F&B market in Gulf set to grow to $196 billion by 2021Qatar Gulf News | Www.Qatar-Gulfnews.Com/ | Updated: 20-02-2018 12:27 IST | Created: 19-02-2018 15:26 IST
The food and beverage sector in the Gulf Cooperation Council (GCC) states are anticipated upon keep on growing at a solid 7.1% annually, reaching $196bn by 2021, from the current $130bn, as per the MENA Research Partners, a leading research company in the region. The F&B products segment, described by the large presence of international brands, either made provincially through nearby manufacturing plants or imported through merchants, represents the lion's share of the market at 70%. However, the food service segment, led by international chains represented by regional franchise partners, is set to outflank the area's development, growing by 8.4% every year until 2021.
Anthony Hobeika, a chief executive officer at MENA Research, said, "This surge is driven by the growth in disposable income, a shift from dining-in to dining-out and a trading up in the dining-out habits and preferences. Also, catering concepts fuelled by home and office delivery and online food ordering are gaining popularity. Moreover, higher health awareness, as a result of the prevalence of chronic diseases in the GCC, has led to a growing demand for healthy foods and allergen-free products."
As expendable incomes ascend in developing markets, customers are winding up more refined, and their attitudes regarding food are changing. The utilization blend is moving farther from staple items to value-added, convenient and healthier alternatives. Also, government strategy activities, for example, Saudi Arabia's half assessment on carbonated soft drinks and 100% tax on caffeinated drinks, are driving consumers towards more alluring and more beneficial choices, the report said.
Among rising trends, the GCC's booming population and growing tourism influx will also continue to influence the exponential rise of the region's food and beverage industry in the coming years. Hobeika added, "The GCC macro outlook remains accommodating to the food and beverage industry, as diversification away from oil remains governments' primary target for the next decade. Many countries and cities in the region are aiming for economic diversification through development plans and national visions."