Food & Beverage market to surpass $80 billion in 2020 in KSA and UAE
Frost & Sullivan's recent analysis, 2020 Outlook of the KSA and UAE F&B Market, finds that the food and beverage (F&B) market in Saudi Arabia (KSA) and the UAE will register steady growth throughout 2020. The overall expenditure on F&B in the UAE is estimated to increase by 6.9 percent year-on-year (YoY), reaching $37 billion in 2020 from $34.6 billion in 2019. KSA is likely to witness 5.4 percent YoY growth, which translates to $50.6 billion over the same timeframe, totalling over $80 billion for both markets. It also discusses food consumption habits and preferences for all meals, highlighting the different habits across weekdays and weekends.
"Rising health awareness, product differentiation, and convenience of online food platforms are key factors to drive the F&B market in the KSA and UAE," said Prithvijit Roy, Food & Nutrition Consultant at Frost & Sullivan. "Additionally, served as a centre-of-plate item, cereals continue to be the most consumed food item in both nations, followed by value-added dairy products, fruits and vegetables, and meat-based products.
Roy added: "Focusing on alternatives (such as organic, whole-wheat, and gluten-free products) and fortified foods, the majority of F&B market leaders are achieving higher margins and revenues through innovation and constantly creating variety. Further, increasing awareness and attempts by governments to curb the intake of unhealthy food items will push the demand for organic and balanced foods."
To take advantage of the F&B market in the KSA and UAE, Frost and Sullivan’s report suggests that vendors should focus on the following opportunities:
Demand for packaged food is surging at a rapid pace with the changing lifestyles in both countries.
A growing awareness of organic food and increasing adoption of different cuisines due to Dubai's sizeable expatriate population.
A shift toward domestic production will help achieve food sufficiency and security per Saudi Vision 2030 and UAE National Food Security Strategy 2051.
The agriculture segment will adopt the Internet of Things (IoT) for food processing and traceability.
Meat processing, dairy, and confectionery segments are becoming increasingly attractive to foreign investors.
Increased social media participation from the younger population and financial independence will drive consumer preferences toward premium products, offering a unique consumption experience.
2020 Outlook of the KSA and UAE F&B Market is the latest addition to Frost & Sullivan's Chemicals, Materials & Foods research and analyses available through the Frost & Sullivan Leadership Council.