Dubai – Mubahser: Food and beverage sector in the GCC is expected to increase by 7.1% a year to reach $196 billion by 2021, compared to the current $130 billion, MENA Research Partners said in a report on Thursday.
Saudi Arabia acquired more than half of the market share, followed by the UAE with 31%, while Kuwait's food and beverage industry is forecast to see a 9.6% growth per year, the report added.
Characterised by a large presence of international brands, the food and beverage products' segment made up 70% of the market, while the foodservice segment is expected to annually expand by 8.4% until 2021, the region's leading research firm highlighted.
“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,” said MENA Research Partners CEO Anthony Hobeika.
“Catering concepts fueled 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,” Hobeika added.
The GCC’s rising population and tourism influx will boost the growth of the region's food and beverage sector over the next years, the report highlighted.
“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,” the CEO concluded.