Food and beverage inflation GCC 2023, by country

In July 2023, food and beverage inflation in the Gulf Cooperation Council stood between 4.4 and 4.9 percent amongst half of the member countries. Saudi Arabia which is the biggest consumer and importer of food and beverages in the GCC had the second highest inflation rate in the sector, at 4.9 percent. Oman had the lowest inflation in the council, with 2.9 percent. 

Food inflation, transcendent effects

 Being a highly interdependent and vital industry, food and beverage dynamics are quickly felt across the economic spectrum. Historically, the food and beverage industry has been the leading contributor in overall inflation in Kuwait , which had the highest food and beverage inflation rate in the GCC, at 5.7 percent. A survey of price increases on eating out in the UAE has illustrated the effects of food and beverage inflation, and its repercussions for many different industries. At the same time, countries are pushing to produce more of their food needs locally, and in recent years the self-sufficiency ratio of food in the GCC has improved, but the heavy reliance on imports means that the food supply in the council is not immune to international economic factors, and price fluctuations. 

Food Consumption

 Food consumption in the GCC greatly varies between member countries. Saudi Arabia which has the largest population in the council, and hosts millions of religious tourists each year has by far the highest level of food consumption in the region. However, the overall amount of food consumed in the GCC (677373) in previous years has largely remained the same.