United Arab Emirates Food & Drink Report

Published 14 May 2015

  • 102 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
$1,295.00
United Arab Emirates Food & Drink Report

BMI View: We maintain our bullish outlook on the UAE's economy, even with weaker oil prices. Consumer and business sentiment remain positive, underlining our particularly upbeat views on household consumption and fixed investment over the coming quarters. Following estimated real GDP growth of 3.9% in 2014, we forecast the economy to expand by 4.0% in 2015. The non-o il sector will drive GDP growth and we therefore forecast real private consumption to accelerate from 6.5% in 2014 to 7.2% in 2015.

Headline Industry Data

  • 2015 food consumption growth (local currency terms): +5.7%; compound annual growth rate (CAGR) 2014 to 2019: +7.7%.

  • 2015 per capita food consumption growth (local currency terms): +4.6%; CAGR 2014 to 2019: +5.9%.

  • 2015 total soft drinks sales (local currency terms): +7.6%; compound annual growth rate (CAGR) 2014 to 2019: +7.7%.

  • 2015 mass grocery retail sales (local currency terms): +10.2%; compound annual growth rate (CAGR) 2014 to 2019: +10.2%.

Key Industry Trends And D evelopments

Minister Predicts Food Imports To Soar : Food imports in the UAE are expected to increase to USD400bn in the coming decade, compared with USD100bn recorded in 2014, according to minister of economy Sultan Al Mansouri. The country currently imports 85% of its food and plans to establish farmland in other countries to secure food supplies in the midst of increasing demand, as the region has a scarcity of arable land.

Abraaj, TPG Capital Agree Majority Stake In Kudu : In February 2015, UAE-based The Abraaj Group and US-based TPG Capital agreed to acquire a majority stake in Saudi Arabian fast food chain Kudu for about USD400mn. Both purchasing companies have signed an agreement for the acquisition, reports Reuters. The transaction is expected to be completed following the completion of regulatory formalities. The deal highlights the rising interest among international private equity companies for assets in the Middle East and it marks TPG's first...

BMI Industry View
7
SWOT
9
Food
9
Drink
11
Mass Grocery Retail
13
Industry Forecast
15
Consumer Outlook
15
Food
18
Food Consumption
18
Table: Food Consumption Indicators - Historical Data & Forecasts (United Arab Emirates 2012-2019)
19
Drink
20
Soft Drinks
20
Table: Soft Drinks Sales, Production & Trade (United Arab Emirates 2014-2019)
21
Hot Drinks
22
Mass Grocery Retail
23
Table: Mass Grocery Retail Sales By Format - Historical Data & Forecasts (United Arab Emirates 2014-2019)
24
Table: Grocery Retail Sales By Format
24
Trade
25
Table: Trade Balance - Historical Data & Forecasts (United Arab Emirates 2014-2019)
25
Macroeconomic Forecast
26
Economic Analysis
26
Private Spending Growth To Remain High
27
Concerns Over Emiratisation Policies Resurface
28
Table: Economic Activity (United Arab Emirates 2010-2019)
30
Table: GDP By Expenditure (United Arab Emirates 2012-2019)
30
Industry Risk Reward Index
32
Middle East And North Africa - Risk/Reward Index
32
Table: Middle East & North Africa Food & Drink Risk/Reward Index Q315
34
UAE - Risk/Reward Index
37
Market Overview
38
Food
38
Food Production
38
Agriculture
39
Halal Food
40
Drink
41
Soft Drinks
41
Hot Drinks
42
Mass Grocery Retail
43
Table: Mass Grocery Retail Sales By Format (United Arab Emirates 2006-2015)
44
Table: Mass Grocery Retail Sales By Format (United Arab Emirates 2006-2015)
44
Industry Trends And Developments
45
Food
45
Key Industry Trends And Developments
45
Drink
50
Key Industry Trends And Developments
50
Mass Grocery Retail
54
Key Industry Trends And Developments
54
Competitive Landscape
58
Table: Key Players In UAE's Food & Drink Sector
58
Table: Key Players In UAE's Mass Grocery Retail Sector
59
Company Profile
60
Unilever North Africa Middle East
60
Foodco
62
Al Ain Dairy
64
Masafi
67
Al-Ain Mineral Water Company
69
Aujan
71
EMKE Group
74
Carrefour MAF
77
Spinneys Dubai
80
Global Industry Overview
82
Table: Food and Drink Core Views - Q115 Roundup
89
Demographic Forecast
91
Demographic Outlook
91
Table: Population Headline Indicators (United Arab Emirates 1990-2025)
92
Table: Key Population Ratios (United Arab Emirates 1990-2025)
92
Table: Urban/Rural Population & Life Expectancy (United Arab Emirates 1990-2025)
93
Table: Population By Age Group (United Arab Emirates 1990-2025)
93
Table: Population By Age Group % (United Arab Emirates 1990-2025)
94
Glossary
96
Food & Drink
96
Mass Grocery Retail
96
Methodology
98
Industry Forecast Methodology
98
Sector-Specific Methodology
99
Sources
99
Risk/Reward Index Methodology
100
Table: Food & Drink Risk/Reward Index Indicators
101
Table: Weighting
102

The United Arab Emirates Food & Drink Report features BMI Research's market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

BMI's United Arab Emirates Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in United Arab Emirates.

Key Benefits

  • Benchmark BMI's independent food and drink industry forecasts for United Arab Emirates to test other views - a key input for successful budgeting and strategic business planning in the Emirati food and drink market.
  • Target business opportunities and risks in United Arab Emirates through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering food and drink manufacturing and consumption and the mass grocery retail market.

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the food, drink and mass grocery retail sectors and within the broader political, economic and business environment.

BMI’s Food and Drink Risk Reward Index

BMI’s Risk Reward Index provides investors (food and drink manufacturers and mass grocery retailers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic points. These provide indices of highest to lowest appeal to investors, with each position explained.

Food Forecasts

BMI’s food chapter is divided into sections such as meat, fish, confectionary, dairy and canned foods, and provides insight into each market’s food industry, centred on a forecast to end-2019 for the sector. The chapter includes the following elements:

  • Industry Forecast Scenario: Historical data series and a forecast to end-2019 for growth of key indicators within a market’s food industry. Indicators include food consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.
  • Industry Developments: A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.
  • Market Overview: An overview of the structure of the market, introducing the key players and discussing underlying trends.

Drink Forecasts

Segmented the same way as BMI’s food chapter, the drink section provides insight into each market’s drink industry, centred on a forecast to end-2019 for the sector. Forecast indicators include alcoholic and soft drink sales by value, volume and sub-sector and tea and coffee sales, among others.

Mass Grocery Retail Forecasts

Segmented the same way as BMI’s food and drink chapters, the mass grocery retail section provides insight into each market’s grocery retail industry, centred on a forecast to end-2019 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown of the organised retail sector versus the traditional sector, among others.

Competitive Landscape

Illustration of the mass grocery retail and food and drink industries via rankings tables comparing revenues, number of outlets and number of employees. This chapter also includes data-rich, in-depth regional analysis of the market position, business strategies and investment potential of the region’s leading mass grocery retail and food and drink operators.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Food & Drink reports draw on an extensive network primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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