The United Arab Emirates (UAE) continues to lead the Food and Beverage ( Food and Beverage) sector in the Middle East, thanks to a growing number of visitors and a robust local market. Dubai, in particular, attracts both foreign and home-grown Food and Beverage products.
The Food and Beverage industry is the second-largest in the country, playing a significant role in the local economy and contributing to the region’s economic growth and diversification. With the success of global events like Dubai Expo 2020, the Food and Beverage sector in the UAE remains competitive yet full of potential. Here’s a closer look at the current trends and opportunities in this thriving market.

Food and Beverage Market in the UAE
The UAE’s Food and Beverage market is fiercely competitive, driven by discerning buyers. Despite challenges, including the closure of underperforming outlets and the exit of unsuccessful brands, the sector has seen significant advancements. Companies are now focusing on operational improvements, market relevance, organizational agility, and efficient financial monitoring.
Growth Drivers
- Increased Per Capita Income and Population: This has led to higher demand for Food and Beverage products. Categories like fruits, vegetables, cereals, coffee, Halal meat, green tea, and fresh coffee are experiencing growth.
- Specialty Organic Food Market: This niche segment presents a promising business opportunity.
Strengths of the UAE Food and Beverage Market
– Economic Stability: The UAE’s economy is projected to remain stable and continue growing.
– Favorable Business Climate: The UAE ranks high in the Risk/Reward Index (RRI) for the Food and Beverage market, with a score of 70.4, above the global average of 50.
– High Purchasing Power: The local economy has absorbed the impact of VAT on the food industry.
– Youth Population: Nearly 49.2% of the population are young adults, representing a substantial economic resource.
– Attractive Market: The UAE remains the most attractive Food and Beverage market in the region, ranking in the top 10 globally.
– Luxury and Health Foods: There is a rising demand for these products, driven by high disposable incomes.
– Halal Sector Growth: Government initiatives are focusing on expanding the Halal sector.
– Online Food and Beverage Distribution: This sector is showing strong demand.
– Self-Sufficiency: The UAE is more than 80% self-sufficient in milk and nearly 40% in eggs.
– Organic Farming Projects: The government continues to endorse organic farming projects.
Trends in the UAE Food and Beverage Market
– Changing Consumer Preferences: Consumers are becoming more health-conscious and seeking transparency and sustainability.
– Rising Costs and Uncertainty: These factors are influencing market dynamics.
– Innovation and Differentiation: Companies are focusing on these to stay competitive.
– Mergers and Acquisitions: These are reshaping the market landscape.
– Food Sales Growth: Estimated growth of 4.6% in 2019 and a compound annual growth rate (CAGR) of 6% from 2019-2023.
– Beverage Sales Growth: Expected to rise by 6.9% in 2019 and maintain a CAGR of 6% from 2019-2022.
– Dairy Sales: Projected to grow at a CAGR of 6.9% as consumer tastes evolve.
– Baked Foods: Expected to see a CAGR of 7.1% in sales through 2022.
Opportunities in the UAE Food and Beverage Market
– Food Processing Industry: This sector has seen significant expansion and is expected to continue growing with foreign investment and government initiatives.
– Value-Added Dairy Products: High milk consumption creates opportunities for products like yogurt, butter, and cheese.
– Food Services (Restaurants): With a diverse population and demand for various brands, the food services industry is booming, with over 16,000 outlets.
Business Opportunities in the Food and Beverage Sector
Some of the highly utilized market choices include:
– Manufacturers of Food Packaging Products and Suppliers
– Warehouses and Food Factories
– School Canteens and Hospitals
– Hotels, Restaurants, and Cafes
– Catering Units
– Food Trucks
– Bakeries
– Butcheries
Starting a restaurant or dealing with processed foods in Dubai can be a lucrative venture. However, navigating the integration process can be challenging. Business owners and investors often seek assistance from business advisors who are well-versed in the establishment process.
How Unicorn Global Solutions Can Help
At Unicorn Global Solutions, we understand the needs of our clients and strive to meet their requirements. Our business experts manage the incorporation process, allowing you to focus on planning your venture. Contact us today to enter the thriving Food and Beverage industry in the UAE – we’d be happy to assist you. Text us on WhatsApp or call us today.