Challenges & Opportunities
THE UAE FOOD MARKET
OFFICIAL PROGRAMME
UAE FOOD MARKET STUDY 2014 This report describes the situation of the food and beverages market in the United Arab Emirates. Language: English Number of pages: 70 Author: Sesam Business Consultants
DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Sesam Business Consultants accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All information is provided without warranty, and Sesam Business Consultants makes no representation of warranty of any kind as to the accuracy or completeness of any information hereto contained.
Contents
1. INTRODUCTION _____________________________6 1.1. GENERAL COUNTRY INFORMATION ___________ 6 1.1.1. Climate and Natural Environment _____________ 6 1.1.2. Business Environment _____________________ 7 1.1.3. Foreign Relations_________________________ 7 1.1.4. Relationship Switzerland-UAE ________________ 7 1.2. FOOD INDUSTRY REVIEW __________________ 8 1.2.1. People & Food ___________________________ 8 1.2.2. Food & Beverages Landscape ________________ 8 1.3. F & b industry – kEY CONCERNS AND DRIVERS __ 10 1.4. consumer eating habits _____________________ 10 1.5. consumer outlook _________________________ 11
3.2.1. Definition_____________________________ 21 3.2.2. Specialty and Gourmet Stores in Dubai_________ 21 3.3. organic and natural food ____________________ 22 3.3.1. Definition_____________________________ 22 3.3.2. Growing Market ________________________ 22 3.3.2.1. Organic _____________________________ 22 3.3.2.2. Gluten-free __________________________ 23 3.3.2.3. Vegan Food __________________________ 23 3.3.2.4. Healthy Habitats ______________________ 23 3.3.2.5. Healthy Food in Schools _________________ 23 3.4. functional food __________________________ 25 3.4.1. Definition_____________________________ 25 3.4.2. Categories of Functional Foods ______________ 25
2. REGULATORY ENVIRONMENT________________12
3.4.3. Functional Food in the UAE ________________ 25
2.1. food safety and food standards ________________ 12
3.4.4. Case Study – Futurelife ___________________ 25
2.2. uae customs ____________________________ 13
3.5. processed Food __________________________ 26
2.3. free trade agreement ______________________ 14
3.5.1. Definition _____________________________ 26
2.4. food imports ____________________________ 15
3.5.2. Food Production ________________________ 26
2.5. pre-shipment approvals _____________________17
3.5.3. Healthy Convenience Food _________________ 26
2.6. labelling ________________________________17
3.5.4. Packaged Food _________________________ 27
2.7. shelf life standards ________________________ 18
3.5.5. Fast Food _____________________________ 28
2.8. trade mark regulations _____________________ 18
3.5.6. The Dairy Market in the UAE _______________ 28
2.9. food samples ____________________________ 18
3.6. beverages ______________________________ 29
2.10. live animals and plants ____________________ 19
3.6.1. Soft Drinks ____________________________ 29
2.11. requirements for non-halal food ______________ 19
3.6.2. Bottled Water __________________________ 30
3. FOOD INDUSTRY ___________________________20 3.1. retail20 3.1.1. Retailers ______________________________ 20 3.1.2. Duty-free Shopping ______________________ 20 3.1.3. Conclusion ____________________________ 21 3.2. specialty and gourmet stores _________________ 21
3.6.3. Juices _______________________________ 30 3.6.4. Energy Drinks _________________________ 31 3.6.5. Hot Drinks ____________________________ 31 3.6.6. Alcoholic Beverages ______________________ 32 3.7. private label ____________________________ 33 3.7.1. Purpose of Private Labels __________________ 33
Contents
3.7.2. Situation in the GCC _____________________ 33
6.2.2. Halal Certification in Switzerland for Export to the
3.7.3. Outlook ______________________________ 33
UAE
3.8. food service / horeca ______________________ 33
6.2.3. Emirates Standardization & Metrology Authority
3.8.1. Cafes and Bars _________________________ 33
(ESMA) 51
3.8.2. Restaurants ___________________________ 34
6.3. FUTURE OUTLOOK – WHERE IS THE HALAL
3.8.3. Online Food Ordering Business ______________ 34
MARKET HEADING? _________________________51
3.9. challenges and opportunities for swiss food suppliers 34
6.3.1. Global Market ___________________________51
3.9.1. Interviews ____________________________ 34
6.3.2. UAE Market ____________________________51
3.9.2. Challenges ____________________________ 35
6.3.3. UAE Gateway for Malaysia _________________ 52
3.9.3. Opportunities __________________________ 36 3.10. industry trendS _________________________ 37
50
7. EXPORT CHECK-LIST _______________________ 53 7.1. general custom clearance____________________ 53
4. FOOD DISTRIBUTION _______________________40
7.2. special case dubai ________________________ 54
4.1. route to market __________________________ 40
7.2.1. Food Import Regulations __________________ 54
4.1.1. Ports in the UAE ________________________ 40 4.1.2. The Most Important Food and Beverages Retailers in the UAE 41 4.2. national distributors ______________________ 42 4.2.1. Distributors ___________________________ 42
8. SUMMARY ________________________________ 56 8.1. food choices ____________________________ 56 8.2. strategies and ways to introduce swiss food _______ 56 8.3. key findings ____________________________ 57
4.2.2. Distributors to the Hospitality _______________ 44
9. APPENDIX _________________________________ 58
4.3.
PRICING ___________________________ 44
9.1. trade shows _____________________________ 58
5.
CONSUMER TRENDS___________________46
6.
OVERVIEW OF THE HALAL MARKET _____49
9.2. publications ____________________________ 59
6.1. The halal industries – sectors and trends _________ 49 6.1.1. What is Halal? __________________________ 49 6.1.2. The Halal Market _______________________ 49 6.1.3. Center of Halal Economy to be Set Up in UAE ____ 49 6.1.4. Halal Conferences _______________________ 49 6.2. Regulatory Frameworks ____________________ 50 6.2.1. Meat Import to the UAE ___________________ 50
9.3. STATISTICS ____________________________ 60 9.4. sources _______________________________ 66
List of tables
Table 2: Gourmet stores in the UAE …………………………………………………………………………………………………………………………… 22 Table 3: Organic food stores in the UAE ……………………………………………………………………………………………………………………… 25 Table 4: Organic Confectionary – Presence in the UAE Organic Food Stores ………………………………………………………………… 25 Table 5: Organic Cheese – Presence in the UAE Organic Food Stores ………………………………………………………………………….. 25 Table 6: Organic Chocolate – Presence in the UAE Organic Food Stores ……………………………………………………………………… 25 Table 7: Organic Dairy – Presence in the UAE Organic Food Stores …………………………………………………………………………… 26 Table 8: Chocolate – Presence of European Brands in the UAE Supermarkets ……………………………………………………………… 28 Table 9: Confectionary – Presence of European Brands in the UAE Supermarkets ………………………………………………………… 28 Table 10: Dairy – Presence of European Brands in the UAE Supermarkets …………………………………………………………………….. 30 Table 11: (Grated) Hard Cheese – Presence of European Brands in the UAE Supermarkets …………………………………………….. 30 Table 12: Bottled Water – Presence of European Brands in the UAE Supermarkets ………………………………………………………… 31 Table 13: Selection of Consumer Food prices in the UAE (average) ………………………………………………………………………………… 46 Table 14: Import Figures for Processed Cheese ……………………………………………………………………………………………………………….61 Table 15: Import Figures for Medium-hard Cheese & Hard Cheese ………………………………………………………………………………… 62 Table 16: Import Figures for Sugar Confectionary, not containing Cocoa ……………………………………………………………………….. 62 Table 17: Import Figures for Chocolate & Other Food Preparations ……………………………………………………………………………….. 63 Table 18: Import Figures for Confectionary Products …………………………………………………………………………………………………… 63 Table 19: Import Figures for Chocolate & Other Food Preparations ………………………………………………………………………………. 64 Table 20: Import Figures for Pastries (gateau), Cakes and the Like ………………………………………………………….…………………….. 64 Table 21: Import Figures for Sparkling Wine ………………………………………………………………………………………….…………………….. 65 Table 22:Import Figures for Wine of Fresh Grapes ………………………………………………………………………………….…………………….. 65 Table 23: Import Figures for Wine of Fresh Grapes ………………………………………………………….……………………………………………. 66
1. Introduction The present market research was conducted to inform Swiss companies about the country United Arab Emirates (UAE) in general, and about the food market in the UAE in particular. It shows the given situation as well as trends, expectations and calculated developments. The research sketches the possibilities for Swiss companies to enter the UAE-market and informs about regulations and standards relevant to the food sector. At the moment, the most successful Swiss brands in the UAE are Nestle, Lindt and EMI dairy products. The research will help smaller and less known or unknown companies to understand the business customs in the UAE, to see possible strategies, but also to detect situations to avoid. Next to secondary research, also primary research was conducted. As part of the primary research, personal interviews with the major players in the relevant sectors of hospitality, retail, production and distribution have been conducted. Due to the local sentiments, all interviews were conducted on a personal and confidential level.
1.1. GENERAL COUNTRY INFORMATION The United Arab Emirates, short UAE, is located in the southeast end of the Arabian Peninsula on the Arabian Gulf, bordering Oman, Saudi Arabia and Qatar. The UAE has a size of 83,600 sq. km (77,700 sq. km excluding islands), of which 97 % is desert. Established on December 2, 1971, the UAE is a federation of the seven Emirates Abu Dhabi, Dubai, Sharjah, Ras- AlKhaimah, Ajman, Umm Al-Qaiwain, and Fujairah. The capital is Abu Dhabi city. The biggest Emirates are Abu Dhabi and Dubai which are the main centers of commercial and cultural activities. Islam is the official religion of the UAE, and Arabic is the official language and is required for all governmental documentation. English is the language of commerce. The UAE has a federal government that is made up of several organs: the President and the Vice President, the Supreme Council that includes the Rulers of all seven Emirates, the Cabinet of Ministers appointed mainly from the ruling and other dignified families of the different Emirates, the Federal National Council and a judiciary with a Federal Supreme Court. The Supreme Council has both legislative and executive powers. These representatives are appointed by the ruling families of the Emirates. The Council of Ministers initiates legislation for ratification by the Supreme Council of Rulers, which is also a policy making body and which meets formally about once a year; the latest cabinet reshuffle was in March 2013. The President of the United Arab Emirates is customarily appointed by Abu Dhabi and the Vice-President by Dubai. The UAE is not a democracy and it is unlikely that the system will change in the foreseeable future, as the rulers are highly popular at Emirate and federal levels and as they have overseen decades of peace and prosperity. For 2013, the population size was estimated at 7.9 million and is expected to grow to 9.1 million by 2020 (Economist Intelligence Unit, EIU). However, less than 20 % are UAE nationals, with over 80 % being expatriates with Indians representing the largest expatriate community; therefore UAE nationals account for around only 10 percent of the total labor force, many of them employed in the public sector. This finding is consistent with the other Gulf countries (Kingdom of Saudi Arabia, Oman, Qatar, Bahrain, Kuwait).
1.1.1. Climate and Natural Environment The UAE has a sub-tropical, arid climate with sunshine all year round. Rainfall is sporadic, occurring mainly in winter (November to March) averaging less than 100 mm/year. In winter, temperatures range from 24-29째 C during the day and they can go down to 15째 C at night. Humidity levels are moderate. In summer (April to October), temperatures range from 35-45째 C and can even peak up to 50째 C with very high humidity levels. Sand and dust storms are possible. The Arabian Gulf and the Gulf of Oman are rich in coral reefs and mangroves. Over 500 different species of fish inhabit the Gulf waters. A small part of the land area is covered by mountains. The Hajar Mountains form a barrier in the west of the UAE and act as rain catchment areas.
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1.1.2. Business Environment The EIU (Economist Intelligence Unit) estimated for the UAE a real GDP growth of 4.6 % in 2013 (GDP was in 2013 (exp.) US$ 380 billion) and forecasted robust growth on average in 2014-2018, supported by gains in both the oil and non-oil sectors. The “Expo 2020” (http://expo2020dubai.ae/en/) award adds to this strong outlook. Implementing tighter banking and property sector regulation remains a priority in the middle of a wave of risk taking. The UAE’s business environment is considered open and strong with investors viewing the UAE as secure investment destination compared to other countries in the region. The business environment reflects the hospitality of the Emirati people, feeling honored when receiving guests and when socializing with friends and relatives. Therefore, doors open relatively easily for first discussions. However, this does not mean that business deals are closed easily. Hospitality is not to be misunderstood for business agreements and finalizing a contract can stretch over a long period of time, might lead to inefficiencies and requires many followup meetings. Competitive advantages of the UAE are due to economically important resources like oil and natural gas and very affordable labor. For industrial manufacturing, the low energy costs are a clear advantage. The geographical location is ideal as a hub between the Middle East, Africa and Asia. The World Bank rates the UAE at rank 40 for ease of doing business (out of 183 countries). Trading across borders and registering a property in the country are particularly easy. The UAE fares worse in the categories Protecting Investors (rank 120) and Enforcing Contracts (rank 143). The UAE’s oil reserves, mainly located in Abu Dhabi, are ranked as the seventh-largest in the world, with natural gas reserves being the seventeenth-largest in the world. Oil and gas production is contributing about one third of GDP, generating US$ 75 billion in UAE exports in 2013. The UAE plans to increase the daily production from approximately 2.7 million to 3.5 million barrels a day by 2017. Further, the government is attempting to diversify the national economy. This has led to the growth of industry, construction, commerce, Free Trade Zones, transportation, tourism, farming, fisheries, and communications. 1.1.3. Foreign Relations The UAE is a member of the Gulf Cooperation Council (GCC) and an OPEC member, and has a diplomatic role in the UN. The country’s open climate towards foreign cooperation, investment and modernization has resulted in intense diplomatic and commercial relations with other countries. Commercially, China and the United States are the UAE's largest export markets. The United Kingdom and Germany position themselves in the top 10 of UAE exports markets, and bilateral relations with both countries have since long been tight as a large number of their nationals reside in the UAE. The UAE and UAE companies are increasingly going global and are investing for example intensively in Egypt, meanwhile continuing to be one of the major economic and trading partners with India and Pakistan, with India representing the largest expatriate community in the UAE. 1.1.4. Relationship Switzerland-UAE Diplomatic relations between Switzerland and the UAE are traditionally good and have been deepened through intensified mutual diplomatic visits. In 2011, the UAE embassy opened in Bern. Together with the other member states of the European Free Trade Association (EFTA) and the Gulf Cooperation Council (GCC), Switzerland and the UAE have signed a free trade agreement in June 2009, which has recently been ratified, effective July 2014 (see 2.3. Free Trade Agreement). Switzerland enjoys a great reputation in the UAE. It is a popular travel destination for UAE citizens with many of them owning property in Switzerland. For Switzerland, the UAE is an important economic partner due to a dynamic trading hub linking the Asian, African and European continents, where Swiss exports to the UAE have reached US$ 3.57 billion (CHF 3.2 billion) in 2013. The UAE’s important geographical location and business-friendly investment climate resulted in the establishment of regional headquarters of many Swiss companies. Switzerland exports currently mostly precious stones and metals, jewelry and watches, as well as machinery and pharmaceutical products. In the food sector, Swiss exports have reached US$ 82.5 million (CHF 74 million) in 2013, consisting mainly of sweets and dairy products (see 9.3 Statistics)
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1.2. FOOD INDUSTRY REVIEW 1.2.1. People & Food The traditional food of the UAE has always been rice, meat and fish with seafood being essential due to the location at the Arabian Gulf. Traditional beverages are coffee and tea, often with cardamom, saffron or mint added for extra flavor. Dates are growing naturally and are of great importance. Due to the international environment in the UAE with 80 % of the population being expatriates, a desire for food and beverages from people’s home country has a strong influence on the food market. As a result, food from every continent can be found in the UAE. Fast food has also become very popular, entailing the health risks related to fast food excesses. By religion, Muslims are prohibited from eating pork and drinking alcohol. Therefore, hotels and other establishments frequently have pork substitutes such as beef sausages and veal rashers on their menus. Pork and pork derivate must be clearly labeled as such. Unlike other Muslim countries, it is not illegal for non-Muslims to consume pork or to bring pork products into the country for personal consumption. Alcohol is generally only served in locations which obtained an alcohol license, mostly hotel restaurants, bars and clubs. In the Emirates of Sharjah and Ras Al Khaimah, alcohol is generally not allowed. Specific supermarkets sell alcohol in separate sections. It is illegal to drive a motor vehicle with any trace of alcohol in the blood. 1.2.2. Food & Beverages Landscape The products that are available in the UAE are mainly imported products. However, nationally manufactured Food and Beverages (F&B) exist as well. The UAE offers an advanced wholesale & retail trade network supported by an efficient transportation and storage infrastructure. Products are imported from across the world and serve the F&B requirements of a large expatriate population (around 200 nationalities) as well as the local interest in international food choices. The Food & Beverages industry in Dubai comprises two distinct sets of players: National Industries (Local Manufacturers) and multi-national companies, short MNCs (Foreign Manufacturers). National companies are set up through local investment (Emirati partnership) in the UAE (inside or outside the Free Trade Zone). Even with such industries existing for a long time, the number of new company establishments is clearly decreasing. National manufacturers serve mainly the domestic market and are not big in respect to exports. Established players in the industry include Oasis, Al Islami, Iffco, Agthia, Al Ain, Emirates Macaroni, Dubai Refreshments, National Food Industries, UNIKAI, Patchi, and others. See a more extensive list in table 1 ‘National Manufacturers of the UAE’. Multi-national companies (MNC) are the stronger players in the F&B industry, mainly set up in the Free Trade Zones to cater to the export (or re-export) market (GCC, Africa and Europe). Established MNCs include Nestle, Mars, Lipton, Del Monte, and others. Table 1: National Manufacturers of the UAE Company name Al Islami Foods
Product range Various Frozen Food Products
Website http://www.alislamifoods.com/en.html
Al Kabeer Group
Frozen food, incl. vegetables, ready meals, kid meals, poultry and seafood Freshly frozen foods
http://www.al-kabeer.com
Emirates Macaroni Factory UNIKAI
Pasta products
http://www.emiratesmacaroni.com
Dairy, juices and ice cream
http://www.unikai.com
Oasis Water
Bottled water
http://oasiscome2life.com/index.html
Dubai Refreshments
Pepsi product family, Aquafina water
http://pepsidrc.com
Freshly Foods
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http://www.fffdubai.com
Masafi Mineral Water Co
Bottled water, juices
http://www.masafi.com
Jeema Mineral Water Company Al Ain Mineral Water
Bottled water
http://www.jeemawater.com
Bottled water and Capri Sun juices
http://alainwater.com/en/Default.aspx#/H ome
Coca Cola Company Middle East:
Coca Cola product family
http://www.cocacola.ae/pages/landing/index.html
Union Beverages Barakat Vegetables and Fruits Lacnor
Bottling company Fresh juices and peeled/sliced fruits and vegetables Fruit juices
http://www.ubf.ae http://www.barakatuae.ae/home.php
Al Ain Dairy
Fresh dairy products, juices
http://alainfarms.com
Al Rawabi Dairy Farms
Fresh dairy products, juices
http://alrawabidairy.com
Marmoum Dairy
Fresh dairy products, juices
http://www.marmum.ae
Emirates Industry for Camel Milk and Products PATCHI
Camel milk and products
http://www.camelicious.ae
Deluxe chocolate
http://patchi.com/Home
Al Nassma
Exclusive camel milk chocolate
http://www.al-nasma.com
Al Bateel
Deluxe dates
http://www.bateel.com/01_about.html
Emirates Dates Factory Tasty Food Middle East
Dates Spices
http://www.saad.ae http://tastyfoodme.com/company.html
United Farms Food Products International Foodstuff Company United Foods Company Al Jazeera Poultry
Chocolate spread, baby food supplements
http://unitedfarmsuae.com
Various impulse goods (cakes, biscuits, chocolate and ice cream) Oils, ghee, butter and margarine Eggs
http://www.iffco.com
Delta Food Industries
Canned food and milk powder
http://www.deltafood.ae
Global Food Industries
Biscuits
http://www.gfisnacking.com
Gulf Confectionary & Biscuit Company:
Confectionary and biscuits
http://www.gulfconfectionery.com/about.ht m
National Food Industries Best Food Co LLC
Potato chips, fruit juices Nuts
http://nfidubai.com http://www.bestfoodco.com
Al Fustaq Foodstuff Factory AMIS Food Industries FZCO Windsor Foodstuff Factory Lipton Tea Factory
Nuts
http://nutty-nuts.com/index.html
Salty and sweet snacks
http://amisfood.com
Beverages, syrups, desserts
http://www.windsorfoodstuff.com
Tea bags
http://www.unileverme.com
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http://www.lacnor.com
http://www.unitedfoods.ae http://www.aljazirapoultry.com
1.3. F & B INDUSTRY – KEY CONCERNS AND DRIVERS When it comes to the Food & Beverages (F&B) Industry in the UAE, key concerns are the limitation of commercial agriculture due to the harsh desert climate, limited water resources and insufficient soil. This leads to a high dependence on imports (more than 90% of both raw and processed food requirements are met by imports). Concerns over continued food supply are increasing due to global uncertainties and rising prices of staple commodities (‘food security’). Key Industry Drivers for F&B products always depend on the lifestyle of the population. Therefore, key industry drivers for F&B manufacturing for the UAE market have been identified as:
Demographics in UAE with a high % of children and youth (0-14 year = 20.7 %, 15-24 years = 13.7 % of population according to CIA Fact Book UAE) High GDP per capita of US$ 30.122,- (IMF Fact Book UAE) High GDP growth of 4.3 % (REUTERS) Population growth of about 3 % p.a. Expatriate population of more than 80 % of the population Increase in tourism Growth in retail and hospitality industries Demand for health, lifestyle and luxury based F&B products High local competition – Need to diversify in regional and global market.
