GCC food demand to reach 52.4mln metric tons by 2025

GCC food demand to reach 52.4mln metric tons by 2025

GCC food demand will see a compound annual growth rate (CAGR) of 2.3 percent to reach 52.4 million metric tons (MT) by 2025, up from 46.8 million in 2020, according to a new report by Alpen Capital. As demand increases, the food industry is also adapting to changing tastes, with increasing consumption of vegetables. There is increasing demand for organic packaged foods as well as protein and dairy alternatives, as the younger generation focuses more on ethical concerns and the carbon footprint of food, a webinar for the launch of Alpen Capital’s GCC Food Industry report heard. The UAE and Saudi Arabia account for 75 percent of the GCC’s food consumption and demand for specific sectors is growing, said Sanjay Bhatia, managing director of Alpen Capital. “Rising demand in organic food has made distributors and producer focus on organic products,” he said. “Packaged organic foods witnessed a substantial rise in demand, in the UAE - $51.2 in 2020, up from $38.1 million in 2017.” GCC governments have also been investing across international farmlands in Ethiopia, Madagascar, Mali, Serbia, Sudan, Zambia, Tanzania to establish strong trade relations and increase produce, he said. Bhatia also highlighted the focus on technological advancements, which