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UAE’s F&B manufacturing industry expected to reach $23.2 billion by 2025

The surge will be propelled by the snacking and bakery sectors, experiencing growth rates of 50% and 20%.

UAE’s F&B manufacturing industry expected to reach $23.2 billion by 2025
[Source photo: Anvita Gupta/Fast Company Middle East]

The food scene in the UAE is dynamic and marked by creativity and innovation. Businesses consistently adjust to cater to the preferences of a discerning palate, offering trendy plant-based alternatives and locally sourced ingredients.

The UAE’s food and beverage (F&B) manufacturing industry is on the rise, expected to reach $23.2 billion by 2025, as per a recent report from the UAE Food and Beverage Business Group (F&B Group).

This expansion is driven by significant growth in the snacking sector, surging by 50%, and the bakery industry, which has expanded by 20%.

With over 2,000 F&B factories generating an annual revenue of $7.63 billion, the sector constitutes 25% of the UAE’s manufacturing GDP, securing its position as the second-largest contributor, trailing only behind the oil and gas industry.

Despite a price increase, sports drinks experienced a notable 15% growth this year. Likewise, dairy products and frozen meat demonstrated robust growth, registering 16% and 18% gains.

Sub-segments like eggs, cooking oil, and sweet treats grew by 18%, 30%, and 21%. This diversity underscores the resilience and dynamism of the UAE’s F&B sector, according to Saleh Lootah, Chairman of the F&B Group.

“The sustained growth in key segments and the emergence of smaller players as significant contributors underscore the industry’s adaptability,” Lootah said.

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