The F&B landscape of Dubai, in terms of F&B brands, is relatively crowded with a multitude of imported product brands. Among the processed food products, 75 – 80 % of the consumer-ready products sold in retail outlets are imported while 20 – 25 % are locally processed. Consequently, there is potential to increase the share of locally manufactured F&B products as well as to enhance value-addition on re-exports before it reaches the customer. As a result, countries in the region are looking for alternatives in sourcing and manufacturing as part of a comprehensive food security policy. The development of the F&B industry is key to the general strategic development plan of the UAE focusing on food security and on diversifying manufacturing. While the UAE is not a major food producer itself, it is a significant link in the region’s food chain. The food sector is one of the key segments of Dubai’s industrial base. The UAE is the world’s third-largest re-exporter of food, with most of its trade flowing through to other countries in the region as well as to Asia and Africa. The UAE’s mass grocery retail sector is one of the Gulf region’s largest by value. The UAE’s high-income and largely expatriate population continues to make it well suited to modern retailing. The hypermarket segment is particularly well developed. On the other hand, the UAE relies heavily on food and drink imports to meet domestic demand. In absolute numbers, the UAE’s population of around 8 million is considered small which is still being seen as negative by some investors. Operating parameters are not identical in the different Emirates due to the state’s federal nature. Legislation severely restricts the sale of alcoholic drinks. That the UAE’s currency is pegged to the dollar, giving the country minimal control over monetary policy and reducing its ability to tackle inflationary pressure is also seen as negative by some investors. Consumers are unlikely to embrace the discount store concept any time soon since about 40% of grocery retail sales are still attributed to independent retailers.
1.4. CONSUMER EATING HABITS A 2012 survey by YouGov and LivingSocial about eating habits in the UAE has shown that residents eat out 11 times a week on average. The survey showed that Arabic food was the food of choice for 55 % of people, who chose local cuisine, and 45 % of people chose also foreign options, the most popular being Chinese and Italian. Take-out options were also covered, with pizza as the top food choice, followed by Indian and Arabic. A household survey to assess the eating habits of Dubai residents, however, has found that 59% of the population is not consuming enough fruits and vegetables. Authorities have already taken steps to encourage people to live more
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healthily and ward off problems such as diabetes and obesity. Poor diet and being overweight are among the main health risks in the UAE. The UAE benefits from high per capita food consumption, which reflects its high-income consumer market with a large and high-spending expatriate population. The UAE has one of the world’s highest rates of per capita soft drinks consumption. Carbonates, bottled water and fruit juices are popular and primed for further growth. Consumption of tea and coffee is high. Across the UAE, consumers are brand loyal but interested in new and innovative products.
Graph 1: UAE Food Consumption per Capita (in US$)
1200 1000 800 600 400 200 0 2011
2012
2013
2014
2015
2016
2017
2018
1.5. CONSUMER OUTLOOK With consumer and business behavior being strong and positive, the outlook for the food and beverages market is bright. The UAE is also benefiting from increased activity in the trade and tourism sectors, and especially Dubai is expected to see the real estate industry recovering. According to Business Monitor International, the economy is expected to expand by 3.4 % in 2014. They forecast real private final consumption growth to come in at 6.5 % in 2014, but thereafter to rise up to 8.8 % in 2016 and 2017. Consumer spending on food in the GCC is expected to reach US$ 106 billion in the next five years, according to a new report by management consultancy AT Kearney. Food is the largest segment of consumer expenditure in the region and stood at US$ 83 billion year-end 2012, 28 % of the total spend, said the report. Even the UAE and Saudi Arabia alone account for about 75 % of the region’s total food retail market, and the GCC as a whole will see rising demand. Thanks to population growth, higher per capita income, and increasing tourism numbers, food imports to the region are on the rise. They are expected to double reaching US$ 52.8 billion by 2020.
Sources: http://www.eda.admin.ch/eda/en/home/reps/asia/vare/bilvae.html www.eiu.com www.export.gov http://export.gov/unitedarabemirates/static/CCG%202013%20-%20UAE_Latest_eg_ae_065913.pdf Dubai SME-Food & Beverages Manufacturing Industry in Dubai http://en.wikipedia.org/wiki/United_Arab_Emirates http://country.eiu.com/article.aspx?articleid=141790598&Country=United Arab Emirates&topic=Summary&subtopic=Basic+data http://www.eda.admin.ch/eda/en/home/reps/asia/vare/bilvae.html
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2. Regulatory Environment The United Arab Emirates (UAE), as a member of the GCC, continues to collaborate with other 5 member states toward the goal to unify the rules and regulations concerning food imports in the region, providing information on UAE food import procedures, regulations and laws. All food manufacturers, exporters, importers, and distributors have to consider the various aspects of UAE food laws, such as correct labeling, additives usage, compositional requirements and shelf life of food products, as well as general import, export and customs regulations. Effective January 1, 2003, the “GCC Unified Customs Law and Single Customs Tariff” (UCL) was released, stating that duties be paid upon entry of an item to any member state, regardless of the country of destination within the GCC. For example, an item imported into the UAE destined for the Saudi market is subject to the 5 % duty on nearly all processed food products once it enters the UAE market. It established a single entry point policy. In other words, a product entering any GCC member market would be charged the appropriate customs duty only once at the point of entry and would then be permitted duty free transit among GCC member countries. Please note that together with the other member states of the European Free Trade Association (EFTA) and the Gulf Cooperation Council (GCC), Switzerland and the UAE have signed a Free Trade Agreement in June 2009, which has recently been ratified, effective July 2014. Please refer to 2.3. Free Trade Agreement. In practice, this policy is applied only with unopened containers transshipped between GCC markets. Partial shipments tend to be subject to the five percent import duty again in the country of destination. However, it is expected that all goods, even partial shipments from opened containers, will eventually receive single-entry treatment once customs procedures are fully unified within the next few years. The customs duty for most items is calculated on CIF (Cost, Insurance and Freight) value at the rate of 5 %. Alcoholic products are assessed a 50 % duty and tobacco products are assessed a 100 % customs duty (see also 2.2 UAE customs). The agent/distributor should obtain a delivery order from the Shipping Agent and submit original standard trade documentation, including certificates of origin, bills of lading, commercial invoice, export declaration and various government/embassy attestations to the customs for clearing. These documents must be presented for all imports and exports. This is the standard as of June 2014. Documentation might see changes as well once the Free Trade Agreement is enforced. All imported meats - beef and poultry products - require a health certificate issued by the country of export and a “Halal” slaughter certificate issued by an approved Islamic Center in that country (see Chapter 6).
2.1. FOOD SAFETY AND FOOD STANDARDS In the United Arab Emirates, the Emirates Authority for Standardization and Metrology (ESMA) is responsible, in cooperation with other members of the GCC Standardization Organization, short GSO, for either developing or adopting all standards. The Ministry of Environment and Water (MOEW), is responsible for establishing and enforcing food safety regulations. They also establish laws on food related matters which are based on recommendations of the GSO and the National Food Safety Committee of the UAE (NFSC). The Veterinary Committee (VC) recommends on meat and poultry related matters. In each municipality, the respective health department is responsible for enforcing the federal food safety standards on locally produced as well as imported foods through its food control section. Abu Dhabi, Dubai and Sharjah are the major entry points for imported food products.
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Food products are inspected at the time of entry, at production facilities and at the point-of-sale. Imported and locally produced food products are subject to the same food safety regulations and labeling requirements. At present, there are no environmental laws regulating food product packaging.
2.2. UAE CUSTOMS Custom Duties The customs duty for most items is calculated on CIF (Cost, Insurance and Freight) value at the rate of 5 %. For religious and security reasons, there are various restrictions on the import of alcohol, tobacco, firearms, and pork products. Alcoholic products are assessed a 50 % duty and tobacco products are assessed a 100 % customs duty. CIF value will normally be calculated by reference to the commercial invoices covering the related shipment. Custom duties (as of June 2014) 5% on all foreign goods imported from abroad, except categories included in the list of exemptions (see below) 50% on alcoholic drinks 100% on tobacco and derivatives thereof Following goods are exempted from Customs duties
Imports for international organizations, diplomatic and consular corps, heads and members of diplomatic corps, and consuls accredited to the UAE Imports for the armed forces and internal security forces of all sectors Personal effects and used household-ware belonging to UAE nationals residing abroad, or of foreigners who arrive to reside in the UAE for the first time Personal effects and gifts brought in by passengers, provided that the collective value of these is no more than US$ 817 (AED 3000) Charitable organization’s needs GCC products Industrial production requirements
The UAE is a federal state comprising seven Emirates with each Emirate independently administering its import regulations through a customs authority. In 2003, the Federal Customs Authority (www.customs.ae/En) was established, in part to harmonize and improve the UAE's customs procedures. Duty of the Federal Customs Authority is to draw the customs policies, to supervise the execution of customs-related laws and legislation, and to represent the UAE inside and outside the state. The local customs departments on the other hand do the executive work and draw the customs policies for each Emirate in compliance with the Common Customs Law. Local Customs Departments are:
Abu Dhabi Customs www.auhcustoms.gov.ae
Dubai Customs www.dubaicustoms.gov.ae
Sharjah Customs www.sharjahcustoms.gov.ae
RAK Customs www.rakcustoms.rak.ae
Ajman Customs www.ajmanport.gov.ae
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Fujairah Customs
Umm Al-Quwain Customs
As the GCC’s Common Customs Law sets the framework for the UAE's import regulations, the GCC's Common Customs Law single port of entry principle would apply, considering the GCC as a single market. This clause in effect exempts and suspends the application of multiple customs duties and taxes when imports are re-exported within the GCC market. The UAE is a member of the Gulf Cooperation Council (GCC) and the GCC’s Common Customs law (http://www.dubaicustoms.gov.ae/en/Publications/Documents/GCCCom monCustomsLawEnglish.pdf) sets the principle framework for the UAE's import regulations. The UAE is also a member of the World Trade Organization (WTO) and has signed multiple trade agreements. These commitments - as members as well as being party to trade agreements - add to the UAE's import regulations. The UAE market may be classified as Customs Zones or Free Trade Zones. In general, goods destined for the UAE's Customs Zones are subject to duty under the GCC's Common Customs Law, while goods destined for Free Trade Zones are exempt from duty. Abu Dhabi and Dubai are the principle ports of entry into the UAE; applying the Harmonized Systems (HS) when classifying exports. They offer customs services electronically. For custom procedure steps, see Chapter 7.
2.3. FREE TRADE AGREEMENT Since July 1, 2014 a Free Trade Agreement is effective between EFTA (European Free Trade Association which includes Switzerland) and the GCC countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates). This means for Swiss food products (HS01-24) exported to the GCC countries that: 1% of food products will be free of customs immediately 27.7% of food products will be free of customs after a 5 year period 11.6% are already without customs, according to MFN (most favored nation) treatment 58.7% are not included in the Free Trade Agreement This is regulated in the Agreement in different categories: 1. No further customs immediately Category A: On the date of the entry into force of this Agreement, GCC shall eliminate customs duties on imports of products listed under this category: Includes following food products (if original Swiss): Food preparations like malt extract for children Swiss coffee products - roasted with or without caffeine (HS090121) and (HS090122) Milk powder, yogurt and special cacao-products Figs (HS080420) Raisins (HS080620) Peanut-oil (HS150910) Ice cream Special animal products (HS041000) Small part of the Swiss jams (HS200791) Part of the sugar products (HS170290) and juices (HS1302) 2. No further customs after 5 years Category B: Five years after the date of entry into force of this Agreement, GCC shall eliminate customs duties on imports of products listed under this category: Includes following food products (if original Swiss):
Fruits, especially dried or candied ones Seeds and nuts (single or mixed)
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Drinks (especially sweet ones) Coffee powder Cheese, cream cheese and whey products Fruit jams (HS200799) Pastries Honey Cereal products Fruit and plant juices Feeding products Sauces (tomato and others) Olive oil Lactose
3.
Products which are not influenced by or excluded from the Free Trade Agreement (Category C & X) Includes following food products (if original Swiss): Butter Sugar products with no cacao (like cookies) Chocolates Nescafé Vine (continues to be subject to 50% customs) Tobacco and cigarettes (continues to be subject to 100% customs) Special products (HS190110) are already excluded of customs and other products continue to be subject to 5% customs. The list of custom-free food products will be constantly checked and modified (Annex III, Art. 5 of the agreement). This will give food products, which are still excluded of the Free Trade Agreement, the chance to be added in the future. Please note that experience showed that the customs authorities of the GCC countries are not yet completely informed about the Free Trade Agreement. For now, the Swiss State Secretariat for Economic Affairs (SECO) recommends to present a EUR.1 document, validated by the Swiss customs authorities.
Sources: http://www.admin.ch/ http://www.swissmem.ch/news/news/schwierigkeiten-bei-der-anwendung-des-freihandelsabkommens-zwischender-efta-und-den-golfstaaten/8.html www.s-ge.com
2.4. FOOD IMPORTS The UAE has some of the most modern air and seaport facilities in the world. Food shipments are usually offloaded, inspected by health officials and cleared through customs within few hours of arrival at port. Dubai ports and KIZAD (Khalifa Industrial Zone Abu Dhabi) are the primary entry points for food products. Every food shipment is subject to visual inspection upon arrival to ensure compliance with label and shelf life regulations by health inspectors who, jointly with customs officials, ensure that documents are in order. Shipments are subject to random laboratory analysis. Baby food and edible oils are subject to 100 percent sampling. Other food products are sampled in accordance with the sampling policy manual, which sets out the frequency of sampling based on food type, brand, and country of origin. A consignment undergoing laboratory analysis is stored under a bonded warehouse selected by the importer, within the same emirate of product entry. Laboratory results are generally known within 5-10 days. New-to-market food products are subject to thorough laboratory analyses. Following the initial shipment, repeated shipments will be subject to random sampling, as are other food products available in the market. A product will be
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rejected if found unfit for human consumption or non-compliant with labeling requirements. In either case, the product would be destroyed by the local municipality or re-exported to the country of origin within 30 days, at the importers discretion. Products not conforming to label requirements may be re-exported to a third country (non-GCC). Fines may be imposed, depending on the severity of the violation. Documents needed for imported food products (at time of arrival)
An original health certificate attesting to the product’s fitness for human consumption For meat and animal products, an original Halal slaughter certificate issued by a UAE-approved Swiss Islamic Center is required Bill of Lading Packing List with HS Codes Original Invoice Certificate of Origin Import permit from competent authorities (for prohibited & restricted goods) Letter of Exemption from competent authority (to have exemption)
In the Emirate of Abu Dhabi the food imports are regulated by the Abu Dhabi Food Control Authority (ADFCA). There is a ‘food importer’s guide’ (see chapter 7) covering following situations:
Risk Based System Documents & Certificates required for imported foods Health Clearance Procedures Transportation & Temperature Control Food Sampling Food Labeling Food Expiration periods Detention of imported food consignments
Among the seven Emirates of the UAE, only the Emirate of Dubai requires that all food products imported through their entry points be registered and labels pre-approved by the local health department. In the Emirate of Dubai, the Dubai municipality food control department published a guide for ‘import and re-export requirements for foodstuff’ (see chapter 7) covering following situations: Food Import Re-Export System (FIRS) Food Import Regulations Regulations of Exporting Food Consignments Services of Issuing Health Certificates and Other Services Banned Food Additives in UAE Expiration Period for Food Stuffs First Category: Mandatory Expiration Periods of Food Products Food Products Exempted from Indication of Expiration Date In the Emirate of Sharjah, the Department of Seaports and Customs - Sharjah Customs has set out its own rules: The import operational procedures in Sharjah are supported by the Sharjah government. Here, the procedures and documents that are necessary for the most important import operations through Sharjah ports are highlighted. The required documents are: Delivery Order Packing List Original Invoice Attested original Certificate of Origin Bill of Lading Receipt of Duties or Deposit Settled Inspection Report
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2.5. PRE-SHIPMENT APPROVALS Most major municipalities offer the following services to facilitate food product imports: Pre-shipment approval of: 1.
Food Labels: Copies of labels can be sent (fax copies or e-mails are acceptable) directly or through one of the importers to health officials for review and registration, at no cost. When approved and registered, the products bar code will be added to the municipality’s list of approved and registered products. This procedure is meant to facilitate the importation of products and reduce clearance time. OAA (Office of Agricultural Affairs) Dubai strongly encourages exporters to have labels for new products pre-approved.
