UAE Organic Food Market to Grow with a CAGR of 4.56% through 2029

Increasing health-consciousness and prevalence of lifestyle related diseases to drive UAE organic food market

According to TechSci Research report, “UAE Organic Food Market By Type (Fruits and Vegetables), By Region, Forecast & Opportunities,  2019-2029F””, the UAE organic food market stood at USD 42.57 million in 2023 and is anticipated to grow with a CAGR of 4.56% through 2029, the market is anticipated to witness a healthy CAGR during the forecast period owing to increasing health-consciousness, especially among younger population of the country. The increasing prevalence of lifestyle-related health problems such as cardiovascular diseases, obesity and diabetes are promoting more attention to their diet and include healthier options like organic food products consumers to pay. Also, increasing number of standard local organic food farms in UAE are expected to drive the organic food market growth through 2029.

Moreover, the sizeable disposable income of UAE is also a key factor behind the growing demand for organic food products. Besides, UAE government is taking initiatives to lower obesity rate of the country which is expected to accelerate the demand for organic food products over the coming years. Furthermore, the availability of plethora of organic food including fruits and vegetables is also fueling the growth of UAE organic food market. However, the market is also prone to some challenges. Lack of knowledge about the benefits of organic food and their high cost are expected to hamper the market growth. Also, climatic conditions and limited water resources are making farming activities difficult in the country and hence it is primarily dependent on organic food imports.

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The UAE organic food market is segmented based on product type, distribution channel, region and company. Based on distribution channel, the organic food sector in the UAE is primarily divided into several retail formats, including supermarkets/hypermarkets, grocery stores, online, convenience stores, and other outlets. Supermarkets/hypermarkets are currently the dominant channel in the market, a trend that is projected to continue until 2029. This is attributed to the widespread presence of organic products across major supermarket and hypermarket chains. On the other hand, the e-commerce channel is anticipated to experience a significant compound annual growth rate (CAGR) in the coming years. This surge is linked to the expanding digital marketplace and the increasing number of retailers moving their organic offerings online. The convenience and growing consumer preference for online shopping are key factors driving this segment's growth. Overall, while traditional brick-and-mortar stores remain prevalent, the digital shift is creating new dynamics in the UAE's organic food market landscape.

Key market players in the UAE Organic Food Market include:

• LuLu Group International
• Union Coop
• Abu Dhabi Cooperative Society
• Emirates Coop
• Park N Shop LLC 
• Nesto Hyper Market LLC
• Greenheart Organic Farms Trading LLC
• Ripe Fresh Trading LLC
• NRTC Trading Company
• Organic Foods and Café 

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“Over the last three years, UAE has experienced behavioral changes in high-income group consumers, who are emphasizing on nutrition as well as environmentally friendly foods. The demand for locally grown organic fruits and vegetables has considerably increased in the country. The government has also implemented regulations on organic farming and is coming up with certification process to ensure that the locally grown organic fruits and vegetables meet the international organic farming standards.,” said Mr. Karan Chechi, Research Director of TechSci Research, a research based global management consulting firm.

“UAE Organic Food Market By Type (Fruits and Vegetables), By Form (Fresh and Frozen), By End User (Residential and Commercial), By Distribution Channel (Supermarkets/Hypermarkets, Grocery Stores, E-Commerce, Convenience Stores and Others), By Region, Forecast & Opportunities, 2029F” has evaluated the future growth potential of UAE organic food market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in UAE organic food market.

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