Sauces, Dressings and Condiments in the United Arab Emirates

2020 IMPACT

Higher retail growth cannot offset the significant foodservice volume decline

Sauces, dressings and condiments has registered stronger retail volume growth in 2020 than in any other year of the review period, with an even higher current value growth rate due to price rises. With the emergence of the global COVID-19 pandemic, the government encouraged consumers to work from home where possible, whilst educational establishments were shut for several months to try and limit the spread of the virus.

Ingredients to prepare Italian meals are most popular

Italian dishes, especially pasta, are perceived as amongst the easiest meals to prepare, and with consumers on the quest for recipes which are easy to cook, pasta sauces and tomato pastes and purées have been the categories with the highest retail volume and current value growth rates in 2020. Tomato pastes and purées has also remained the dominant category within sauces, dressings and condiments.

More new entrants despite the already high level of fragmentation

Sauces, dressings and condiments is a very fragmented category, with only one player accounting for a double-digit value share in 2020. Some players only have a presence in one of the many categories, leading to a multitude of players with small value shares.

RECOVERY AND OPPORTUNITIES

Foodservice is likely to struggle to reach the pre-COVID-19 level of sales

Although the retail volume growth rate for sauces, dressings and condiments is expected to slow just slightly in 2021, it is set to remain higher than the rates seen in the review period, with even higher growth expected for later years of the forecast period. The slight slowing of growth will be due to children going back to face-to-face learning and employees returning to the office, which will lead to more consumption occasions being redirected to foodservice, leading to slower retail growth in several categories.

Foodservice is likely to struggle to reach its pre-COVID-19 level of sales

The largest category, tomato pastes and purées, is set to maintain the strongest retail volume growth rate in the forecast period, as such products are used in serval cuisines, but will particularly benefit from the rising popularity of Italian dishes. However, this category is not expected to see a particularly impressive current value growth rate, due to price declines over much of the forecast period.

Greater diversity expected as players launch more ethnic products

As in the review period, in the forecast period growing consumer sophistication is set to play a significant part in driving demand within sauces, dressings and condiments. With greater population diversity and the expansion of the foodservice landscape, many consumers are developing a greater appreciation for various types of ethnic cuisines, including Asian, European and Middle Eastern dishes.