The foodservice market in the United Arab Emirates is gearing up for a remarkable expansion, with an expected compound annual growth rate of 17.09 percent. According to a whitepaper titled “A Flavourful Journey: A Comprehensive Look at the Evolution and Trends in the UAE’s Food and Beverages Sector” by JLL, and quoting figures from Mordor Intelligence, the sector is set to escalate from $19.98 billion in 2023 to an astounding $43.98 billion by 2029.
This impressive growth is driven by the resilient tourism industry of the UAE, bolstered by a strong economy and a thriving environment of competitiveness. The country’s GDP growth, which was at 3 percent in 2023, is projected to rise to 4 percent and 5 percent in 2024 and 2025, respectively. Furthermore, government initiatives, favorable regulations, and a dynamic demographic, especially in newly developed locations, have significantly propelled the sector’s performance, particularly in Dubai and Abu Dhabi.
Kostas Papadakis, Manager of Foodservice Consulting at JLL MENA, points out the UAE’s food and beverages sector as a reflection of economic growth and a dynamic culinary evolution. The sector, from its rapid expansion in fast food to the thriving fine dining scene and the rise of specialty coffee, demonstrates a market attuned to consumer preferences and global trends. The sector’s dedication to sustainability, personalized dining experiences, and the triumph of homegrown concepts mark the UAE’s gastronomic landscape as a global force.
In Dubai, the development of inland areas like City Walk and Dubai Investment Park, as well as the evolution of the commercial, industrial, and residential sectors, have significantly contributed to the foodservice industry’s advancement. In Abu Dhabi, the growth stems from the booming tourism industry and increasing demand in areas featuring new attractions and entertainment concepts.
Fast food continues to dominate the market share in Dubai and Abu Dhabi, but there is also a growing popularity for all-day dining, casual dining, and fast casual categories. Fine dining is experiencing remarkable expansion, with both Dubai and Abu Dhabi witnessing considerable annual increases in new fine dining units.
The UAE’s food and beverages sector is increasingly focusing on health, wellness, and sustainability, aligning with consumer demands for environmental and ethical values. Food transparency has emerged as a strategic differentiator, and personalized dining experiences where chefs showcase their skills and passion are gaining traction.
The UAE’s food and beverages sector, with its blend of diversity, innovation, and sustainability, reflects not just economic growth but also a dynamic culinary future. This positions the nation as an influential player in the global gastronomy arena.