2.
Products: Officials will analyze a product to determine compliance with food ingredient standards. Costs involved vary, depending on the type of product and ingredients. Laboratory testing is required on first consignments to the UAE. The same product may be subject to future random laboratory testing. OAA (Office of Agricultural Affairs) Dubai encourages exporters to have their ingredients pre-approved for new products.
3.
Item Registration: Food products will not be permitted entry into Dubai unless they are registered. This may be done by sending a copy of the label to the concerned department or physically bringing samples to the concerned offices usually located in entry points and in the municipal buildings.
Occasionally, local health officials will permit the importation of food products with minor labeling infractions. Exemptions are granted on a one-time basis and the sale of such products is usually limited to institutional end users. The import “mechanism” prepared by the Emirate of Dubai allows the following products to carry English labels only. (Exporters should verify labeling requirements with their importers before shipping.)
Products imported specifically for the HRI sector Food ingredients for further processing or packaging Food intended for special patient groups and not sold to ordinary consumers Food intended for re-export If the largest surface area of the package is less than 10 cm2
2.6. LABELLING Food labels must include product and brand names, production and expiry dates, country of origin, name and address of the manufacturer, net weight in metric units, and a list of ingredients and additives in descending order of importance. All fats and oils used as ingredients must be identified on the label. Labels must be in Arabic only or Arabic/English. Arabic stickers are accepted. Note: the production and expiry dates must be printed on the original manufactured installed label. Labeling can be done in the country of origin or, as Mr. Philipp Straehl, Food Consultant at VSM, points out, can also be taken care of in the UAE port Free Trade Zones through local distributors. Label requirements in the UAE (in Arabic or Arabic/English) as of today. Note that changes happen frequently and fast in the UAE: Product name (name of the food) in a prominent position on the label Ingredients in descending order of proportion Additives. Using their “E” number and group names are accepted The source of the animal fats (beef, buffalo, etc…) Animal fats and ingredients should be sourced from animals that are “Halal” slaughtered The foodstuff and ingredients which are known to cause hypersensitivity shall always be declared Net content in metric units Production and expiry dates (production/expiry dates must be engraved, embossed, printed or stamped directly onto the original) Country of origin The name and address of the manufacturer, producer, distributor, importer, exporter or vendor shall be declared on the label Special storage and preparation instructions, if any
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Lot identification Nutritional declaration is voluntary, except for foods for which nutrition claims are made
Labeling of Special Items 1. Pork The use of pork fat, as with all pork related products as ingredients, is prohibited, unless the products are retailed with all pork products in restricted sections of the retail stores, which are clearly marked for non-Muslims. Labels for pork and pork containing products must comply with the general labeling requirements and must clearly state that the product contains pork. Food labels may not include pictures of pork, nor may recipes list pork. To avoid confusion with regulatory officials and consumers, exporters may wish to steer clear of names traditionally associated with alcohol, pork or non-pork products such as turkey ham or beef bacon. 2. Alcohol Alcoholic beverages and alcohol containing products can be imported but only through authorized importers who run their own retail shops. There are no special labeling requirements for alcoholic beverages beyond what is typically required in the country of origin. 3. Pet Food As with food products, labels for pet foods must be printed in Arabic. Arabic/English labels are permitted, as are Arabic stickers in lieu of Arabic labels. The pet food label must contain the statement “Not fit for human consumption." Production/expiry dates are required for pet foods. 4. Items with required nutritional information Nutritional label is only mandatory for labels for specialty foods, such as diet, health and baby food which must contain detailed information about the product's vitamin and mineral contents, nutritive value per 100 grams and proper use and storage. The UAE.S/GSO CAC/GL 2:2008 (Codex GL 2:2005) “Guidelines on Nutritional Labeling of Foodstuffs” standard was implemented by the UAE on Jan 15, 2010.
2.7. SHELF LIFE STANDARDS The UAE enforces a shelf-life standard for perishable and baby food products. Otherwise, the manufacturer established shelf life is accepted for food products. The manufacturer must print production and expiry dates on the original label or container. Dates cannot be added after the fact via a sticker. The following products are exempt from expiration dating: Salt, white sugar, dried legumes, dried vegetables, spices and other condiments, tea, rice, fresh fruits and vegetables and vinegar.
2.8. TRADE MARK REGULATIONS The UAE is tightening trademark and brand name protection rules. Trademark registration is not mandatory but protection may be limited unless officially registered. Trademark infringement problems are rare in the food sector. Trademark registration is the responsibility of the Trademark Section, Ministry of Economy and Commerce. A foreign company may register a product/brand directly with the Ministry. However, to speed up the process (that can take up to a year), it is recommended that a local law firm be retained. Since 1996, the UAE no longer permits sole agency agreements for food brand names. In 2006, the UAE cancelled most of the exclusive agency agreements that were grandfathered from before 1996 for foods considered basic commodities. The action was taken in an effort to reduce retail food prices.
2.9. FOOD SAMPLES There are no specific requirements for imported food samples. Samples for food shows and other promotional events are routinely exempt from local labeling and shelf life requirements, yet they must be accompanied by a health certificate. Product samples must be clearly marked as samples and accompanied by a statement claiming that they are not for sale or for commercial use. Meat and poultry samples must be accompanied by a Halal certificate and FSIS export health certificate.
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2.10. LIVE ANIMALS AND PLANTS The Ministry of Environment and Water of the UAE is the government body responsible for regulating the importation of live animals and plants. UAE officials typically respond to disease notifications in exporting countries. Consequently, import requirements for live animals and plants can and do change. Exporters should ensure that their importers have been in touch with the Ministry of Environment and Water prior to shipping. For import and re-export of live plants, a phytosanitary certificate is required, issued from the country of origin. The plants should be either without soil or in artificial soil. For import and re-export of live animals a veterinary health certificate is required from the country of origin.
2.11. REQUIREMENTS FOR NON-HALAL FOOD
Non-Halal products need a permit from the Food Control Department. The food label has to state the ingredients in Arabic and English and has to state clearly that it is a NonHalal product. Non-Halal products should not be mixed with Halal food during transportation, storage, preparation or display. The importer/distributor has to make sure that Non-Halal products are only sold to food establishments which have a permit to handle and sell Non-Halal products.
Sources: https://www.abudhabi.ae/portal/faces/en/business/international_trade/importing_to_abu_dhabi?_adf.ctrlstate=15d6hpltxi_357&_afrLoop=7686834614997419 http://www.gcc-sg.org/eng/ http://www.gso.org.sa/gso-website/?lang=en https://www.adfca.ae/English/Publications/Documents/Guide-en.pdf http://login.dm.gov.ae/wps/wcm/connect/2a153865-07d6-4ed1-a661-68f2990d3ac2/IMPORT+AND+REEXPORT+REQUIREMENTS+FOR+FOODSTUFF+Eng.pdf?MOD=AJPERES http://www.sharjahcustoms.gov.ae/Docs.Viewer/998ecca1-d5bc-44bd-aed2-fd7692423824/default.aspx http://www.tradecommissioner.gc.ca/eng/document.jsp?did=138476 http://www.customs.ae/En/UAE-Customs/Pages/CustomsInUAE.aspx http://www.wto.org/ http://www.dubaicustoms.gov.ae/en/Publications/Documents/GCCCommonCustomsLawEnglish.pdf http://export.gov/unitedarabemirates/static/CCG%202013%20-%20UAE_Latest_eg_ae_065913.pdf https://s3.amazonaws.com/ProductionContentBucket/pdf/20130115095255262.pdf
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3. Food Industry 3.1. RETAIL 3.1.1. Retailers Food retailers in the GCC region are supposed to benefit from a US$ 23 billion opportunity over the next five years. At the same time, per capita food consumption is expected to increase from US$ 960 yearly in 2011 to US$ 1,132 in 2016. Currently, per capita food consumption in the UAE stands at 1.48 tons per annum, which is 50 per cent higher than that of the GCC average, which stands at 949.1 kilograms according to a report by research firm Alpen Capital. Saudi Arabia with 60 % of the GCC population, accounts for 51 percent of the food retail opportunity. Today, modern food retail is popular in the GCC region. Modern trade habits across the GCC have enabled growth in all store formats, like small convenience stores, specialty stores, as well as in large supermarkets. In the UAE alone, there are hundreds of supermarkets and hypermarkets that are in competition with each other, local players as well as large international retailers such as Carrefour (http://www.carrefourme.com), Groupe Casino (Geant) (http://www.geant-uae.com), Lulu (http://uae.luluhypermarket.com), Al Maya (http://almaya.ae/about-us/), Spinneys (http://www.spinneys-dubai.com)and Waitrose (http://www.waitrose.com). These convenient ways of shopping account for around 70 % of the market. The fact that big supermarkets and hypermarkets face high per-capita retail space and leasing opens a way for new retail formats such as specialty stores, neighborhood or convenience formats, which are very popular in communities and residential clusters, and even online shopping. The food service offers another opportunity, selling food to tourists, but also more and more residents eat out on a regular base. Was the share of food services around 18 % of the total GCC food sector a decade ago, it recently reached a share of 25 %. Experts expect continued growth of an average of 8 % per year over the next five years. Food providers should consider this development and should present their products to the many restaurant and catering businesses in the region. Victoria Hassani, MD of Global Market Access says in an interview that “from a retail perspective, the biggest change over the last five or six years has been the continued shift away from the traditional, corner-store type of business model to the benefit of the ‘modern’ grocers, supermarkets and hypermarkets. These formats, which now account for 70 % of the grocery food sales in the UAE, provide a much broader shopping experience but also concentrate buying power into the hands of fewer and fewer players, which could be viewed as either a threat or an opportunity.” 3.1.2. Duty-free Shopping Duty-free shopping is a big part of visiting the UAE. All of the airports have duty-free shops, the largest ones being at Airports of Abu Dhabi and Dubai. Gold, jewelry, perfume and liquor are still the most popular consumer items, followed by leather goods, watches, cosmetics, electronic and photographic equipment, food and beverages and luxury gifts. Dubai Duty Free is currently the single largest airport retailer in the world, with retail outlets in all terminals. Dubai Duty Free announced 2014 first quarter sales of US$ 476.5 million representing a 10 % increase over the same period last year. Dubai was recently awarded with the ‘Best Airport Travel Retailer of the Year’ Award. Abu Dhabi Duty Free (http://www.abudhabiairport.ae/english/) and Dubai Duty Free (http://www.dubaidutyfree.com) are not only important for visitors of the UAE, but also for transit passengers. Due to the strategic position of the UAE and the availability of luxury brands and high-quality products, the region is expected to benefit even more from continuously rising passenger numbers. The Middle East and Africa took over the Americas already in 2011, becoming the third biggest airport region in regards of retail.
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3.1.3. Conclusion Food retail has rapidly evolved in the region and will continue to do so for the foreseeable future. At US$ 83 billion GCC food retail sales in 2012, the pie is already large and will grow by more than 25 % in just the next few years.
Sources: A Generous Helping of Food Retail Growth in the GCC, AT Kearney http://www.uaeinteract.com/shopping/dutyfree.asp http://www.dubaidutyfree.com/about/trivia Free Spirit Magazine, July/August 2013
3.2. SPECIALTY AND GOURMET STORES 3.2.1. Definition Specialty Products: foods and beverages that exemplify quality, innovation and style in their category. Their specialty nature derives from some or all of the following characteristics: their originality, authenticity, ethnic or cultural origin, specific processing, ingredients, limited supply, distinctive use, extraordinary packaging or specific channel of distribution or sale. By virtue of their differentiation in their categories, such products maintain a high perceived value and often command a premium price. Gourmet Products: Gourmet is a cultural ideal associated with the culinary arts of fine food and drink, or haute cuisine, which is characterized by refined, even elaborate preparations and presentations of aesthetically balanced meals of several contrasting, often quite rich courses. The term and its associated practices are usually used positively to describe people of refined taste and passion. 3.2.2. Specialty and Gourmet Stores in Dubai In Dubai, the gourmet food scene has expanded in recent years to include a growing number of high-profile, independently run grocery stores. There has been an expansion of gourmet grocery concepts, suggesting they are supplying a growing demand in the city. A new grocery concept in the city is ‘Maybury’, a so called ‘neighborhood shop’. Since Maybury’s Allen has struggled to source locally he is now importing most of the items on the shelves. The store offers additional gourmet items and a selection of premium imported items such as cheeses, olive oils and pasta. The store also bakes its own baguettes twice a day and offers ready-to use items such as steak and kidney pie, seafood salad and desserts made on site in the kitchen upstairs. Opened at the end of 2012, ‘800 Meat’ offers a selection of fine, fresh meat from Australia and Brazil, with a particular emphasis on beef. The store also offers prepared meat items such as burgers and kebab skewers. The gourmet Delhi ‘Markets and Platters’ offers a selection of luxurious edible products from around the world. They offer premium oils, breads and Kaviari caviar as well as a selection of cheeses, fresh seafood, fish and sushi made inhouse. The gourmet supermarket-cum-deli ‘Milk and Honey’ sells a selection of everyday and special food items. Their concept is to sell preferred premium items such as freshly produced dairy and breads. Bread and pastries are baked daily and supplied by French bakery Pascal Tepper. They have a cheese room with a tasting facility. Other notable specialty and gourmet food retailers are ‘Galeries Lafayette’ and ‘Dean & Deluca’.
Table 2: Gourmet stores in the UAE
Store name Maybury Market and Platters Milk and Honey Galeries Lafayette
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Product range Cheeses and patisserie Seafood delicacies Gourmet grocer offering products ranging from cheese to seafood Deluxe food including an in-house bistro
Website http://www.mymaybury.com http://marketandplatters.com http://www.milkandhoney.ae/home.php http://www.galerieslafayette-
Gourmet
Gourmet bistro
dubai.com/En/Gourmet/Pages/default.aspx
Dean & Deluca
Wide range of gourmet offerings including in-house dining Lebanese –style gourmet shop with inhouse dining
http://www.deandeluca.com
Wafi Gourmet Brunetti Jones the Grocer
Australian gourmet concept with shop and in-house dining
http://wafigourmet.com http://brunetti.com.au http://www.jonesthegrocer.com/index.php?pageI D=14260&merchant_id=0
Sources: http://www.timeoutdubai.com/restaurants/features/42866-gourmet-food-stores-in-dubai
3.3. ORGANIC AND NATURAL FOOD 3.3.1. Definition Food can be called organic food when it comes from farming practices without the use of chemical fertilizers, pesticides, or other artificial chemicals. Many countries require producers to obtain special certification in order to market food as organic. In the context of these regulations, organic food is food produced in a way that complies with organic standards set by national governments and international organizations. Organic food production is a heavily regulated industry and is distinct from private gardening. The UAE Organic Food certification scheme can be found here: http://www.esma.gov.ae/arae/ourservices/eservices/Lists/ESMAServicesOtherInformationList/Attachments/24/Or ganic-Food.pdf) Natural and organic products are not the same. Usually the term natural food implies foods that are minimally processed and do not contain manufactured ingredients. However, the lack of standards means that the term alone assures little. 3.3.2. Growing Market The organic and natural food market is a fast growing market with lots of new trends emerging. Esther Renfrew, market intelligence director at Zenith International summarizes it like this: “Consumers in GCC countries are catching up with the global trends, by slowly moving away from carbohydrate-based foods to protein-rich foods such as meat, dairy and eggs. The key catalyst behind this shift is a growing awareness and drive about healthy living, which is an aftermath of high obesity and diabetes in the region,” she said. “As a consequence, the demand is now high for such foods that offer healthy nutrition and adequate amount of energy, enabling a healthy lifestyle.” According to Mr. Whiffen, Director of Food & Beverage at the Dubai Raffles Hotel, the biggest and clearest trend, in hospitality, is the demand for food that is consumed for health reasons, allergies, diets, etc. 3.3.2.1. Organic There is a trend towards healthy, organic food which promises a growing organic market. Many - mostly Western expatriates living in the UAE come with expectations from their home countries about healthy food and organic options. Especially when it comes to their children, parents want to be absolutely sure about the pureness and quality of organic products. Awareness about healthy eating habits is also increasing amongst UAE nationals and amongst other Arabs living in the UAE. The Arabic customer population at organic food stores and cafes is estimated to account for 40 to 50 %. This awareness is being created by Governmental campaigns and by the media. Extensive travel of UAE nationals increases their knowledge about organic food and about natural ingredients.
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An increase in medical conditions such as allergies, diabetes, lactose-intolerance, etc. forces the consumers to choose special foods such as gluten-free, lactose-free and sugar-free foods. All in all, healthy eating habits are definitely on the rise and new organic products always stand a fair chance of becoming successful in the UAE-market. Supermarkets such as Choithrams, Spinneys, Waitrose, Carrefour, LuLu and Al Maya stock a selection of sugar-free products besides organic products. Some have extensive ranges; others are just a token. However, availability is growing. ‘Ripe Middle East’ is an organic fruit and vegetable company that holds weekly markets for local farmers to bring in their fresh produce as natural foods. The ‘Organic Foods and Café’ caters for people suffering of coeliac disease, lactose intolerance, diabetes etc. Other noteworthy suppliers of organic food are ‘Organic Francine’, ‘Maybury Supermarket’, ‘Baker and Spice Dubai’ and ‘Balance Café’. 3.3.2.2. Gluten-free Gluten-free is a big trend in the UAE with many places reacting to it by offering gluten-free cheese pizza, by celebrating gluten-free afternoon teas in many five-star hotels across the UAE and even by offering gluten-free products online or for home-delivery. The ‘Organic Foods and Café’ in Dubai (http://www.organicfoodsandcafe.com) as well as the ‘Fanr Restaurants’ in Abu Dhabi (http://www.fanrrestaurant.ae) are two examples of places that stock special foods including gluten-free items. In Dubai and Abu Dhabi there are several supermarkets where gluten-free products (also free from lactose, eggs and soy) are available. The gluten-free items are usually based on corn flower or oats. 3.3.2.3. Vegan Food For vegans in the UAE, 100 per cent raw, organic and vegan foods from sustainable sources are available. A good example is the ‘Be Super Natural’ food store in the Galeries Lafayette, Dubai Mall and also Choithrams that offers vegan products from Fry’s Family Foods, South Africa. 3.3.2.4. Healthy Habitats An example of this is ‘Bistro Restaurant’ at the Dubai Mall that offers raw, live, organic and vegan food. Other organic and health specialist restaurants in Dubai include The Organic Foods and Café, The Taste Initiative, the Park Hyatt and Aryaas for top southern Indian vegetarian food. 3.3.2.5. Healthy Food in Schools Unhealthy eating habits at schools can lead to widespread diseases including obesity, diabetes and heart problems. These habits are also carried into their lifestyles once the students are grown up. The UAE-Cabinet announced the enforcement of healthy food standards by preventing canteens in all schools from selling junk food. It followed guidelines issued by the Ministry of Education in October 2012 discouraging the sale of processed food, including all types of chips, crisps and chocolates and replacing these items with healthier food. This year’s “eat right and get active” campaign advocates eating five portions of fruit and vegetables a day. School students from 14 Abu Dhabi schools are taking part in it and hundreds of school children have visited local farms to learn about healthy eating. Many schools have their own campaigns and awareness programs about healthy eating like healthy food breaks where only raw fruits or vegetables are allowed to be consumed. Nuts are usually banned from all schools due to allergy risks. It is the Abu Dhabi Farmers’ Services Centre’s goal, for this campaign, to increase consumption of local organic fruit and vegetables and to improve public health. There are now around 38 certified organic farms in the UAE, following a campaign by the UAE Ministry of Environment and Water to promote local organic food. There are over 60 organic plant varieties farmed in the UAE, in soils as well as hydro-cultures. Locally-sourced organic cow meat and milk and yoghurt are also available here.
