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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Organic packaged food and beverages in the United Arab Emirates is led by Lactalis Groupe, with a value share of 21.3% in 2019, followed by Hipp GmbH & Co Vertrieb KG with a value share of 7.2% and Organic Foods & Café with a share of 4.9%.
  • A small market size has allowed the country to rank third globally in terms of forecast growth, with a value CAGR of 13.3% for the period 2019-2024.

  • Organic products in the United Arab Emirates registered a market value of US$27.9, representing about 0.06% of global demand, with a per capita expenditure of US$2.94 in 2019.
  • As the market for organic beverages evolves, and consumers become increasingly health-conscious, demand for organic products is expected to continue to increase, leading to a value of US$52.1 mn by 2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in the United Arab Emirates recorded an increase of 8.5% in 2019, registering a market size of US$27.9 mn.
  • Growth in organic packaged food was led by organic formula milk, with a value increase of 90.0% in 2019.
  • Sales of organic beverages in the United Arab Emirates remain niche; however, it is expected to register strong sales from a low base over the forecast period 2019-2024.
Market Trends
  • With an obesity rate of more than 38.0% of the over 18 population, health and wellness products are gaining priority. Several consumers, particularly in the younger age groups, are interested in consuming products that are beneficial for their health. As a result, demand for organic beverages in the United Arab Emirates has gained some momentum. While initially, organic packaged food enjoyed a high level of demand only among high-income expatriates, there has been an increase among consumers of other nationalities and income groups. Furthermore, the new product launches, including, Arla Little Explorers Milkshake in 2018, are expected to increase over the forecast period 2019-2024.
  • The growth in demand is also a result of the increasing number of grocery retail stores dedicating shelf space for organic beverages. As a result, manufacturers are introducing a broader range of products for consumers to choose. For instance, the demand for coconut water is increasing due to the perception that it is beneficial for health and aids in weight loss. Additionally, the excise tax on carbonates and energy drinks in 2017 has also led to a reduction in production and consumption of sugary beverages, helping industry players to produce healthier beverages.
Competitive Landscape
  • Organic packaged food in the United Arab Emirates was led by Rachel’s Organic Co Ltd, with a value share of 16.5% in 2018. The company benefitted with its exclusive positioning focusing explicitly on organic products, as well as its long-standing presence in the United Arab Emirates and the strong demand for its products among expatriates familiar with the brand name.
  • In 2017, organic dairy player Arla National Food Products Co LLC launched Arla Organic shelf-stable milk, in full fat, low fat, strawberry and chocolate flavors. The offering was lower in price than existing organic offerings while slightly higher than conventional milk. With the success of this range, additional SKUs were introduced such as Arla Little Explorer Organic Milkshake targeted towards children in four flavors: chocolate, strawberry, vanilla and banana. The introduction of this range is expected to further drive demand towards organic milk over the forecast period 2019-2024.
  • Considering the insignificant size of organic beverages in the United Arab Emirates, the value shares of major players and the competitive landscape is still unidentified. Players with presence in organic beverages including organic hot drinks at the end of the historical period 2014-2019 included Whole Earth in organic instant coffee, Coffee Planet Roastery in organic fresh coffee and GlaxoSmithKline and Nestlé in organic plant-based and malt-based hot drinks. A large number of manufacturers in organic beverages are aiming to promote their products, through rapidly widening distribution within grocery retailers such as Carrefour, Spinneys and Lulu.
Prospects And Growth Opportunity
  • As organic beverages is a relatively insignificant category in the United Arab Emirates, it is still in the introductory phase, with demand mainly driven by health-conscious, high-income consumers. However, as more consumers are increasingly focused on health and wellness, and more manufacturers introduce new offerings, demand for organic beverages is expected to record substantial growth over the forecast period 2019-2024
  • Organic sweet biscuits, snack bars and fruits registered strong current value growth, with a year-on-year increase of about 33.6% in 2019. Growth was driven by demand for organic dates, as consumers preferred organic offerings against non-organic variants. With a vast majority of the Islamic community in the UAE, who consume dates daily in Ramdan, organic dates are further expected to drive demand for organic sweet biscuits, snack bars and fruits over the forecast period 2019-2024.
  • Despite some consumers in the United Arab Emirates willing to pay a premium for organic products, retailers and manufacturers are seeking ways of making organic packaged food products more affordable amid economically stringent times. While organic packaged food products are expected to remain more expensive than conventional products, consumers will see more affordable products over the forecast period 2019-2024 as competition intensifies on the back of new product launches.
General Health And Wellness Trends
  • With the high obesity rate in the country, consumers are increasingly focused on health and wellness products. Furthermore, the government is actively aiming at restricting the demand for high-sugar content beverages. Post the addition of the sugar tax in 2017, the government is expected to further implement selective taxes on drinks, with a 50.0% excise tax on sugar-sweetened beverages in the form of concentrate, powder or extract, as well as juices with added sugar. In addition, awareness is expected to be raised further by the government’s national programme for happiness and wellbeing, which includes a new nutrition labelling policy.
  • Health and Wellness products are expected to continue to register strong demand over the forecast period 2019-2024. However, Health and Wellness packaged food is expected to see a much better performance than beverages, with free from and organic packaged food expected to see stand-out growth rates, although from a low base. Organic packaged food in the United Arab Emirates is expected a forecast value CAGR of 14.8% for the period 2018-2023. On the other hand, fortified/Functional beverages are expected to hamper the growth of overall Health and Wellness beverages, with a decline of approx.12.5%.
General Economics And Demographic Landscape

