Business Monitor International


United Arab Emirates Food & Drink Report

Published 22 May 2014

  • 108 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 economies as a wealth of data points to continued growth. Consumer and business sentiment remains positive, underlining our particularly bright outlook for household consumption and fixed investment over the coming quarters. Following estimated real GDP growth of 4.1% in 2013, we are projecting the economy to expand by a more moderate 3.9% in 2014, before picking up to 4.1% in 2015. We forecast real private final consumption growth to come in at 6.5%. While this would be a slowdown on last year, we believe growth will average 7.3% per year between 2015 and 2017.

Headline Industry Data

  • 2014 food consumption growth (local currency terms): +5.5%; compound annual growth rate (CAGR) 2013 to 2018: +6.9%.

  • 2014 per capita food consumption growth (local currency terms): +3.9%; CAGR 2013 to 2018: +5.2%.

  • 2014 total soft drinks sales (local currency terms): +6.0%; compound annual growth rate (CAGR) 2013 to 2018: +7.6%.

  • 2014 mass grocery retail sales (local currency terms): +8.4%; compound annual growth rate (CAGR) 2013 to 2018: +10.5%.

Key Industry Trends And Developments

Nestlé To Triple Current Sales By 2020 :  Nestlé announced plans in February 2014 to triple its current level of sales in the Middle East region by 2020. The company said that it expects to invest around USD400mn into building new factories and creating new brands. Nestlé has said that the reason for its expansion is down to strong levels of economic growth which will be felt across the entire region over the next several years. Currently, the company's largest market in the region is Saudi Arabia, generating around 35% of total sales volume for the region, followed by the United Arab Emirates, Lebanon, Jordan and Kuwait.

BRF Increases Stake In Federal Foods :  Brazilian food company BRF increased its stake in the UAE-based Federal Foods for USD27.8mn in April 2014. In January 2013, BRF acquired a 49% interest in Federal Foods...

Table of Contents

BMI Industry View
7
SWOT Analysis
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, 2011-2018
19
Drink
20
Soft Drinks
20
Table: Soft Drink Value/Volume Sales - Historical Data & Forecasts, 2011-2018
22
Hot Drinks
24
Mass Grocery Retail
26
Table: Grocery Retail Sales By Format
27
Table: Mass Grocery Retail Sales - Historical Data & Forecasts, 2011-2018
27
Trade
28
Table: Trade Indicators - Historical Data & Forecasts 2011-2018
29
Macroeconomic Forecast
30
Fiscal Position Remains Solid
32
Non-Oil Sector To Become Growth Driver
34
Table: United Arab Emirates - Economic Activity
35
Industry Risk Reward Ratings
36
Middle East And North Africa Risk/Reward Ratings
36
Table: Middle East & North Africa Food & Drink Risk/Reward Ratings Q314
37
Table: Middle East & North Africa Food & Drink Risk/Reward Sub-Factor Ratings Q314 (scores out of 10)
41
UAE Risk/Reward Ratings
42
Market Overview
43
Food
43
Food Production
43
Agriculture
44
Halal Food
44
Drink
45
Soft Drinks
45
Hot Drinks
46
Mass Grocery Retail
46
Industry Trends And Developments
48
Food
48
Key Industry Trends And Developments
48
Drink
56
Key Industry Trends And Developments
56
Mass Grocery Retail
60
Key Industry Trends And Developments
60
Competitive Landscape
64
Table: Key Players In UAE's Food & Drink Sector
64
Table: Key Players In UAE's Mass Grocery Retail Sector
65
Company Profile
66
Unilever North Africa Middle East
66
Foodco
68
Al Ain Dairy
70
Masafi
73
Al-Ain Mineral Water Company
75
Aujan
77
EMKE Group
80
Carrefour MAF
83
Spinneys Dubai
86
Global Industry Overview
88
Table: Food And Drink Core Views
97
Demographic Forecast
98
Table: United Arab Emirates' Population By Age Group, 1990-2020 ('000)
99
Table: United Arab Emirates' Population By Age Group, 1990-2020 (% of total)
100
Table: United Arab Emirates' Key Population Ratios, 1990-2020
101
Table: United Arab Emirates' Rural And Urban Population, 1990-2020
101
Glossary
102
Food & Drink
102
Mass Grocery Retail
102
Methodology
104
Industry Forecast Methodology
104
Sector-Specific Methodology
105
Sources
105
Risk/Reward Rating Methodology
106
Table: Food & Drink Risk/Reward Rating Indicators
107
Table: Weighting
108

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.

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 retail market.

Business Environment Rankings

BMI's Food & Drink Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors, food and drink manufacturers and mass grocery retailers.

The rankings 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.

Food Forecasts

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.

Drink Forecasts

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.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc