The food and beverage (F&B) market in Saudi Arabia and the UAE will surpass $80 billion in 2020, according to a recent analysis.
The study by Frost & Sullivan titled “2020 Outlook of the KSA and UAE F&B Market” found that the F&B market in both countries will register steady growth throughout 2020.
For the UAE, overall expenditure on F&B is estimated to increase by 6.9 percent year-on-year (YoY), reaching $37 billion in 2020 from $34.6 billion in 2019. For Saudi Arabia, F&B overall expenditure is likely to witness a 5.4 percent YoY growth to $50.6 billion.
“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,” Prithvijit Roy, Food & Nutrition Consultant at Frost & Sullivan said.
“Additionally, served as a center-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 said.
According to the global research and consulting firm, key opportunities for vendors in Saudi and the UAE F&B market to focus on are:
- Demand for packaged food is surging at a rapid pace
- Awareness for organic food is growing and the adoption of different cuisines is increasing due to Dubai’s sizeable expatriate population
- Shift toward domestic production will help achieve food sufficiency and security per Saudi Vision 2030 and UAE National Food Security Strategy 2051
- 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
(Writing by Gerard Aoun; editing by Seban Scaria)
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