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GCC Fruit and Vegetable Market - Growth, Trends, and Forecasts (2023-2028)

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    Report

  • 100 Pages
  • April 2023
  • Region: Middle East
  • Mordor Intelligence
  • ID: 4760197
UP TO OFF until Dec 31st 2023
The GCC Fruit and Vegetable Market are poised to grow at a CAGR of 8.6% during the forecast period.

Key Highlights

  • The rise in the population is increasing the food security preferences in GCC countries, so people are becoming inclined toward foods with readily available nutrients. Fruits and vegetables are rich sources of required vitamins and minerals daily. The population is growing at a faster pace. For instance, according to the GCC Stat, the number of people in 2022 will be 59.56 million, increasing from 57.6 million in 2020. This population growth is giving rise to consumption.
  • Additionally, the retail sale of fruits and vegetables in the region increased due to consumer preferences toward consuming healthy diets to boost immunity. The rise in awareness due to the increase in obesity and cardiovascular disease patterns in the GCC region pushes them towards healthier eating habits. This healthier consumption habit is increasing the demand for quality fruits and vegetables.
  • Along with this, most of the countries in the GCC region are not self-sufficient in terms of fruits and vegetables. The climatic conditions are not suitable for cultivating fruits and vegetables, resulting in lesser yields. Hence, the countries primarily depend on imports to satiate their domestic demands. For instance, 2021, according to the ITC trade map, the implications of fruits to Saudi Arabia accounted for 25,669 metric tons in 2021, an increase from 25,493 metric tons in 2020. Thus, the dependency on imports is raising the import volume. Therefore, the increase in the population caters to the demand rise in imports, thereby contributing to the market's growth in the forecast period.

GCC Fruits & Vegetables Market Trends

Increased Demand for Fruits

Higher disposable incomes tend to shift consumers from a carbohydrate-based staple diet to a nutrition-rich one. The rising level of education and health awareness among a significant population is leading to more fruit and vegetable-inclusive diets. Due to the increasing awareness regarding health issues, consumers from powerful countries in GCC, such as Saudi Arabia and the United Arab Emirates, etc., prefer healthier and more nutritious food containing high-quality nutrition, which in turn is driving the production in these countries.

Additionally, favorable government policies toward boosting production and increasing consumption support the market's growth. For instance, in 2021, Saudi Arabia's Ministry of Environment, Water, and Agriculture launched a new initiative to support local production, quality control, and ensure food security for fruits and vegetables in the nation. This is achieved by issuing import licenses for the fruit and vegetable suppliers. Moreover, among all the GCC countries, Saudi Arabia, Oman, United Arab Emirates, and Kuwait were the primary producers of fruits. The initiative is increasing local production to cater to domestic demand. For instance, according to FAO statistics, the total fruit production accounted for 3 million metric tons in Saudi Arabia in 2021, which stood steady from 3 million metric tons in 2020. In contrast, vegetable production accounted for 1.61 million metric tons in 2020, which showed slight decrease from 1.59 metric tons in 2020.

Furthermore, despite the unstable climatic conditions in the GCC countries, smart farming practices, like hydroponics, have served as a vital alternative to traditional farming in most countries, such as Saudi Arabia, the United Arab Emirates, and Kuwait. Important fruits and vegetable crops such as cucumbers, tomatoes, peppers, strawberries, chilies, aubergines, leafy vegetables, and herbs are grown using smart farming techniques. This increase in the adoption of new farming technologies is primarily attributed to a reduction in the dependence on imports and an increase in production, resulting in significant market growth.



Increased Accessibility Due to Presence of Well-developed Retail Chain

The local distribution and retail network has flourished rapidly in the major parts of the GCC, especially in Saudi Arabia, United Arab Emirates among others, in the past few years. Most of the fruits and vegetables demand in the country is met through imports from other countries, hence the distribution channel is very strong. Supermarkets and hypermarkets have been propping up, and with their superior distribution channel and in-store equipment, the shelf-life of fresh produce has increased, thus enabling greater consumption of fresh produce among consumers which is aiding the fruits and vegetable market.

The majority of the consumption of fresh produce in the countries is accounted for through supermarkets and hypermarkets. Hence, the distribution of fruits and vegetables is better facilitated through partnerships with local supermarkets and hypermarket chains, like LuLu Group, LVMH, Fu-Com, and others. The leading retail chains in the region are Union Coop, Carrefour, Geant Hypermarket, Lulu Hypermarket, and others. The retail store market in the country is consolidated, and the high market share of these outlets is due to the promotional offers given to customers. Although only a few companies have major markets, small new retail and independent supermarket stores are growing at a faster rate.

Moreover, the leading countries in GCC like Dubai has several free trade zones, including Jebel Ali, the largest cargo port in the Middle East, to support the trading. This expanded and well-developed trade network has facilitated the consumption and retail sector of fruits and vegetables. For instance, according to Dubai Chamber of Commerce and Industry, in 2020, the retail sales value of vegetables and fruits in UAE stood at USD 1,939 million and USD 1,344 million respectively. This retail sector sales of fruits and vegetables is high compared to other fresh food sales which contribute to the growth of the fruits and vegeatbles market in GCC countries.



Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support


This product will be delivered within 2 business days.

Table of Contents

1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain Analysis
4.4.1 Value Chain Analysis - Overview
4.4.2 Value Chain Analysis - Price Markup
4.4.3 Stakeholders Analysis
4.4.4 Issues and Challenges Involved
5 MARKET SEGMENTATION
5.1 Geography (Production Analysis(Volume), Consumption Analysis (Value and Volume), Import Analysis (Value and Volume), Export Analysis (Value and Volume), Price Trend Analysis)
5.1.1 United Arab Emirates
5.1.1.1 Fruits
5.1.1.2 Vegetables
5.1.2 Bahrain
5.1.2.1 Fruits
5.1.2.2 Vegetables
5.1.3 Kuwait
5.1.3.1 Fruits
5.1.3.2 Vegetables
5.1.4 Oman
5.1.4.1 Fruits
5.1.4.2 Vegetables
5.1.5 Qatar
5.1.5.1 Fruits
5.1.5.2 Vegetables
5.1.6 Saudi Arabia
5.1.6.1 Fruits
5.1.6.2 Vegetables
6 INTERNATIONAL TRADE AND PRICE SCENARIOS
6.1 Onion
6.2 Potato
6.3 Tomatoes
6.4 Garlic
6.5 Cauliflower
6.6 Beans
6.7 Eggplant
6.8 Lemons
6.9 Apples
6.10 Bananas
6.11 Grapefruit
6.12 Dates
6.13 Cabbage
6.14 Watermelon
6.15 Mango
6.16 Chilies
6.17 Strawberries
7 COMPETITIVE ANALYSIS
7.1 List/Profile of Major Retailers
7.2 Strategies Adopted and Recent Events
8 MARKET OPPORTUNITITES AND FUTURE TRENDS

Methodology

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