April 2015

The report presents the demand-supply dynamics of the GCC food industry across its countries and major food categories. The report also highlights the recent industry trends, growth drivers, and challenges in the industry. It profiles some of the leading food companies in the region while evaluating their financial and market valuation metrics vis-à-vis the regional as well as international industry performance.

The food demand in the GCC is driven by several factors including a growing population base, increasing affluence and rising tourist inflow within the region. High health awareness and a developing taste for a westernized diet, introduced by the increasing expatriate population, are bringing about a change in the region’s dietary habits, creating demand for organic and international foods. In contrast, the GCC’s food production is restricted due to its arid climate, less arable land, and water scarcity, making it heavily reliant on imports. However, the region’s abundant oil revenues have supported its food imports as well as enabled the governments to make multi-billion dollar investments towards improving the country’s food security.

The GCC Food Industry Outlook

The GCC food sector is expected to grow at a 3.5% CAGR between 2014 and 2019 to reach 51.9 million metric tonnes (MT), backed by encouraging macroeconomic drivers. Cereals are likely to remain the most consumed food category, accounting for 46.5% of the region’s total food consumption in 2019. However, rising consumption of high-priced protein-rich and healthy foods is expected to gradually eat into the share of cereals in the total food consumption. Subsequently, cereals consumption is expected to show an annualized growth of 3.0% between 2014 and 2019, slower compared to the 4.4% and 3.8% annual rise in meat and fruit consumption, respectively.

For more details please click here to access the complete version of the GCC Food Industry Report.