Dubai’s growing food and beverage sector has witnessed notable growth in recent years as domestic and international investors gather for Gulfood.
The Dubai International Chamber successfully hosted a business event on the sidelines of Gulfood, the world’s largest conference and exhibition dedicated to the food and beverage sector.
The five-day event runs until February 23 at the Dubai World Trade Centre.
Dubai food and beverage sector
According to data from Euromonitor, the UAE’s food and beverage sector generated $16.4bn in retail sales, including fresh food and packaged food.
Consumer spending on food via e-commerce platforms reached $1.1bn in 2023 and is expected to increase at a Compound Annual Growth Rate (CAGR) of 9.5 per cent between 2023 and 2027.
According to data from FDI Intelligence, the sector in the emirate attracted new FDI worth $577m from 2019 to 2023, which was made by 48 international companies from 23 countries.
Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, said: “Dubai is continuing to strengthen its position as a significant global hub for the world’s food and beverage trade, which creates promising opportunities for companies operating in the sector to expand and grow.
“The sector is developing innovative solutions to contribute to global food security while ensuring that it keeps pace with the global drive for sustainability.
“Organising Gulfood, the world’s largest food and beverage event, in Dubai creates an ideal platform for producers, suppliers, and traders from across the globe to connect and build cross-border partnerships.
“Dubai International Chamber is committed to accelerating the industry’s growth by supporting the expansion of Dubai-based food and beverage companies into promising global markets and attracting foreign investors to leverage the rewarding opportunities available in the emirate in this vital sector”.
The UAE accounted for the largest share of venture capital investments in the Middle East’s restaurant tech sector from 2018 to 2023.
It attracted investments exceeding $1bn in this area, according to data from PitchBook.
The UAE also ranked second among Middle Eastern countries regarding the value of venture capital investments in the agritech sector during the same period, attracting investments worth $335.4m.
According to data from Euromonitor, retail sales of fresh food in the UAE will rise from $9.8bn in 2023 to $12.4bn in 2028, achieving a CAGR of 4.7 per cent.
Meat accounts for the largest share of sales in this category, with the value of meat retail sales reaching $2.6bn in 2023 and expected to achieve a compound annual growth rate of 5.8 per cent from 2023 to 2028.
Vegetables followed in second place with sales of $2.4bn in 2023 and a forecasted compound annual growth rate of 4.3 per cent during the same period.
Retail sales of packaged food in the UAE are expected to rise from $6.6bn in 2023 to $8.3bn in 2028, achieving a CAGR of 4.6 per cent.
Staples such as corn, rice, and wheat account for the largest share of sales in this category, reaching $2.3bn in 2023 and an expected CAGR of five per cent between 2023 and 2028.
These were followed by dairy products, with sales of $2bn in 2023 and an anticipated compound annual growth rate of 4 per cent in the same period.
Retail sales of beverages in the UAE are forecasted to rise from $1.6bn in 2023 to $2bn in 2028, representing a CAGR of 4.6 per cent.
Bottled water accounts for the largest share of sales in this category at $635m in 2023, with an expected CAGR of 5.4 per cent from 2023 to 2028, followed by soft drinks with sales of $422m in 2023.
Ready-to-drink coffee sales are expected to achieve a CAGR of 14.2 per cent from 2023 to 2028 after recording sales of $32m last year, while sales of ready-to-drink tea, which amounted to $8m in 2023, are expected to record a CAGR of 13.9 per cent during the same period.
Dubai International Chamber’s presentation revealed that the continuous growth in the emirate’s population and tourism flows contribute to a growing demand for high-quality food and beverage products and services.
Dubai is on course to continue to strengthen its position as a major commercial hub for the food and beverage sector at both the regional and international levels, creating rewarding opportunities for companies across all categories of the sector.
The presentation also highlighted steady growth in retail sales of basic foods, meat and beverages, both in terms of market size and quantities sold, together with growing demand among Emirati consumers for locally-produced food products, creating opportunities for local manufacturers to increase their market share.
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