A new report from Alpen Capital shows that the UAE’s food sector is undergoing a significant transformation. While overall food consumption is expected to see a modest increase to 8.8 million metric tonnes (MT) by 2029, the industry is becoming more positive due to a growing population, rising incomes, and a booming tourism sector.
Overcoming Challenges and Adopting Technology
Despite its economic strength, the UAE remains heavily dependent on food imports, with 83.1% of its consumption sourced from abroad. To address this reliance and overcome environmental constraints, the government is making significant investments in agritech, including vertical farming, hydroponics, and AI-powered smart agriculture. Projects like the GigaFarm are part of a national strategy to triple domestic food production by 2030 and build a more resilient food ecosystem.
Key Trends Shaping the Industry
The report identifies several key trends reshaping the food industry:
- Shifting Consumer Preferences: There is a notable decline in the consumption of milk and meat, indicating a move toward health-conscious and flexitarian diets.
- Digital Transformation: Consumers are increasingly using e-commerce platforms and cloud kitchens, with the food delivery market projected to reach $2.79 billion by 2026.
- Market Consolidation: The sector is seeing an increase in mergers and acquisitions, particularly in high-growth areas like agritech and digital F&B.
