UAE Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

UAE Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

UAE foodservice market is forecasted to grow at a CAGR of 5.22% during the forecast period (2021 - 2026).

Key Highlights

• High disposable income, rising tourist arrivals, increasing urban lifestyles, and evolving consumer preferences have been propelling the growth of foodservice market in the country.
• Lack of recreational opportunities in the country is creating a growth opportunity in the foodservice sector, as the Emiratis are increasingly visiting foodservice channels to spend time with family.
• Growing trends in the market, such as food trucks and food stalls, with the availability of various international cuisines, are also rendering a new experience to the customers, thus boosting their spending on food away from home.

Key Market TrendsIncreasing Consumer Spending on Eating Out

UAE consumers consider foodservice outlets as a spot for social occasions, a place to enjoy with family and friends, and for official meetings and have a growing appetite of consumers for eating-out. With an increasing propensity to dine out, consumers in the country are driving the market through increased consumption of food in fast-food chains and full-service restaurants. This is primarily due to an increase in consumer expenditure on recreational activities and the dine-out preference of UAE consumers, especially among the youth. Additionally, consumers in the region are generally observed to comfortably pay a premium price for quality food. In fact, a consumer survey revealed that 32.6% of the consumers in UAE were willing to spend between AED 101 and AED 300 on eating out, reflecting a high willingness to spend on eating out.

Increased Casual Dining in Fast Growing Cities

Fast-food restaurants are one of the key factors driving the market studied. Over the past five years, full-service restaurants held a prominent market share in the dine-out or food-away-from-home (FAFH) market. However, a trend of increased casual dining is observed in fast-growing cities of UAE such as Abu Dhabi and Dubai, where rising tourist arrivals, increasing urban lifestyles, and evolving consumer preferences have been propelling the growth for casual dining. Additionally, higher earnings have resulted in the income growth of the consumers, thereby boosting their expenditure on eating out.

Competitive Landscape

UAE foodservice market comprises of a large number of regional and international players such as Yum Brands, McDonald’s, among other local players. Some of the US fast-food chains continue to dominate the fast-food restaurant sector in the country, with the presence of major food chains, such as KFC, McDonald’s, Pizza Hut, Burger King, Hardee’s, and Domino's Pizza. Additionally, there is a stiff competition among the foodservice providers, based on pricing, quality of foodservice, calorie intake per meals, and healthier menu options.

Additional Benefits:

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

Companies Mentioned

McDonald’s Corporation
Domino‘s Pizza Inc.
YUM! Brands Inc.
Restaurant Brands International Inc.
Apparel Group
Rmal Hospitality
Bin Hendi Group
Americana Group Inc.
Starbucks Corporation

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