trends and opportunities -...
TRANSCRIPT
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Economic Research Department
Dubai Chamber of Commerce and Industry
Trends and Opportunities
UAE Food and Beverage market
Gulfood Breakfast briefing
27th February 2017
Page 2
Section I: Overview and Growth Drivers
Section II: Past growth and possible outlook
Section III: Niche Markets
Section IV: Business Opportunities
Section V: Concluding Remarks
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Expected Per Capita income and Real GDP Growth Rates (USD, y-o-y %)
UAE Economic OverviewStrong expected real GDP growth rate
Source: Dubai Chamber based on IMF, World Economic Outlook (WEO) database October 2016.
0
1
2
3
4
36,000
38,000
40,000
42,000
44,000
46,000
2017 2018 2019 2020
GDP per capita (USD, LHS) Real GDP growth, % (RHS)
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8
9
10
11
12
2015 2016 2017 2018 2019 2020
Source: Dubai Chamber based on IMF, World Economic Outlook (WEO) database October 2016.
UAE expected population (millions)
UAE Demographic overviewRobust expected population growth
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Source: Dubai Chamber based on IMF, World Economic Outlook (WEO) database October 2016.Actual data may be different from expectations/forecast
Annual Real GDP growth (%)
Growing Economies Strong growth in developing countries
2
3
4
5
6
2016 2017 2018 2019 2020
World Emerging market and developing economies Middle East and North Africa
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Section I: Overview and Growth Drivers
Section II: Past growth and possible outlook
Section III: Niche Markets
Section IV: Business Opportunities
Section V: Concluding Remarks
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Growing food retail sales value (AED Billion)
UAE Food Sales
Source: Euromonitor International, 2017. Data from 2016 onwards based on forecasts from Euromonitor
International. Actual data may be different from expectations/forecast
0
10
20
30
40
50
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fresh Food Packaged food
Past
Expected Future
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Source: Euromonitor International, 2017. Data from 2017 onwards based on forecast from Euromonitor International.
Actual data may be different from expectations/forecast
UAE Soft Drink sales
Growing soft drink retail sales value (AED billion)
0
5
10
15
20
25
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Soft drink Bottled water
Past
Expected Future
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Source: Euromonitor International, 2017. Data from 2017 onwards based on forecast from Euromonitor
International. Actual data may be different from expectations/forecast
UAE Hot Drink sales
Growing packaged tea and coffee retail sales value(AED billion)
0
1
2
3
4
5
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Source: Euromonitor International, 2017. Data from 2016 onwards based on forecast from Euromonitor
Intrenational. Actual data may be different from expectations/forecast
0
10
20
30
40
50
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Restaurants Fast food
Growing restaurant and fast food retail sales value (AED billion)
UAE Restaurant and Fast Food Sales
Past
Expected Future
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Section I: Overview and Growth Drivers
Section II: Past growth and possible outlook
Section III: Niche Markets
Section IV: Business Opportunities
Section V: Concluding Remarks
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Forecast for Global Muslim food market expenditure(USD billion)
Source: ‘State of Global Islamic Economy Report, 2015/16’, prepared by Thomson Reuters in collaboration
with DinarStandard.
Potential global demand for Halal FoodPopulation and income growth across Muslim countries expected to drive growth in demand
1,128
1,585
0
400
800
1,200
1,600
2,000
2014 2020
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UAE Meat and Poultry expected sales
Source: Business Monitor International, Q4 2016. Actual data may be different from expectations/forecast
Meat and Poultry expected retail sales value (AED billion)
10.711.6
12.413.3
14.1
0
3
6
9
12
15
2016 2017 2018 2019 2020
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0
20
40
60
80
100
120
140
160
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Demand for Organic FoodPast and possible future sales value of organic packaged food in UAE (Million AED)
Source: Dubai Chamber based on data from Euromonitor International, 2017. Actual data may be different
from expectations/forecast
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Section I: Overview and Growth Drivers
Section II: Past growth and possible outlook
Section III: Niche Markets
Section IV: Business Opportunities
Section V: Concluding Remarks
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Potential business opportunitiesPotentially fast growing Fresh Food Products in UAE (CAGR % expected sales volume growth, 2017 to 2020)
Source: Euromonitor International, 2017. Actual data may be different from expectations/forecast
8%
7%
6%6%
5%
5%
0%
2%
4%
6%
8%
10%
Meat Nuts Vegetables Pulses Fresh foodaverage
Eggs
CA
GR
, %
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Potential business opportunitiesPotentially fast growing Packaged Food Products in UAE (CAGR % expected sales volume growth, 2017 to 2020)
Source: Euromonitor International, 2017. Actual data may be different from expectations/forecast
9%8% 8%
7%
6% 6%
0%
2%
4%
6%
8%
10%
Savoury snacks Processed foodand vegetables
Confectionery Sweet biscuits,snack bars/fruit
snacks
Dairy Packaged foodaverage
CA
GR
, %
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Potential business opportunitiesPotentially fast growing Soft Drink products in UAE (CAGR % expected sales volume growth, 2017 to 2020)
Source: Euromonitor International, 2017. Actual data may be different from expectations/forecast
12%
9%
8%7%
7%6%
0%
2%
4%
6%
8%
10%
12%
14%
RTD coffee Bottled water Soft drinksaverage
RTD Tea Juices Sports andenergy drinks
CA
GR
, %
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Potential business opportunitiesPacked Tea and Coffee products potential growth rates in UAE (CAGR % expected sales volume growth, 2017 to 2020)
Source: Euromonitor International, 2017. Actual data may be different from expectations/forecast
7%
6%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Coffee Tea
CA
GR
, %
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Section I: Overview and Growth Drivers
Section II: Past growth and possible outlook
Section III: Niche Markets
Section IV: Business Opportunities
Section V: Concluding Remarks
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Trends Opportunities
Concluding Remarks
Growth of population and incomeacross developing countries.
Growth in per-capita income andpopulation in UAE.
Growing Health awareness.
Growing demand for food andbeverages in UAE and across Asia andAfrica
Growth of local demand for packagedand fresh food. Halal meat and Ready-to-Drink (RTD) coffee could possibly besome of the fastest growing productcategories.
Growth in demand for Organic food in
UAE and in foreign markets.
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Trends Opportunities
Consumers preference for certified,branded goods.
Potential opportunity to create new andinnovative brands.
Potential opportunities for verticalintegration and halal certification acrossthe entire value chain.
Potential for increased local sales,exports and re-exports of halal foodproducts.
Concluding Remarks