Organic Packaged Food in the United Arab Emirates

PROSPECTS

Different nationalities embrace organic packaged food

While demand for organic packaged food was originally concentrated among higher-income Western expatriates, other nationalities are gradually embracing organic packaged food as well. The potential benefits of organic products are fuelled by modern grocery promotions, social media and outdoor market stalls selling organic products, both fresh and packaged.

Organic sweet biscuits, snack bars and fruit snacks registers strong growth

Organic sweet biscuits, snack bars and fruits bars registered strong current retail value growth due to consumer groups opting for organic dried dates instead of regular dried dates. Dates are an important Islamic symbol in the country and people who are fasting eat them to break the fast.

Paying more for organic packaged food

Consumers in the United Arab Emirates are increasingly willing to pay a premium for packaged food products that they perceive to be healthier, including organic products. Retailers and distributors in turn are expanding their offers of organic packaged food products, most of which are imported.

COMPETITIVE LANDSCAPE

Rachel’s Organic Co Ltd leads organic packaged food in 2018

Rachel’s Organic Co Ltd continued to lead organic packaged food in retail value terms in 2018. The company, which is exclusively focused on this category, recorded a healthy increase in its overall value share over the review period, benefited from its longstanding presence in the United Arab Emirates and strong demand for its products among expatriates familiar with its Rachel’s brand from their respective home countries.

Arla National Food Products launches organic milk shake

In 2017, Arla National Food Products Co LLC launched Arla Organic shelf-stable milk in full fat, low fat, strawberry and chocolate flavours. The price point beat existing organic offerings, while being priced slightly above conventional milk.

Grocery retailers expand dedicated shelves for packaged food assortments

The expansion of organic assortments by modern grocery retailers continued to support the positive development of organic packaged food in 2018. Major hypermarkets and supermarkets chains in the United Arab Emirates now have special aisles or sections in their outlets that are dedicated to health and wellness products, including organic variants.

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