UAE Organic Food Market to Witness Significant Growth through 2025
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 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, 2025”, 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 2025.
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 type, form, end user, distribution
channel and region. Based on end user, the market can be segmented into residential
and commercial. Among them, the residential segment is expected to undergo
fastest growth during the forecast period owing to rising health concerns and growing
popularity of organic food among younger population of the country.
Based
on distribution channel, UAE organic food market can be segmented into supermarkets/hypermarkets,
grocery stores, e-commerce, convenience stores and others. Among them, the supermarkets/hypermarkets
segment accounted for largest market share in 2019 and is further expected to register
high growth through 2025 owing to the availability of organic food products in
most major UAE hypermarkets and supermarkets. However, the e-commerce segment
is expected to undergo high CAGR during the forecast period owing to the
booming e-commerce industry and more retailers offering their products online.
Key players operating in the UAE organic
food market include Lulu Group International, Union Co-operative Society, Abu
Dhabi Cooperative Society , Emirates Cooperative Society, Park n Shop ,
Farmbox, Al Madina Group, Nesto Group (Western International Group LLC),
Choithrams and Al Maya. The companies are focusing on introducing affordable
organic food products, especially fruits and vegetables in UAE. They are also
investing on increasing their productivity to meet the growing demand for
organic food.
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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 with 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,
2025” 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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