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Table 3: Organic food stores in the UAE
Ripe Middle East:
Locally produced organic products
http://www.ripeme.com
Organic Food sand Café
Oldest and largest organic shop chain in the UAE with in-house cafés Organic shop with a community approach Organic farm store of locally produced products Delivery service concept for organic products New organic food store
http://www.organicfoodsandcafe.com
Latest organic food store with in-house bistro
http://biorganicstore.com
Down to Earth Greenheart Organic Farms Organic Food Trading Blue Planet BiOrganic Store
http://www.downtoearth.org http://www.greenheartuae.com http://www.organicfoodtrading.com http://blueplanetgreenpeople.com
Table 4: Organic Confectionary – Presence in the UAE Organic Food Stores ¹
Brand Name Rosengarten Hammermuehle Bohlsener Muehle Trafo BioKorn Les Recettes de Celiane Doves Farm Organic Biona Organic Conscious
Country of Production Austria Germany Germany The Netherlands Belgium France United Kingdom United Kingdom United Kingdom
Table 5: Organic Cheese – Presence in the UAE Organic Food Stores
Brand Name Calveley Mill Stilton Cropwell Heemveld Amsterdammer Bleu de Wolvega Parmesan Montello Isana Teleggio
Country of Production United Kingdom United Kingdom The Netherlands The Netherlands The Netherlands Italy Italy
Table 6: Organic Chocolate – Presence in the UAE Organic Food Stores
Brand Name Vivani Rosengarten Kaoka Aveem Plamil Pulsin Black Bear Landgarten
Country of Production Germany Germany France Belgium (Fair Trade) United Kingdom United Kingdom Austria Austria (Fair Trade)
________________________ ¹ These tables give the situation at particular stores at a particular point in time.
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Table 7: Organic Dairy – Presence in the UAE Organic Food Stores
Brand Name NaturGreen Sojade Bergerie Andechser Natur Isana Bio-verde Bio+
Country of Production Spain France France Germany Germany Germany Austria
Sources: http://gulfnews.com/gn-focus/gulf-food/spots-for-speciality-food-items-in-the-uae-1.1294467
3.4. FUNCTIONAL FOOD 3.4.1. Definition Functional food is a food given an additional function for usually health-promotion or disease prevention by adding new ingredients or more of existing ingredients or leaving ingredients like sugar out of the product. 3.4.2. Categories of Functional Foods The general category of functional foods includes processed food or fortified foods, like "vitamin-enriched" products. Fermented foods with live cultures are considered functional foods with probiotic benefits. Products where fortification has been done to meet government regulations to resolve public health problems are not considered to be functional foods. In this category falls the addition of iodine to table salt or Vitamin D to milk. Functional foods belong to the products that consumers consider to increase their health and/or contribute to reducing or control their disease burden. Functional food can contain known biologically-active compounds which can provide a clinically proven and documented health benefits. 3.4.3. Functional Food in the UAE As most of the food market segments, the functional food segment is also a growing market in the UAE. Many nutritional food shops also offer organic, sugar-free, and diabetic food. High prices do not keep buyers away. The products are imported mostly from the United States and the United Kingdom. The majority of the customers are men (60 %) and many times they look for products related to fitness and to enhancing their “love” life. Women account for approx. 40 % of the customers and are concerned about weight-loss and food supplements. Consumer behavior is heavily impacted by the media, magazines as well as TV shows, and by the continuously increasing health awareness. Due to a hectic but also socially demanding and food focused lifestyle, lots of UAEresidents do not prioritize on staying healthy due to eating habits. The solution to compensate this lifestyle is found in food supplements and special fitness and health-enhancing products that are sold in nutritional shops. But also people who actually do live a healthy lifestyle are concerned about a loss of natural vitamins in a product during its import process, as well as about a lack of vitamins in the local food due to its production in the harsh climate of the UAE. The number of overweight and diabetic people is high in the UAE. (The UAE is ranked 15th worldwide, with 19% of the UAE population living with diabetes). These people are interested in diabetic and sugar-free products. 3.4.4. Case Study – Futurelife The Durban-based brand “Futurelife” has gained a reputation of a credible health brand, demonstrating growth of over 100 % in the last four years. Originally perceived as a brand in the cereal category, Futurelife is already successful in the category of functional foods as well.
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The company will be expanding its business into the UAE because it sees the growing market for enhanced or functional foods. They see the reason for this growth in the change of the consumer’s health awareness and wellness oriented lifestyles. Shaun Harris, MD of Futurelife, says that ‘As an overall global trend in functional food and beverage consumption, consumers are navigating wellness with greater breadth and depth of knowledge’.
Sources: http://www.bizcommunity.com/Article/196/469/111134.html http://en.wikipedia.org/wiki/Functional_food
3.5. PROCESSED FOOD 3.5.1. Definition Tertiary processed food, or convenience food, is commercially prepared food designed for ease of consumption. Convenience foods include prepared foods such as ready-to-eat foods, frozen foods such as TV dinners, shelf-stable products and prepared mixes such as cake mix. Processed food usually refers to foods that are packaged in boxes, cans or bags. These foods need to be processed extensively to be edible and long lasting, and are not found as in nature. 3.5.2. Food Production The UAE will always be highly dependent on food imports to fill the gap between domestic production and the demands of a growing and wealthy population. The UAE’s food-processing sector has been undergoing a period of significant expansion over the past several years, a trend expected to continue. Main expansion has happened in the dairy industry with industry leaders such as Al Ain Dairy, Al Rawabi Dairy Farm, Marmum Dairy, etc. Investment has taken place in other food segments such as processed meats and readymade meals. Dubai is one of the preferred locations for fast food brands looking to expand their global footprint. Demand for fast casual dining, which includes the more traditional fast food chains as the table service brands, is growing. The UAE’s fast casual dining sector is expected to grow from US$ 6.4bn in 2011 to US$ 8.7bn by 2015 with burger chains set to see the biggest increase, according to research firm Euromonitor. 3.5.3. Healthy Convenience Food Over the last years, the UAE experienced a shift in consumption patterns from carbohydrate-based staple foods (such as grains) to protein-rich diets and high-value processed foods (such as snacks and drinks). According to the Economist Intelligence Unit, 45 percent of the GCC population is under the age of 25. This group is eating mainly processed foods, partly because of an upbringing with less fresh food items. The UAE has a large expatriate population with busy lifestyles which is creating a growing demand for processed convenience foods. Ready-to-eat products such as pre-cut vegetables, salads, fruits, freshly squeezed juices and readyto-cook products such as pre-marinated meats are steadily developing. In addition to the need for convenience, the region shows a general increase in health consciousness. Also, the availability of fresh imports has improved. All these trends present themselves as a huge market opportunity to retailers, manufacturers and distributors. A great success story is “Barakat Quality Plus” in the UAE, which provides fresh and preservative-free vegetables and juices. They deliver to retailers and also cater to the hospitality sector by providing pre-cut, peeled fruits and vegetables. Within a decade, Barakat Quality Plus has captured 35 % retail market share in the GCC-wide fresh fruit and vegetable industry. Another example of a success story is “Del Monte”, a classic processed food manufacturer. Retailers such as Spinneys, Lulu and Carrefour are offering fresh juices, sandwiches, salads, peeled, pre-marinated meats, cut fruits and cut vegetables ready to be cooked or consumed.
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3.5.4. Packaged Food The packaged food market continues to be led by a mixture of private label, domestic and international companies. Nestle Middle East maintained its position as the leading player within packaged food in 2013. Multinationals continue to lead the packaged food market because of their wide and established distribution networks in the UAE, in addition to their brand recognition and leadership in research and development. Private label growth is being seen particularly in the packaged food categories which are essential staples in consumers’ diets, and thus in which consumers are particularly price-sensitive, in other words rice, pasta and sauces, dressings and condiments.
Table 8: Chocolate – Presence of European Brands in the UAE Supermarkets
Presence in the Store 1
2
3
Brand Name Lindt Toblerone Swiss Dream Carrefour Casino Ritter/Schogetten/Kinder Chocolate Cote d’Or / Guylian / Belgian Famous Chocolates Ferrero Rocher Raffaello Cadbury Mackintosh’s Thorntons
Group or Comments
Private Label Carrefour Private Label Geant
Kraft Nestle
Country of Production Switzerland Switzerland Switzerland France France Germany Belgium Italy Poland Egypt UAE United Kingdom
Table 9: Confectionary – Presence of European Brands in the UAE Supermarkets
Presence in the Store 1
New in the store 2
New in the store 3
Brand Name McVitie’s Essential Waitrose Carrefour Lu / Gavottes Casino La Mere Poulard Leibniz Loacker Tiffany Kambly / Kaegi Midor / Swiss Delice Royal Dansk Walkers Quaker Merba Lotus
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Group or Comments
Private Label Spinneys/Waitrose Private Label Carrefour Private Label Geant
Bahlsen
Country of Production United Kingdom United Kingdom France France France France Germany Italy Greece Switzerland Switzerland Denmark Scotland Ireland The Netherlands Belgium
3.5.5. Fast Food Fast food increased at a considerable rate in 2012, posting an increase of 15 % in current value terms. Primarily, fast food managed to appeal to a wide consumer base, with consumers from all income groups increasingly relying on this channel for quick, easy, and affordable meal solutions on-the-go. At the same time, the competitive environment became more crowded, with the number of outlets rising by 12 %. The competitive environment remained fairly fragmented in 2012, with a large number of players holding sizeable value shares. Within chained fast food, the top five players, comprising Kuwait Food Co (Americana), Emirates Fast Food, Subway Arabia, First Food Services and Galadari Ice Cream, together accounted for a 46 % share of value sales in 2012. Ongoing urbanization and changes in lifestyle will continue to grow demand for fast food in the UAE. 3.5.6. The Dairy Market in the UAE Rising consumption volumes drive sales growth in the UAE dairy food market. Yoghurt leads the growth driven by the rising demand of the traditional yoghurt drink, laban. Laban is seen as a healthy alternative to milk for lactose intolerant and is increasing popularity across the region due to its perceived digestive health benefits. Among other findings in a 2013 Zenith report, 80 % of dairy sales come from four key product categories, fresh unflavored white milk, laban, yoghurt and cheese. The most popular dairy product in the GCC is fresh unflavored white milk, which is locally regarded as the ultimate wellness drink because it contains essential nutrients. Healthy perception drives flavored milk consumption. Flavored milk is continuing strong advancement in the region, owing to the growing perception that it is nutritionally better for children and a more ‘natural’ product than carbonates. Milk consumption in the UAE reached 214 million liters in 2012. It is valued at US$ 306 million at retail level and has been growing at an annual rate of about 7 % per annum. Local supply accounts for 80 % of product on shelf while imports (mostly from Saudi Arabia) make up the remainder. Foodservice sales account for nearly one third of the total. The bulk of this is UHT milk supplied into chains such as Starbucks, Costa, institutional contracts and airlines, etc. Total consumption is expected to grow to 328 million liters per annum by 2017. Local production will not be able, in the years ahead, to keep pace with the growth in consumption. Camel Milk: Camel milk as a niche product is a growing market. Dubai-based Emirates Industry for Camel Milk & Products (EICMP) gets the ingredient from the world's first fully integrated camel milk production facility, which houses 3,000 camels and produces around 5,000 liters per day. Recently, EICMP, the holding company for Camelicious, with sister companies The Majlis Dubai and Al Nassma Chocolates took its camel milk products to Europe. The UAE was the first Middle Eastern country to secure approval from the EU to export its camel milk products. Emirates Industry for Camel Milk & Products deputy GM Mutasher Al Badry: “We believe that camel milk is a factual alternative for consumers, especially in the Middle Eastern and African regions, but also for health-conscious consumers elsewhere in the world.” “Our camel milk is a natural product without any artificial additives and preservatives, and its unique attributes especially with regards to health and beauty are numerous. Apart from the fact that there are no known allergies to camel milk, recent studies also suggest it to have a positive effect on patients with Diabetes Type II, Hepatitis and autoimmune diseases. There are plenty of relevant facts making camel milk special and we believe in the potential of this extraordinary milk on a global scale”.
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Table 10: Dairy – Presence of European Brands in the UAE Supermarkets
Presence in the Store 1
2
3
Brand Name La Vache Qui Rit / Kiri / Chavroux / Boursin / President / Elle & Vire Carrefour Casino Kraft / Philadelphia / Zott / Milkana / Carnation Galbani / Scotti / Bertolli Danone / Activia Alpro / Rice Dream Flora Rachel’s Onken Essential Waitrose
Group or Comments
Country of Production France
Private Label Carrefour Private Label Geant
Unilever
Private Label Spinneys/Waitrose
Lurpak Kerrygold Puck Spinneys Food Rainbow
France France Germany Italy Via local importer Belgium United Kingdom United Kingdom United Kingdom United Kingdom Denmark Ireland Austria South Africa The Netherlands
Table 11: (Grated) Hard Cheese – Presence of European Brands in the UAE Supermarkets
Presence in the Store 1 2
3
Brand Name Emmental Paysan Breton Parmesan Essential Waitrose Galbani Di Giorno Edam / Gouda Cheddar Kerrygold Gruyere McLelland
Group or Comments
Private Label Spinneys/Waitrose
Country of Production France France Italy Italy Italy Italy The Netherlands United Kingdom Ireland Switzerland Scotland
Sources: BMI – United Arab Emirates Food &Drink Report A Generous Helping of Food Retail Growth in the GCC, AT Kearney http://www.euromonitor.com/packaged-food-in-the-united-arab-emirates/report http://beforeitsnews.com/business/2014/04/dairy-food-sector-in-the-uae-trends-and-developments-2620272.html http://www.foodnavigator.com/Regions/Middle-East/Dairy-consumption-in-the-Middle-East-up-by-50-in-fiveyears http://www.bordbia.ie/industryservices/information/alerts/Pages/GrowthpotentialofUAEdairymarkethighlighted.as px?year=2013&wk=45
3.6. BEVERAGES 3.6.1. Soft Drinks In 2013, the soft drinks market continued to benefit from positive GDP growth. Sales in the UAE are boosted by a strong economic climate, rising consumer confidence, population growth and increasing tourism. The expansion of UAE FOOD MARKET STUDY 2014
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the consumer foodservice channel and the ongoing modernization of the retail channel are also factors that helped to boost soft drinks sales. Modern grocery retailers accounted for the strongest share of off-trade volume sales in 2013, led by hypermarkets with more than a fifth of volume sales. Independent small grocers maintained their share in 2013 and continued to be an important soft drinks channel, especially for impulse and spontaneous purchases. The UAE’s soft drinks industry is very competitive across all segments. PepsiCo leads the segments, distributed by DRC (Dubai Refreshment Company). The Coca-Cola Company is second and domestic player Masafi Mineral Water Co is in third place. 3.6.2. Bottled Water Direct selling remained very popular for bottled water sales. Tap water is not widely drunk in the UAE. A trend that was observed in bottled water in 2013 was premiumisation. This trend was not only observed in premium brands such as Masafi but as well in lower-end ones trying an image upgrade. Companies focused on improving their packaging and making it more attractive. In addition, sustainable strategies are discussed with the goal to make packaging more environmentally-friendly and lighter. The latter is supposed to reduce transportation costs and make it easier for consumers to transport the bottles after purchase. Dubai Refreshment Company (DRC), Jeema Mineral Water Company, Masafi, Oasis and Arwa are the most prominent players in the bottled water industry. Masafi Mineral Water Co had a 29 % off-trade value share in 2013. Second was Al Ain Mineral Water Co with an 18 % share. All other large competitors held significantly smaller shares due to a fiercely competitive market place. Premiumisation and environmentally-friendly packaging are expected to gain popularity. Drinks targeting specific consumer groups such as children, sports enthusiasts and the elderly, as well as specific types of water such as flavored, sparkling (most of the below-listed European brands offer sparkling water) and functional, are expected to do well.
Table 12: Bottled Water – Presence of European Brands in the UAE Supermarkets
Presence in the Store 1 3 New in the store 2
Brand Name San Pellegrino Acqua Panna MonViso Badoit / Evian / Perrier / Volvic Carrefour Gerolsteiner Highland Spring
Group or Comments
Private Label Carrefour
Country of Production Italy Italy Italy France France Germany Scotland
3.6.3. Juices The UAE is one of the world’s highest per capita consumers of fruit juice. Masafi and Al Rawabi Dairy have an expanding fruit juice business. The main noticeable trend in 2013 was demand for chilled and fresh juices rather than ambient variants as consumers sought healthier and “better-for-you” drinks with fewer preservatives and more natural ingredients. The health and wellness trend boosted the juice category, which recorded healthy growth as an increasing number of consumers look for products to help them live a healthier life. Barakat Ltd had a 16 % value share in 2013, with the company enjoying a particularly dominant position in suppliers of 100 % fresh juices, avoiding concentrates. The health and wellness trend is likely to continue, with consumers likely to opt for juices which are chilled, feature natural ingredients and are with no added sugar. The consumers prefer products packaged in PET bottles so the product within can be clearly seen. UAE FOOD MARKET STUDY 2014
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3.6.4. Energy Drinks Energy Drinks are soft drinks containing a high percentage of sugar, caffeine, or another stimulant, typically consumed during or after sporting activity or as a way of overcoming tiredness. Many youngsters consume these drinks without doing any sporting activity to improve their energy levels while at school, with some even drinking them for breakfast. Red Bull FZE, Otsuka Pharmaceutical Co Ltd and Pokka Corp led the category in 2013, recording off-trade value shares of 28 %, 16 % and 15 % respectively. These three international companies control the majority of the category, due to the popularity of their brands and of their aggressive marketing activities. Heavy investment in marketing, PR activities and sports events has made these drinks very fashionable. Mainly youngsters in the UAE are likely to continue to consume energy drinks so as to feel part of a group and appear fashionable. It is probable that, as the obesity rate increases in the country, as per government predictions, young consumers might try using these drinks to stave off hunger, especially in the morning. In 2012, the Emirates Standardisation and Metrology Authority (ESMA) introduced new rules for the energy drinks. If you are under 16, pregnant or have a heart condition, it is illegal to buy energy drinks with high caffeine levels. The new regulations also means grocery stores and supermarkets — or anyone selling energy drinks — will have to post mandatory warning notices. Moreover, energy drinks will have to be stored separately, away from other drinks. 3.6.5. Hot Drinks The hot drinks business did very well in 2013, with on-trade sales posting double-digit growth nearly double that of the off-trade. A strong surge in tourism during the year further boosted the consumption of hot drinks in traditional cafes, modern coffee shops, bars and restaurants. Nestle SA and Unilever Group were the two major players, with close market shares turning them into competitors. All the major operators were foreign and established their products and brands many years ago, thus making entry difficult for any new manufacturer. On-trade sales of hot drinks are expected to grow the most. An important factor driving the growth of coffee and tea sales in the Middle East is the traditional role that these drinks play in family and social occasions. Tea The tea market is dominated by Unilever’s Lipton Tea. In 2013, Unilever Gulf FZE maintained its leading position in every tea category except the category of loose black specialty tea, which remained a niche. In addition to Lipton Yellow Label, the company also offers the brands Brooke Bond Red Label, Lipton and Lipton Clear Green Tea. Lipton Yellow Label benefits from heavy television advertising and marketing activities. Green tea, fruit and herbal teas have started to grow in popularity. Coffee Growth in on-trade coffee sales was double of that in the off-trade, boosted by strong tourist numbers and a growing network of coffee shops in the country. Nestle SA continued to lead coffee in terms of retail value share in 2013, followed by the German company Tchibo GmbH and Maatouk Maison Du Café, which ranked first in volume terms. The latter is a Lebanese company which owes its success to its regional popularity and reasonable pricing as well as to its wide product range. Tschibo has a very strong presence in the instant coffee category and is a popular brand for imported non-food items. Next to the UAE’s coffee scene dominated by big chains (Starbucks, Costa, Caribou, Tim Horton), unique and independently owned stores are gaining in popularity due to their own design characteristics and ambience. One example is The Magazine Shop – a cafe that launched last year with branches in Media City and DIFC – that specializes in high-quality coffee in combination with thought-provoking, unique magazines from around the world.
