The 2020 Outlook of the KSA and UAE F&B Market, according to Frost & Sullivan’s recent analysis, 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, totalling over $80 billion for both markets. It also discusses food consumption habits and preferences for all meals, highlighting the different patterns across weekdays and weekends.
“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 centre-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.”
“Focusing on alternatives and fortified foods, most 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,” Roy added.
To take advantage of the F&B market in the KSA and UAE, vendors should focus on the following opportunities: