Amna Puri-Mirza
Research Expert covering the Middle East
Food and beverages market in the GCC - statistics & facts
As a culture that values hospitality and social gatherings, food plays an integral role in the Gulf Cooperation Council (GCC). Often a center piece of social gatherings or religious celebrations such as Ramadan and Eid, food consumption per capita in the GCC is considered among the highest worldwide. In 2023, three GCC countries: Qatar, the United Arab Emirates (UAE), and Kuwait, had the highest per capita consumer spending on food and non-alcoholic beverages worldwide.
Despite such opportunities, there are some challenges that need tackling. Food security in the region is considered a major concern. Due to limited arable land and scarce water resources, the GCC countries rely heavily on imports. Such reliance makes the region vulnerable to global price fluctuations and inflation. In Saudi Arabia, more than 85 percent of the total food and beverage trade was dependent on foreign imports.
The F&B sector in the GCC
Food consumption in the GCC is on the rise, reflecting a growing demand, with consumption projected to reach more than 56 million metric tons by 2027. Such demand is likely supported by a combination of factors that are observed in the region. The growing population and large expat share push the demand for diverse product offerings catering to Arabic and international tastes.Opportunities and trends
Moreover, with increased health-consciousness, consumers are actively seeking more balanced and nutritious diets, and many are switching to plant-based alternatives. By 2027, the food category with the highest consumption growth share in the GCC is forecast to be vegetables, surpassing meat and cereal. This trend has emerged along with rising consumer concerns about sustainability and the environment. For instance, more than half of respondents in a 2023 survey conducted in both the UAE and Qatar considered the environment one of the leading global concerns. This has resulted in increased demand for eco-friendly and organic products, in addition to ancillary services such as logistics and packaging that go beyond the core F&B sector, offering opportunities for innovation.Despite such opportunities, there are some challenges that need tackling. Food security in the region is considered a major concern. Due to limited arable land and scarce water resources, the GCC countries rely heavily on imports. Such reliance makes the region vulnerable to global price fluctuations and inflation. In Saudi Arabia, more than 85 percent of the total food and beverage trade was dependent on foreign imports.
Sector outlook
The F&B sector in the GCC offers promising prospects for growth and innovation. The diverse consumer base, digital transformation, and ever-evolving preferences provide room for entrepreneurs and investors. However, food security remains a crucial concern that needs navigation. Sustainable practices and technological innovation backed by government initiatives are key to ensuring the resilience of the sector.
