Did you know that the UAE is also a major player in the food and beverage trade? In fact, the UAE is one of the top food and beverage exporters in the world. And with a population of over 9 million people, there are plenty of opportunities for businesses looking to get into the food and beverage trade.
This blog covers all the essentials:
The UAE's food and beverage industry is flourishing. With a population of over 9.2 million, and a growing expat community, there is a constant demand for high-quality food and beverage products. And as the country continues to grow and develop, so does the food and beverage market.
According to Statista, the UAE food market will generate US$37.89 billion in revenue in 2023, and the market is anticipated to expand by 4.39% yearly (CAGR 2023–2027). With a market volume of US$ 9.39 billion in 2023, confectionery and snacks will be the market's largest segment.
Online sales of food and beverage have seen an exponential increase in the UAE in recent years, estimated to reach $619 million by 2025 with an 8.5% CAGR, according to the Dubai Chamber of Commerce and Industry. Also, according to the same report, F&B trade in the UAE increased steadily to reach over $20 billion in the first nine months of 2021.
There are many opportunities for businesses within the UAE's food and beverage industry. You can import food and beverages from all over the world and sell them to retailers, restaurants, hotels, and other businesses. You can also manufacture your own products in the UAE or export them to other countries.
The UAE offers a great location for businesses within the food and beverage industry. The country is well-connected with the rest of the world, with a number of airports and seaports. And because of its thriving economy, there is a high demand for high-quality food and beverage products.
As a food and beverage trader, it is important that you are aware of the UAE's food and beverage regulatory framework. This will help you to ensure that your products are compliant with local trading regulations, and that you are operating within the bounds of the law.
The UAE has a well-developed food regulatory framework, which is overseen by the Ministry of Health and Prevention (MOHAP). All food businesses in the UAE must operate in accordance with the regulations laid out in this framework, which cover all aspects of the food chain, from production to sale.
Key elements of the regulatory framework include product safety and quality, labelling and packaging requirements, hygiene and sanitation standards, and food additives. The MOHAP also has specific requirements for organic foods, which must be certified by an accredited body in order to be sold in the UAE.
When trading in the UAE, you can benefit from the country's strategic location and strong infrastructure. The UAE is located in the heart of the Middle East and has excellent transport links to Europe, Africa, and Asia. And with a well-developed transport infrastructure, you can be sure your goods will reach their destination quickly and efficiently.
The UAE also has a thriving economy, thanks to its booming construction, tourism, and retail sectors. This means that there is a high demand for goods and services, providing you with a ready market for your products. What's more, the UAE has more than 50 free-trade zones, so you can export your goods without any restrictions or customs duties.
So if you're looking to expand your business into the Middle East, the UAE is the perfect place to start.
When looking at Food and Beverages trading opportunities in the UAE, one needs to consider the different types of products being sold, which include fresh or preserved fruit and vegetables, dairy products and eggs, meat and poultry, bakery products, sugar confectionery, and non-alcoholic beverages. Organic products are in high demand these days as people become more conscious of their health and what they’re eating. However, there are also non-organic products that can be appealing to buyers as well.
When reselling organic and non-organic food and beverages, it’s important to know how you can differentiate between the two types of products. First off, organic products must be certified organic by a government-approved certifying agency before being sold. They also should have an expiration date that is followed. On the other hand, non-organic products don’t necessarily need to be labelled as such but still need to have a clear expiration date on them.
It’s also worth considering if a product is manufactured locally or abroad when exploring selling or reselling of food and beverages. With locally made food items, these often tend to cost less than foods made abroad or imported into the country due to customs fees and other costs associated with importing items into the UAE. Therefore, depending on your target market and budget, it can be a good idea to take this into consideration when exploring your own trading opportunities within the country’s food and beverage industry.
Things to consider include the potential risk associated with the diversity of sources, potential issues with product quality and safety, and costly supply chain operations. To mitigate these risks, it is vital that traders have strong relationships with their suppliers and understand their business objectives when looking at sourcing internationally. Additionally, traders need to take into account logistics, including storage time, transportation costs, and customs clearance procedures, when considering trading opportunities.
You can access resources to begin trading in the UAE through several avenues. If you're looking to export, the Dubai Exports website offers resources on the regulations and procedures governing international trade in the emirate. If you're looking to import, the Dubai Chamber of Commerce & Industry provides detailed information on customs' regulations and procedures, including documents required for importation.
Additionally, you can contact UAQ Free Trade Zone’s business experts for advice on detailed requirements and processes related to licensing, permits, and other matters.
With the growing demand for healthy, organic food, there are plenty of trading prospects to be explored in the UAE's food and beverage industry.
With its strategic location and great accessibility, the UAQ FTZ offers a significant advantage to Food and Beverage trading and manufacturing companies with its general trading and industrial licences, warehouses with the lowest operating costs in the region, world class logistics infrastructure, foreign ownership, and seamless processing.
So if you're looking for a new opportunity to get into the food and beverage industry, the UAQ Free Trade Zone is a great place to start.