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Cereals....comprise 55pc of imports

GCC 'imports 70pc of food needs'

DUBAI, November 26, 2014

About 70 per cent of food products in the Gulf Cooperation Council are imported, of which cereals comprise around 55 per cent, according to a recent Frost & Sullivan analysis.

Marginal farming activities owing to limited water resources and climatic conditions, make GCC countries primarily dependent on food imports, it said.

The imported foods are locally processed for consumption and re-export, creating opportunities for allied industries like processing machinery, packaging and logistics.



Aparajith Balan, programme manager, chemicals and foods practice, Middle East and North Africa, Frost & Sullivan, said: “With an increased focus on local food processing so as to decrease dependency on imports and increase value to cost, the food processing industry in the GCC is set for high growth.

“Also, about 54 per cent of the population in the GCC is under the age of 25, making the region a potentially favourable market for products such as biscuits, snacks, and confectionery items.”

The GCC’s packaged food industry was valued at $25 billion last year and has been projected to increase at an annual growth rate of 8.5 per cent till 2018, according to Frost & Sullivan.

Bakery products alone contributed to 30 per cent of the total packed products market, followed by dairy at 25 per cent, it said.

The top players in the GCC packed food market are Almarai with about nine per cent market share, followed by Nestle Saudi Arabia at five per cent and Danone Group at four per cent, it said.


Meanwhile, the organic farming industry in the GCC is growing as a result of raised awareness levels. The market for organic food is estimated to reach $1.5 billion by 2018.

The GCC governments are taking active initiatives like establishing organic farming department in the ministry of agriculture and organic Farming Association to develop local farms.



The food retailing is also a thriving market in the GCC and is estimated to be worth $155 billion by 2018. As customers’ exposure to global markets are increasing, their preference is also growing towards more options, which in turn is leading to growth of organised food retailing in the GCC.

The healthy and innovative packaged foods, organic fresh produce like fruits and vegetables, meats, dairy and poultry, and selling these products at ergonomically designed innovative retail spaces are the segments presenting attractive growth opportunities in the GCC food and beverage industry, said the analysis.

However, diversification and integration within the food industry ecosystem, and branding will remain key success factor in the long-term, it added. - TradeArabia News Service




Tags: GCC | Food | Imports | products | cereal |

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