Monthly Wrap-Up: Middle East Food & Beverage Industry – January 2025
1. Market Growth and Projections
The Middle East’s food and beverage (F&B) sector continues its robust expansion. Recent analyses indicate that the industry is projected to grow at a compound annual growth rate (CAGR) of 2.8% from 2024 to 2034. This growth is driven by increasing consumer demand and significant investments in product innovation.
2. Key Industry Trends
• Sustainability and Health-Conscious Dining: Consumers are increasingly prioritizing ethical dining choices and health-conscious meals. This shift is prompting restaurants to offer more plant-based and eco-friendly menu options.
• Technological Integration: The adoption of technology in dining experiences is on the rise, with establishments implementing digital menus, AI-based inventory management, and other tech-driven solutions to enhance customer service and operational efficiency.
3. Notable Developments
• Tahini Industry Surge: The Middle East and Mediterranean tahini industry is experiencing significant growth, with an expected valuation of USD 989 million in 2024 and a projected CAGR of 9.3% leading to USD 1,543 million by 2034. This surge is attributed to the condiment’s popularity in various traditional and modern dishes.
• Airline Culinary Innovations: Emirates has expanded its vegan menu offerings across all cabin classes and lounges, introducing dishes like spicy shakshuka and vegan cannelloni. This move caters to the growing demand for plant-based options among travelers.
4. Upcoming Events
• Ethiopia Food & Coffee Show: Scheduled for June 19-21, 2025, this event will gather manufacturers, suppliers, and retailers within the F&B and HoReCa industries to explore business opportunities. Participants from the Middle East, Africa, and beyond are expected to attend.
5. Industry Challenges
• Brand Boycotts Impact: Major Western brands like Starbucks, McDonald’s, and Coca-Cola have faced significant financial declines due to global boycotts linked to their perceived support for Israel amid its conflict in Gaza. These actions have led to substantial revenue losses and operational challenges in the Middle East market.
6. Market Outlook
The Middle East F&B industry is poised for continued growth, driven by consumer preferences for sustainable and health-conscious options, technological advancements, and regional culinary innovations. Stakeholders are encouraged to stay abreast of these trends to capitalize on emerging opportunities.