Food and Beverages Sector Indicators - Dubai Exports Sector - Q1 2019.pdf · Page | 3 Growth...
Transcript of Food and Beverages Sector Indicators - Dubai Exports Sector - Q1 2019.pdf · Page | 3 Growth...
Dr. Faisal El Amir 1/9/19 Ref1 – Q1/2019
Food and Beverages Sector Indicators
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F&B Sector Capability
TIME
SCOP
PRESERION
CAPACITY
READINESS
POWER
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UAE economy is forecasted to sustain growth and remain robust during
2019
The business environment is among the most favorable in the region
UAE scored 70.4 in RRI (Risk/Reward Index) for the F&B sector by
Business Monitor International BMI, above the world average of 50
points
The economy was able to absorb the effect of VAT in the food sector in
view of the high purchasing power for the F&B .
A large youth population represents a significant economic resource for
MGR majors .In UAE 49.2% of population are young adults
The UAE remains the most attractive market in the region for food and
beverages. investors, and is the region's only country to score BMI RRI
within the global top 10 markets (placed in sixth position out of 107
countries).
High disposable income sustains increasing demand for premium
products and health food .
A focus by the government on development of the halal sector and work
on establishment of halal standards
An emerging online F&B delivery sector that has shown good demand
The country is now more than 80% self-sufficient for milk and almost
40% self-sufficient in its demand for eggs.
UAE continues to support organic farming initiatives
STRENGTHS
PRESERVATIO
DIVERSITY CAPABILITY
CAPACITY
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Growth Prospects Food Sales :Growth of food sales projected at 4.6% in 2019 and at
an average compound growth rate of 6% for 2019-2023
Beverages Sales: Beverages will grow by 6.9% in 2019 and at an
average compound rate of 6% for 2019-2022
Preference for Premium Food will remain the key driver of growth
in the UAE's food industry, with the rise of health-consciousness also
a key trend.
Dairy Sales :Dairy sales will experience strong growth, rising at a
CAGR of 6.9%, as dairy demand diversifies in line with more
sophisticated consumer preferences.
Baked Food :Baked goods in the UAE are projected to achieve a
CAGR of 7.1% in sales over the years to 2022. This will be driven by
the increasing adoption of diversified consumption patterns
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Opportunities A growing F&B processing industry
The UAE's food-processing sector has been undergoing a period
of significant expansion over the past several years; this trend is
expected to continue as foreign investment and government
attempts to increase domestic food production and self-
sufficiency, production facilities have started to come up and
diversify.
Value‐added dairy products
The UAE's high level of dairy consumption gives large regional
players the opportunity to enter the market
Per capita consumption of dairy products is high, at around 80-
85kg annually and this profitable sector is extremely vibrant and
competitive, with many dairies in operation
Expansion opportunities in value-add dairy products such as
yoghurt, cheese and butter
Expansion in food services(restaurants)
With a diverse population and an appetite for varied brands, the
food services sector have grown to become a large industry in
the UAE, with over 16,000 outlets, and shopping centers with
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Reference: BMI
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Manufacturing indicators
Main Indicators of F&B Manufacturing
DSC surveys, Ministry of Energy and industry data
F&B VALUE ADDED % OF ALL MANUFACTURING VALUE ADDED(DUBAI)
13%
F&B ANNUAL OUTPUT VALUE(DUBAI) MILLION AED
21
F&B NUMBER OF ACTIVITIES(DUBAI)
F&B EMPLYMENT #(DUBAI) 32,571
NUMBER LICENCES IN F&B(UAE) 575
F&B INVESTMENT(UAE) BILLION AED 39.
F&B OUTPUT % OF TOTAL MAUFACTURING OUTPUT)‐DUBAI
17%
F&B is a leading manufacturing sector in Dubai, contributing 13% of the manufacturing value added and 17% of the manufacturing output in Dubai, and about 30% of the manufacturing investment in all UAE
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Domestic Market Size
Food & Beverages Relative Shares in Domestic Consumption
Food , 68.2, 90%
Non‐alcholic bevearges, 7.3, 10%
UAE Domestic F&B sale is estimated at 75.5 BN AED in 2018, Food accounts for 90% and beverages for 10%
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Domestic Food Sales by Category
Domestic Beverages Sales by Category
Growth of Beverages by Category %
Bread, rice and
cereals14%Pasta products
3%
Baked goods1%
Meat and Poultry24%
Fish and fish products
9%
Dairy, sales, AEDmn13%
Oils and Fats3%
Fresh and preserved fruit
11%
Fresh vegetables
13%
Sugar and sugar
products5%
Other food products
4%
UAE FOOD SALES IN 2018 BY CATEGORY
Coffee, teas and other hot drinks
10%
Soft drinks, sales45%
Fruit and vegetable juices14%
Mineral or spring waters, sales2%
Carbonated drinks29%
UAE NON‐ALCHOLOIC BEVERAGES SALES IN 2018 BY CATEGORY
Largest sa
le in 2018 was fo
r Meat&
Poultry
at24percen
tage o
f total fo
od sa
les
Largest sa
les was fo
r soft d
rinks
with
a sh
are o
f 45% of to
tal
bl
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2 0 17 e 2 0 18 e 2 0 19 f 2 0 2 0 f 2 0 17 - 2 0 18
Coffee, teas and other hot drinks
5.4 11.6 10.7 11.3
6.2Soft drinks 3 5.6 6 6.3
Fruit and vegetable juices
3.6 6.7 7 6.6
Mineral or spring waters
11.1 22.3 20.2 20.3
11.2Carbonated drinks
2.1 3.8 4.2 4.8
All beverages exhibited increase in consumption in 2018 versus 2017 in spite of the sugar tax and vat
Mineral water and coffee and tea consumption was exceptionally high in 2018 at 22.3%and 11.6% versus 11.1%
and 5.4% in 2017 more by 11.2 and 6.2 percentages Coffee, tea, and mineral water are projected to witness the
highest growth in the next two years
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Growth of food categories %
Business Monitor Int.
