Food consumption across the GCC is expected to grow by 4.6 million metric tonnes over the next five years, reaching 55.5 million metric tonnes by 2029, according to a new report by UAE-based investment advisory firm Alpen Capital.
The report attributes this growth to a rising population, higher income levels, and growing tourism. Saudi Arabia and the UAE are projected to remain the region’s largest food consumers, together accounting for 73.8% of total demand by 2029.
Health and tech shaping choices
The study notes a shift in consumer habits toward healthier and more sustainable food options. Demand for fresh, organic, and low-sugar products is increasing, influenced by rising health awareness and lifestyle-related conditions.
“Food consumption in the GCC is projected to grow on the back of demographic expansion, rising spending power and burgeoning tourism activity,” said Sameena Ahmad, Managing Director, Alpen Capital.
“National strategies and shifting dietary preferences toward health-conscious alternatives are collectively reshaping the sector.”
Focus on food security
Governments across the region, including the UAE, are investing in agritech, hydroponics, and vertical farming to reduce reliance on imports and strengthen food security. The report notes that supply chain risks, limited natural resources, and climate challenges continue to pressure domestic production.
Alpen Capital also highlights increased interest in tech-driven food services such as online delivery platforms, cloud kitchens, and health apps.
“The GCC food industry is experiencing an upward trend for convenience and tech-enabled services… Regional players are responding by boosting local production, expanding capabilities and enhancing competitiveness,” said Sharmin Karanjia, Executive Director, Alpen Capital.
Among food segments, cereals are projected to grow the fastest at a 1.9% compound annual growth rate (CAGR), followed by fish, eggs, and pulses. Oman is expected to see the highest national growth rate at 3.8% CAGR, with other GCC countries ranging from 0.1% to 3.3%.
The report was released during a webinar featuring industry leaders from Barakat Group, Al Khaleej Sugar Co., and other firms, moderated by Alpen Capital’s Sameena Ahmad.
tanvir@dubainewsweek.com
