The UAE’s food and beverage manufacturing industry has been steadily growing and is poised to reach $23.2 billion by 2025, according to a new report released on Thursday.

The growth will be led by snacking and bakery segments, which have expanded by 50% and 20%, respectively, the UAE Food and Beverage Business Group (F&B Group) said in its annual UAE Food Industry Report for 2023.

The trade body, established in 2012 under the auspices of the Dubai Chamber of Commerce, comprises businesses in the F&B industry.

The UAE’s F&B sector is one of the key economic drivers in the country. The country is home to more than 2,000 F&B manufacturing companies that generate around $7.63 billion in revenues every year, representing 25% of the UAE’s manufacturing GDP and ranks second to the oil and gas industry, according to the report.

The other growth drivers in the F&B industry include those specialising in beverages. The sports drinks segment alone posted a 15% growth this year, defying the 134% spike in soft drink prices.

Within the dairy segment, businesses have achieved a growth rate of 16%, while frozen meat reported a significant growth of 18%.

Sub-segments like eggs, cooking oil and desserts are growing as well, at 18%, 30% and 21%,  despite price increases.

The findings of the report indicate the “resilience and dynamism” of the F&B sector in the UAE, according to Saleh Lootah, Chairman of the F&B Group.

“The sustained growth in key segments and the emergence of smaller players as significant contributors underscore the industry’s adaptability,” Lootah said.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com