Increasing health-consciousness and prevalence of lifestyle related diseases to drive UAE organic food market
According to TechSci Research report, “UAE Organic Food Market By Type (Fruits and Vegetables), By Form (Fresh and Frozen), By End User (Residential and Commercial), By Distribution Channel (Supermarkets/Hypermarkets, Grocery Stores, E-Commerce, Convenience Stores and Others), By Region, Forecast & Opportunities, 2025”, the market is anticipated to witness a healthy CAGR during the forecast period owing to increasing health-consciousness, especially among younger population of the country. The increasing prevalence of lifestyle-related health problems such as cardiovascular diseases, obesity and diabetes are promoting more attention to their diet and include healthier options like organic food products consumers to pay. Also, increasing number of standard local organic food farms in UAE are expected to drive the organic food market growth through 2025.
Moreover, the sizeable disposable income of UAE is also a key factor behind the growing demand for organic food products. Besides, UAE government is taking initiatives to lower obesity rate of the country which is expected to accelerate the demand for organic food products over the coming years. Furthermore, the availability of plethora of organic food including fruits and vegetables is also fueling the growth of UAE organic food market. However, the market is also prone to some challenges. Lack of knowledge about the benefits of organic food and their high cost are expected to hamper the market growth. Also, climatic conditions and limited water resources are making farming activities difficult in the country and hence it is primarily dependent on organic food imports.
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The UAE organic food market is segmented based on type, form, end user, distribution channel and region. Based on end user, the market can be segmented into residential and commercial. Among them, the residential segment is expected to undergo fastest growth during the forecast period owing to rising health concerns and growing popularity of organic food among younger population of the country.
Based on distribution channel, UAE organic food market can be segmented into supermarkets/hypermarkets, grocery stores, e-commerce, convenience stores and others. Among them, the supermarkets/hypermarkets segment accounted for largest market share in 2019 and is further expected to register high growth through 2025 owing to the availability of organic food products in most major UAE hypermarkets and supermarkets. However, the e-commerce segment is expected to undergo high CAGR during the forecast period owing to the booming e-commerce industry and more retailers offering their products online.
Key players operating in the UAE organic food market include Lulu Group International, Union Co-operative Society, Abu Dhabi Cooperative Society , Emirates Cooperative Society, Park n Shop , Farmbox, Al Madina Group, Nesto Group (Western International Group LLC), Choithrams and Al Maya. The companies are focusing on introducing affordable organic food products, especially fruits and vegetables in UAE. They are also investing on increasing their productivity to meet the growing demand for organic food.
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“Over the last three years, UAE has experienced behavioral changes in high-income group consumers, who are emphasizing on nutrition as well as environmentally friendly foods. The demand for locally grown organic fruits and vegetables has considerably increased in the country. The government has also implemented regulations on organic farming and is coming up with certification process to ensure that the locally grown organic fruits and vegetables meet the international organic farming standards.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“UAE Organic Food Market By Type (Fruits and Vegetables), By Form (Fresh and Frozen), By End User (Residential and Commercial), By Distribution Channel (Supermarkets/Hypermarkets, Grocery Stores, E-Commerce, Convenience Stores and Others), By Region, Forecast & Opportunities, 2025” has evaluated the future growth potential of UAE organic food market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in UAE organic food market.
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