Organic & Natural
Expo Dubai, 2022
The exhibition is held under the patronage of the UAE Ministry of Climate Change and Environment and with the support of the International Federation of Organic Agriculture Movements (IFOAM).
UAE - WORLD TRADE CENTRE
The UAE's unique location allows it to connect the whole world. The growth of the natural and organic products market in the Middle East has been almost exponential in the last few years. As the region's commercial hub, the UAE is ideally placed to launch the opportunities in the burgeoning natural products market, which is being fuelled by an ever-increasing shift towards healthy living and high incomes. As one of the largest import markets in the world, this gives significant clout to any manufacturers of natural, organic, non-GMO, gluten and paraben free products wishing to enter the market.
FORECASTS AND MARKET TRENDS
Experts forecast the regional organic and natural beauty products market to reach a value of USD 5 billion by 2023. Meanwhile, the F&B market for natural and organic goods is expected to account for USD 18.42 billion by 2023, showing a 14.4% growth (CAGR) over 2015.
IMPORT AND RE-EXPORT
Food imports from Gulf Cooperation Council (GCC) countries alone are expected to reach $53.1 billion by 2022, with most importing 70-90% of their food requirements. The UAE will also be home to the DUBAI FOOD PARK, the region's first wholesale city, established to facilitate and boost imports, exports and re-exports, for which Dubai serves as a hub in the region. Dubai ranks as the third largest re-exporter in the world, with over $546 billion worth of goods shipped from the trade hub. Its unique location allows it to connect the world, making it a popular re-export hub.
RETAIL
Consumers in the region have proven to be overwhelmingly willing to buy organic and natural products, with retail shelf space for such products increasing by 60% in the last four years alone. Some retail chains that supply natural and organic products in the UAE have seen an astonishing 200% growth in purchases since 2016. The retail giants in the region have started to set aside exclusive sections for natural, organic and organic products due to surveys that found 55% of the population felt there were not enough healthy products in stores.
E-commerce in the Middle East is growing at a breakneck pace, with key players being Saudi Arabia and the UAE. The online commerce sector is expected to reach $69 billion by 2022. This is driven by a young and tech-savvy demographic, with 40% of the population in the 20-39 age groups looking for fast, convenient and secure ways to buy.
BRANDING
Private branding is the process of marketing one company's product as another company's commodity. According to Nielsen, this trend is growing globally. The private label market in the Middle East began to see growth within major retailers in 2014, and has begun to expand over the past 7 years with increasing speed.
Over the past 2 years, a number of retail giants in the UAE and Saudi Arabia have turned en masse to private branding as their own products, with surveys showing that as many as 18% of them report changing shopper habits to save money. The number of shoppers who are happy to replace their mid-range brands with private label products has also increased from 55% to 65% from 2017 to 2018.
