GCC Fruits and Vegetables Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.60 % |
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GCC Fruits and Vegetables Market Analysis
The GCC Fruit and Vegetable Market are poised to grow at a CAGR of 8.6% during the forecast period.
- The rise in the population is increasing the food security preferences in GCC countries, so people are becoming inclined toward foods with readily available nutrients. Fruits and vegetables are rich sources of required vitamins and minerals daily. The population is growing at a faster pace. For instance, according to the GCC Stat, the number of people in 2022 will be 59.56 million, increasing from 57.6 million in 2020. This population growth is giving rise to consumption.
- Additionally, the retail sale of fruits and vegetables in the region increased due to consumer preferences toward consuming healthy diets to boost immunity. The rise in awareness due to the increase in obesity and cardiovascular disease patterns in the GCC region pushes them towards healthier eating habits. This healthier consumption habit is increasing the demand for quality fruits and vegetables.
- Along with this, most of the countries in the GCC region are not self-sufficient in terms of fruits and vegetables. The climatic conditions are not suitable for cultivating fruits and vegetables, resulting in lesser yields. Hence, the countries primarily depend on imports to satiate their domestic demands. For instance, 2021, according to the ITC trade map, the implications of fruits to Saudi Arabia accounted for 25,669 metric tons in 2021, an increase from 25,493 metric tons in 2020. Thus, the dependency on imports is raising the import volume. Therefore, the increase in the population caters to the demand rise in imports, thereby contributing to the market's growth in the forecast period.
GCC Fruits and Vegetables Market Trends
This section covers the major market trends shaping the GCC Fruits & Vegetables Market according to our research experts:
Increased Demand for Fruits
Higher disposable incomes tend to shift consumers from a carbohydrate-based staple diet to a nutrition-rich one. The rising level of education and health awareness among a significant population is leading to more fruit and vegetable-inclusive diets. Due to the increasing awareness regarding health issues, consumers from powerful countries in GCC, such as Saudi Arabia and the United Arab Emirates, etc., prefer healthier and more nutritious food containing high-quality nutrition, which in turn is driving the production in these countries.
Additionally, favorable government policies toward boosting production and increasing consumption support the market's growth. For instance, in 2021, Saudi Arabia's Ministry of Environment, Water, and Agriculture launched a new initiative to support local production, quality control, and ensure food security for fruits and vegetables in the nation. This is achieved by issuing import licenses for the fruit and vegetable suppliers. Moreover, among all the GCC countries, Saudi Arabia, Oman, United Arab Emirates, and Kuwait were the primary producers of fruits. The initiative is increasing local production to cater to domestic demand. For instance, according to FAO statistics, the total fruit production accounted for 3 million metric tons in Saudi Arabia in 2021, which stood steady from 3 million metric tons in 2020. In contrast, vegetable production accounted for 1.61 million metric tons in 2020, which showed slight decrease from 1.59 metric tons in 2020.
Furthermore, despite the unstable climatic conditions in the GCC countries, smart farming practices, like hydroponics, have served as a vital alternative to traditional farming in most countries, such as Saudi Arabia, the United Arab Emirates, and Kuwait. Important fruits and vegetable crops such as cucumbers, tomatoes, peppers, strawberries, chilies, aubergines, leafy vegetables, and herbs are grown using smart farming techniques. This increase in the adoption of new farming technologies is primarily attributed to a reduction in the dependence on imports and an increase in production, resulting in significant market growth.
Increased Accessibility Due to Presence of Well-developed Retail Chain
The local distribution and retail network has flourished rapidly in the major parts of the GCC, especially in Saudi Arabia, United Arab Emirates among others, in the past few years. Most of the fruits and vegetables demand in the country is met through imports from other countries, hence the distribution channel is very strong. Supermarkets and hypermarkets have been propping up, and with their superior distribution channel and in-store equipment, the shelf-life of fresh produce has increased, thus enabling greater consumption of fresh produce among consumers which is aiding the fruits and vegetable market.
The majority of the consumption of fresh produce in the countries is accounted for through supermarkets and hypermarkets. Hence, the distribution of fruits and vegetables is better facilitated through partnerships with local supermarkets and hypermarket chains, like LuLu Group, LVMH, Fu-Com, and others. The leading retail chains in the region are Union Coop, Carrefour, Geant Hypermarket, Lulu Hypermarket, and others. The retail store market in the country is consolidated, and the high market share of these outlets is due to the promotional offers given to customers. Although only a few companies have major markets, small new retail and independent supermarket stores are growing at a faster rate.
