The GCC F&B Market Set To Grow To US$ 196 Billion By 2021, According To MENA Research Partners

The food and beverage sector in the Gulf Cooperation Council (GCC) states is expected to continue to grow at a healthy 7.1% annually, reaching US$ 196 billion by 2021, from the current US$ 130 billion, according to MENA Research Partners, a leading research company in the region. Saudi Arabia alone accounts for more than half of the market share, followed by the UAE with 31%. Kuwait, which is the third largest F&B market in the region, is set to witness the fastest expansion at 9.6% per year.

The food and beverage products’ segment, characterised by a large presence of international brands, either manufactured regionally through local factories or imported through distributors, accounts for the lion’s share of the market at 70%. However, the foodservice segment, led by international chains represented by regional franchise partners, is set to outperform the sector’s growth, expanding by 8.4% annually until 2021.

Anthony Hobeika, Chief Executive Officer at MENA Research Partners, says ahead of Gulf Food 2018: “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 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.”