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3.6.6. Alcoholic Beverages The Islamic Sharia law observed in the UAE prohibits the production and consumption of alcoholic beverages for Muslims. The law is strictly applied on all Muslim residents in the country, regardless of national origin. However, given the large number of non-Muslim expatriates living in the UAE, and their demand for access to alcoholic beverages, the government has made allowances for this group to purchase and consume imported alcohol, which is strictly regulated and only sold in designated locations. The bulk of the imported alcohol is traded through the major emirates of Abu Dhabi (US$ 14.6 million), Dubai (US$ 89.1 million) and Sharjah (US$ 3.5 million). Most imported food products in the UAE are subject to 5 % customs duty, except for staple goods and fresh produce which are exempt from duty. The duty on alcoholic beverages is 30 %. An additional sales tax of 50 % is levied on all alcoholic beverages sold in Dubai. The sale of spirits is permitted in dedicated retail stores and licensed outlets such as restaurants, bars and night clubs that are either part of a hotel or selected sports clubs. Stand-alone retail outlets like grocery stores, supermarkets and restaurants are not authorized to sell or serve alcohol. To be able to purchase alcohol, eligible residents of the UAE should have a valid liquor license. Alcoholic beverages trade in the UAE can be divided into three broad segments: - On-Trade and Off-Trade channels - Duty Free and Dubai Ports - Re-Exports to other countries. The term “on-trade” is used to refer to consumption on the premises where alcohol is bought (hotels, restaurants, night clubs) and “off-trade” for consumption off/or away from the premises (retail stores). Duty-free stores at the UAE ports form the second largest segment of alcohol trade in the UAE given the large number of passengers visiting the country every year. The number of importers and distributors of alcoholic beverages is restricted to a select few. Two major distributors in Dubai: African and Eastern, holding around 57 % of the market share, and Maritime & Mercantile International having 43 % of the market share. African and Eastern operates 24 retail stores in the UAE, and MMI operates 13 stores located in Dubai and the Northern Emirates. A third distributor in Dubai is Coastal Communities Distribution which is licensed to distribute exclusively to the coastal communities of the Palm Jumeirah and The World projects. In Abu Dhabi there is Abu Dhabi National Hotels, African Eastern and Gray Mackenzie & Partners. As Dubai has established itself as a tourist destination, with a growing number of tourists visiting the country for luxury vacation and business purposes, sales of alcoholic drinks, especially premium brands, are increasing in ontrade outlets. Sales of premium brands are being driven by rising consumer incomes and now account for around 90 % of overall sales. The largely young population of the UAE, a vibrant clubbing scene and the growing trend towards cocktail bars is fuelling growth within vodka. Premium sales are expected to grow as the economic environment and tourism improve. Further sales growth is expected through on-trade channels while the increasing number of high-end restaurants and clubs are expected to fuel growth of premium alcohol drinks over the next five years. Wine Consumers in the UAE tend to go out after work and on the weekends. This trend has helped to boost sales within restaurants and bars. As a result, wine total volume sales increased by 6 % in 2012. New World wines have gained significant sales share since the global financial crisis as consumers are increasingly looking for cheaper alternatives. However, in line with the economic recovery and growth, the most fine-dining restaurants and high-end bars and lounges offer expensive quality wines. They have attracted an increasing number of consumers who have only recently started to develop a taste for quality wines.
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Sources: http://www.euromonitor.com/alcoholic-drinks-in-the-united-arab-emirates/report Wikipedia GAIN Report Number: UAE/Alcohol/2012 http://www.thenational.ae/business/the-life/atmosphere-matters-at-uae-coffee-shops-such-asstarbucks#ixzz317lb9qoK
3.7. PRIVATE LABEL 3.7.1. Purpose of Private Labels Many retailers have their own private label with the goal to avoid the distributor by going directly to the manufacturer and to avoid paying branded product prices loaded down with high development and marketing costs. Retailers can book their savings as additional margin, or they can pass them along to customers through lower prices. This way a product of similar quality as a brand product is selling at a lower price. Retailers have a great opportunity to generate a compelling value proposition for consumers and a sustainable competitive advantage by using a well-rounded private label strategy that is integrated into the company’s overall positioning. 3.7.2. Situation in the GCC Carrefour and LuLu are already looking into the benefits of private labeling by developing a wide range of products primarily targeted to the value-conscious consumer. The offer covers not only basic food items, but also non-food sectors such as health, beauty and electronic products. Other retailers like Spinneys and Waitrose, are offering premium private labels to build differentiation in fresh products such as high-quality meats. 3.7.3. Outlook Only 7 % of grocery sales are from private label which means that there is a huge opportunity for growth in the private label segment of the GCC retail landscape.
Sources: A Generous Helping of Food Retail Growth in the GCC, AT Kearney http://www.geanteasy-uae.com/retail_shopping_brands gmadubaiblog in Distribution, Food in the Gulf, Food manufacturing, Food Retailing
3.8. FOOD SERVICE / HORECA In the UAE consumer foodservice saw a strong growth during the period of 2007-2012. This growth was linked to a generally strong economy in the whole country which resulted also in rising incomes for many consumers. 3.8.1. Cafes and Bars Fast food and cafes/bars in particular experienced rapid growth in 2012, as these channels managed to best take advantage of consumers in the country seeking quick and convenient meal solutions, as well as increasingly socializing with friends over coffee or a drink in the evening. Chained players invested heavily in further outlet expansion in these channels. Sales in cafes/bars were strongly supported by two main factors in 2012. Stronger economic conditions and rising disposable incomes encouraged more consumers in the UAE to go out, with cafes/bars amongst the main beneficiaries of consumers socializing over coffee or heading for a drink in a bar after work. In addition, home delivery became more popular, with a number of players using this option in order to increase sales. The leading players in 2012 included domestic franchisees representing international brands, such as Kuwait Food Co (Americana) with KFC and Pizza Hut, and Emirates Fast Food Co with McDonald’s. These brands tend to appeal to a wide range of consumers in the UAE, which is characterized by a highly diverse population.
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As a result of the widespread popularity of the country’s shopping malls, retail locations are the most significant in consumer foodservice. Supported by solid economic growth, consumer foodservice is expected to see a dynamic performance in the UAE. At the same time, players will, however, also face more regulations, as well as stronger competition from new entrants. 3.8.2. Restaurants The UAE has a fantastic assortment of international-standard restaurants catering to all budgets and tastes. With a large expatriate community from the Sub Continent in Dubai, it is little wonder there are some truly world-class Indian restaurants. Currently, there are about 5,600 restaurants in Dubai alone, according to Mr. Smalberger, Cluster Executive chef at JA Resorts and Hotels, Dubai, covering all cuisines, price levels, areas, kinds of food, etc. About 600 of them, specifies Mr. Philipp Straehl, Food Consultant, are in the more expensive end of the market. There is a definite trend for “upmarket casual dining”, further stipulates Mr. Smalberger. People no longer want to spend time dressing up for fine dining and make it a formal event. More casual dining is preferred nowadays while fine dining will be reserved for special occasions. Since the UAE is an Islamic country, many restaurants have no alcohol license. Restaurants in tourist and business hotels almost always serve alcohol, although with taxes, alcoholic drinks can be expensive. Sales tax at 10 % is added to all bills. Service charges at 10 to 15 % are also frequently added but, if they are not, a 10 % tip is expected. Many of the - mostly below top-end category - restaurants also offer home delivery services. 3.8.3. Online Food Ordering Business With thousands of food orders placed online per month, the online food ordering business is booming in the UAE. Through food ordering portals different cuisines and restaurants can be viewed and orders can be placed. Most food ordering portals offer payment on delivery. Eateasily, for example, a food ordering portal which takes orders within the UAE, has seen more than 100 % growth every year since its establishment in November 2011. According to its CEO they have 13,000 to 18,000 orders per month. Interestingly, online food ordering websites such as Eateasily, Talabat and Foodonclick, report less business during holidays, weekends and Ramadan and more business in the hot summer time where people avoid eating outside. Kivan Arkaç, CEO of Foodonclick said “Users no longer need to wait before getting through on busy phone lines, battling with confusing accents or getting frustrated receiving wrong orders”.
Sources: Country Report - Consumer Foodservice in the United Arab Emirates - Nov 2013 Euromonitor International http://gulfnews.com/news/gulf/uae/general/hungry-online-food-ordering-catching-on-in-uae-1.1281037 http://www.worldtravelguide.net/dubai/restaurants
3.9. CHALLENGES AND OPPORTUNITIES FOR SWISS FOOD SUPPLIERS 3.9.1. Interviews In view and preparation of the present market study, interviews have been conducted with key players in various fields of the UAE Food and Beverage market. The intention of the interviews was to gather information about the situation in the market, about trends and expected developments, and about challenges and opportunities for Swiss companies willing to enter the UAE-market with their products.
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The question: “Which Swiss food products do you find suitable for entering the UAE- market or which food products would you procure yourself from Swiss companies?” was asked to all interviewees. The answers to these questions, together with general findings about the UAE-market, have led to below listed challenges and opportunities for Swiss Food Suppliers. Interview meetings were held with the following specialists in their field of expertise:
Ms. Eman Mohiledin Al Tayeb, BiOrganic Store (organic food field) Mr. Sacha Schatt, Food Source International (distributor/importer field) Mr. Nicolas Smalberger, JA Resorts and Hotels (hospitality field – Chef) Mr. Graeme Bradstock, Lindt & Spruengli (Swiss chocolates manufacturer) Mr. Philipp Straehl, VSM (food consultancy field) Mr. Samer Achcar, FRHI Hotels and Resorts, Global Sales (hospitality field) Mrs. Colette Shannon, Spinneys (retailer field - partly interview by telephone) Mr. Peter Lonsdale, Emke Lulu Group (retailer field) Mr. Andrew Whiffen, FRHI Hotels and Resorts, Food and Beverage (hospitality - F&B)
3.9.2. Challenges Swiss products are perceived as high-quality premium products but very expensive.
Swiss brands are not known or not well known in the UAE-market, with some exceptions such as Nestle, Emi and Lindt.
Any company willing to enter the market needs long-term investment, and the small market is often not worthwhile the investment for Swiss SME’s.
Swiss companies often have the wrong expectations from the UAE market. It takes the will to overthink expectations, hard work and huge, long-time investments.
One needs a local professional importer/distributor.
Product labelling: strict regulations, no conformity in the labelling regulations throughout GCC. Labelling must be done before entering the UAE.
Strict rules regarding shelf life in the retail.
The UAE is a very crowded market, all the big players are already here.
It is a very open commercial environment and highly competitive.
Consumers have ample exposure to all the big brands.
One needs volume selling in order to be profitable.
You must create a brand, an image and this is a costly and long-term operation.
The UAE’s small population is not interesting enough for investors looking for long-term volume gains. The country offers limited volume potential, particularly outside the Emirates of Dubai, Abu Dhabi and, to a lesser extent, Sharjah.
It takes
upfront investment a long-term strategy to be defined upfront professionalism strong local partners someone from the company in the field a well-defined time frame a well prepared marketing machine (define segment, channel, merchandising, negotiations with retail)
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* Dr. Martin Fabel, Partner AT Kearney: “However, as growth accelerates, food retailers in the region are now facing increased competition, forcing them to rethink strategies.” “GCC food retailing is set for growth and offers a US$ 23 billion opportunity for the regional retail industry to leverage but it will require players to move first, move fast and make the right move.” “Adopting a clear, differentiated strategy and implementing global best-practices to achieve sustainable competitiveness and growth is critical to overcome impending threats in the market, and capture a share of growth without losing market share and profitability,”, he added. 3.9.3. Opportunities Big Food Importer The UAE was the 15th biggest importer of food trade in 2012, according to the “International Trade Statistics 2013” report published by the World Trade Organization (WTO), with imports worth US$ 16 billion, constituting 1.1 percent of the world’s imports. According to the same report, the annual percentage increase in imports of food into the UAE in 2012 was 13 percent. These figures were released by Youssef Jammal, a regional hospitality expert based in the UAE and the head of hospitality and retail in H Holding. He said the Gulf food industry has grown exponentially due to changes in lifestyle and higher inflow of expatriates in the Gulf. Jammal anticipated a higher investment inflow into the UAE food industry in 2014, as direct fallout of Dubai winning the bid for hosting Expo 2020. The WTO figures reflect the significance of the UAE market in the food industry. The UAE is a re-export center for not only the Middle East but also to North African and Asian markets. Population Rise, Growing Incomes and Changing Demographics “With population rise, growing incomes and changing demographics, the Gulf will have another round of growth on the back of the one witnessed at the start of the last decade. The region will continue to rely on imports; however, local brands will take a significant portion of this import in the coming years,” concluded Ibrahim Al Sheikh, General Manager, Monte Carlo Stars, a leading entertainment attraction that is owned by H Holding.
Vast opportunities in the GCC food industry waiting to be tapped into include: Fast food – ready-to-eat food, chilled food, bakery goods, dairy products Processed food – fresh ready-to-cook products, pre-cut vegetables, pre-marinated meats, processed food, canned/preserved food, frozen food Health food Organic food Re-exports – the UAE and Saudi Arabia have emerged as major re-exporting hubs, due to their strategic location. These countries have become a significant link in the region’s food chain, supported by strong logistics, location and well-established transportation routes (air, sea and land).
Booming Tourism Industry As of 2014 and according to the Government of Dubai, Department of Tourism and Commerce Marketing, Dubai has 612 hotels with 85,000 rooms. By the end of 2016, Dubai is expected to see an additional 140 hotels and 30,000 rooms. "With Dubai winning its bid to host the “Expo 2020” event, the hospitality sector should be a major beneficiary, with up to 25 million visitors expected during the 6-month period. The event will benefit not just Dubai but also Abu Dhabi (and other emirates) with many guests choosing to visit multiple destinations within the U.A.E.,” JLL analysts said in a new report released June 1st, 2014. The total contribution of travel and tourism to GDP was estimated at around 14.2 % in 2013 compared to the world average of 9 %. According to the UN’s World Tourism Organization (UNWTO), the UAE topped the Middle East region for international tourism receipts amounting to US$ 46.7 billion in 2012. Dubai alone attracted over 11 million tourists in 2013 and reached a hotel occupancy rate of 80 %. The hotel room rates displayed an average daily rate of around US$ 278 in 2013. In Abu Dhabi Hotels reached an occupancy rate of
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77% with an average daily rate of around US$ 207. Visitors come principally from Arab countries, especially Saudi Arabia, Europe (25 %) and Asian countries (20 %). According to the report, around 50 %, or 14,000 rooms, of the 28,000 expected new hotel room supply will be in Dubai and 31 %, or 8,700 rooms, in Abu Dhabi. Currently, Abu Dhabi-based Rotana Hotels lead the U.A.E. market with 32 properties followed by Starwood Hotels and Resorts with 22 properties. There are thousands of restaurants in the UAE with all types of cuisine available. Many of the restaurants, coffee shops and bars are located inside hotels and are regularly visited by UAE residents. Therefore, the hotels’ business depends on tourists and residents alike.
Scope for premiumisation remains across all food categories and soft drinks segments.
Rising health-consciousness has significantly increased the opportunities for food producers that are able to introduce healthy options.
Busier lifestyles and more women entering the workforce will continue to add stimulus to the packaged and processed food industries.
Despite the impact of the economic downturn, the tourism and financial sectors still have good mediumterm growth prospects, driven by domestic and foreign investment.
Non-alcoholic drinks could benefit from the restrictions on the sale of alcoholic drinks.
Busier lifestyles are opening up opportunities for neighborhood convenience store launches.
Trend toward buying more premium products.
Development of Islamic economy (Halal market).
Sources: UAE Food and Drink Report, Q2 2014 Interviews http://www.dubaitourism.ae/trade-resources/statistics http://www.uaeinteract.com/docs/140_new_hotels_to_open_in_Dubai_by_2016/61182.htm http://www.uaeinteract.com/docs/Dubai_to_have_half_of_28,000_U.A.E._rooms_supply_by_2016_JLL/62035.h tm Travel & Tourism - Economic Impact, 2013
3.10. INDUSTRY TRENDS The UAE is a country which undergoes constant changes. Modernization is one of the driving forces. The cities are constantly growing, expanding and renewing themselves. All in all there is not much space for nostalgia and the need to keep ‘older’ parts of a city. The UAE’s very open attitude towards new technologies and its constant will to strike for number one are feeding change and modernizing. The composition of the expatriate population is changing as well, with people constantly leaving and new people constantly arriving. The tourism sector is growing and by now tourists are not only visiting for business purpose but out of interest in the country and its attractions. Global trends are reaching the UAE as well.
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Naturally, with all these changes and dynamics the UAE is influenced by new trends:
Halal food consumption is growing at a faster pace with the rise in income levels and tourist activities in the region.
Increasing awareness among food producers and growing government support has attracted food retailers to the organic food segment.
Retailers are diversifying formats and channels to suit consumers. Hypermarkets will continue to be the fastest growing food retail channel. With growing demand for fresh, customers are shopping more frequently. Retailers are coming closer to customers by diversifying into supermarket and convenience formats. The burgeoning food service channel presents an additional opportunity for retail food players.
Private labels are emerging across the region. Private-label penetration in the GCC, currently 3 % of total sales, is much lower than in mature countries (from 15 to 20 % of sales in 2011). Retailers can improve margins with their own private labels, but first must build customer trust in the brand.
