UAE Ethnic Snacks Market Assessment, By Product Type [Baklawa, Falafel, Potato Chips, Hummus, Others], By Flavor [Spicy, Sweet, Cheese Flavored, Fruit-based, Others], By Dietary Preference [Vegetarian, Non-vegetarian], By Convenience [Ready-to-eat, Easy-t

UAE Ethnic Snacks Market Assessment, By Product Type [Baklawa, Falafel, Potato Chips, Hummus, Others], By Flavor [Spicy, Sweet, Cheese Flavored, Fruit-based, Others], By Dietary Preference [Vegetarian, Non-vegetarian], By Convenience [Ready-to-eat, Easy-to-prepare], By Category [Organic, Conventional], By Pack Size [Single Pack, Multi Pack, Family Pack], By Market Type [Organized, Unorganized], By End-user [Residential, Commercial], By Price Range [Mass, Premium], By Distribution Channel [Online, Offline], By Cities, Opportunities and Forecast, 2017-2031F

UAE ethnic snacks market was valued at USD 124.3 million in 2023, expected to reach USD 220.86 million in 2031, with a CAGR of 7.5% for the forecast period between 2024 and 2031. The market holds lots of variety, which can be attributed to a multicultural society in the region.

The country has seen an increase in the visibility of ethnic snacks due to continued growth of e-commerce and online food delivery platforms such as Deliveroo, Talabat, and el Grocer. The majority of individuals in the country prefer pure flavors and convenient ready-to-eat choices.

Health-conscious consumers seek organic snack options for comfortable consumption without adding more calories. A large population is shifting towards gluten-free ethnic snacks according to their body's digestive requirements. These new demand trends make producers develop innovations, including ethnic snacks made using unique ingredients, therefore bringing diversity onto their shelves frequently. The consumer demand for desired quality has changed drastically over time, leading to product development based on these requirements.

Supermarkets and hypermarkets such as Lulu and Carrefour distribute a variety of snacks, including ethnic snacks. In June 2024, the retail giant Lulu Group opened its 16th Lulu Hypermarket in Al Ain, providing an enhanced shopping experience for the residents of Al Ajayyiz and its neighboring areas. The store occupies a 40,000 sq ft area, offering a vast range of products from food items to electronics to many others. However, traditional markets or souks play a vital role in the distribution of ethnic snacks in the country.

Retail Expansion and Rise of E-commerce to Drive the Market Demand

The expansion of the retail sector and the upward thrust of e-commerce are substantially boosting the ethnic snacks market in UAE. The proliferation of supermarkets and hypermarkets, along with Carrefour, Lulu Hypermarket, and Spinneys, has made an extensive range of ethnic snacks easily available to consumers. These retail giants offer dedicated sections for global foods, ensuring that expatriates can discover their favorite snacks from the comfort of their homes. Additionally, specialty ethnic shops cater to specific communities, presenting a good extra tailored selection of traditional snacks.

Furthermore, e-commerce platforms offer convenience along with a vast range of products to their consumers. 99% of people in the country use the internet regularly, which is the highest ratio in the world. Platforms such as Amazon, Noon, and local online grocery delivery platforms in the country allow consumers to purchase with just a few clicks.

Innovation is Propelling the Market Growth

Innovation in products is significantly driving the growth of the ethnic snacks market in UAE. To serve the dynamic needs of a varied market group, continuous exploration of innovative approaches by manufacturers can be witnessed. For instance, introducing healthy baked snack alternatives such as low-fat baked products meet the rising demand from health-conscious individuals. In January 2024, Tata Soulfull, a Tata Consumer Products Limited division, released innovative millet-based snacks and cereals in UAE. Tata Soulfull Millet Muesli Crunchy and Millet Muesli Fruit & Nut from the muesli line, as well as Tata Soulfull Ragi Bites Crunchy Choco and Ragi Bites Choco Fills from the finger millet cereal family, are currently available on the shelves.

