cafe and bakery segment accounted for nearly 10.3 percent of the GCC food services market in 2014. It is expected to increase its share substantially by the end of 2016. In the GCC region, cafe Bateel, Starbucks, Paul, Tim Hortons, and Vogue cafe are among the most renowned brands in this category.
“If we compare this region with other countries, population of the GCC is quite young. Youngsters constitute the major chunk of cafe and bakery industry’s customers. A latest data from the World Bank says that over 40 percent of the region’s population is aged between 15 and 34 years. We just need to keep innovating our product range to attract young customers,†Nick Berry, Managing Director of Take Away Foods chain, told Emirates Business.
According to World Bank’s findings, Qatar, Oman, and the UAE have the highest percentage of population in this age group of 15 to 34 years.
“Irrespective of circumstances, nobody will stop visiting a cafe that is the favourite joint for a quick coffee or for catching up with a business client or friend. Apart from big American and European names, there has been a quick growth of homegrown brands that are expected to undergo rapid growth as compared to others,†pointed out Berry.