Economy:

  • The economy of the United Arab Emirates is expected to pick up steam in 2020, with real GDP growth expected to grow by 2.5% post growth of 1.6% in 2019.
  • Private final consumption witnessed an increase of 1.6% in 2019, with a growth of 2.6% expected in 2020.
  • Growth of real GDP is expected to average around 2.7% in 2021 and is expected to fall to around 2.5% per year by 2027.
     

 Population demographics:

  • The population of the United Arab Emirates has grown at a rapid pace, increasing to 9.5 million in 2019 from 3.0 million in 2000.
  • The gain in population is mainly driven by foreign citizens, which make up about 80.0% of the population. However, almost all immigrants are young or middle-aged adults, ensuring a relatively high median age.
  • The median age in 2019 was recorded at 33.6 years, significantly higher than the regional average. This is further expected to increase to 35.7 years by 2030.
     

Income & expenditure:

  • The savings ratio in the United Arab Emirates is higher than the regional average, recorded at 16.9% of disposable income in 2019, with the rate expected to remain the same in 2020.
  • Consumer expenditure per capita was recorded at US$16,117 in 2019, with the indicator expected to rise by 2.0% in 2020. For the period 2020-2030, total consumer expenditure will grow at an annual rate of 2.5%, recording a cumulative increase of 28.1%.
  • In 2019, disposable income per capita was recorded at US$20,623, with a growth of 2.1% expected in 2020. Total disposable income is expected to record a cumulative increase of 29.8% for the period 2020-2030, averaging 2.6% annually.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

1,582.5

1,706.5

1,882.8

1,902.1

1,993.7

2,027.5

2,071.9

6.3%

1.9%

Organic packaged food and beverages consumption

USD million

20.1

22.4

25.7

27.9

33.7

37.3

41.6

11.5%

11.1%

Organic packaged food consumption

USD million

20.1

22.4

25.7

27.9

33.7

37.3

41.6

11.5%

11.1%

Organic beverages consumption

USD million

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-

-

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

1.3%

1.3%

1.4%

1.5%

1.7%

1.8%

2.0%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

9.0

9.1

9.3

9.5

9.6

9.8

9.9

% Middle and upper class of total population

%

29.0

28.9

28.8

28.7

28.6

28.5

28.4

% Population aged 65+

%

1.0%

1.1%

1.1%

1.2%

1.3%

1.4%

1.5%

% Population aged 0-14

%

13.5%

13.8%

13.9%

14.1%

14.3%

14.5%

14.6%

% Population with higher education degrees

%

34.9

35.9

36.9

37.7

38.4

39.1

39.6

Average number of children per household

children

0.9

0.9

0.9

0.9

0.9

0.8

0.8

GDP per capita

USD per capita

39,890.0

41,409.3

44,514.9

42,859.4

43,254.4

43,776.2

44,150.9

Consumer expenditure per capita (US$)

USD per capita

13,600.4

14,404.5

16,119.1

16,117.1

16,432.7

16,607.9

16,844.5

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

1,869.4

1,977.4

2,210.1

2,205.9

2,243.5

2,260.4

2,285.5

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Dubai

5.2

Top cities by population (2019)

2

Abu Dhabi

1.7

Top cities by population (2019)

3

Al Ain

0.6

Top cities by population (2019)

4

Ras al-Khaimah

0.3

Top cities by population (2019)

5

Fujairah

0.1

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Carrefour SA

Top grocery retailers by sales (2019)

2

Consumer Co-operative Union (CCU)

Top grocery retailers by sales (2019)

3

Lulu Group International LLC

Top grocery retailers by sales (2019)

4

New West Zone Supermarket & Department Store LLC

Top grocery retailers by sales (2019)

