UAE beverages sector set for growth
dubai — Growth in the UAE and GCC’s beverages industry will start to pick up in the new year, following a period of stagnant growth, experts at the eighth Arab Beverages Conference (ABCE 2018) said.
Organised by the Arab Beverages Association, the event highlighted market trends as well as strategies and best practices from over 300 industry leaders on various segments, including dairy, juice, carbonated drinks, bottled water and hot beverages. Providing a platform for experts, employees, academics and investors to share experiences and knowledge as well discuss opportunities and restrictions, the conference also provides an opportunity to generate awareness and promote discussion surrounding best practice and technologies.
“We are looking at an optimistic and growing market over the next few years,” Sharif Monther bin Trad Al Harthi, chairman of the Arab Beverages Association and CEO of Al Rabie Saudi Food Co, told Khaleej Times. “Growth in the beverages industry was a bit stagnant these past few years due to a number of factors such as
Starting next year, we are set to witness an annual growth of about two to three per cent across all major segments
Sharif Monther bin Trad Al Harthi, CEO of Al Rabie Saudi Food Co
limited purchasing power from customers. However, starting next year, we are set to witness an annual growth of about two to three per cent across all major segments.”
According to the ‘State of the Global Islamic Economy’ report 2018/19, Muslims spent $2.1 trillion across the food, beverage and lifestyle sectors in 2017, with forecasts on spending estimated to reach $3 trillion by 2023. By category, food and beverages lead the Muslim spend at $1.3 trillion, followed by fashion at $270 billion, media and recreation at $209 billion, travel at $177 billion, pharmaceuticals at $87 billion and cosmetics at $61 billion.
Grand View Research notes that the global halal food and beverages industry is expected to witness significant growth owing to increasing Muslim populations, which are expected to increase from 23 per cent today to around 30 per cent of the total world population by 2030.
Al Harthi revealed that there was an increasing shift towards healthier beverage options in the market. “There are a number of reasons for this; customers are focusing on their fitness, and the recent hike and taxes on carbonated drinks have also dampened buying sentiment.”
Moving forward, he expects to see more segmentation in the market. “We have seen a number of new product launches such as smart water and vitamin D water, which have been very popular. These type of niche products are very popular in the US and European markets, and their success can be translated in the UAE if the taste and price point of the customers are kept in mind.”