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The Future of Food Service Market in UAE

Food service is an industry related to making, transporting or selling the prepared foods to lodging establishments restaurants, schools, hospitals and offices. The companies that supply the foodservice operators are called foodservice distributors. Foodservice distributors are those who sell goods like foods and small wares (kitchen utensils). Some companies manufacture products in both consumer and foodservice versions. Growing popularity of dining out and ordering food from the restaurants in contributing to the growth of UAE food services market.

Key factors driving the UAE Food Services Market

The population in UAE continues to grow exponentially as the country is continuously developing its infrastructure and relying on low income laborer from all across the globe. Traditional Gulf foods like kibbe, hummus, moutabel and tabbuleh is always a preference among Emirati people and combination of many foreigners within the UAE and affluent number of Emirati residents has created UAE a country with an international palate, demanding a wide range of international foods. Expenditure on food is rising and Cafes/Bars, Fast food, full-service restaurants accounted for a significant part of the foodservice industry in UAE. Growth in the sector has been attributed to rising income levels along with country’s overall economic performance. Spending several hours outside results in the consumption of drink, snack or meal and leads to growth of foodservice industry in UAE.


                                                  Figure 1: UAE Per-Capita Household Final Consumption Expenditure, 2012-2016 (USD)

                                                                                                                                                      Source: World Bank

Figure 2: UAE Female Labor Force Share (As a %age of Total Population, 2012-2016 (%)

                                                                                                                 Source: World Bank


International Tourist Arrival

The changing tourist profile in the country is impacting the average tourist spend in foodservice outlets also the growth across various type of cuisines has impeded top line growth for the operators as UAE is a hub for tourism and business in the whole Middle East. With rising number of international tourists’ arrival in the UAE, the food service industry is witnessing higher demand from international tourists and the UAE food service market will grow in the coming years.


      Figure 3: Number of international tourists’ arrival in UAE (In Millions) 2010 - 2015


  

                                                                                                                                                          Source: TechSci Research

Table 1: Number of Food Service Outlets in UAE

Subsector

2014

2015

2016

2017E

Cafés/bars

3,747.4

4,131.2

4,558.4

5,027.4

Full-service restaurants

2,693.9

2,816.3

2,937.2

3,056.3

Fast food

2,517.2

2,711.2

2,891.9

3,065.1

100% home delivery/takeaway

158.5

168.2

177.6

186.6

Self-service cafeterias

12.5

12.7

12.8

13.0

Street stalls/kiosks

12.7

12.9

13.2

13.7

Pizza consumer foodservice

482.8

504.2

529.6

549.9

Source: Agriculture and Agri-Food Canada

 

Global Food Services Market Overview

The global food services market has witnessed considerable growth and is now among the most lucrative market in the global food and beverage industry. The food services industry across the globe is driven by increasing disposable income, changing demographics, and growing customer demand on different food type. With people across the globe becoming health-conscious, several cafés, restaurants, and other food service outlets have started offering healthy and nutritious meals, they also serve half or full-size healthy food which helps the consumers in reducing their total calorie intake. On the basis of which the market is expected to witness significant growth in the coming years as the growing demand for fresh-quality ingredients and customized food menus is rising. APAC is the revenue-generating region in the market during the forecast period and is expected to remain dominant during the forecast period.  Request for Sample Report Today!

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