PHOTO
28 February 2017
By Sarah Jacotine
As they navigate the hundreds, if not thousands, of produce on offer at their local supermarket, consumers in the United Arab Emirates are increasingly looking for more healthy options and the food and beverages industry is responding to this shift in demand.
The trend is also catching on in other Gulf Arab states as governments build awareness about the impact of diet on lifestyle diseases.
One company stepping up to the mark and responding to customer demands is Agthia, a publicly listed firm which is 51 percent owned by the Abu Dhabi government. Last year it launched its first sodium-free bottled water, Al Ain Zero, and is now looking to develop reduced sugar products for its beverage brands.
“Across the whole food and beverage market, there is a focus on providing healthier options for consumers,” said Fasahat Beg, executive vice president of water, beverages and dairy at Agthia.
“We think, as a government company, we have a responsibility to push health and wellness in the marketplace. You have obesity, diabetes and hypertension issues here, and we have always encouraged rehydration through water rather than through juices or carbonated soft drinks, which are sugar-based,” Beg told Zawya on the sidelines of the Gulfood exhibition, which began in Dubai on Sunday.
Sales of healthy packaged foods in the UAE are expected to grow by 9.2 percent annually to reach $357 million by 2020, up from $230 million in 2015, according to a report on the Gulf food sector published earlier this month by Alpen Capital.
It said governments in the Gulf Arab region are also encouraging local organic farming by providing support and technical advice to producers, and forecast the size of the Gulf organic farming market will reach $1.5 billion in 2018.
Where is it from?
James Le Gassick, general manager of artisan food manufacturer Intelligent Food, said that food origin is becoming increasingly important to consumers, particularly with high-end products.
“More recently, consumers in the UAE have shown more of an interest in what they’re actually eating, where it’s coming from, whether it’s good for them, how bad it is for them, and how much they should be having,” he said.
The Dubai-founded company, which has nearly 200 clients in the UAE foodservices industry and started exporting to Saudi Arabia last year, manufactures food items such as pastries, jams and chutneys for five-star hotels, airlines and independent restaurants, as well as its own concepts, such as More, Glow and Pause.
Global market research agency Opinion Matters recently reported that food origin is second only behind sell-by dates as a priority for consumers around the world.
Gassick said that Intelligent Foods is focusing more and more on provenance and said this has been the case for companies in his home country of the United Kingdom for many years.
“Some countries are not as advanced as the UAE in regards to wanting to know what’s actually in their food, perhaps because there are more Westerners working in the UAE, bringing [that attitude] from their home countries,” he added.
Wellness trends
Governments are building awareness of the benefits of healthy foodstuff in a region which has some of the highest per capita incomes in the world, but also some of the highest rates of obesity and diabetes due to sedentary lifestyles and high-sugar diets.
Saudi Arabia is moving a step further and plans to introduce a 50 percent tax on soft drinks in the second quarter of the year, as part of its bid to encourage healthier consumer choices among residents.
Mark Napier, exhibition director for Gulfood, reported a common theme of health and wellness at this year’s exhibition.
“Everybody is finally starting to look at what they’re eating, how good it is for them, what shouldn’t be in there…There have been well-resourced government campaigns to highlight the issues associated with such things as diabetes and obesity,” he said.
“Any supplier to this market space is going to monitor consumer trends closely and there is greater attention to consumer demand because brands are all competing for business.”
Dairy company Fonterra has made this issue a key part of its marketing campaign for its NZMP brand, highlighting the fact that 93 percent of the product is fresh milk from New Zealand grass-fed cows, noted Santiago Aon, general manager of Fonterra’s Middle East and Africa hub.
Consumers see the grass-fed variety as more natural and nutritional than grain-fed varieties, according to a report published in March 2016 by global market research firm Mintel.
“It’s about trust in source. Consumers are asking ‘can I really trust?’ and, both our foodservice and our retail consumers tell us that they know and trust New Zealand,” Alastair Bruce, general manager of consumer and foodservice interests in the GCC for Fonterra Brands Middle East.
Cruelty-free products
Another growing trend among consumers in the region is concern for the welfare of animals in the food chain, Bruce said, adding that this is something importers could take advantage of and highlight brands from countries that have historically championed ‘cruelty-free’ product lines.
Napier said such products were previously seen as cost prohibitive but that the strength of Gulf currencies, which are pegged to the U.S. dollar, makes them more attractive.
“We’re seeing enormous shifts in currencies and exchange rates. There are issues with the British pound; a 24 percent drop in exchange rate over the past 12 months is great for British exporters because it means they’re far more competitive,” he said.
“The people who are importing here can now look to countries that perhaps would have been cost prohibitive before. At the end of the day, no matter what we have on our plate, we still want it at a great price.”
