The food and beverage (F&B) industry is among the largest markets in the world. In 2019 alone, its market value reached nearly $5,943.6 billion, having increased at a compound annual growth rate (CAGR) of 5.7% since 2015. Moreover, according to recent data, for the year 2022, it is expected to even grow at a CAGR of 9.7%, and by 2026, at 8.7%. This data clearly illustrates how large the F&B market has been and is becoming, making it an ideal industry to invest in globally.
With this tremendous worldwide growth of the F&B industry, the UAE, as one of the biggest business hubs of the world, has likewise seen a significant improvement in the said industry that makes it among the best economies where investors can invest in. Among are the reasons why the UAE’s F&B industry should be on an investor’s radar:
CAGR of the Food Service Industry
The UAE food service industry is projected to grow at a CAGR of 5.22% for the period of 2021 to 2026 according to recent reports. This is due to many factors, among them are the increasing urban lifestyle and the evolving consumer preferences associated with it, which propelled the growth of the said market in the country. To illustrate, UAE consumers have now considered food service outlets as a venue for social occasions. With the increasing preference to dine-out, they have driven the growth of consumption of products in fast food chains and full service restaurants. In fact, a survey revealed that 32.6% of UAE consumers are willing to spend AED 101 to AED 300 on eating out, which reflects how willing they are to engage in it. As the country continues to become more urbanized, the more likely it is for the F&B industry to keep growing, making it an ideal investment opportunity through the help of financial investment firms.
The Booming F&B E-Commerce
The UN Conference on Trade and Development reported that the COVID-19 pandemic led the surge in e-commerce and digital transformation. As many consumers shifted to online shopping for groceries, ready-to-eat food, and healthy produce due to isolation and lockdown policies, many food and beverage companies shifted to e-commerce to cater the changing preferences of consumers. With this, recent reports have declared that the F&B e-commerce industry is projected to reach $71.62 billion in value by 2028, registering a CAGR of 17.8%. Because of this growth, many big brand leaders, policymakers, and food technologists have convened in Dubai to set future agendas through dedicated sessions on e-commerce for the F&B sector to realize its digital capabilities. As the country and its business luminaries focus on the sector’s improvement, F&B e-commerce is likely to flourish, given its high-income potential.
The National Food Security Strategy 2051
To ensure that all its citizens have access to safe, nutritious, and sufficient food regardless of their economic classification, UAE launched the National Food Security Strategy of 2051 with the aim of ranking first on the Global Food Security Index by 2051. The dominant priority of this project is to develop a comprehensive national system based on modern technologies to enable sustainable food production, and diversify food sources through international partnerships. This prompted large crowds of entrepreneurs and business luminaries to gather and set up businesses in the UAE relating to food and beverage, giving the F&B industry a better outlook in the coming years throughout 2051.
Thinking of Investing?
If you are thinking of investing in the F&B industry of the UAE given its stability and growth, reach out to the best financial advisors in Dubai through AIX Investment for a secure investment plan and strategy that would ensure higher returns of investment. For more information, visit https://www.aixinvestment.com.