BMI View: We remain bullish on the UAE's consumer outlook, as a wealth of data point to continued growth. With consumer and business sentiment looking positive, the outlook for household consumption is particularly bright over the coming quarters. Following real GDP growth of 6.2% in 2012 and an expected 4.1% in 2013, we expect the economy to expand by a more moderate 3.4% in 2014. Our country risk team forecasts real private final consumption growth of 6.5% in 2014, but thereafter to rise, up to 8.8% in 2016 and 2017 and beyond .
Headline Industry Data
2014 food consumption growth (local currency terms): +5.5%; compound annual growth rate (CAGR) to 2018: +5.7%.
2014 per capita food consumption growth (local currency terms): +3.9%; CAGR to 2018: +4.4%.
2014 total soft drinks sales (local currency terms): +6.0%; compound annual growth rate (CAGR) to 2018: +6.3%.
2014 mass grocery retail sales (local currency terms): +8.4%; compound annual growth rate (CAGR) to 2018: +8.7%.
Key Industry Trends And Developments
Amira's Basmati Rice Acquisition Deal Closes: UAE-based Amira Nature Foods completed the acquisition of Germany-based premium-branded rice distributor Basmati Rice for an undisclosed amount. Amira will be offering 10 varieties of rice under the ATRY, Scheherazade, Sultan, Sativa and Sadry brands. The aim is to expand Amira's sales in international markets, including Germany, Europe and the US, according to the firm's CEO, Karan A Chanana. The company, which generated revenue of US$9mn in 2013, expects to boost current FY14 earnings through this acquisition. Amira Nature Foods reported a jump in full-year earnings, boosted by growing demand for basmati rice. For the year to March 31 2013, EBITDA rose 30.5% to US$52.2mn, while net profit rose 61.2% to US$19.2mn. Full-year sales were up 25.7% to US$413.7mn.
Denny's To Venture Into Middle East: US restaurant chain Denny's has signed a franchise agreement with UAE-based Advance Investment,...
The United Arab Emirates Food & Drink Report features Business Monitor International (BMI)'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.
- 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.
BMI Industry View
Summary of BMI's key industry forecasts, and views, covering food and drink manufacturing and consumption and the retail market.
Business Environment Ratings
BMI's Food & Drink Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors, food and drink manufacturers and mass grocery retailers.
The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points.
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 chapter is divided into sections such as Meat, Fish, Confectionary, Dairy and Canned Foods, and provides insight into a market's food industry, centred on a forecast to end-2018 for the sector. The chapter includes the following elements:
Industry Forecast Scenario - Historical data series and forecasts to end-2018 for growth of key indicators within a market's food industry. Including 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.
Segmented the same way as BMI's food chapter, the drink section provides insight into the market's drink industry, centred on a forecast to end-2018 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 a market's grocery retail industry, centred on a forecast to end-201 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown for the organised retail sector versus the traditional sector, among others.
Competitive Landscape & Profiles
Illustration of the industry via rankings tables comparing revenues, number of outlets and number of employees. BMI analyses each company's market position, business strategies and investment potential.