Opinion on food and beverages performance pre COVID-19 UAE 2019, by change

More than half of food and beverage businesses in the United Arab Emirates were witnessing a decline in their like-for-like sales in 2019 before the COVID-19 pandemic. The growth in 2019 was still considered an improvement compared to the previous year.

MENA food industry during COVID-19

Prior to the COVID-19 pandemic, the majority of the businesses in the food and beverages industry in the UAE, Saudi Arabia, Kuwait, and Oman were expecting further growth. When the outbreak occurred, the UAE and Saudi Arabia were the most affected by the share of consumers who decreased their grocery shopping . Food insecurity in the MENA region has been affected by the amount of conflict and rural transformation level of the countries. The financial pressure that the COVID-19 pandemic has placed on many of the businesses in the region might contribute to food insecurities.

GCC food industry trends

The largest food and beverages market among the Gulf Cooperation Council (GCC) countries was Saudi Arabia, accounting for about 18 percent of the market share in 2020, followed by the UAE. The persistent growth in the region’s food demand was influenced by the per capita income increase, population growth, and booming tourism. The increase in disposable income led to a shift in their attitudes towards food. However, with the increasing rates of chronic diseases in the GCC and higher health awareness, the demand for healthy foods has been increasing. The food and beverages industry has been adopting the consumer demands of healthier food options in their menus.