5

Al Maya Group

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To United Arab Emirates

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

United Arab Emirates

1

Organic Berries Fresh

3,586,264

2019

United Arab Emirates

2

Organic Strawberries Fresh

2,086,907

2019

United Arab Emirates

3

Organic Cult Blueberries Fresh

1,132,202

2019

United Arab Emirates

4

Organic Carrots Fr/Ch

680,575

2019

United Arab Emirates

5

Organic Asparagus Fr/Ch

328,860

2019

United Arab Emirates

Total

Total Organics*

8,711,088

2018

United Arab Emirates

1

Organic Berries Fresh

3,702,523

2018

United Arab Emirates

2

Organic Strawberries Fresh

3,574,158

2018

United Arab Emirates

3

Organic Cult Blueberries Fresh

1,747,793

2018

United Arab Emirates

4

Organic Carrots Fr/Ch

691,303

2018

United Arab Emirates

5

Organic Apples Fresh

425,616

2018

United Arab Emirates

Total

Total Organics*

10,704,852

2017

United Arab Emirates

1

Organic Berries Fresh

2,655,502

2017

United Arab Emirates

2

Organic Strawberries Fresh

2,403,846

2017

United Arab Emirates

3

Organic Cult Blueberries Fresh

1,222,061

2017

United Arab Emirates

4

Organic Carrots Fr/Ch

858,900

2017

United Arab Emirates

5

Organic Tomato Sauce Ex Ketchp

418,545

2017

United Arab Emirates

Total

Total Organics*

8,117,351

2016

United Arab Emirates

1

Organic Strawberries Fresh

2,852,985

2016

United Arab Emirates

2

Organic Berries Fresh

1,762,970

2016

United Arab Emirates

3

Organic Cult Blueberries Fresh

555,255

2016

United Arab Emirates

4

Organic Carrots Fr/Ch

447,578

2016

United Arab Emirates

5

Organic Tomato Sauce Ex Ketchup

219,289

2016

United Arab Emirates

Total

Total Organics*

6,118,657


Note : Total organics is the sum of all exports to a country within a year
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

United Arab Emirates (UAE) is a member of the Gulf Cooperation Council (GCC) that includes Bahrain, Kuwait, Oman, Qatar, United Arab Emirates, and Saudi Arabia. Gulf Standards Organization (GSO) is responsible for developing food and non food standards in the GCC. Once a new standard is approved by the GSO food standards committee, each member country officially adopts the standard, thus making it a national standard as well as a GSO standard

Ministry of Climate Change and Environment

Emirates Authority for Standardization and Metrology (ESMA) 

Agency(s) Contact Information:

GCC Standardization Organization (GSO)
Riyadh - Kingdom of Saudi Arabia
AlGadeer - Olaya Street
P.O.Box 85245 Riyadh 11691
Phone: (+96611) 2746655
Fax: (+96611) 2105391
Email: csc@gso.org.sa
Website

Ministry of Climate Change and Environment
Abu Dhabi Main Office:
Old Airport Road
Behind Carrefour
Opposite Abu Dhabi Retirement Pensions & Benefits Fund
P.O. Box 213
Phone: 971 02 4444747
Fax: 971 02 4490444
Email: adarchieve@moccae.gov.ae
Webiste
Organic farming information

Emirates Authority for Standardization and Metrology (ESMA)
Business Avenue Building - Sheikh Rashid Rd - Dubai
Telephone: 600565554
Email: customercare@esma.gov.ae
Website

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

Law No.5 of 2009 regarding organic products (Available in Arabic)

GSO 2374:2014 Guidelines for the Production, Processing, Labelling and Marketing of Organically Produced Foods

Date of Implementation: 2012

Regulation and/or Standard Scope:

The GSO standard applies to unprocessed plants and plant products, livestock and livestock products, and processed agricultural crop and livestock products intended for human consumption. A product will be regarded as bearing indications referring to organic production methods where, in the labelling or claims, including advertising material or commercial documents, the product, or its ingredients, is described by the terms “organic”, “biodynamic”, “biological”, “ecological”, or words of similar intent including diminutives which, in the country where the product is placed on the market, suggests to the purchaser that the product or its ingredients were obtained according to organic production methods.

Imported Products

According to a 2015 Gulf News report, imports that are not certified by an organization approved by the Emirates Authority for Standardization and Metrology will be stopped at the port. 

GCC Guide for Control on Imported Foods is useful for all food imports.

Certification and Accreditation

Certification:

All farms producing organic products must be registered and approved by the ministry. Organic products must be certified by the Emirates Authority for Standardization and Metrology (ESMA); imports must be certified by an organization approved by ESMA.

Additional Information

A copy of the regulations can be purchased in English via https://estore.esma.gov.ae/e-store/Default/stdDetails.aspx?std=3856

USDA GAIN Report Food and Agricultural Import Regulations and Standards Report Annual Report (2019)
USDA GAIN Report Exporter Guide Annual Report for the United Arab Emirates (2015)
USDA GAIN Report United Arab Emirates Food and Agricultural Import Regulations and Standards - Narrative (2014)