Dr. Faisal El Amir 1/9/19 Ref1 – Q1/2019 

Food and Beverages Sector Indicators

 

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F&B Sector Capability

TIME

SCOP

PRESERION

CAPACITY

READINESS

POWER

 

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UAE economy is forecasted to sustain growth and remain robust during

2019

The business environment is among the most favorable in the region

UAE scored 70.4 in RRI (Risk/Reward Index) for the F&B sector by

Business Monitor International BMI, above the world average of 50

points

The economy was able to absorb the effect of VAT in the food sector in

view of the high purchasing power for the F&B .

A large youth population represents a significant economic resource for

MGR majors .In UAE 49.2% of population are young adults

The UAE remains the most attractive market in the region for food and

beverages. investors, and is the region's only country to score BMI RRI

within the global top 10 markets (placed in sixth position out of 107

countries).

High disposable income sustains increasing demand for premium

products and health food .

A focus by the government on development of the halal sector and work

on establishment of halal standards

An emerging online F&B delivery sector that has shown good demand

The country is now more than 80% self-sufficient for milk and almost

40% self-sufficient in its demand for eggs.

UAE continues to support organic farming initiatives

STRENGTHS

PRESERVATIO

DIVERSITY CAPABILITY

CAPACITY

 

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Growth Prospects Food Sales :Growth of food sales projected at 4.6% in 2019 and at

an average compound growth rate of 6% for 2019-2023

Beverages Sales: Beverages will grow by 6.9% in 2019 and at an

average compound rate of 6% for 2019-2022

Preference for Premium Food will remain the key driver of growth

in the UAE's food industry, with the rise of health-consciousness also

a key trend.

Dairy Sales :Dairy sales will experience strong growth, rising at a

CAGR of 6.9%, as dairy demand diversifies in line with more

sophisticated consumer preferences.

Baked Food :Baked goods in the UAE are projected to achieve a

CAGR of 7.1% in sales over the years to 2022. This will be driven by

the increasing adoption of diversified consumption patterns

 

 

 

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Opportunities A growing F&B processing industry 

The UAE's food-processing sector has been undergoing a period

of significant expansion over the past several years; this trend is

expected to continue as foreign investment and government

attempts to increase domestic food production and self-

sufficiency, production facilities have started to come up and

diversify.

Value‐added dairy products 

The UAE's high level of dairy consumption gives large regional

players the opportunity to enter the market

Per capita consumption of dairy products is high, at around 80-

85kg annually and this profitable sector is extremely vibrant and

competitive, with many dairies in operation

Expansion opportunities in value-add dairy products such as

yoghurt, cheese and butter

Expansion in food services(restaurants) 

With a diverse population and an appetite for varied brands, the

food services sector have grown to become a large industry in

the UAE, with over 16,000 outlets, and shopping centers with

 

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Reference: BMI

 

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Manufacturing indicators

Main Indicators of F&B Manufacturing

DSC surveys, Ministry of Energy and industry data

F&B VALUE ADDED % OF ALL  MANUFACTURING VALUE ADDED(DUBAI) 

13% 

F&B ANNUAL OUTPUT  VALUE(DUBAI) MILLION AED 

21  

F&B NUMBER OF ACTIVITIES(DUBAI) 

F&B EMPLYMENT #(DUBAI)  32,571 

NUMBER LICENCES IN F&B(UAE)  575 

F&B INVESTMENT(UAE) BILLION AED  39. 

F&B OUTPUT  % OF TOTAL MAUFACTURING  OUTPUT)‐DUBAI 

17% 

 

F&B is a leading manufacturing sector in Dubai, contributing 13% of the manufacturing value added and 17% of the  manufacturing output in Dubai, and about 30% of the  manufacturing investment in all UAE

 

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Domestic Market Size

Food & Beverages Relative Shares in Domestic Consumption

Food , 68.2, 90%

Non‐alcholic bevearges, 7.3, 10%

UAE Domestic  F&B sale is  estimated at 75.5 BN AED in 2018, Food accounts for 90% and beverages for 10% 

 

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Domestic Food Sales by Category

Domestic Beverages Sales by Category

Growth of Beverages by Category %

Bread, rice and 

cereals14%Pasta products

3%

Baked goods1%

Meat and Poultry24%

Fish and fish products

9%

Dairy, sales, AEDmn13%

Oils and Fats3%

Fresh and preserved fruit

11%

Fresh vegetables

13%

Sugar and sugar 

products5%

Other food products

4%

UAE FOOD SALES IN 2018 BY CATEGORY

Coffee, teas and other hot drinks

10%

Soft drinks, sales45%

Fruit and vegetable juices14%

Mineral or spring waters, sales2%

Carbonated drinks29%

UAE NON‐ALCHOLOIC BEVERAGES SALES IN 2018 BY CATEGORY

Largest sa

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Largest sa

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2 0 17 e 2 0 18 e 2 0 19 f 2 0 2 0 f 2 0 17 - 2 0 18