There will be more concern, both at industry side and at consumer side, about sustainability:
food should be healthy for consumers and animals, and should be environmentally-friendly grown and packed; the food industry should not harm the environment, the food industry should be humane for workers, the food industry should respect animals, the food industry should provide a fair wage for the farmer, the food industry should support and enhance rural communities. Mr. G. Bradstock, Lindt & Spruengli, Head of Region, says they source their cocoa from Ghana and are heavily involved over there with the well-being of the farmers and with the [Graeme Bradstock] community at large.
More and more food outlets, hotel restaurants, supermarkets, groceries and specialty stores offer local produce, fresh organically grown fruits and vegetables or local dairy products. It is becoming easier to buy healthier products, but finding the products that meet the high healthy standards is never easy.
More attention to fair trade and more concern about CSR (Corporate Social Responsibility) issues, traceability of food products, transparency of distribution channels and pricing structure.
More 3 and 4 star hotels will be constructed, in view of “Expo 2020”, and this will bring about an increase in less formal and more middle market eating out.
There is a definite and clear growing global trend towards premium products. Consumers want to buy quality, at a good premium price.
Continuously growing trend for “premiumisation”. Premiumisation is the word used to describe the demand for better and more expensive variants, primarily within spirits. It was first used by Pernod Ricard.
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Bigger concern will be noted about food safety and packaging, and about the quality of raw ingredients and local logistics linked to climate challenges.
Strong likelihood that further development and diversification of the UAE food manufacturing sector will be given high priority in future government policy making.
Companies will be able to see opportunities for partnerships with food producers in the emerging markets, using UAE as the distribution base.
Upward trend for products that contain significant health properties (functional food).
Eco-friendly packaging is expected to gain in popularity (e.g. lightweight bottles for mineral water).
Sources: Interviews A Generous Helping of Food Retail Growth in the GCC, AT Kearney
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4. Food Distribution 4.1. ROUTE TO MARKET The most common way of selling goods in the UAE is by appointing a commercial agent. The UAE legal system does not distinguish between an agent and a distributor, they are both referred to as commercial agents. Sometimes, other methods such as direct sales to the end-user are also used. Food imports are typically handled by firms specializing in import and distribution of food products to wholesalers, retailers and institutions. Since 1996, the UAE no longer permits sole agency agreements for food brand names with the purpose of reducing retail food prices Implementing the right route to market strategy is critical to deliver distribution excellence. If a brand or product is targeting the mass market, for example beverages and confectionery with significant volume, the focus likely is on numeric distribution since the goal is to be in every outlet possible to capture the widest possible consumer base. A product sold to a distributor, food importer, wholesaler or directly to a retailer is usually sold in large amounts at a lower rate. Profit margins are often reduced, and it can be complicated setting prices and finding the right wholesaler. It is the preferred route to market for selling lower value items, shifting a lot of product quickly and selling to businesses that prefer to deal with large or established suppliers. If a brand or product is a more specialized or premium product such as organic food, it is advised to seek a small number of stores which are frequented by consumers seeking this kind of specialized or luxury product. The attention should be on the weighted distribution of a brand, rather than on penetrating as many outlets as possible. If selling directly, the margin is higher but the sold product amount is lower. The common route to market for hotels shows 60-70 % of products are purchased via importers/distributors from Canada, USA, Europe, Australia and around 40 % are purchased via importers/distributors from GCC countries. Hospitality and food outlets choose more and more to go for locally (GCC) grown fresh fruits and vegetables (partly organic). Most of the food arrives at the outlet in a frozen condition because that entails lower cost than when the shipment needs to be chilled at the right temperature in order to keep the food stuff fresh. The most recent distribution development in Dubai is happening around Dubai World Central (DWC). An aerotropolis that cements Dubai’s leading position as a logistics and trade hub. It takes advantage of Jebel Ali Port (the largest container port between Singapore and Rotterdam) and seamlessly connects it to the recently inaugurated Al Maktoum International Airport through the dedicated Dubai Logistics Corridor. 4.1.1. Ports in the UAE Port Rashid, Jebel Ali Port, Khalifa Port, Mina Zayed, Mussafah Port, Free Port, Saqr Port, Al Jazeera port, Al Jeer Port, RAK Khor Port, RAK Maritime City, Port of Ajman, Port of Fujairah, Port Umm Al Quwain, Port Khalid and Al Hamriyah Port of Sharjah. Definitions Distributor, Wholesale, Retailer Distributors Distributors frequently have a business relationship with manufactures that they represent. The distributor becomes the manufacture’s direct point of contact for prospective buyers of certain products. However, distributors rarely sell a manufacture’s goods directly to consumers. Wholesale representatives and retailers generally find distributors to buy products for resale.
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Wholesalers Wholesalers generally buy a large quantity of products directly from distributors. High-volume purchase orders typically improve a wholesaler’s buying power. Many distributors provide discounts for a certain number of items purchased or the total amount spent on merchandise. Wholesalers acquire merchandise, such as telephones, computers, bicycles, clothing, televisions and furniture. The goods are frequently destined for retailers. Retailers Retailers consist of small and large for-profit businesses that sell products directly to consumers. To realize a profit, retailers search for products that coincide with their business objectives and find suppliers with the most competitive pricing. Generally, a retailer can buy small quantities of an item from a distributor or a wholesaler. For instance, a retail merchant who wanted to purchase a dozen lamps could contact lighting distributors to inquire about pricing. 4.1.2. The Most Important Food and Beverages Retailers in the UAE 1. Carrefour UAE (www.carrefourme.com) Joint venture between the Majid Al Futtaim Group and Carrefour France; stores in Al Ain, Abu Dhabi, Ajman, Dubai, Ras Al Khaimah, Sharjah, and Al Shindagha; sells grocery, fruits, vegetables, light household goods, consumer durables, garments, etc. 2. EMKE Group (www.lulugroupinternational.com/index.php) Business group based in Abu Dhabi with a presence in department stores and supermarkets, hypermarkets, import and distribution of foodstuffs and consumer staple goods, garment manufacturing, and information technology training. 3. Lifco Group of Companies (www.lifco.com) Business group based in Sharjah; traders in food and allied services and products; owns large warehouses and supermarkets in Sharjah, Dubai and Abu Dhabi and a fleet of delivery trucks, refrigerated trucks, container trucks, etc. 4. Lulu Hypermarket (http://uae.luluhypermarket.com) Web site of chain of hypermarkets set up by the EMKE Group; the first one was in Al Qusais, Dubai with others in Fujairah, Ajman, Muscat (Oman) and Doha (Qatar). 5. Fathima Group of Companies (http://fathimagroup.com) Business group in the UAE, Oman, & India, comprising Fathima Supermarkets (one of the largest supermarket chains in the UAE), Fathima Trading & Wholesale, Fathima Catering & Camp Service, Fairway Flour Mill, Al Ghazal Automatic Bakery etc. 6. Abu Dhabi Co-operative Society (www.abudhabicoop.com/english/index.php) Retail chain based in Abu Dhabi; operates supermarkets & hypermarkets, retail parks, shopping malls etc. 7. Aswaaq LLC (www.aswaaq.ae) Retail chain in Dubai offering the feel of an authentic, traditional and open-street market; has outlets in Nadd Al Hamar, Al Mizhar, Sufouh, Umm Suqeim, Al Rigga, Al Warqa'a & Mirdif; outlets feature ATMs, pharmacies, beauty salons etc. 8. Choithrams (http://choithram.com) Chain of supermarkets with 25 outlets across the UAE, including Abu Dhabi, Dubai, Sharjah etc.; offers fresh produce, meat, bakery products, food to go; group has interests in wholesaling, commodity brokerage, and making edible & non-edible items. 9. Bani Yas Cooperative Society (BCS) (www.baniyascoop.ae/site/index.php) Supermarkets in Abu Dhabi; product categories include home appliances, baby care, fresh food, electronics, furniture, office products, cleaning & detergents, baby care, beauty & personal care etc. 10. Nesto Group (http://nestogroup.com) Chain of departmental stores, super markets, & hyper markets in the GCC countries; brands: Alwafa, Caravan, & Everfine; promoted by Western International LLC.
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11. Al Maya Group (http://almaya.ae) Company in Dubai that runs Almaya supermarkets and hypermarkets; distributes and packages FMCG products; runs franchises for Bhs, Bhs Kids, Borders (bookshops), Paperchase (stationery); operates Mom & Me, Byford London and DIM stores etc. 12. Geant Easy Supermarket (www.geant-uae.com) Supermarkets located in Dubai, Sharjah and Abu Dhabi; subsidiary of French retail group Geant Hypermarket; offers fruits & vegetables, meat, fish, home ware, groceries etc. 13. Geant Hypermarket, Dubai (www.geant-uae.com) Hypermarket located on Sheikh Zayed Road (Dubai), between Interchange 5 & 6; has about 40 customer checkout counters and product lines include food, grocery, apparel, house ware, consumer electronics, beauty care etc. 14. Jaleel Holdings (www.jaleelholdings.com/index.php) Business founded by M.V. Kunhumohamed in 1972 in Dubai, with branches across the UAE; wholesale dealers of 5,000 products imported from India, Italy etc.; also runs J-Mart supermarkets, IT & packaging firms, Del Credere agency etc. 15. Lals Group (www.lalsgroup.com) Company owning and operating malls, hypermarkets, & supermarkets in Middle East, such as Lamcy Plaza, Homes r Us, Mr. Price, Bossini, G 2000, Daiso etc.; has a combined space of 1.6 million sq. ft., and manages over 50 retail stores; based in Dubai. 16. Spinneys Dubai LLC (www.spinneys-dubai.com) Business group involved in distribution & marketing of consumer goods & liquor products, supermarket retailing, food services, & exports of consumer products; has operations in Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al Qwain, Ras Al Khaimah & Fujaira. 17. Union Co-operative Society (http://ucs.ae/ucs/home.aspx) Chain of hypermarkets with seven outlets in major residential areas in Dubai such as Towar, Jumeirah, Rashidiya, Satwa, Al Mankhool, Hamriya and Al Aweer; products include food, toiletries, kitchenware, detergent etc. 18. Maritime & Mercantile International (MMI) (www.mmidubai.com) MMI specialize in the marketing, sales and distribution of alcoholic beverages. MMI is a major player in the region with 11 shops across Dubai and joint venture operations in both Abu Dhabi and Oman. It stocks more than 1200 wines, the largest portfolio in the Gulf, while it also has the most comprehensive selection of premium spirits in the region, with over 400 leading brands. 19. African + Eastern (http://africaneastern.com) With a history spanning nearly five decades, African + Eastern has grown from a small trading company to the largest importer and distributor of the world’s most popular alcohol brands in the Middle East and Arabian Gulf.
Sources: http://www.arabianbusiness.com/the-route-market-47920.html http://export.gov/unitedarabemirates
4.2. NATIONAL DISTRIBUTORS There are hundreds of food distributors and traders in the UAE. Most retailers, hotels and restaurants work with many different distributors, depending on the products they require. Here is a short list of well-known and important food distributors in the UAE (in alphabetical order). 4.2.1. Distributors Al Aqili Trading Founded in 1976 the group is among the oldest multi industry conglomerates in GCC with business interests spanning petrochemicals, communications, manufacturing, retail and distribution. The AAT food portfolio includes frozen,
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chilled and dry foods. Al Seer Group (owners of Spinneys) (www.alseer.com/en) A leading distributor of a large number of top international FMCG brands such as Kraft, Nestle, Kimberley Clark, Reckitt Benckiser, Ferrero Rocher, Anchor, Libby's, Henkel and Colgate Palmolive within the UAE and Oman. Al Seer’s comprehensive coverage includes all retail channels (including hypermarkets, supermarkets and groceries), as well as food service (hotels, restaurants, flight catering, palace supplies catering etc.). Admirals Trading LLC (www.admirals.ae) A multi-disciplined foodstuff import & distribution company based in Dubai, U.A.E. Founded in 2000, Admirals imports a range of quality products for the retail and food service sectors as well as managing a number of important lifestyle brands. Arabbeverages (http://arabbeverages.com/2014/) A company engaged in the production and distribution of Capri-Sonne fruit juice in the UAE, Oman, Bahrain, Kuwait, Qatar, Jordan, Yemen and Lebanon; distributors of products such as Alban milk powder, V energy drink, Biophar honey & Active O2. ARAMTEC (http://www.aramtec.com) A 100% locally owned company established in 1979 with main activities in import and distribution of premium food products throughout the U.A.E. Some of Aramtec's premium brands include; Pillsbury, Green Giant, Hunts, Pomi, Hungry Jack, Orville, ACT II, Cool Blue, The Jelly Bean Company, American Foods Group, Pureland Angus Beef, Lutosa, Dobla, Martin Braun, Hug, and many more. It has locations in Abu Dhabi and Dubai. Best Food Emirates (www.bestfoodco.com) This division of Best Food exclusively fulfils the requirements of the UAE market. With offices and stores in Dubai, Abu Dhabi, Al Ain, Fujairah and Ras Al Khaimah, Best Food Emirates caters to a broad cross-section of customer profiles. This includes customers who shop at hypermarkets, B-class supermarkets, groceries and petrol stations, wholesale customers, caterers, hotels and various other institutions. Faisal Al Nusif Trading Co. L.L.C (http://fantco.com) FANTCO’s major activities are import and distribution of quality chilled, frozen and dry food products from USA, Europe, South America, Far East and Asian Countries. FANTCO is the only licensed UAE distributor of Certified Angus Beef brand products from USA. The company supplies and does the logistics services for leading US restaurant chains, such as Fuddruckers, Applebee’s, Cinnabons & SeattleBest Coffee (Cravia), etc. Federal Foods (http://www.federalfoods.com) A subsidiary of Al Nowais Investments LLC. A privately owned UAE conglomerate with diverse business interests covering a wide spectrum of industries. Federal Foods is catering to the full spectrum of retail, food service and wholesale sectors. Its 3 divisions are frozen, chilled and dry. Foodco Holding (http://foodco-uae.com/home/index.aspx) Established in 2006 has seen the establishment of a number of companies under the banner of Abu Dhabi National Foodstuff Company (Foodco) presently and was established in Abu Dhabi in 1979 as a public shareholding entity under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the President of UAE. These former divisions operate as standalone subsidiaries of Foodco Holding. Food Emporium LLC (http://foodemporiumuae.com/about_us.html) A HACCP Certified company, dealing in trading, distribution and processing of FMCG products in the GCC region and caters to retails, food service and whole sales market segments. Hassani Group of Companies - Hassani Trading Company (http://hassanigroup.com) HTC is the main trading arm of the group and the first food distribution company in the UAE, HTC distributes both food and non-food products to hypermarkets, A, B & C class supermarkets, wholesalers, ship-chandlers, catering companies, hotels and restaurants all over the UAE. They are agents for many international brands in the UAE. Brands consist of Kellogg’s, French’s, Cadbury, Jif, Smuckers, Crisco, Crespo, Mak-C, Nando’s, Ken’s and many more.
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Pace Foodstuff (http://www.pacefoodgroup.com) Established in 2001 is a one stop destination offering a wide range of premium quality products. 4.2.2. Distributors to the Hospitality Abela & Co LLC (www.abelaandco.com) Established in 1967 in Dubai, Abela & Co. has firmly established itself as one of the leading food service management companies. Throughout the years, Abela have expanded their business to cover all facets of the hospitality and catering industry, offering outstanding products and customer service. Chef Middle East (http://chefmiddleeast.com) Established in November 1995, Chef Middle East LLC has been a service-driven business with certification of the HACCP and ISO 9001:2000. Its distributed brands include Wiesenhof GeflĂźgel GmbH, Galbani, Knorr, Jacobs, Valrhona and many more. Classic Fine Foods (http://www.classicfinefoods.com) A market leading importer and distributor of fine foods. It serves the vast majority of five-star hotels and high-end restaurants in Asia. Its distributed brands include Illy, President, Kaviari Paris and Lescure, and more. Food Source International (http://foodsourceuae.com) A Dubai based food-import and service company, we specialize in importing premium quality Food products for the high end user in the Hospitality industry. Its distributed brands include Laederach Chocolatier Suisse, Chocolate and Cookies from Switzerland.
4.3. PRICING Price is the primary buying factor for the middle and lower classes. These market segments are served through small stores, cheaper shops and markets. Retailers in this category operate under thin margins of usually only 1 % to 2 % and rely therefore on volume. For segments of the society with high purchasing power, price is not a primary buying factor. Therefore, retail margins are high. These segments are serviced through specialty shops and the more exclusive shops of the Malls. The UAE is home to some of the largest malls in the world combining shops, dining and entertainment in an airconditioned environment. Hotels usually set a margin of 25 % - 35 % for their food and beverages outlet. European companies are known to offer quality products, and the relatively higher prices of Swiss products can be attributed to higher quality as well. It is important to consider that Indian, Chinese, Korean, and Japanese suppliers are very competitive in this market as well. Considering the UAE market, a low Euro is helping European companies competing with countries in other currency areas. Swiss exporters must be ready to use pricing aggressively to encourage market acceptance of their products. The average importer markup on food products is about 10-15 %. Retail food prices are generally 20-25 % above import/wholesale prices. Extra-costs for labeling in Arabic before shipment, documentation inside Switzerland (e.g. certificate of origin) and transport costs have to be considered as well.
