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Market Research Report

Packaged Food in the United Arab Emirates

Published by	Euromonitor International
Published	January, 2010	Product code	117087
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Price	US $ 6500 PDF by E-mail (Single User License)

Introduction
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Packaged Food in the United Arab Emirates published by Euromonitor International in January, 2010. This report price starts from US $ 6500.

Introduction

Abstract

Euromonitor International' s Packaged Food in the United Arab Emirates market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Why buy this report

Get insight into trends in market performance
Pinpoint growth sectors and identify factors driving change
Identify market and brand leaders and understand the competitive environment

Product coverage

Baby food; Bakery products; Canned/preserved food; Chilled processed food; Confectionery; Dairy products; Dried processed food; Frozen processed food; Ice cream; Impulse and indulgence products; Meal replacement products; Meal solutions; Noodles; Nutrition/staples; Oils and fats; Pasta; Ready meals; Sauces; dressings and condiments; Snack bars; Soup; Spreads; Sweet and savoury snacks

Executive summary

Weathering the Economic Downturn and Posting Moderate Growth

The UAE packaged food industry posted lower growth in terms of value sales in 2009 compared both to the previous year and to the review period average, driven by declines in volume growth in most sectors, falling unit prices in certain sectors and lower consumer confidence. Firstly, the rapid population growth witnessed during the review period was reversed in 2009, as jobs have been cut and thousands of unemployed expatriates have left the country. Secondly, in a bid to prevent the high prices of 2008 being artificially maintained, the UAE Ministry of Economy has intervened to reduce prices of basic food items, in line with the drop in international prices. Thirdly, as consumers increasingly feel the pinch, they have been reducing unnecessary expenditure on packaged food.

Consumers Jump upon the Health Bandwagon

With the UAE government stepping up its efforts to reduce obesity, especially among children, consumers are becoming more aware of the health benefits in packaged food and are paying close attention to packaged food labelling and nutrition information. The growing health and wellness trend is feeding through into increasing demand for added-value products, with functional gum, pro-/pre-biotic yoghurt and drinking milk products spearheading growth. That said, manufacturers of packaged food are responding with new healthy recipes. By the same token, organic food is gaining popularity in the UAE, with baby food leading the pack in terms of volume sales and product launches.

Economic Woes Come to the Benefit of Private Label

The packaged food remains fragmented, with the largest single manufacturer - Nestle - holding a retail value share of just under 7% in 2008. Multinational manufacturers in general surpass their domestic counterparts in terms of retail value share, which is in large part due to the minimal domestic manufacturing in the UAE. Artisanal and private label products have a substantial share of the market, accounting for approximately a quarter of total retail value sales. Artisanal products are particularly successful within categories like bakery products and ice cream, while private label is increasingly penetrating all sectors. As consumers continue to feel the pinch of the economic slowdown, they are trading down to cheaper brands and often to private label products. Private labels can compete with leading brands in terms of product variety, but at considerably lower prices. Carrefour spearheads the private label movement in the UAE, along with Geant and a few domestic rivals, like the Union Cooperative Society and Abu Dhabi Cooperative Society.

Supermarkets/Hypermarkets Tighten Their Grip

Supermarkets/hypermarkets dominated the distributions of packaged food during the review period, and 2009 was no exception. In addition to changing consumer lifestyles, favouring weekly grocery shopping at supermarkets/hypermarkets, the channel' s competitive pricing and private label lines continue to reap dividends. The introduction of Waitrose and Aswaaq in the last quarter of 2008 will provide greater momentum to supermarkets/hypermarkets. While Waitrose is well placed to cater for the upmarket segment, the arrival of locally-owned Aswaaq aims to respond to lower consumer confidence through focusing on direct imports and private label products.

Awaiting the Recovery

Sales of packaged food are poised to continue growing over the forecast period, although at moderate rates during the early years of the period, while the current economic slowdown persists. With the UAE hit hard by the global financial crisis, all hopes are set on post-crisis revival, as the effects of the recession are expected to fade by 2011. Nonetheless, packaged food will gain stimulus from the growing demand for high quality products, which will be met by continuing investment in product innovation.