Page 15 - AA 2023 Year Book Website

Additionally, favorable government Increased Accessibility Due zones, including Jebel Ali, the largest
policies toward boosting production and to Presence of Well-developed cargo port in the Middle East, to support
increasing consumption support the mar- Retail Chain the trading. This expanded and well-
ket’s growth. For instance, in 2021, Saudi developed trade network has facilitated
Arabia’s Ministry of Environment, Water, The local distribution and retail net- the consumption and retail sector of fruits
and Agriculture launched a new initia- work has flourished rapidly in the major and vegetables. For instance, according
tive to support local production, qual- parts of the GCC, especially in Saudi Ara- to Dubai Chamber of Commerce and
ity control, and ensure food security for bia, United Arab Emirates among others, Industry, in 2020, the retail sales value
fruits and vegetables in the nation. This is in the past few years. Most of the fruits of vegetables and fruits in UAE stood at
achieved by issuing import licenses for and vegetables demand in the country USD 1,939 million and USD 1,344 million
the fruit and vegetable suppliers. More- is met through imports from other coun- respectively. This retail sector sales of
over, among all the GCC countries, Saudi tries, hence the distribution channel is fruits and vegetables is high compared
Arabia, Oman, United Arab Emirates, very strong. Supermarkets and hyper- to other fresh food sales which contribute
and Kuwait were the primary producers markets have been propping up, and to the growth of the fruits and vegeatbles
of fruits. The initiative is increasing local with their superior distribution channel market in GCC countries.
production to cater to domestic demand. and in-store equipment, the shelf-life of
For instance, according to FAO statistics, fresh produce has increased, thus en- GCC Fruits and Vegetables
the total fruit production accounted for abling greater consumption of fresh pro- Market News
3 million metric tons in Saudi Arabia in duce among consumers which is aiding • November 2022: LuLu supermarket, a
2021, which stood steady from 3 million the fruits and vegetable market. leader in retailing in Gulf countries, ex-
metric tons in 2020. In contrast, vegeta- The majority of the consumption of panded its network by launching three
ble production accounted for 1.61 million fresh produce in the countries is ac- new stores in Sharja, Festival City, and
metric tons in 2020, which showed slight counted for through supermarkets and Abu Dhabi. It also introduced new prod-
decrease from 1.59 metric tons in 2020. hypermarkets. Hence, the distribution of ucts like Kissabel apples, blood oranges,
Furthermore, despite the unstable cli- fruits and vegetables is better facilitated and hydroponic lettuces to boost retail
matic conditions in the GCC countries, through partnerships with local super- sales of fresh fruit and vegetables in the
smart farming practices, like hydropon- markets and hypermarket chains, like Gulf.
ics, have served as a vital alternative to LuLu Group, LVMH, Fu-Com, and others. • July 2022: International Centre for
traditional farming in most countries, The leading retail chains in the region Biosaline Agriculture farm in Dubai has
such as Saudi Arabia, the United Arab are Union Coop, Carrefour, Geant Hyper- done the research and is cultivating heat-
Emirates, and Kuwait. Important fruits market, Lulu Hypermarket, and others. resistant local varieties of crops such as
and vegetable crops such as cucumbers, The retail store market in the country is date palm and quinoa in salt water.
tomatoes, peppers, strawberries, chilies, consolidated, and the high market share
aubergines, leafy vegetables, and herbs of these outlets is due to the promotional • March 2022: Carrefour launched its
are grown using smart farming tech- offers given to customers. Although only first cafe and indoor hydroponic farm
niques. This increase in the adoption of a few companies have major markets, across the UAE to support the farm-to-
new farming technologies is primarily small new retail and independent super- table lifestyle. On this farm, the shoppers
attributed to a reduction in the depen- market stores are growing at a faster rate. can pick the different leafy greens, such
dence on imports and an increase in pro- Moreover, the leading countries in as lettuce, arugula, kale, and herbs, such
duction, resulting in significant market GCC like Dubai has several free trade as basil, dill, and sorrel, from the in-store
growth. hydroponic farm.

MIDDLE EAST POULTRY MEAT MARKET ANALYSIS

The Middle East poultry meat market more popular in households where both the lower price of poultry meat than
is projected to record a CAGR of 4.8% partners work outside the home. Poultry other meat and its resultant popularity in
during the upcoming five years meat, known for its versatility, afford- banquets and catering are expected to
ability, and nutritional value, is a prime drive the market growth during the fore-
• Middle Eastern poultry meat mar- example of such a product. It is not only cast period.
ket witnessed significant growth due to easy to prepare, but it can also be stored
increasing tourism, the booming food in the refrigerator for extended periods, • However, consumer awareness re-
service industry, changing consumer making it a convenient option for busy garding the benefits of plant-based food
trends, and advanced retail distribution families. products has undoubtedly impacted the
networks. In addition, an increase in the consumption of poultry meat in the Mid-
number of working women positively • In recent years, there has been a rise dle Eastern market. In addition, the avail-
impacts the food industry, particularly in preferences for poultry meat cuts, ability of meat substitutes coupled with
in terms of demand for ready-to-eat and especially whole legs, breast with bone the launch of various plant-based meat
ready-to-cook products. and no bones, minced, drumsticks, etc., products in the market is anticipated to
across various food service channels for hamper the overall growth of poultry
• Packaged food products, particu- use in famous dishes, such as kababs, meat.
larly those that are easy to prepare and shawarma, etc., which is expected to
have a longer shelf life, are becoming drive the market growth. Additionally,
Arab Agriculture 2023 13