GULFOOD 2018
Gulfood global industry outlook report says Middle East and Africa to deliver ‘strongest’ growth for global F&B industry to 2021
The independent report commissioned by Dubai World Trade Centre (DWTC) for the 23rd edition of Gulfood 2018, paints an optimistic yet challenging picture for industry growth, citing a billion extra consumers with growing disposable incomes to enter the market place by 2030 and evolve buying trends across all regions.
“The findings show that with a rapidly growing and highly urbanized population, demand across the globe for processed and packaged food and beverages is set to increase,” explained Trixie Lohmirmand, senior vice president, exhibitions & events, DWTC. “Yet while there are more consumers to go around, overall consumer spending is set to drop from 8.5 percent of GDP to eight percent by 2030 as products become relatively more affordable and make up a smaller proportion of overall consumer spending.”
Key region trends
The Middle East & Africa: Cold chain services are changing MEA consumer choices, as frozen processed halal meat and poultry, cold drinks and flavored milks increase in popularity. Foodservice is also growing, with the entry of many international chains influencing in-home consumption of more traditionally western food choices. Demand for portable bottled water is expanding in major cities particularly in the UAE and Saudi Arabia due to the high number of visitors and pilgrims. While young consumers, particularly in Sub-saharan Africa, have adopted mobile and internet-based services as the key channel to communicate with brands and delivery services.
Asia Pacific: Packaged food sales are growing, as modern retail expands supported by a developing cold chain infrastructure for fresh, chilled and processed foods. Internet retailing and strong national logistics mean consumers can easily and cheaply buy products not easily accessible in local retailers. Health concerns around obesity are shaping strong and growing interest in natural and traditional ingredients.
Europe, Australasia and North America: In these mature markets, media and national campaigns, regulation and unsubstantiated packaging claims are challenging consumers’ buying decisions. Increasing label scrutiny underlies most consumer choice, as they search for natural, healthsupportive ingredients with local sourcing and low processing. Online services are well established, but consumers still like to look, feel and test new products in local retailers. Consideration of the long-term health and environmental impact of shopping behavior is now strongly engrained.
Latin America: The traditional grocery sector remains significant outside Brazil and Chile, despite the rapid adoption of mobile apps for purchasing. Warehouses, discounters and private labels respond quickly to the needs of price-sensitive consumers, but amid persistent economic uncertainty, young or employed consumers are eager to try new products and are willing to pay for this indulgence. Sugar taxes in Mexico and other markets have changed the ingredient profile of many products; manufacturers are tweaking formulations to offer new flavors, hybrid and soy-based drinks in smaller pack sizes, in response to growing consumer awareness of health concerns.