United Arab Emirates Frozen Food Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

United Arab Emirates Frozen Food Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The UAE frozen foods market is projected to register a CAGR of 4.87% during the forecast period (2022-2027).

The COVID-19 pandemic has had a significant impact on businesses across industries in a very short time, including the frozen food and food supply chains as well as momentous shifts in demand. Sales of frozen foods, especially frozen ready-meals, have increased as consumers are stockpiling food products. Thus, sales of frozen ready-meals have been positively impacted by the outbreak of COVID-19. Furthermore, the majority of consumers in the country are purchasing food and beverage products, including frozen food and online delivery channels. Thus, an increasing number of retailers are expanding their footprints in online deliveries to help consumers order their daily essentials and food and beverage items, such as frozen desserts, while following social distancing norms imposed by the government. For instance, in October 2020, Waitrose & Partners launched a new online shopping site in the United Arab Emirates, called Waitrose.ae, to retail 15,000 products, including frozen food products, to consumers in Dubai and Abu Dhabi.

Due to its arid climate and nominal rainfall, the United Arab Emirates is inhospitable to most forms of agriculture, and thus, the country relies heavily on food imports. The growing need for convenience, supported by factors like busy lifestyles, changing consumer preferences, and the growing demand for ready-to-eat food products, is the major factor driving the growth of the market studied. The country has witnessed a growing demand for seafood, owing to the high number of expatriates and foreign workers, which is a significant factor that is contributing to the growth of the demand for imported fishery products. Halal seafood products also hold huge potential in the market.

The consumers’ demand for a year-round supply of seasonal produce and ready-made meals remains the driving force behind innovation and sales in frozen food technologies. Frozen-ready meals are alluring to people with hectic lifestyles and consumers who do not want to invest much time in preparing full meals. Additionally, the increasing number of modern retail formats in the country and the availability of a greater variety of frozen ready-to-eat meals have attracted time-conscious consumers who are seeking convenient food products, thereby leading to a noticeable increase in demand. Furthermore, the growing influence of western food habits among the consumers in the country has increased the demand for packaged food products. This is further supported by high urbanization, the presence of a high percentage of expatriates, tourism, as well as young consumers, driving the demand for ready-to-eat, canned, processed, preserved, and frozen foods. The new-age consumers in the country (especially millennials) are sophisticated when it comes to their food shopping and eating habits; they spend on high-quality and healthy food. Most food and beverage chains continue to innovate and experiment with multiple product offerings and models in order to cater to this growing consumer segment.

Frozen ready meals represent a convenient alternative to cooking and are thus, increasingly preferred by the working population, with the total labor force in the United Arab Emirates at 7.384 million (as per the United Arab Emirates Government) and also by the increasing ex-pat population in the country. Owing to this factor, precooked and frozen meals, like meatballs, veg meals, and other frozen ready-to-eat products, which are halal certified, have been experiencing high demand from the consumers of the market studied, thus, increasing the overall market for frozen food in the country further. One of the companies, such as Ta’moosh, has been offering an extensive and high-quality range of frozen gourmet ready-to-eat Halal dishes that cater to the United Arab Emirates' diverse consumers and their busy lifestyle needs. Also, their products are exclusively available in the frozen foods section across the leading supermarkets in the United Arab Emirates.

The UAE frozen food market is highly competitive, with several players engaged in selling frozen and shelf-stable food products via several distribution channels present across the country. Thus, in order to achieve a competitive advantage and sustain it for a longer period, market players are adopting strategies such as expansions, product innovations, partnerships, and mergers and acquisitions. Some of the key players in the market are General Mills Inc., SIDCO Foods Trading Company, IFFCO, and Al Kabeer Group. These players will be embarking on innovations and market expansions to increase their range of products.

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