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Welcome to Adil Khan, Green Seed Group’s new MD for the Middle East region
Green Seed Group UK Managing Director Simon Waring asks Adil to share some insights on opportunities. Simon: Which markets should be the focus for companies wanting to start selling food & drink products in the Middle East (ME) region? Adil: First and foremost, companies should know about the size of the two biggest economies of the six countries that make up the Gulf Cooperation Council (GCC) countries within the Middle East region namely, Saudi Arabia and the UAE. The total population of these two countries is 46mn – nearly 78% of the total GCC population of 59mn. And the total GDP of these two countries is nearly $1,500bn – nearly 72% of the total GDP of the GCC. The total GDP of both the Saudi Arabia and the UAE is nearly twice the GDP of Poland; nearly equal to Spain’s and about half that of Italy. Simon: What would your key messages be for companies considering exporting to the region? Consumers in these ME countries are increasingly conscious about food quality and safety. It’s important your products meet the highest standards of quality and comply with local regulations. The trend towards online shopping has caught on in a big way in the ME.Establishing a strong online presence and partnering with local e-commerce platforms can help you reach a wider audience. There is a rising awareness of health and sustainability among ME consumers. Products that are healthy, organic, or sustainably sourced are gaining popularity. Networking and building relationships with local distributors, retailers, and stakeholders are crucial. In-person meetings by visiting the markets and at tradeshows are an important element of maintaining these relationships. Simon: It’s not a ‘one size fits all’ across the region in terms of regulations and labelling either, is it? Adil: Yes, that’s right, each ME country has its own set of regulations and standards for food and beverage products. It is therefore important to be well-versed with these requirements to comply with all necessary certifications and approvals. And finally Effective marketing and branding strategies are essential to stand out in a competitive market. Simon: Can you throw some light on the market size and growth trends of the key markets? Adil: The food & drink sector in the UAE is estimated to be worth around $16 billion. The market has been experiencing steady growth, with an annual growth rate of approximately 5%. Factors driving growth include a rising population, increasing urbanisation, and a growing tourism industry. But the sector in Saudi Arabia is significantly larger, with an estimated value of $70 billion. Growth in the market has been robust, averaging around 6% annually. The expansion is fuelled by a growing population, rising disposable income, and government initiativesto boost the hospitality and tourism sectors. Simon: How about consumer preferences and behaviour? Adil: Consumers in the UAE have diverse preferences, influenced by the multicultural nature of the population.There is a growing demand for healthy and organic food options, as well as international cuisines. Convenience is a key factor driving consumer choices, leading to the popularity of delivery services and grab-and-go options. The picture in Saudi Arabia is a little different. Traditional Saudi cuisine holds significant cultural importance, but there is also a growing interest in international cuisines, particularly among urban youth. Family dining is common, with a preference for large portions and shared meals. Halal certification is essential for many consumers, reflecting religious dietary preferences. Simon: Which food and drink categories have been growing most strongly in recent times in the ME region? Adil: There are a few I would particularly highlight: Health and Wellness Products: There is a significant rise in demand for organic, natural, and health-focused products. This includes plant-based foods, gluten-free items, and products with added health benefits like probiotics. Convenience and Ready-to-eat Foods: Ready-to-eat meals, snacks, and beverages that cater to busy lifestyles are increasingly popular. This trend is driven by the need for quick and easy meal solutions. Dairy and Dairy Alternatives: Traditional dairy products continue to be popular, but there is also growing interest in dairy alternatives such as almond milk, soy milk, and other plant-based options. Premium and Gourmet Foods: With rising disposable incomes, consumers are more willing to spend on high-quality, premium, and gourmet food products. This includes specialty cheeses, fine chocolates, and artisanal products. Functional Foods and Beverages: Products that offer additional health benefits, such as fortified foods and beverages with added vitamins, minerals, or antioxidants, are gaining traction. Sustainable and Ethically Sourced Products: There is a growing preference for products that are sustainably sourced and ethically produced. This includes items with eco-friendly packaging and those that support fair trade practices. Simon: How can Green Seed ME support food & drink companies wanting to do business in the GCC region? Adil: We can support food and drink companies looking to enter the ME market in several ways: Market Research and Insights: This information can help companies tailor their products and strategies to meet local demands effectively. Regulatory Guidance: GS ME offers guidance on compliance with local food safety standards, labelling requirements, and other regulatory aspects, ensuring that your products meet all necessary criteria. Networking and Partnerships: GS ME can facilitate connections with local distributors, retailers, and other key stakeholders. Building strong relationships in the region is crucial for successful market entry and expansion. Marketing and Branding Support: Effective marketing and branding are essential to stand out in the competitive ME market. GS ME can assist with developing and executing marketing strategies that resonate with local consumers, including digital marketing, social media campaigns, and traditional advertising. E-commerce Integration: With the growing trend of online shopping in the ME, we can help companies establish a strong online presence. This includes guidance, advice and connecting to local firms that can assist in setting up e-commerce platforms, optimising for search engines, and leveraging online marketplaces to reach a broader audience. Logistics and Distribution: We can provide support and advice in setting up supply chain operations, including introductions to warehousing, transportation, and inventory management organisations. Sustainability and Ethical Practices: We can advise companies on adopting sustainable and ethical practices, which are increasingly important to GCC consumers. This includes sourcing sustainable ingredients, reducing environmental impact, and promoting fair trade practices. Simon: Thanks Adil, it sounds like there is a lot of potential and we look forward to building a lot of business for food and beverage companies in the region together! To get in touch with Adil Khan, Managing Director Green Seed Middle East at akhan@greenseedgroup.ae Contact Us