© Zawya 2017
By Sarah Jacotine
As they navigate the hundreds, if not thousands, of produce on offer at their local supermarket, consumers in the United Arab Emirates are increasingly looking for more healthy options and the food and beverages industry is responding to this shift in demand.
The trend is also catching on in other Gulf Arab states as governments build awareness about the impact of diet on lifestyle diseases.
One company stepping up to the mark and responding to customer demands is Agthia, a publicly listed firm which is 51 percent owned by the Abu Dhabi government. Last year it launched its first sodium-free bottled water, Al Ain Zero, and is now looking to develop reduced sugar products for its beverage brands.
“Across the whole food and beverage market, there is a focus on providing healthier options for consumers,” said Fasahat Beg, executive vice president of water, beverages and dairy at Agthia.
“We think, as a government company, we have a responsibility to push health and wellness in the marketplace. You have obesity, diabetes and hypertension issues here, and we have always encouraged rehydration through water rather than through juices or carbonated soft drinks, which are sugar-based,” Beg told Zawya on the sidelines of the Gulfood exhibition, which began in Dubai on Sunday.
Sales of healthy packaged foods in the UAE are expected to grow by 9.2 percent annually to reach $357 million by 2020, up from $230 million in 2015, according to a report on the Gulf food sector published earlier this month by Alpen Capital.
It said governments in the Gulf Arab region are also encouraging local organic farming by providing support and technical advice to producers, and forecast the size of the Gulf organic farming market will reach $1.5 billion in 2018.
Where is it from?
James Le Gassick, general manager of artisan food manufacturer Intelligent Food, said that food origin is becoming increasingly important to consumers, particularly with high-end products.
“More recently, consumers in the UAE have shown more of an interest in what they’re actually eating, where it’s coming from, whether it’s good for them, how bad it is for them, and how much they should be having,” he said.
The Dubai-founded company, which has nearly 200 clients in the UAE foodservices industry and started exporting to Saudi Arabia last year, manufactures food items such as pastries, jams and chutneys for five-star hotels, airlines and independent restaurants, as well as its own concepts, such as More, Glow and Pause.
Global market research agency Opinion Matters recently reported that food origin is second only behind sell-by dates as a priority for consumers around the world.
Gassick said that Intelligent Foods is focusing more and more on provenance and said this has been the case for companies in his home country of the United Kingdom for many years.
“Some countries are not as advanced as the UAE in regards to wanting to know what’s actually in their food, perhaps because there are more Westerners working in the UAE, bringing [that attitude] from their home countries,” he added.
Wellness trends
Governments are building awareness of the benefits of healthy foodstuff in a region which has some of the highest per capita incomes in the world, but also some of the highest rates of obesity and diabetes due to sedentary lifestyles and high-sugar diets.
Saudi Arabia is moving a step further and plans to introduce a 50 percent tax on soft drinks in the second quarter of the year, as part of its bid to encourage healthier consumer choices among residents.
Mark Napier, exhibition director for Gulfood, reported a common theme of health and wellness at this year’s exhibition.
“Everybody is finally starting to look at what they’re eating, how good it is for them, what shouldn’t be in there…There have been well-resourced government campaigns to highlight the issues associated with such things as diabetes and obesity,” he said.
“Any supplier to this market space is going to monitor consumer trends closely and there is greater attention to consumer demand because brands are all competing for business.”
Dairy company Fonterra has made this issue a key part of its marketing campaign for its NZMP brand, highlighting the fact that 93 percent of the product is fresh milk from New Zealand grass-fed cows, noted Santiago Aon, general manager of Fonterra’s Middle East and Africa hub.
Consumers see the grass-fed variety as more natural and nutritional than grain-fed varieties, according to a report published in March 2016 by global market research firm Mintel.
“It’s about trust in source. Consumers are asking ‘can I really trust?’ and, both our foodservice and our retail consumers tell us that they know and trust New Zealand,” Alastair Bruce, general manager of consumer and foodservice interests in the GCC for Fonterra Brands Middle East.
Cruelty-free products
Another growing trend among consumers in the region is concern for the welfare of animals in the food chain, Bruce said, adding that this is something importers could take advantage of and highlight brands from countries that have historically championed ‘cruelty-free’ product lines.
Napier said such products were previously seen as cost prohibitive but that the strength of Gulf currencies, which are pegged to the U.S. dollar, makes them more attractive.
“We’re seeing enormous shifts in currencies and exchange rates. There are issues with the British pound; a 24 percent drop in exchange rate over the past 12 months is great for British exporters because it means they’re far more competitive,” he said.
“The people who are importing here can now look to countries that perhaps would have been cost prohibitive before. At the end of the day, no matter what we have on our plate, we still want it at a great price.”
© Zawya 2017
