Robust Growth Predicted for the UAE Food and Beverage Industry 

Robust Growth Predicted for the UAE Food and Beverage Industry 

The UAE’s food and beverage (F&B) industry projects to experience a consistent annual growth of 7%. Food trading, food trucks, cloud kitchens, catering companies and franchises are expected to drive the growth momentum forward. According to Dubai Economy and Tourism (DET), the F&B brands market is thriving in Dubai. Currently, the emirate hosts over 13,000 restaurants and cafes. And the number will increase as new concept brands continue to enter the market which has led to UAE F&B market growth. Anticipated figures indicate that the UAE’s foodservice will expand from AED 46 million ($12.5 million) in 2023 to AED 55 million ($15 million) by 2028. Along similar lines, the UAE’s foodservice sector will grow at 4.8% between 2023 to 2028.

The reasons for the UAE F&B market growth are disposable incomes, surging tourist numbers, urbanization and evolving consumer tastes. Not to forget, the rise of Dubai as a medical tourism hub also contributed to the growth of the food industry in Dubai and the UAE. Collectively, these factors have opened up a growth avenue in the foodservice sector. The UAE nationals and expats now frequent these establishments to enjoy meals. Market trends like food trucks and stalls, offering diverse global cuisines, are providing customers with experience and increasing their outlay on dining outside the home.

Research Konnection is one of the leading market research companies in Dubai. Being experienced F&B Consultants in Dubai, we can support you to set up or expand your brand in the UAE. Contact us at hello@researchkonnection.com for F&B business setup in Dubai and Abu Dhabi.

Market Segmentation of UAE Foodservice Sector

Some of the key profit sector channels within UAE’s foodservice market in 2021 included Quick-Service Restaurants (QSR), accommodation and Full-Service Restaurants. They were followed by pubs, clubs & bars and cafes. 

The growth of QSR attributed to the pandemic which influenced many residents to opt for deliveries and takeout services. Among the UAE residents, millennials were the frequent visitors. Looking ahead, the QSR expects to witness a surge in demand for healthier food options which includes fresh local ingredients. The accommodation category encompasses bed & breakfast places, hotels & motels and hostels offering foodservice amenities secured second position. This channel experienced an expansion in terms of transaction volume. Full-service Restaurants (FSRs) were third on the list. Regular visitors to FSRs prefer a selection of cuisines and elevated quality. In a new trend, many F&B players are introducing plant-based meat alternatives to appeal to health-conscious consumers in the UAE. 

Gulfood 2023 – Key Highlights

In Gulfood 2023, functional beverages and healthy snacking foods garnered more interest from the visitors indicating that the nutritional value was equally important. The event also indicated that the UAE and Gulf markets were ready to consume innovative products. These included F&B products include fruit tea, dried ice cream, honey jam and vitamin shots. Therefore, as the country’s inclination toward healthier eating patterns continues to grow, operators must expand their offerings to encompass more products crafted from fresh and top-quality ingredients.