Coffee, teas and other hot drinks

5.4 11.6 10.7 11.3

6.2Soft drinks 3 5.6 6 6.3

Fruit and vegetable juices

3.6 6.7 7 6.6

Mineral or spring waters

11.1 22.3 20.2 20.3

11.2Carbonated drinks

2.1 3.8 4.2 4.8

All beverages exhibited increase in consumption in 2018 versus 2017 in spite of the sugar tax and vat 

Mineral water and coffee and tea consumption was exceptionally high in 2018 at 22.3%and 11.6% versus 11.1% 

and 5.4% in 2017 more by 11.2 and 6.2 percentages Coffee, tea, and mineral water are projected to witness the 

highest growth in the next two years 

 

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Growth of food categories %

Business Monitor Int.

Oil& fats exhibited the largest hike in consumption in 2018 versus 2017 more by 2.9 percentage points 

4 other products namely, bread, baked food, fish and dairy showed good growth on 2018 versus 2017 more by 2.4 

percentages each The next two years will witness higher consumption for oil & fats, fish, bread and fresh vegetables, by 7.5 ,6.2, 6.1 and 6.1  

percentage points 

 

Indicator 2 0 17 e 20 18 e 2 0 19 f 2 0 2 0 f 2 0 17 - 20 18 a ve a rge 2 0 19 -20 2 0

Bread, rice and cereals

3.5 5.9 4.8 7.52.4 6.15

Pasta products

3.1 5.1 4.1 6.32 5.2

Baked goods

3.7 6.1 5 7.82.4 6.4

Meat and Poultry

3.2 5.2 4.2 6.62 5.4

Fish & products

3.6 6 4.9 7.62.4 6.25

Dairy 3.6 6 4.9 7.7 2.4 6.3Oils and Fats 4.3 7.2 5.8 9.2

2.9 7.5Fresh and preserved fruit

3.1 5.2 4.2 6.5

2.1 5.35Fresh vegetables

3.5 5.8 4.7 7.42.3 6.05

Sugar and sugar products

3.4 5.7 4.6 7.2

2.3 5.9Other food products

3 5 4 6.22 5.1

 

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F&B Foreign Trade

Performance 2017 Total F&B Trade Profile

*includes Tobacco

Dubai Customs Statistics

 

 

2017 Billion AED 

EXPORT  17 

IMPORT  60 

RE‐EXPORT 

18 

Total Trade 

94 

 

 

F&B export and re‐export valued 35 Bil AED in 2017 Exports and re‐exports values were almost equal in value 

 

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F&B Position in Exports

Source Dubai Customs statistics

F&B, 11,550, 9% Mineral 

products , 3,778, 3%

chemical and allied industries, 3,935, 3%

Plastics, rubber and articles thereof, 4,225, 3%

Pulp of wood, paper products and waste paper, 2,998, 3%

Pearls, precious stones and metal, 

63,778, 52%

Base metals and articles of base meta, 

24,517, 20%

Othe sectors, 8,880, 7%

F&B IN DUBAI EXPORTS PORTFOLIO BY SECTION  2017 

F&B ranks the third among  exporting sector by sections after precious metals, and base metal (mainly aluminum unwrought), its total value of exports was about 11 billion AED in 2017 accounting for 9% of all exports 

 

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Export Markets Landscape 2017

Four markets account for 35% of all F&B exports Export markets are geographically spread covering Asia, Middle East, Africa and 

Europe 

 

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. Exported Products Landscape 2017

 

Dubai Customs

Two products account for 57% of F&B export value from Dubai in 2017 Food portfolio spans a wide range of sugar and confectionary, juices, tea, oil, 

fish, pasta and pastry and, cigarettes 

 

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F&B 2018 Foreign Trade

Performance Estimate

Estimated projection for full 2018

Dubai Customs

2018 Jna‐Sept  

2018 Full year est. 

2017

EXPORT  11 15 17

IMPORT  40 53 60

RE‐EXPORT  12 16 18

Grand Total  63 84 94

Net imports(domestic demand) 

36 42

 

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Promising Exports Untapped Export Market Sizes for Exports from UAE

Dairy products, Vegetable oils, pulses, beverages, nuts Processed cereals, rice, animal feed, processed meat, and fish& shellfish are products which have sizable untapped potential above 200 mil AED available for UAE exporters Untapped market size is indicated in orange in the graph below 

OPPORTUNITY PUSH

 

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Source: ITC Potential Export Map

1,588

3,361

1,393866 753

1,519

303 339 216 323 221 162 201 37 22 24 15 2 3 20

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Mn AED

UAE products  with untapped export potential 

Untapped Realized