KSA and UAE’s F&B market to surpass USD 80B this year
The F&B market in the KSA and the UAE will grow steadily throughout 2020. According to the ‘2020 Outlook of the KSA and UAE F&B Market’ report by Frost & Sullivan’s, the overall expenditure on F&B in the UAE is estimated to increase by almost seven percent year on year. It will reach USD 37 billion in 2020 from USD 34.6 billion in 2019. The KSA is likely to witness a five percent year on year growth. It translates to USD 50.6 billion over the same timeframe, totaling over USD 80 billion for both markets.
“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 and nutrition consultant at Frost & Sullivan. “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.”
He 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.”
The two markets offer diverse opportunities for vendors. These include demand for packaged food that is surging at a rapid pace with the changing lifestyles in both countries. Organic food is also booming, not to mention the shift toward domestic production which 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.