Dubai, UAE – The UAE’s foodservice market is poised to reach $19.98 billion in 2024, with further projections indicating a substantial growth trajectory, a whitepaper released by real estate services firm JLL has revealed.
The whitepaper highlights the unprecedented growth opportunities within the UAE’s Food and Beverage (F&B) industry.
The report emphasizes the robust expansion of the F&B sector, forecasting a compound annual growth rate (CAGR) of 17.09%, propelling the market to $43.98 billion by 2029. The surge is attributed to various factors, including a resilient tourism industry, a competitive economic environment, and proactive government initiatives.
In Dubai, the expansion of key areas like City Walk, Jumeirah 1, Dubai Investment Park, Dubai Hills, and Dubai Creek, has significantly contributed to the strengthening trajectory of the F&B industry. Simultaneously, Abu Dhabi’s growth stems from a flourishing tourism industry and increasing demand in areas featuring new attractions and entertainment concepts.
The whitepaper further highlights the evolving landscape of F&B categories in line with consumer demand. Fast food retains a significant market share in both Dubai and Abu Dhabi, driven by factors such as affordability and convenience. All-day dining, casual dining, and fast-casual categories have seen increased popularity due to a heightened emphasis on convenience.
Fine dining is experiencing substantial growth, particularly in emerging areas, with annual increases of almost 20% in Dubai and 33% in Abu Dhabi. The proliferation of 5-star hotels in both cities is contributing to the expansion of the fine-dining segment.
Specialty coffee and high-quality brews are gaining traction, reflecting a consumer preference for premium experiences. The report also notes a rising focus on health, wellness, and sustainability, with food transparency emerging as a strategic differentiator in the competitive F&B market.
“Propelled by a sturdy increase in domestic and international tourism as well as a growing multicultural consumer base, the UAE’s F&B sector today doesn’t only mirror economic growth but also a dynamic culinary evolution,” Kostas Papadakis, Manager, Foodservice Consulting, MENA at JLL, said. “From the rapid expansion of fast food to the flourishing fine dining scene and the rise of specialty coffee, the diversity and innovation in the UAE’s F&B offerings showcase a market attuned to consumer preferences and global trends.”
“Moreover, from the sector’s commitment to sustainability, personalised dining experiences, and the success of homegrown concepts, it is clear that the nation’s gastronomic landscape is becoming a global powerhouse, further enhancing the UAE’s diversification strategy,” he added.
