A report by Alpen Capital, a Dubai-based banking and investment consulting firm, predicts that food consumption in the UAE will grow at a compound annual rate of 3.3% to reach 10.4 million metric tons by 2027, up from 8.8 million metric tons in 2022.
It is expected that strong economic growth of 4.1% over a five – year period, coupled with population growth (at a compound annual rate of 1.8% during the period 2022-2027) will be the main driver behind the growth of food consumption in the UAE.
The report also predicted that the growth of the expatriate population (accounting for 88.5% of the UAE’s total population in 2023) and the recovery of the local tourism sector will boost the demand for diverse cuisines across the UAE. The increasing influx of short-and medium-term arrivals and tourists to the country is likely to support demand and promote the trend towards healthy food items.
The UAE government is making intensive investments to improve local production processes and develop sustainable and integrated food security systems through the UAE national strategy for food security 2051, which aims to raise the country’s position to be the best in the world in the Food Security Index by 2051, and focus on facilitating global food trade and diversifying sources of food imports.
At the same time, the UAE government has launched several programs to improve local production, and adopted policies that include promoting cooperation with other countries, diversifying import sources, and attracting agricultural investments, especially in agricultural technology to enhance self-sufficiency. The UAE is also focusing on foreign agricultural investments that involve growing strategic crops to meet growing demand. Such measures will help to increase local production and support the demand for locally grown products.
Among the various food categories, meat consumption is expected to register the highest compound growth rate of 5.2% among all categories in the country during the years 2022 and 2027. The volume of meat demand is expected to reach 1.1 million metric tons by 2027, up from 0.8 million metric tons in 2022.
While the consumption of milk / dairy products and “other” food categories is likely to grow at the slowest pace at 1.0% each over a five-year period, while the categories of vegetables (4.6%), cereals (3.9 %) and fruits (1.8 %) are likely to record a healthy growth rate in consumption. The total per capita consumption in the UAE is expected to grow at a compound annual rate of 1.5% during the forecast period.
The report, which was launched on Tuesday, November 28, provides a comprehensive overview of the food sector in the UAE, highlighting recent trends in the sector, growth drivers and challenges facing it.
The report was launched through a webinar, followed by a discussion session that brought together Sanjay Bhatia, Managing Director of Alpen Capital, Garrett Walsh, CEO of mezzan Holding, Nasser Taleb Nasser, CEO of Islamic food company, while the session was moderated by Samina Ahmed, managing director of Alpen Capital.
Samina Ahmed, managing director of Alpen Capital, said: “food demand in the GCC is expected to be driven by improving macroeconomic factors, population growth, a recovering tourism sector and various initiatives taken by governments to promote self-sufficiency “ The food industry is witnessing a rise in demand for new dining concepts and diverse cuisines, driven by changing consumer preferences and increasing health awareness. The food services sector continues to develop at a significant pace to meet the needs of consumers, remaining one of the most important sectors driving food consumption in the region. Gulf governments are also investing heavily in innovation in key areas such as desalination, efficient irrigation systems, greenhouse agriculture, plant breeding and soil remediation to alleviate food security concerns,”he added.
