Frozen Food in UAE Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Frozen Food in UAE Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The United Arab Emirates Frozen Food Market size is estimated at USD 0.72 billion in 2024, and is expected to reach USD 1.02 billion by 2029, growing at a CAGR of 7.28% during the forecast period (2024-2029).

Robust demand for frozen food in the United Arab Emirates has increased owing to major factors such as growing urbanization, expat population, and rising workforce participation. In addition, urban consumers have shown huge interest in products offering greater convenience against price. Additionally, the growing popularity of large modern food retail formats and the presence of multinational food companies in the countries are the main factors for the popularity of convenience foods, particularly frozen meals, among consumers. Moreover, in the rapidly evolving retail landscape, consumers are increasingly seeking a seamless and integrated shopping experience that caters to their evolving preferences and needs. In October 2023, 24seven, a new grocery retail concept, was launched in the United Arab Emirates to serve the booming USD 3.7 billion grocery retail market. 24seven is a joint venture between UAE-based Lulu Group International and Saudi-based Fawaz Alhokair Group. It aims to provide a seamless omnichannel shopping experience. The first 24seven store has opened in Dubai, with plans to expand across the United Arab Emirates and the wider GCC region. The company aims to have 100 stores by 2025. Besdies this, the growing immigrant population in the United Arab Emirates is increasing the demand for frozen ethnic food markets. As a result, the players are focusing on the expansion of facilities and product portfolios, primarily due to the increasing demand for frozen-ready meals in the food industry. In June 2022, Delektia Food, a Dubai-based frozen food company, launched more than 70 products, including frozen ready meals, and is anticipated to expand in several other markets such as Oman, Kuwait, and Saudi Arabia.

UAE Frozen Food Market Trends

Frozen Meat and Fish Is Widely Consumed

The internationalization of Emirati cuisine is broadening the dietary choices for consumers, leading to an increased preference for frozen meat. Driven by busy lifestyles and a growing number of dual-income households, convenience is becoming a key driver of the demand for frozen meat. Consumers are particularly gravitating towards processed frozen meat for its ease of cooking. Manufacturers are quick to respond, introducing new products to cater to this demand. For example, in February 2022, Seara, a JBS brand, unveiled its Shawaya chicken line in the frozen foods segment, featuring Frozen Marinated Whole Chicken and Frozen Tender Whole Chicken. Emirati consumers are also embracing healthier eating habits, transitioning from deep-fried to air-fried options. Recognizing this shift, manufacturers are rolling out air fryer-friendly products. In July 2024, Al Islami Foods introduced "Original Tempura Nuggets" under its Heat & Eat range, emphasizing both convenience and nutrition.

Supermarkets/Hypermarkets Are The Most Preferred Distribution Channel

Supermarkets and hypermarkets, often frequented due to their proximity to residential areas and ease of access, have become key platforms for frozen food manufacturers to showcase their products, tapping into a broader consumer base. In the UAE, supermarkets are increasingly bolstering their private-label offerings through strategic partnerships. Supermarkets in the region are also innovating their store formats, aiming to enhance the overall shopping experience. This trend underscores a broader industry shift towards offering localized convenience and bulk purchase solutions. In July 2022, the LuLu Group accelerated its ambitious expansion in the UAE by opening two innovative concept stores. These new stores feature a comprehensive selection of fresh fruits and vegetables, meat and seafood sections, frozen foods, and others. The new store, the LuLu Express Supermarket, is located in Y Tower, Dubai.

UAE Frozen Food Industry Overview

The United Arab Emirates frozen food market is highly competitive, with several players selling frozen and shelf-stable food products via several distribution channels present across the country. Thus, market players are adopting strategies such as partnerships, mergers, and acquisitions to achieve a competitive advantage and sustain in the market. These players embark on innovations and market expansions to increase their range of products and widen their consumer base. Some of the prominent players in the market include IFFCO, Al Islami Foods, The Savola Group, Americana Restaurants International PLC, and Unilever PLC.

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