Factors to be considered for pricing inside UAE: Cost price + 2 % clearance cost + 5 % taxes/customs (might change after EFTA is fully applied – refer to 2.3. Free Trade Agreement) + 12% operation costs (warehouse, etc.) + margin (1% - 35%) according to outlet
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Table 13: Selection of Consumer Food prices in the UAE (average) Milk (regular), (1 liter)
5.53 AED
(US$ 1.51)
Loaf of Fresh White Bread (500g)
4.24 AED
(US$ 1.15)
Rice (white), (1kg)
6.45 AED
(US$ 1.76)
Eggs (12)
9.48 AED
(US$ 2.58)
Local Cheese (1kg)
32.16 AED
(US$ 8.76)
Chicken Breasts (Boneless, Skinless), (1kg)
24.87 AED
(US$ 6.77)
Apples (1kg)
9.03 AED
Oranges (1kg)
7.44 AED
(US$ 2.03)
Tomato (1kg)
5.86 AED
(US$ 1.60)
Potato (1kg)
4.16 AED
(US$ 1.13)
Lettuce (1 head)
5.14 AED
May, 2014 source: www.numbeo.com
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(US$ 2.46)
(US$ 1.40)
5. Consumer Trends Since the food market is usually reacting to the consumer’s needs and desires the consumer trends overlap with the industry trends. Overall, a range of different consumer behavior can be defined in the UAE, according to lifestyle, upbringing, values and ideologies of the costumer (in alphabetical order): Consumers Buy Brands (Heinz Ketchup, Actimel, Red Bull, …) In the UAE, consumers are very brand loyal. This is also due to need of security in the consumer resulting from the overwhelming amount of products on offer. In order to be successful in the UAE, a company must spend time and money on building brand awareness and trust in the consumer’s mind. Consumers Want to Be Educated Consumer education is defined as education given to the consumer about various consumer goods and services, covering price, what the consumer can expect, standard trade practice, etc. Such information may be relayed through magazines or websites. It helps with creating transparency and with building trust. Fair-trade Products and Traceable Food Trend Consumers like to know the origin of the food and whether the conditions in the country of origin are favorable for the workers and farmers producing the food. Fresh Food Products Trend Following the growing wave of health awareness, more and more consumers prefer fresh, unprocessed, non-frozen food stuff that has not been chemically treated. Functional Food Trend Functional food is of growing interest since it promises a benefit to health and lifestyles. It could also be consumed out of medical reason with the same goal of an improved life quality and of being of benefit for the health. Gluten-free Food Trend A gluten-free diet (GF diet) excludes foods containing gluten, a protein found in wheat (including kamut and spelt), barley, rye and triticale. A gluten-free diet is the only medically accepted treatment for celiac disease, an autoimmune disease. Lots of products labeled as gluten-free are based on corn flower and oats. Gluten-sensitive people are usually willing to pay extra money for their gluten-free lifestyle. Health Food Trend Because of growing and spreading awareness of health consciousness, consumers look more and more for healthy, natural, fresh food products. Healthy Convenience Food Trend The food industry is evolving in the sense that more people are becoming smarter eaters and are calling for healthier options. Local/Arab Trend Due to the cultural diversity of the UAE population, the manufacturer should consider the different festive seasons, such as the two annual “EID” celebrations, Christmas and the “Divali” festival, which usually see the peak times for the sale of pastries and sweets. Moreover, Arabs tend to replace flowers as a gift by sweets and chocolates, when invited as a guest to another house. Some chocolate manufacturers, such as PACHI, therefore have set up special outlets catering for this requirement with opulent “chocolate baskets”, which usually start with a price tag of 35-40 US$. Camelicious products such as fresh camel milk, four flavored milk options, Laban and three types of cheese are currently available in the UAE, Kuwait and UK (for plain milk in selected outlets). Al Nassma is the first and finest camel milk chocolate that symbolizes a unique quality product.
Low-fat Dairy Trend
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The trend towards low calorie and 'diet' has been a constant theme. Within dairy, the various sub-sectors of cheese, desserts, yoghurt, cream, fats and spreads have all felt this impact in order to keep up with such trends. Meal Replacement Products Trend A meal replacement is a drink, bar, soup, etc. intended as a substitute for a solid food meal, usually with controlled quantities of calories and nutrients for purposes of weight loss. Some drinks are in the form of a health shake. More Demand for Processed Food Trend Processed food or convenience food, designed for ease of consumption, is still high in demand since it meets the need for a convenient lifestyle. Organic Food Trend Food that is grown or made without the use of artificial chemicals, and without the use of pesticides. Organic food has to fulfill strong regulations in order to be called organic. This transparency results in trust in the product by the consumer. The trend, in Dubai as in the rest of the world, is continuously growing and irreversible. Organic Local Produce Buying Trend A growing number of restaurant outlets, hospitality food outlets, supermarkets, groceries and specialty stores claim that they buy and use in their kitchen locally-grown organic fruits and vegetables. Also raw meat and milk and yoghurt are available. Premium Products Trend There is a definite trend towards buying premium, high-quality food and beverages and towards casual up-market dining. Ready to Cook Food Trend Because of busy, hectic lifestyle and couples often both working outside of the home, consumers look for ready-to-eat products such as pre-cut vegetables, salads, fruits, juices and for easy and quick ready to cook food. Shift to Protein-Rich Diet Trend Shift to a protein-rich diet including meat and dairy, from a carbohydrate-based one consisting of staple food items such as cereals. Sugar-free Food Trend Following the health trend, and also because of growing awareness that diseases such as diabetes must be avoided. Sustainable Food Trend Food that is healthy for consumers and animals, does not harm the environment, is humane for workers, respects animals, provides a fair wage for the farmer, and supports and enhances rural communities. This is obviously connected with fair trade and traceability. Take-away, Order-in, Online Ordering of Food Trend Due to the busy lifestyle and people enjoying their free time instead of using it for cooking, the share of the convenient take-away / order-in food market keeps growing. Almost every restaurant offers home delivery, not just fast food chains or convenience food shops. Very popular is also weight-loss daily-meals delivery. UAE Growing Food Consumption The following graph shows the development and the predicted development of the UAE’s food consumption from 2011 until 2018.
Sources: Interviews
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Graph 2: UAE Food Consumption (in bn US$)
12 10 8 6 4 2 0 2011
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2012
2013
2014
2015
2016
2017
2018
6. Overview of the Halal Market 6.1. THE HALAL INDUSTRIES – SECTORS AND TRENDS 6.1.1. What is Halal? Halal is the Arabic word of lawful or permitted. Halal food therefore, according to the Food & Agriculture Organization of the United Nations (FAO), is defined by Islamic Law outlined in the Holy Qur’an as lawful food permitted for consumption. Halal food cannot consist of or contain anything which is considered unlawful under Islamic Law and there are strict criteria governing the entire supply chain - from slaughtering of animals, processing and transportation to kitchen preparation and storage. 6.1.2. The Halal Market Halal sectors stretch from all types of food products and food outlets to cosmetics, perfumes, clothes and accessories, finances, as well as the hospitality Industry. The global expenditure of Muslim consumers in the media, food, and lifestyle sectors such as cosmetics and tourism touched US$1.62 trillion in 2012. This figure is expected to reach US$2.47 trillion by 2018, according to the State of the Islamic Economy 2013 report by Reuters. Of these, the food product market accounted for US$ 1,088 billion (16.6 % of global expenditure) in 2012, and is set to rise to US$ 1,626 billion by 2018, while US$ 224 billion (10.6 % of global expenditure) accounted for clothing and footwear. The market for Halal food is estimated to be worth US$ 237 billion in MENA countries, with the GCC region itself being an attractive Halal market and estimated to be worth US$ 85 billion. The UAE is the 14th largest market in the world with a value of US$ 20 billion. According to a report by Thomson Reuters and Dubai authorities, the global Islamic economy has a potential value of US$ 6.7 trillion and is bigger than most of the economies in the world except China and the United States. Dubai has been aiming to tap into the potential of Islamic finance with plans to become a global hub that will rival other Islamic finance centers like Kuala Lumpur and London. The report estimates that Muslim consumers’ global expenditure on the Islamic financial assets, valued at US$ 1.35 trillion, are expected to grow 15 to 20 per cent per year in the core markets, the report said. 6.1.3. Center of Halal Economy to be Set Up in UAE Keeping in view of the vision of His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make UAE the center of Halal economy, ESMA (Emirates Standardization Authority) has announced that all Food products claiming to be Halal need to have a Halal mark & certification. The Halal standards regulation might be in place sometime in 2014, covering all types of Food products and Food outlets as well as cosmetics, perfumes, clothes and accessories and hospitality industry. Every food brand & food outlet that claims to sell Halal food, will come under the scanner, including details of the ingredients used, processing method, plantation, chemicals used, packaging and animal slaughtering, all of which should comply with Sharia regulations and the new Halal standards. 6.1.4. Halal Conferences Important conferences concerning Halal food and Halal products are held in the UAE:
Halal Congress Middle East 2013 – EXPO Center Sharjah, UAE http://www.halalcongress.com/HalalFood/default.htm Halal Food Middle East 2013 - http://www.halalfoodme.com/HalalCongress/default.htm Global Halal Trade and Logistic summit 2013, Dubai, UAE - http://www.kwhalal.com/ Halal Congress Middle East 2014 – EXPO Center Sharjah, UAE - http://www.halalfoodme.com
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Halal World Food Dubai - as part of the Gulfood 2014 http://www.gulfood.com/Content/HALAL-WORLDFOOD-EXHIBITION-TO-PROPEL-DUBAIS-ISLAMIC-ECONOMY-CAPITAL-VISION
Sources: http://oxfordbusinessgroup.my/tag/muslim/ http://gulfbusiness.com/2013/12/dubai-ruler-establishes-centre-to-boost-islamic-economy/#.U0u3yGqKBjo http://gulfbusiness.com/2014/02/dubai-industrial-city-launches-halal-cluster/#.U0u2aGqKBjo http://www.fao.org/docrep/005/y2770e/y2770e08.htm
6.2. REGULATORY FRAMEWORKS At the moment, the Municipalities of the different Emirates of the UAE regulate matters concerning Halal treatment, certification and compliance, considering the general Islamic laws described in chapter 6.1. The General Secretariat of Municipalities, short GSM (http://www.baladiat.gov.ae), has set up many decrees for the Halal market, regulating hygiene matters, certification as well as accreditation of Islamic Associations in foreign countries. General UAE rules and regulations concerning Halal treatment in the UAE include: 1.
2. 3. 4. 5. 6.
The Federal Law No. 4 of 1979 and its Executive Regulation (Ministerial Resolution No. 26 of 1984) Concerning Repression of Commercial Fraud and Deception in Commercial Transactions. GSM Decree No. 5/1985 concerning Hygiene Requirements and Lawful Slaughtering of Livestock and Poultry. Decision No. 3/33/92-2 /1992 Concerning the Recognized Form of Halal Slaughtering Certificate. GSM Decision No. 8/52/2000 Guidelines for Legal and Health Requirements for Establishing & Operating of Abattoirs. UAE-Standard No. 993/2000 concerning Animal Slaughtering Requirements According to Islamic Law. GSM Decree No. 32/2005; Concerning the Conditions and Procedures for the Accreditation of Islamic Associations Supervising Halal Slaughtering in Foreign Countries.
6.2.1. Meat Import to the UAE The UAE-GSM, the General Secretariat of Municipalities, has set up requirements of inspection, certification and stamps concerning meat import to the UAE:
Each lot of imported meat and poultry products should be accompanied with Halal certificate issued by an accredited Islamic association proving that slaughtering has been carried out according to Islamic Rites. The Halal Certificate should be attested by UAE Embassy or Consulate in the country of origin or by their authorized representative (a GCC, an Arab or Islamic country). Carcasses (chilled or frozen) or final containers of special meat cuts should be branded with the Islamic association official stamp. The stamp should be tamper proof and branding ink should be stable and food safe (not harmful to health).
6.2.2. Halal Certification in Switzerland for Export to the UAE An accredited Islamic Association in Switzerland can supervise the preparation of Halal food in Switzerland and certify it as Halal before export to the UAE. The UAE-GSM, the General Secretariat of Municipalities, is responsible for the accreditation of an Islamic Association in a country outside the UAE. (GSM Decision No. 32/2005): ‘The Islamic Association (IA) that supervises Halal slaughtering for the UAE in foreign countries must be recognized and meet all legal requirements of the country that it is existing in.”
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Islamic Associations for Halal Certification in Switzerland include:
Islamic Centre, Geneva, Centre Islamique de Genève, 104, rue des Eaux-Vives 1207 Genève - SUISSE Halal Certification Services, P.O. Box 247, 4310 Rheinfelden, Switzerland
6.2.3. Emirates Standardization & Metrology Authority (ESMA) The Emirates Standardization & Meteorology Authority, short ESMA (http://www.esma.ae) also set up regulations for Halal certification and testing for Halal compliance. Standards issued by the Emirates Standardization & Meteorology Authority (ESMA) or issued as Gulf standards (GSO) are: General requirement of Halal food Halal slaughtering requirements Methods for testing pork and lard in food products Halal food issues in all the vertical standards for food commodities that may contain ingredients of meat, alcohols, gelatin, fat, etc. Requirements for accrediting centers involved in Halal food certification. ESMA, Emirates Standardization & Meteorology Authority, is in the process of setting up a whole new system of Halal testing and certification which will be implemented in the whole of the UAE. Further, ESMA hopes their Halal food standards will also be globally adopted by other countries. “Each Emirate has its own system to verify Halal compliance at municipal level but there are no general standards and regulations. We will be putting a whole new system in place which will not only be a point of reference for firms in the UAE but also for other Islamic nations,” said Mohammad Saleh Badri, Director-General of ESMA in a recent publication. (http://gulfnews.com/news/gulf/uae/government/halal-mark-a-must-for-all-food-products-in-uae1.1185172
Sources: http://www.esma.ae http://gulfnews.com/news/gulf/uae/government/halal-mark-a-must-for-all-food-products-in-uae-1.1185172 http://www.baladiat.gov.ae http://www.halalcs.org/
6.3. FUTURE OUTLOOK – WHERE IS THE HALAL MARKET HEADING? 6.3.1. Global Market The global expenditure of Muslim consumers in the food, media and lifestyle sectors is expected to reach US$ 2.47 trillion by 2018, according to the State of the Islamic Economy 2013 report by Reuters. A report by Thomson Reuters and Dubai authorities estimates that Muslim consumers’ global expenditure on the Islamic financial assets, are expected to grow 15 to 20 per cent. 6.3.2. UAE Market Dubai is planning an international center for Halal food established with the aim of becoming a major reference point in the global food industry. Recently mandated by the Organization of Islamic Cooperation (OIC) to formulate Halal codes for cosmetics and perfumes to be implemented in all Islamic countries, the Emirates Authority for Standardization and Metrology, short ESMA, hopes the Halal food standards will also be adopted by other countries. Further, Dubai Industrial City, a part of TECOM Investments, has announced the launch of a “Halal cluster”, which would help drive the growth of Halal food, cosmetics and personal care sectors in the UAE. The cluster has been established through collaboration with Dubai Islamic Economy Development Centre, Standards Department at Emirates Authority for Standardization and Metrology (ESMA) and the Dubai Municipality.
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6.3.3. UAE Gateway for Malaysia Malaysia is positioning itself as an international Halal player, with the country carving a niche as a key producer and exporter of Halal products, according to a recent report by Oxford Business Group (OBG). Malaysia exported US$ 9.7billion worth of Halal products in 2013, making it one of the largest suppliers in the Organization of Islamic Cooperation (OIC) according to OBG. A recent article revealed that Malaysia is actively looking at the UAE as a gateway for entering the potentially high value Halal markets in North Africa, Middle East and Europe. http://www.foodnavigator.com/Regions/Middle-East/Malaysia-to-use-UAE-as-gateway-to-halal-markets-in-AfricaEurope
Sources: http://oxfordbusinessgroup.my/tag/muslim/ http://gulfbusiness.com/2014/04/hunt-halal/#.U0ZIkmqKDIV http://gulfnews.com/news/gulf/uae/government/halal-mark-a-must-for-all-food-products-in-uae-1.1185172 http://www.esma.gov.ae/en-us/News//Pages/halalfood.aspx http://www.foodnavigator.com/Regions/Middle-East/Malaysia-to-use-UAE-as-gateway-to-halal-markets-in-AfricaEurope http://www.uaeinteract.com/docs/New_international_centre_for_Halal_food_to_open_in_Dubai/59237.htm
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7. Export Check-list This information is of June 2014. Please note that together with the other member states of the European Free Trade Association (EFTA) and the Gulf Cooperation Council (GCC), Switzerland and the UAE have signed a Free Trade Agreement in June 2009, which has recently been ratified, effective July 2014. See 2.3. Free Trade Agreement.
7.1. GENERAL CUSTOM CLEARANCE Please note that before importing food into Dubai an electronic registration with Dubai Municipality EGovernment is mandatory (see 7.2). Uses: Used for goods imported for local consumption Documents Required: Delivery order Bill of Lading Packing List Original Invoice Certificate of origin Import permit from competent authorities (for prohibited & restricted goods). Letter of Exemption from competent authority (to have exemption) Customs Procedure Steps: 1. 2. 3. 4.
5. 6.
7. 8. 9. 10.
Applicant (Clearing agent, concerned or authorized person) will receive the bill of lading from the transportation agent or service company when importing by air or sea; Applicant will sort out required documents as per the order set forth in the opposite column of “Documents Required”; Applicant will submit the required documents to the clearance officer in the relevant Customs post for the purpose of issuing a Customer Code if one does not already exist; Applicant will have data entered into the Dhabi System through the clearing agent. If the Applicant is not authorized to have access to the Dhabi System, he may refer to one of the service companies operating in the relevant Customs post; A Job Number will be produced through the Dhabi System by the Data Processor based on Item (4) above; Applicant will submit the transaction to the Clearance Section officer who will: a- Verify all required documents are attached; b- Verify that there is no local agent for the relevant goods; c- Attach necessary approvals if there is a local agent, or permission for release of restricted goods; d- Enter the Job Number into the Dhabi System; Customs officer will verify the validity of information entered by Applicant (Importer’s name, value and weight of goods, No’s of bills of lading, classification, origin… etc.); Customs officer will determine next step for the transaction – release, inspection & examination; In the case of release, due Customs duties will be collected, Customs Declaration printed and goods received from the Customs post; In the case of referring goods for inspection and examination, there are two alternatives:
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a- Transfer to controlling authorities such as: AD Food Control Authority, Environment Authority, Ministry of Environment & Water, Ministry of Interior, Ministry of Health…; b- Obtaining approval from the relevant controlling authority and coming back to Clearance Section and having the goods released; If violations are detected in the Customs declaration (classification, value of goods, country of origin, weight, number of packages …etc.), the transaction will be returned to the clearance department for revision on Dhabi System; Customs officer will collect due Customs duties and print out the Customs declaration; The Customs Declaration will be given to the Applicant; Applicant will go to the Delivery Section to receive goods;
11.
12. 13. 14.
7.2. SPECIAL CASE DUBAI Only in the Emirate of Dubai an additional service, called Food Import Re-Export System (FIRS), an electronic service provided by Dubai Municipality. 7.2.1. Food Import Regulations Source: Dubai Food Importers guide These regulations are applicable on all food consignments at all ports of entry in Dubai, and on all licensed establishments in UAE which their licensed activity is related to foodstuff. Before importing any food product, the importing establishment must ensure that it is registered with Dubai Municipality E-Government. The registration with the Dubai Municipality E-Government includes the following steps: • Submitting an electronic application by logging on DM website: www.dm.gov.ae and pressing on register & selecting (apply for company and Admin. User registration) and following the instructions. • A company’s representative shall come to the e-government counter at customer service in DM Karama office and submit the company’s trade license copy, registration request number and the company’s official stamp. Activate the Food Import & Re-export service To activate the Food Import & Re-export service you need to register with the Food Import & Re-export System (FIRS) program which belongs to Food Trade control Section. To register here you need the following:
Registration with the e-government (see above) Submitting a copy of the company’s trade license The company’s telephone and fax numbers The company’s email Post Office Box number of the company Name and mobile number of the company’s representative Location details of the warehouse (warehouses) of the company in Dubai (Zone, street, etc.) Telephone and fax numbers of the warehouse (warehouses)
Food label Approval For Approving the label for any packaged food item which has not been approved before. The food label approval requires the following: Submitting an electronic application through the (FIRS). The application may include one or more food items. This is done by choosing “approving food label” from the main menu. Each food label shall contain the following: 1. Brand Name 2. Product name (a summarized description of the food product) 3. The food ingredients (arranged in a descending order according weight or volume)
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4. 5. 6. 7. 8. 9. 10.
11. 12. 13.
