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Food & Beverage Market to Surpass $80 Billion in 2020 in KSA and UAE


News provided by

Frost & Sullivan

03 Jun, 2020, 06:05 GMT

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Product differentiation and innovation in terms of taste, flavors, and ingredients will remain key success factors for market participants in the Kingdom of Saudi Arabia and the United Arab Emirates

DUBAI, United Arab Emirates, June 3, 2020 /PRNewswire/ -- Frost & Sullivan's recent analysis, 2020 Outlook of the KSA and UAE F&B Market, finds that the food and beverage (F&B) market in the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) will register steady growth throughout 2020. The overall expenditure on F&B in the UAE is estimated to increase by 6.9% year-on-year (YoY), reaching $37 billion in 2020 from $34.6 billion in 2019; the KSA is likely to witness 5.4% YoY growth, which translates to $50.6 billion over the same timeframe, totaling over $80 billion for both markets. It also discusses food consumption habits and preferences for all meals, highlighting the different habits across weekdays and weekends.

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Food & Beverage Market to Surpass $80 Billion in 2020 in KSA and UAE (PRNewsfoto/Frost & Sullivan)

For further information on this analysis, please visit: http://frost.ly/44r

"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 & 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."

Roy 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."

To take advantage of the F&B market in the KSA and UAE, vendors should focus on the following opportunities:

  • Demand for packaged food is surging at a rapid pace with the changing lifestyles in both countries.
  • There is a growing awareness of organic food and increasing adoption of different cuisines due to Dubai's sizeable expatriate population.
  • A shift toward domestic production 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.

2020 Outlook of the KSA and UAE F&B Market is the latest addition to Frost & Sullivan's Chemicals, Materials & Foods research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

2020 Outlook of the KSA and UAE F&B Market

PAFE

Press Contact:
Nimisha Iyer
P: +91 9820050519
E: nimisha.iyer@frost.com

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