|
|
 |
|
Viewing report
|
|
|
|
United Arab Emirates Food and Drink Report Q3 2009
Business Monitor International, June 2009, Pages: 60
The United Arab Emirates Food Drink Report provides independent forecasts and competitive intelligence on the United Arab Emirates' food and drink industry.
The UAE has moved to the top of the regional Food & Drink Business Environment Ratings table for Q309. However, a sustained decline in crude oil and property prices, coupled with a marked decline in private investment, has forced us to revise down the UAE’s GDP forecast to reflect a 1.7% contraction in 2009. Despite this, the country’s standing as an attractive market for investors in search of near-term returns with premiumisation potential remains largely intact. One of the world’s highest per capita GDP’s and a lack of market saturation are among the main attractions pulling food and drink investors to the UAE. Its soft drinks industry continues to be the subject of much attention, as discussed in this recently published UAE Food & Drink Report for Q309.
Earlier this quarter, Abu Dhabi-based food and drink giant Emirates Foodstuff and Mineral Water Company (Agthia) reported turnover of AED854mn (US$232.5mn) and net income of AED72.2mn (US$19.66mn) for FY08. The posting represented stellar year-on-year (y-o-y) growth of 48% and 89% respectively. Largely through its subsidiary Al Ain Mineral Water, Agthia’s water and beverage business grew 40% y-o-y to AED138.6mn (US$37.74mn).
Continued revenue uptick should continue in FY09, not least because water is an essential household good and the UAE’s standing as the world’s highest per capita bottled water consumer. Unsurprisingly, the bottled water subsector is fiercely competitive with a number of UAE-based companies jostling for market share. Agthia shares the market with a band of manufacturers including Masafi, Oasis and Gulfa. Meanwhile, DöhlerGroup, a high profile Germany-based producer of beverage ingredients, has launched a centre of expertise in Dubai. Targeting unmet demand, particularly within the health and functional drinks segments as demand for lower-sugar soft drinks pushes up rapidly, the company will look to supply domestic beverage companies. A growing number of consumers are likely to experiment with innovative drinks such as natural energy drinks and juices with lower sugar content.
Despite an uptick in demand for healthier soft drinks, led initially by the UAE’s expatriate-heavy population and now picking up among Emirati citizens, demand for traditional carbonates and high-sugar juices is unlikely to fall by the wayside and will continue to represent the bulk of soft drinks sales minus the bottled water segment.
We has forecast soft drinks value sales to grow by 52.77% through to 2013, while per capita soft drinks consumption is set to grow by 26.75% over the same period – reflecting the opportunities that remain despite the UAE’s small population. Investors seeking entry are likely to seize their opportunity (provided they can secure capital) before market saturation becomes a more pressing concern.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
United Arab Emirates Food and Drink Report Q2 2012
United Arab Emirates Food and Drink Report Q4 2010
United Arab Emirates Food and Drink Report Q1 2011
United Arab Emirates Food & Drink Report Q1 2012
Bottled Water - United Arab Emirates
United Arab Emirates Food and Drink Report Q4 2009
Fruit/vegetable Juice - United Arab Emirates
Qatar Food and Drink Report Q2 2012
United Arab Emirates Food and Drink Report Q3 2011
Turkey Food and Drink Report Q2 2012
|
|
|
|
