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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