Oil& fats exhibited the largest hike in consumption in 2018 versus 2017 more by 2.9 percentage points
4 other products namely, bread, baked food, fish and dairy showed good growth on 2018 versus 2017 more by 2.4
percentages each The next two years will witness higher consumption for oil & fats, fish, bread and fresh vegetables, by 7.5 ,6.2, 6.1 and 6.1
percentage points
Indicator 2 0 17 e 20 18 e 2 0 19 f 2 0 2 0 f 2 0 17 - 20 18 a ve a rge 2 0 19 -20 2 0
Bread, rice and cereals
3.5 5.9 4.8 7.52.4 6.15
Pasta products
3.1 5.1 4.1 6.32 5.2
Baked goods
3.7 6.1 5 7.82.4 6.4
Meat and Poultry
3.2 5.2 4.2 6.62 5.4
Fish & products
3.6 6 4.9 7.62.4 6.25
Dairy 3.6 6 4.9 7.7 2.4 6.3Oils and Fats 4.3 7.2 5.8 9.2
2.9 7.5Fresh and preserved fruit
3.1 5.2 4.2 6.5
2.1 5.35Fresh vegetables
3.5 5.8 4.7 7.42.3 6.05
Sugar and sugar products
3.4 5.7 4.6 7.2
2.3 5.9Other food products
3 5 4 6.22 5.1
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F&B Foreign Trade
Performance 2017 Total F&B Trade Profile
*includes Tobacco
Dubai Customs Statistics
2017 Billion AED
EXPORT 17
IMPORT 60
RE‐EXPORT
18
Total Trade
94
F&B export and re‐export valued 35 Bil AED in 2017 Exports and re‐exports values were almost equal in value
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F&B Position in Exports
Source Dubai Customs statistics
F&B, 11,550, 9% Mineral
products , 3,778, 3%
chemical and allied industries, 3,935, 3%
Plastics, rubber and articles thereof, 4,225, 3%
Pulp of wood, paper products and waste paper, 2,998, 3%
Pearls, precious stones and metal,
63,778, 52%
Base metals and articles of base meta,
24,517, 20%
Othe sectors, 8,880, 7%
F&B IN DUBAI EXPORTS PORTFOLIO BY SECTION 2017
F&B ranks the third among exporting sector by sections after precious metals, and base metal (mainly aluminum unwrought), its total value of exports was about 11 billion AED in 2017 accounting for 9% of all exports
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Export Markets Landscape 2017
Four markets account for 35% of all F&B exports Export markets are geographically spread covering Asia, Middle East, Africa and
Europe
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. Exported Products Landscape 2017
Dubai Customs
Two products account for 57% of F&B export value from Dubai in 2017 Food portfolio spans a wide range of sugar and confectionary, juices, tea, oil,
fish, pasta and pastry and, cigarettes
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F&B 2018 Foreign Trade
Performance Estimate
Estimated projection for full 2018
Dubai Customs
2018 Jna‐Sept
2018 Full year est.
2017
EXPORT 11 15 17
IMPORT 40 53 60
RE‐EXPORT 12 16 18
Grand Total 63 84 94
Net imports(domestic demand)
36 42
Only 3
Q 2018 data is a
vailable fo
r now, 2018 fu
ll tra
de sta
tistics is not yet a
vailable
Extrapolatin
g #Q
2018 data fo
r the fu
ll year in
dica
te the 2
018 is likely to
show little o
r no growth inF&
B
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Promising Exports Untapped Export Market Sizes for Exports from UAE
Dairy products, Vegetable oils, pulses, beverages, nuts Processed cereals, rice, animal feed, processed meat, and fish& shellfish are products which have sizable untapped potential above 200 mil AED available for UAE exporters Untapped market size is indicated in orange in the graph below
OPPORTUNITY PUSH
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Source: ITC Potential Export Map
1,588
3,361
1,393866 753
1,519
303 339 216 323 221 162 201 37 22 24 15 2 3 20
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Mn AED
UAE products with untapped export potential
Untapped Realized