Fusion snacks, which combine flavors from varying cultures, are gaining popularity, offering a different gastronomic experience that captures the consumers' attention. Packaging innovations are equally important. Pre-packaged and single-served containers offer busy professionals and families ease of use and make ethnic snacks more convenient on the move. Moreover, eco-friendly packaging is more commonly used to cater to ecologically conscious consumers.

Organic Ethnic Snacks Gain Momentum

As consumers worldwide are getting more conscious of their health, they are seeking organic snacking options to cater to their taste buds. Manufacturers are continuously working on this shift by introducing products free from additives and preservatives and made using natural ingredients. For instance, in April 2024, with consumer demand for gourmet snacks growing, UAE-based Hunter Foods has repackaged its best-selling products and increased their offered range. Its most recent offerings include the redesigned Hunter's Ridges line of popular snacks and chips made with okra and mushrooms. The products claim to be organic, vegan, and gluten-free with no additives.

Such products require certifications to ensure their authenticity, further boosting customers' trust and confidence in the brand. The rising popularity of organic ethnic snacks in the country is attributed to online and offline retailers promoting them by dedicating specific sections of their shops to this category. Additionally, the trend of organic ethnic snacks matches with consumer demands and aligns with global movements towards sustainability and wellness, making them increasingly visible in large numbers across diverse food markets in the country.

Dubai and Abu Dhabi Show Significant Dominance

UAE ethnic snacks market exhibits regional dominance influenced by the country's demographic composition and cultural integration. Dubai and Abu Dhabi are the primary hubs, reflecting their status as major expatriate centers and economic powerhouses. These cities host many expatriates from South Asia, Middle East, and other regions, driving the demand for diverse ethnic snacks.

Dubai, with its extensive retail infrastructure, cosmopolitan lifestyle, and numerous international food festivals leads in offering a wide variety of ethnic snacks. Supermarkets, specialty stores, and a vibrant food delivery ecosystem ensure that consumers have easy access to ethnic snacks. In February 2024, Shnax Farm Fresh Chicken Chips, were launched by Dubai-based Gulf Marketing Group LLC. The product is made entirely from 100% chicken, offering a healthier snacking alternative. Furthermore, areas such as Bur Dubai are particularly known for their ethnic food markets, catering to specific communities.

Abu Dhabi, as the capital of UAE, showcases significant regional dominance with its upscale supermarkets and hypermarkets, catering to a diverse population. The city’s focus on promoting cultural heritage and tourism boosts the availability and variety of ethnic snacks, appealing to residents and tourists. Other emirates, such as Sharjah, Ajman, Umm Al-Quwain, and Fujairah, contribute to the ethnic snacks market, though to a lesser extent. These areas increasingly embrace modern retail concepts and e-commerce, expanding their market reach.

Future Market Scenario (2024 – 2031F)

There will be a significant shift towards healthier snack options, including organic, low-fat, gluten-free, and natural ingredient-based ethnic snacks.

Continued innovation will introduce new flavors and fusion snacks, blending traditional ethnic tastes with modern culinary trends. It will attract a broader audience, including adventurous eaters looking for unique snacking experiences.

The expansion of e-commerce and online grocery delivery services in the country will further enhance accessibility to ethnic snacks. Consumers will benefit from the convenience of a wide variety of snacks delivered to their doorstep, fostering market growth.

Key Players Landscape and Outlook

In UAE ethnic snacks market, several key players contribute to its dynamic landscape, catering to the diverse tastes and preferences of the multicultural population. The outlook for key players in the ethnic snacks market is positive, driven by increasing consumer demand for convenience, authenticity, and health-conscious options. Companies are expected to focus on product innovation, introducing new flavors and healthier variants to meet evolving consumer preferences. E-commerce will play a crucial role in expanding market reach, allowing players to tap into a broader customer base beyond traditional retail channels.

Moreover, partnerships with local producers and international brands will likely increase, fostering innovation and enhancing product offerings. Sustainability initiatives, such as eco-friendly packaging and responsible sourcing, will become more prevalent as consumers prioritize environmental considerations. Key players are well-positioned to capitalize on these trends, ensuring continued growth and competitiveness in the vibrant ethnic snacks market of United Arab Emirates.