Moreover, the leading countries in GCC like Dubai has several free trade zones, including Jebel Ali, the largest cargo port in the Middle East, to support the trading. This expanded and well-developed trade network has facilitated the consumption and retail sector of fruits and vegetables. For instance, according to Dubai Chamber of Commerce and Industry, in 2020, the retail sales value of vegetables and fruits in UAE stood at USD 1,939 million and USD 1,344 million respectively. This retail sector sales of fruits and vegetables is high compared to other fresh food sales which contribute to the growth of the fruits and vegeatbles market in GCC countries.
GCC Fruits and Vegetables Market News
- November 2022: LuLu supermarket, a leader in retailing in Gulf countries, expanded its network by launching three new stores in Sharja, Festival City, and Abu Dhabi. It also introduced new products like Kissabel apples, blood oranges, and hydroponic lettuces to boost retail sales of fresh fruit and vegetables in the Gulf.
- July 2022: International Centre for Biosaline Agriculture farm in Dubai has done the research and is cultivating heat-resistant local varieties of crops such as date palm and quinoa in salt water.
- March 2022: Carrefour launched its first cafe and indoor hydroponic farm across the UAE to support the farm-to-table lifestyle. On this farm, the shoppers can pick the different leafy greens, such as lettuce, arugula, kale, and herbs, such as basil, dill, and sorrel, from the in-store hydroponic farm.
GCC Fruits and Vegetables Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain Analysis
4.4.1 Value Chain Analysis - Overview
4.4.2 Value Chain Analysis - Price Markup
4.4.3 Stakeholders Analysis
4.4.4 Issues and Challenges Involved
5. MARKET SEGMENTATION
5.1 Geography (Production Analysis(Volume), Consumption Analysis (Value and Volume), Import Analysis (Value and Volume), Export Analysis (Value and Volume), Price Trend Analysis)
5.1.1 United Arab Emirates
5.1.1.1 Fruits
5.1.1.2 Vegetables
5.1.2 Bahrain
5.1.2.1 Fruits
5.1.2.2 Vegetables
5.1.3 Kuwait
5.1.3.1 Fruits
5.1.3.2 Vegetables
5.1.4 Oman
5.1.4.1 Fruits
5.1.4.2 Vegetables
5.1.5 Qatar
5.1.5.1 Fruits
5.1.5.2 Vegetables
5.1.6 Saudi Arabia
5.1.6.1 Fruits
5.1.6.2 Vegetables
6. INTERNATIONAL TRADE AND PRICE SCENARIOS
6.1 Onion
6.2 Potato
6.3 Tomatoes
6.4 Garlic
6.5 Cauliflower
6.6 Beans
6.7 Eggplant
6.8 Lemons
6.9 Apples
6.10 Bananas
6.11 Grapefruit
6.12 Dates
6.13 Cabbage
6.14 Watermelon
6.15 Mango
6.16 Chilies
6.17 Strawberries
7. COMPETITIVE ANALYSIS
7.1 List/Profile of Major Retailers
7.2 Strategies Adopted and Recent Events
8. MARKET OPPORTUNITITES AND FUTURE TRENDS
GCC Fruits and Vegetables Industry Segmentation
The fruits and vegetables produced in the GCC countries are not sufficient to meet the increased demand. But the increasing demand by the consumers is paving the way for the increase in the need for production. The GCC Fruit and Vegetable Market are segmented by Geography (United Arab Emirates, Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia). The report provides an analysis of the Production (Volume), Consumption (Value and Volume), Import (Value and Volume), Export (Value and Volume), and Price Trend Analysis of various fruits and vegetables across the GCC countries. The report offers market estimation and forecast in value (USD thousand) and volume(metric ton).
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GCC Fruits and Vegetables Market Research FAQs
What is the current GCC Fruits and Vegetables Market size?
The GCC Fruits and Vegetables Market is projected to register a CAGR of 8.60% during the forecast period (2024-2029)
What years does this GCC Fruits and Vegetables Market cover?
The report covers the GCC Fruits and Vegetables Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the GCC Fruits and Vegetables Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC Fruits & Vegetables Industry Report
Statistics for the 2024 GCC Fruits & Vegetables market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. GCC Fruits & Vegetables analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
