UAE – The Future of Foodservice to 2021
Summary
Politically and economically, the UAE is seen as one of the most stable countries in a highly turbulent Middle Eastern region. It’s relatively relaxed liberal attitudes combined with its geographical location have also helped it become a highly attractive destination for foreign investment. Having largely escaped unscathed from the years of global economic downturn and austerity seen elsewhere, the UAE has faced the challenge of navigating a significant fall in the price of oil in recent years. This has forced the country to accelerate its plans of diversifying its economy towards banking and tourism, lessening its dependency on oil.
In 2016, the UAE’s Quick service Restaurants (QSR) channel was valued at AED 11.9 Billion following substantial value growth of 5.2% over the previous two years. Despite this, pitfalls of the market remain vastly understated. In times of stagnation across Western foodservice markets, the UAE’s offer of significant market growth and a diverse audience has proved too attractive to ignore for many international fast food brands. To 2021, value growth of the QSR channel is forecast to accelerate, however outlet growth and average transaction prices are expected to remain largely stagnant.
Full Service Restaurants (FSR) channel represents the country’s second largest foodservice channel, accounting for 18% of total sales revenue. Historically (2014 to 2016), the channel has grown at a CAGR of 4.5% which, while strong, trails behind overall profit sector average growth of 5.4% during the same period.
Restrictions on alcohol sales as well as a relatively strong portion of the population being teetotal has largely restricted the country’s pub, club and bar channel, allowing ample market room for coffee shop operators. This has led to a proliferation of third-wave’ international coffee shop operators entering into a space race’ and expanding their presence across the market. Forward to 2021, operators are expected to promote fuller meal solutions within the channel to combat rising operational costs.
Experimental and novelty drinks are expected to become more prominent across menus as operators look to stand out from the increasing crowds.
The report “UAE – The Future of Foodservice to 2021” provides extensive insight and analysis of the UAE’s Foodservice market over the next five years (2016-2021) and acts as a vital point of reference for operators or suppliers.
In particular, this report provides the following analysis –
– Overview of the UAE’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on the UAE’s foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
– Growth dynamics: In-depth data and forecasts of key channels (QSR, FSR and Coffee & Tea Shops) within the UAE’s foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
– Customer segmentation: Identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the Emirati population.
– Key players: Overview of market leaders within the three major channels including business descriptions and number of outlets.
– Case Studies: Learn from examples of recent successes and failures within the Emirati foodservice market.
Companies mentioned in this report: McDonald’s, Subway, KFC, Burger King, Hardee’s, Pizza Hut, Shakespeare and Co, Hatam, Chili’s, Nando’s, Rogo’s Rollercoaster Restaurant, Starbucks, Costa Coffee, Tim Horton’s, Dunkin’ Donuts, Armani Cafes.
Scope
– Recent economic concerns, including a prolonged decline in the value of oil, haven’t had a significant impact on demand for out-of-home foodservice to-date.
– A continuous cycle of brands, concepts and product innovation entering the market has made it increasingly easy for brands to become lost in the crowd’.
– Cooling population growth has forced operators to rely on heighten levels of consumer spending, incentivizing ultra-premium’ product development.
Reasons to buy
– Specific forecasts of the UAE’ foodservice market over the next five years (2016-2021) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
– Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, Coffee & Tea shops) will allow readers understand the wants and needs of their target demographics.
– Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within the UAE’s foodservice market.
