• The total market size for organic packaged food and beverages in the UAE in 2017 is US$38.1mn, making it the 34th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in the UAE is US$4.18, which ranks as the 27th largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Lactalis Groupe, which maintains 11.3% of total sales. This company is followed by Hipp GmbH & Co Vertrieb KG and Savencia Fromage & Dairy.
  • Organic packaged food and beverages in the UAE will see strong year-on-year growth of close to 10% in 2018. This is slightly faster than the rest of the Middle East and Africa region, which will experience nearly 8% year-on-year growth in 2018.
  • The UAE maintains a market size for organic packaged food and beverages of US$38.1mn in 2017, which is 0.1% of global category sales.
  • Within the Middle East and Africa region, only Turkey, Morocco and Israel surpass the UAE in total value sales of organic packaged food and beverages.
  • The UAE will experience strong forecast growth of sales of organic packaged food and beverages, at an 11.6% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in the UAE in 2017 is US$38.1mn, making it the 34th largest market in the world by value.
  • Sales of organic food in the UAE have been growing in recent years, but sales of organic beverages remain negligible.
  • Due to high prices, high-income Western expatriates in the UAE are generally target consumers for organic packaged food.

Market Trends

Competitive Landscape

  • The organic packaged food landscape in the UAE is fragmented and competitive.
  • Foreign companies dominate the landscape, as the expatriate community, who can afford organic products, seeks out the brands they trust and know from their home countries.
  • Lactalis Groupe is the market leader with 11.3% value share, followed by Hipp GmbH & Co Vertrieg KG with 6.3%.

Prospects and Growth Opportunity

  • Sales of organic packaged food and beverages are projected to grow in coming years, driven by increasing consumer health consciousness and environmental awareness.
  • The sales value of organic dairy is projected to grow at a particularly strong rate in coming years.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • Real GDP in the UAE grew by 1.3% in 2017 and is expected to grow by 3.4% in 2018, driven by gradually rising oil prices, increased exports and investments associated with the Dubai 2020 World Expo.
  • Dubai contributes a quarter of the country’s GDP and functions as the commercial center.
  • The UAE economy is highly dependent on exports, acting as a re-export hub for other countries in the region.
  • The UAE is the second-largest FDI recipient among Arab countries after Saudi Arabia.

Population demographics:

  • In 2017 the population of the UAE was 9.1 million, up from just 3.0 million in 2000.
  • Expatriate citizens make up around 80% of the total population and are mainly responsible for the rapid gains in population.
  • A large influx of immigration in recent years has also led to an imbalance between the male and female populations: There are two men for every woman in the UAE.

Income & expenditure:

  • Per capita disposable income in 2017 was US$26,176, and total disposable income is forecast to grow at an annual average rate of 2.5% through 2030.
  • In line with rising disposable income, total consumer expenditure is projected to grow at an average annual rate of 2.6% through 2030.
  • In the 2018-2030 period hotels and catering will be the fastest-growing consumer expenditure category.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

     1,348.0

     1,481.4

     1,601.8

     1,743.2

     1,902.4

     1,967.5

     2,047.1

8.9%

5.5%

Organic packaged food and beverages consumption

USD million

          27.3

          31.0

          34.3

          38.1

          41.8

          46.1

          51.2

11.8%

10.4%

Organic packaged food consumption

USD million

          27.3

          31.0

          34.3

          38.1

          41.8

          46.1

          51.2

11.8%

10.4%

Organic beverages consumption

USD million

 

 

 

 

 

 

 

 

 

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

%

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

            8.5

            8.8

            9.0

            9.1

            9.3

            9.4

            9.6

% Middle and upper class of total population

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 65+

%

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

% Population aged 0-14

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

% Population with higher education degrees

%

            0.1

            0.1

            0.1

            0.1

            0.2

            0.2

            0.2

Average number of children per household

children

            0.9

            0.9

            0.9

            0.9

            0.9

            0.9

            0.9

GDP per capita

USD per capita

   47,244.6

   40,885.9

   38,962.5

   41,514.0

   42,166.2

   42,809.8

   43,451.5

Consumer expenditure per capita (US$)

USD per capita

   26,053.3

   21,990.3

   21,463.7

   22,467.8

   22,858.1

   23,381.3

   23,947.5

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

USD per capita

     3,751.1

     3,172.9

     3,109.5

     3,253.2

     3,305.5

     3,375.2

     3,451.9

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Dubai

             5.3

Top cities by population (2017)

2

Abu Dhabi

             1.4

Top cities by population (2017)

3

Al Ain

             0.5

Top cities by population (2017)

4

Ras al-Khaimah

             0.2

Top cities by population (2017)

5

Fujairah

             0.2

Top grocery retailers by sales (2017)

1

Carrefour

 -

Top grocery retailers by sales (2017)

2

LuLu

 -

Top grocery retailers by sales (2017)

3

Union Co-operative Society

 -

Top grocery retailers by sales (2017)

4

ADCOOP

 -

Top grocery retailers by sales (2017)

5

Al Maya Supermarket

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Grapes

Grapes

3.0

Apples

5,573.0

Grapes

4,593.0

2

Tomato Sauce

419.0

Strawberries

2,853.0

Grapes

4,176.0

Strawberries

1,169.0

3

Pears

19.0

Apples

90.0

Berries

2,431.0

Apples

946.0

4

Strawberries

2,219.0

Coffee Roast

21.0

Strawberries

1,106.0

Tomato Sauce

452.0

5

Coffee Roast

286.0

Carrots

448.0

Pears

344.0

Cherries

244.0

Total

7,160.0

6,118.0

14,313.0

7,675.0

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: 

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 Requirements

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

Definitions

Review definitions of terminology included in this website.