The Gulfood Global F&B Industry Outlook 2018

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The Gulfood Global F&B Industry Outlook 2018

Dubai World Trade Centre (DWTC) will host Gulfood, the world’s largest annual food and beverage (F&B) trade event, from February 18 to 22.

This year all attendees, including more than 5,000 exhibitors and 97,000 visitors, will receive a copy of a major new report detailing the medium- to long-term outlook for the global F&B industry.

The report, which was commissioned by DWTC and compiled by market intelligence firm Euromonitor, identifies internet retailing as the fastest growing retail channel across all regions, while app-based delivery services are disrupting traditional foodservice demand. And with an estimated 1 billion additional customers ready to be served across the globe by 2030, large, young consumer groups are expected to drive further innovation.
The report finds that while the Asia Pacific region provides scale, the combined Middle East and Africa regions offer the highest level of potential growth for the industry. It identifies greater distribution of wealth, growing economic and political stability, and rapidly developing infrastructure as enabling consumers to have greater access to a wider range of F&B opportunities.
Population growth will be accompanied by a rise in GDP, most sharply in the Middle East, Africa and Asia Pacific regions, where populations will shift towards increased consumption of packaged and convenience foods. Global foodservice chains are expected to introduce more westernised food and beverages to these regions, while the expansion of modern retailing formats, and the raised presence of convenience products, will also drive growth.
Today disposable income accounts for 65 per cent of total global GDP, while consumer expenditure accounts for 56 per cent of global GDP. Consumer expenditure on food and non-alcoholic beverages is estimated at $6.6 trillion, or 8.5 per cent of GDP. A rise in disposable income in the coming years will see the Asia Pacific, Middle East and Africa regions take a larger share of the global spend on food and beverages, from 53 per cent today to 60 per cent by 2030.
In 2016 the overall retail value of F&B sales across the world hit $1.585 trillion; this figure is expected to rise to $1.788 trillion by 2021. In the Middle East and North Africa region, the growing trend for premiumisation – where a growing band of middle-class and wealthy consumers favour international brands and consumption through foodservice – is reflected in the embrace of café culture. The region – and its F&B industry – is also benefitting from rapid urbanisation and an increase in the numbers of young professionals with young children.
The report outlines the growth prospects of a series of F&B sectors – and all indicate that the Middle East and Africa regions represent areas of significant growth in the coming years. In the Dairy segment, for example, the expanding population, frequent new product launches – particularly in flavoured milk – retail development, and more effective marketing initiatives are likely to drive fast growth.
With breakfast cereals still niche in the Middle East and Africa regions, there exists plenty of opportunity for growth in the Cereals, Rice & Pasta segment. Lower-income consumers are set to trade up to packaged versions of staple cereals, while the large number of expatriates in markets such as the UAE is also boosting sales of the Asian staples of rice and noodles.
For a full copy of the report, visit Gulfood 2018, which runs February 18 to 22 at DWTC. For more information, visit www.Gulfood.com 

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