Production & expiration dates of all products (except those which are exempted from displaying the validity or expiration dates) Name of the food manufacturer, packer, distributor or importer Net weight or volume Country of Origin (if its omission leads to deceiving or misleading the consumer) Product’s barcode Lot number Language of the label shall be in Arabic. Approved stickers could be used to translate the food labels in Arabic Language. *The minimum requirements for the Arabic information on the label or sticker are indicated in C (2,3,7) above and any of (11,13,14) indicated below, if required. Storage conditions (if the validity of the product depends on such conditions) Mentioning the ingredients which may cause hypersensitivity Instructions for using the product (if needed) Displaying the nutritional information is optional (except the products with special uses such as baby foods, foods for patients, etc.)
Submitting samples of each food product or its label (or a copy thereof) to the Food Studies & Planning section in Karama (a copy of the label may be attached with the electronic application). Each food label shall be studied thoroughly be the Food Control Department. Appropriate modifications shall be noted. The application status shall be: Approved Pending Payment. The company shall follow up the application and make an electronic payment and receive the approval from the Food Studies & Planning Office in Karama.
All food items intended for importation should be registered in the registration and classification system (part of FIRS) based on the barcode number. This is a pre-requisite for completing any of the program’s applications. This shall be done through the following steps:
Submitting an e-application for registering any new food item through the Food Import and Export system (FIRS) and filling the required information. Attaching a clear & complete image of the food label through choosing Upload Product Image. If the product label is not available, a sample of the food item can be submitted to the concerned officer (registration locations are mentioned in the Food Control Services Contact List which is found at the end of this booklet).
Production and Expiration dates Production & Expiration dates shall be mentioned on all food packages (some exceptions apply) according to the following conditions:
Production & expiration dates except for exempted products shall be printed on the original package or label. It is prohibited to write such dates manually or indicate them on a sticker (even the sticker which is used for Arabic translation). Double dates are not allowed (such indicating more than one production or expiration date). Production & expiration dates shall be clearly printed, embossed, or engraved; and shall difficult to erase. Day – month – year shall be indicated on food products with a validity of three months or less. Month – year shall be indicated on food products with a validity of more than three months. Food products are divided into three categories with regards to their validity (please refer to the tables).
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8. Summary The UAE food market is a modern, trend oriented market that has to fulfill the needs of many people with different lifestyles, values and preferences. The market is very competitive and it needs a good long term strategy and the right attitude to find a place or niche in the market.
8.1. FOOD CHOICES Choosing products that have a chance in the UAE market is crucial. Swiss food products that were mentioned during interviews as having good chances for importing to the UAE are:
(Organic) chocolate Pork (Flavored) mineral water Baked goods (bread, cookies, cake,) White wines Cheese Ice-cream (with real cream) Rivella Nuts Fancy drinks Fruit juices Alcohol-free beer (malt drinks) Alcoholic beer Healthy energy drinks Specialty dairy Deep frozen stuff Butter Organic fruits and vegetables
Further, it needs to be mentioned that there niches are everywhere if the company is ready to compete in quality, marketing and price.
8.2. STRATEGIES AND WAYS TO INTRODUCE SWISS FOOD Choosing the right way to introduce a product to a new market, which, in the long run, will build trust with the customers, is another important point. Possible ways of introducing Swiss products to UAE food outlets, importers/distributors and consumers
Organize a test and/or tasting period in groceries/supermarkets/specialty stores Organize a test period in restaurants and food outlets Approach major chefs in restaurants with Swiss products and let them taste and test Tasting events for key people in the food market (via Swiss Business Council F&B Group, etc.) Negotiate a test period for new products through importer/distributor Cooperate with local consultants, e.g. with Food Source International Participate in food events such as Taste of Dubai, Gulfood, etc., and organize related functions Bring Swiss company delegations to UAE in order to have discussions with appropriate counterparts in the food/retail/hospitality industry Organize a Swiss Food Festival in the frame of other events Promote Swiss Food events with UAE key F&B people and invite them to
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Switzerland Organize a “roadshow” introducing the tasty food of Switzerland, and the high-quality image in general, which also tours in other GCC countries
8.3. KEY FINDINGS The UAE market is a very competitive market. Products from all over the world are constantly presented to the market. It is difficult to stand out and to be recognized. Therefore, it is important to consider following points as a Swiss company before deciding to try introducing Swiss products to the UAE market:
Swiss products/brands are not (well) known in the UAE. However, they generally benefit from the notion that Swiss stands for quality. You need to bring them to the UAE and actively introduce them to the consumers. The latter have ample exposure to all the big brands and it will take money, energy and perseverance to build brand awareness.
Make sure to find and to cooperate with a local, strong and professional importer/distributor who knows the market, the retail sector, the trends, etc.
Do the homework: define upfront your (marketing) strategy.
Do not expect immediate response or success! Launching and creating a brand takes time, money and a lot of effort. Consumers are not waiting for your products; you must bring the products to the consumers and convince them of the attractiveness of the produce.
The UAE is a very competitive and crowded market; all the big players are already here. Make sure to come with a high quality product at a good premium price.
Come to the UAE to get an idea of the market first and stick to regular visits in order to follow-up the situation continuously.
Learn about the Arabic culture, religion, and about their way of doing business.
You must create a brand, an image, brand awareness. This does not go for just one product, but for the whole image about Switzerland and Swiss produce.
Switzerland has everything to be able to create great products: mountains, lakes, healthy air, green pastures, highly qualified people, etc. – this can be capitalized in the product and the marketing.
You need volume selling in order to make your investment worthwhile or find a niche to sell premium. However, Dubai /Abu Dhabi can serve as hubs and central warehouses for distributing to other GCC countries, India, Africa, etc.
Be sure that you are actually willing and able to export according to the needs of the market.
Follow the premiumisation trend if your products are suitable for this.
Follow-up on global and local industry and consumer trends.
Foresee a long test period but do not be afraid to withdraw if the test comes out negative, or to look for an entirely different approach.
Participate in a trade fair as a first step.
Get advice from specialist in the sector and/or in assisting companies to access and penetrate the UAE market and beyond. E.g. Switzerland Global Enterprise and its Swiss Business Hub GCC, with offices in Dubai, Doha, Kuwait, Riyadh or private Consultants.
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9. Appendix 9.1. TRADE SHOWS Gulfood (www.gulfood.com) The world’s biggest annual food event hosts 81 international pavilions and buyers from 152 countries, as professionals from across the food and hospitality spectrum converge from every corner of the globe. Gulfood and the World Halal Food are strictly trade-only events and open to business and trade visitors within the industry only, happening in February each year, in Dubai WTC (World Trade Center). In 2015 the event will be from February 8 – 12. Switzerland Global Enterprise traditionally has a Swiss Pavilion at the event. The Taste of Dubai Festival (www.tasteofdubaifestival.com) The amazing food, drink and music festival. Gourmet food can be experienced at this festival, which usually takes place in March at Dubai Media City. Gourmet Abu Dhabi Festival (www.gourmetabudhabi.ae) A culinary extravaganza held in the capital in February each year. Emirates Salon Culinaire (www.gulfood.com/page.cfm/link=13) The Emirates Salon Culinaire (ESC) is a series of practical and display-based culinary competitions; entry to which is open to professional chefs, pastry chefs, cooks and bakers. The event is part of Gulfood and will takes place February 8 – 12, 2015 in Dubai. AgraMe (www.agramiddleeast.com) A premier international event on the agricultural industry. It will takes place March 16 – 18, 2015 in Dubai. Halal Expo (www.worldhalalexpos.com/) The largest and most comprehensive B2B Halal Expo in the Middle East. It constitutes a high impact business platform to look at the lucrative business opportunities that the global Halal market presents and cater to the needs of the Halal producers, traders and business leaders looking to expand their business in the Middle East region. It usually takes place in April in Dubai. Sweets & Snacks Middle East (www.sweetsmiddleeast.com) International Exhibition for the Sweets and Confectionary, Bakery, Snack Food and Ice Cream Industry. It usually takes place in November in Dubai. SIAL Middle East (www.sialme.com) First launched in Paris in 1964, SIAL has developed into the largest network of professional food events that collectively represent more than 9,300 exhibitors and attract over 216,000 visitors from 200 countries. It usually takes place in November in Abu Dhabi. Seafood Expo Dubai (www.dubaiseafoodexpo.com) Seafood Expo Dubai is the ideal platform to meet the professionals of the seafood industry not only the local or regional ones but also the international in order to maximize the opportunity to grow your business and get updated with the latest market technologies and trends. It will also give the opportunity to find new suppliers, to set up new partnerships and to keep up with the latest innovations of the industry. Access to the exhibition is exclusively dedicated to trade visitors and industry related professionals. It usually takes place in September in Dubai.
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9.2. PUBLICATIONS Caterer Middle East (English) (www.hoteliermiddleeast.com) Caterer Middle East is a dedicated food & beverage management magazine delivering news, culinary trends and product reviews for the Middle East’s fast growing catering industry. Its readership includes executive chefs, restaurant managers, sous chefs, maitred’s and sommeliers. Distributed on a monthly basis to 8,000 named subscribers. Editorial features include local and international news, interviews, restaurant profiles, ingredient features and new products, with a dedicated supplement for alcoholic and non-alcoholic beverages. Hospitality & Catering Directory (English) (www.hospitalityandcateringdirectory.com) The Hospitality & Catering Directory is the ultimate reference tool for individuals and organizations involved in the Middle East’s hospitality and catering industries, both of which are currently witnessing exponential growth. Available in print and online from July 2008, this Directory contains contact details for over 4,000 hospitality and catering related contractors, suppliers and service providers in the GCC. Hotelier Middle East (English) (www.hoteliermiddleeast.com) Hotelier Middle East is the region’s leading monthly trade publication for the hotel and hospitality industry and has developed a strong following since its inception in 2003. Published by market-leading business and technology publisher ITB Business, Hotelier Middle East communicates industry-specific intelligence to a targeted audience of hoteliers Middle East –wide and provides updated information on products and services provided by key industry suppliers. Regular features include up-to-date regional and international news; interviews with hotel GMs; comment and analysis from industry professionals; market intelligence; round table sessions with every sector of the hotel community; destination reports and product updates. Asia and Middle East Food Trade (English) (www.ameft.com) Published since 1983, Asia & Middle East Food Trade (AMEFT) Journal has been an invaluable link between thousands of renowned ingredients and machinery suppliers and buyers for three decades. In four comprehensive issues per annum, AMEFT’s print issues provide subscribers in more than thirty Asian and Middle Eastern countries with unique information, carefully tailored to suit reader requirements which are monitored on a regular basis. FoodService Europe and Middle East (English) (www.food-service-europe.com) First published in 1998 FoodService Europe and Middle East I the only B2B publication for the multinational foodservice industry. It showcases international markets and provides fine analyses of important foodservice markets in Europe and the Middle East. The focus is on brand and chain restaurants, chain hotels and institutional catering. FoodService Europe and Middle East reaches the decision makers of the hospitality industry in Europe, the Middle East and North America. Food Business Gulf and Middle East (English) (www.foodbusinessgulf.com) Food Business Gulf and Middle East is designed to serve the fast growing Food, Fresh Produce, Ingredients, Bakery, Hotel, Hypermarkets, Restaurants and Catering industries in the Gulf and Middle East region by providing the expert information to our readers in our four comprehensive issues in a year. The magazine provides editorial coverage on a wide range of topics which are of interest to industry professionals. It carries news updates, events watch, industry spot lights, exports & imports, special features, interviews and success stories. Food Business Gulf and Middle East is a Matt Media Publication. The 25 Dubai Food & Beverage Guide (http://www.cpimediagroup.com/consumer/the-dubai-25food-beverage-guide/#.U43ByU2KDPQ) The Dubai 25 Food & Beverage Guide is the definitive annual guide for people eating and drinking out in Dubai. The Dubai 25 Food & Beverage guide offers a full company profile written by either you or one of our award winning editors, detailing the culinary experience you offer and explaining why diners should put your establishment in their personal list of the 25 must attend. The reality of the market is this: most of the reviews printed in newspapers and magazines are written by staff, who often believe reviews are personal opinions based on their taste rather than a critique of the menu and an assessment of how well the chef has delivered on it.
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Sources: http://www.cpimediagroup.com/consumer/the-dubai-25-food-beverage-guide/#.U3HaSU2KDPQ http://www.cpimediagroup.com/consumer/the-25-uae-brunches/#.U3Hax02KDPQ http://www.foodnavigator.com/Regions/Middle-East https://www.itp.com/itp-business.php http://www.ameft.com/about-us http://english.dfv.de/portfolio/media/FoodService-Europe--Middle-East-26 http://www.daganghalal.com/ http://www.foodbusinessgulf.com/
9.3. STATISTICS The following statistics show import figures for a range of specific products, and for every range they rank the top 5 countries from which these products have been imported to the UAE. As a comparison, also the import figure from Switzerland has been mentioned each time. These statistics have been supplied by the Dubai Customs Department and refer to goods imported to the UAE entering the country through Dubai ports and airports. Table 14: Import Figures for Processed Cheese DUBAI DIRECT IMPORT Processed cheese, not grated or powdered. Year
Country imported from
Weight (kg)
2012
Egypt
1,355,656.60
New Zealand
1,140,243.12
Poland
1,014,092.60
France
784,337.55
Australia
687,812.90
Switzerland 2013
Poland
1,257,250.59
Egypt
1,186,758.80
New Zealand
1,114,948.53
Australia
685,519.70
France
661402.26
Switzerland
---
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21.17
Table 15: Import Figures for Medium-hard Cheese & Hard Cheese DUBAI DIRECT IMPORT Medium-hard cheese & hard cheese (such as Cheddar, Gouda, Gruyere & Parmesan) Year
Country imported from
2012
United Kingdom
833,737.51
USA
424,612.08
Australia
374,221.93
2013
Weight (kg)
Italy
190,757.43
Netherlands
182,503.81
Switzerland
40,315.91
United Kingdom
992,967.55
Netherlands
526,394.13
Australia
494,529.00
USA
336,205.32
Ireland Switzerland
286,318.11 38,628.44
Table 16: Import Figures for Sugar Confectionary, not containing Cocoa DUBAI DIRECT IMPORT Sugar confectionery, not containing cocoa Year
Country imported from
2012
China
1,781,489.89
Turkey
1,153,507.14
India
2013
811,169.32
Pakistan
595,309.40
Indonesia
358,513.70
Switzerland
107,811.40
China
1,287,881.46
Turkey
1,082,360.76
India
991,147.39
Russia
542,065.65
Pakistan
493,760.67
Switzerland
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Weight (kg)
98,346.27
Table 17: Import Figures for Chocolate & Other Food Preparations
DUBAI DIRECT IMPORT
Chocolate & other food preparations containing cocoa, but not containing alcohol, in blocks, slabs or bars, filled, weighing not more than 2 kg Year
Country imported from
2012
Netherlands Belgium
2013
Weight (kg) 7,029,361.54 799,165.31
Italy
650,383.06
Egypt
566,164.04
Poland
538,550.31
Switzerland
412,102.98
Netherlands
6,684,555.51
Italy
1,244,875.99
Egypt
1,117,517.32
Belgium
973,929.10
Poland
473,289.13
Switzerland
178,719.70
Table 18: Import Figures for Confectionary Products DUBAI DIRECT IMPORT
Confectionery products (sweetmeats & candy) containing cocoa, in packing of a content not more than 2 kg Year
Country imported from
2012
United Kingdom
1,645,872.93
France
1,135,326.22
USA
1,069,949.22
Indonesia
401,189.86
Turkey
186,622.97
Switzerland 2013
6,185.89
United Kingdom
2,664,522.01
France
1,378,073.91
Netherlands
1,262,944.83
USA
1,097,072.50
Indonesia Switzerland
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Weight (kg)
462,240.38 1,041.50
Table 19: Import Figures for Chocolate & Other Food Preparations DUBAI DIRECT IMPORT
Chocolate & other food preparations containing cocoa weighing not more than 2 kg & other than those in blocks, slabs or bars, filled or not filled Year
Country imported from
2012
Turkey
3,566,642.57
United Kingdom
2,629,033.97
Italy
1,265,843.14
2013
Weight (kg)
Switzerland
759,576.60
Netherlands
642,515.74
Switzerland
759,576.60
Turkey
4,060,216.94
Netherlands
1,495,129.41
United Kingdom
1,405,081.92
Italy
1,283,644.59
Switzerland
1,265,796.39
Switzerland
1,265,796.39
Table 20: Import Figures for Pastries (gateau), Cakes and the Like DUBAI DIRECT IMPORT Pastries (gateau), cakes & the like Year
Country imported from
2012
USA
779,155.44
Turkey
327,454.56
United Kingdom
325,671.72
Vietnam
301,219.20
France
184,203.50
Switzerland 2013
USA Turkey
9,450.64 590,887.99 319,142.27
United Kingdom
280,315.98
Vietnam
262,772.00
France
231,839.02
Switzerland
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Weight (kg)
14,050.68
Table 21: Import Figures for Sparkling Wine DUBAI DIRECT IMPORT Sparkling wine Year
Country imported from
2012
France
Weight (kg) 1,604,245.16
Chile
170,375.23
Australia
152,493.55
Italy
81,374.59
USA
65,246.36
Switzerland 2013
France
36.00 2,233,218.01
USA
69,453.00
Australia
66,451.25
Italy
65,358.58
Chile
47,887.32
Switzerland
---
Table 22: Import Figures for Wine of Fresh Grapes DUBAI DIRECT IMPORT Wine of fresh grapes (excluding sparkling wine) & grape must with fermentation prevented or arrested by the addition of alcohol, in containers holding 2 litres or less Year
Country imported from
2012
France
594,560.66
USA
560,289.42
South Africa
525,264.00
Australia
452,869.59 ---
France
4,167,190.72
Australia
1,342,969.60
Chile
1,294,795.23
South Africa
696,995.18
Italy
640,138.50
Switzerland
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3,384,914.08
Italy
Switzerland 2013
Weight (kg)
---
Table 23: Import Figures for Wine of Fresh Grapes DUBAI DIRECT IMPORT Wine of fresh grapes, including fortified wines, & grape must with fermentation prevented or arrested by the addition of alcohol, in containers holding more than 2 litres Year
Country imported from
2012
Italy
11,752.50
USA
7,436.47
Switzerland
1,764.20
Australia
1,205.00
Portugal
1,035.00
Switzerland
1,764.20
USA
6,852.59
Italy
2,289.70
France
2,282.63
South Africa
1,722.93
Switzerland
730.00
Switzerland
730.00
2013
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Weight (kg)
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UAE FOOD MARKET STUDY 2014
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ExportHelp www.s-ge.com/exporthelp exporthelp@s-ge.com T 0844 811 812
Switzerland Global Enterprise Stampfenbachstrasse 85 CH-8006 Zürich T +41 44 365 51 51 Switzerland Global Enterprise Corso Elvezia 16 – CP 5399 CH-6901 Lugano T +41 91 911 51 35 Switzerland Global Enterprise Avenue d’Ouchy 47 – CP 315 CH-1001 Lausanne T +41 21 545 94 94 www.s-ge.com