Fresh food sales to hit Dh30b in ’17
Sales of canned food products expected to reach Dh19 billion in 2017. The GCC’s food import bill will double to $53.1 billion.
dubai — Fresh food sales in the UAE are projected to reach Dh30 billion in 2017, marking a steady increase from Dh27 billion in 2016, according to recent estimates from Business Monitor International that were highlighted at presentation organised by the Dubai Chamber of Commerce and Industry.
Sales of canned food products are expected to reach Dh19 billion in 2017. The sales value of tea and coffee products sold within grocery stores is expected to surge to Dh4.4 billion by 2020, while growing demand for organic food products is expected to significantly boost sales in this category to Dh145 billion in the same year.
The GCC’s food import bill will double over the next few years to $53.1 billion, according to a Meed Insight Thought Leadership Report. The Middle East Food Sector 2016 report says prevailing climatic conditions in the GCC, which currently produces only 30 per cent of its food requirements and imports the remaining 70 per cent worth over $150 billion annually, will keep it dependent on food imports for the foreseeable future.
The report identifies food as the GCC’s highest consumer spend segment and predicts it will rise a further five per cent to reach $106 billion by 2017. However, it also says high urbanisation rates will affect spending patterns — identifying growing demand for convenience, frozen and packaged food. It says the Middle East will play a role in developing a global frozen food market forecast to reach $293.7 million by 2019. The report says that by 2018, the GCC will see significant growth in organic farming, food retailing and its F&B service segment predicting that within two years the region’s organic farming market is expected to be worth $1.5 billion; its food retail market will grow to $155 billion and its overall F&B segment to $13.2 billion.
The Gulfood Breakfast Briefing, hosted by the Dubai Chamber at its premises was attended by 250 delegates from 36 countries, as well as several ambassadors and representatives from Dubai’s business community. The event, which was organised on the sidelines of Gulfood 2017, focused on new trends and grow opportunities within the UAE’s fast-growing food and beverage sector, and specific areas within the market that offer the most potential for foreign investment and trade.
Atiq Juma Nasib, senior vicepresident of Commercial Services at Dubai Chamber, outlined various advantages that Dubai provides food suppliers and exporters around the world, including the emirate’s strategic geographic location, which enables its trade partners to easily access markets across the Middle East, Africa and Asia, in addition to its world-class logistics infrastructure and investor-friendly business environment.
Amina Ahmed Mohamed, executive director of Emirates Global Centre for Accreditation, spoke about the role of accreditation in the halal food industry, and the Centre’s efforts to ensure that all products that are certified as halal actually comply with Islamic law. She added that establishing an internationally recognised trademark would stand to expand the trade of halal food products around the world.
— issacjohn@khaleejtimes.com