(Source Zawya) – According to a report by Alpen Capital, the GCC food demand will see a compound annual growth rate (CAGR) of 2.3% to reach 52.4 million metric tons (MT) by 2025, up from 46.8 million in 2020.
However, UAE and Saudi Arabia account for 75% of the GCC’s food consumption and demand for specific sectors is growing, said Sanjay Bhatia, managing director of Alpen Capital.
About this, according to Bhatia, the GCC population is expected to reach 66.5 million by 2025, a CAGR of 2.3% from 2020 due to factors such as increased expat arrivals, as well as mega events such as Expo 2020 Dubai and the 2022 FIFA World Cup in Qatar.
“Rising demand in organic food has made distributors and producer focus on organic products,” he adds. “Packaged organic foods witnessed a substantial rise in demand, in the UAE – $51.2 in 2020, up from $38.1 million in 2017.”
So, as demand increases, the food industry is also adapting to changing tastes.
Alex Mitchell, Investment Director, Abu Dhabi Catalyst Partners (ADCP) added that “there was increasing interest in plant-based products and dairy and protein alternatives”.
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