December 2016
Your report will be delivered with in 24-48 hours, after including the new developments in the market.
Kuwait has about 10% of the world’s oil reserves. Petroleum accounts for at least half of its GDP income and 95% of its revenue from exports. The country’s growing economy is mostly due to its revenue from oil exports. The agriculture sector plays a minor role in the growth of the country’s economy. Kuwait imports most of its fruits and vegetables, as the domestic production capability is low due to the unfavorable climate, soil infertility and water scarcity. The fruit market in Kuwait reached XXX thousand metric tons in 2017 and is expected to reach XXX thousand metric tons by 2022. The Kuwait vegetable market reached XXX thousand metric tons in 2017 and expected to reach XXX thousand metric tons by 2022. The increasing market for fruits and vegetables in Kuwait is attributed to the growing disposable incomes of the people and the increasing health concerns of the Kuwaiti population.
New Developments
Market Dynamics
The country has a total arable land of about 10600 hectors, which is about 0.6% of the total land area. This domestic production capacity is not enough to cater to the growing demand for fruits and vegetables. Kuwait is the second most populated country in the GCC region, with the average population growth rate of 3.5%. The country has low domestic production capabilities for fruits and vegetables, as the soil in the region is low in organic content, low-nutrient holding abilities, and poor moisture retaining capacity. The natural water resources required for irrigation are minimal, with most of the water used being from desalination plants, which consume a lot of electricity; domestic farmers are not able to bear the costs, as there are no subsidies for electricity. Thus, the harsh climatic conditions, and vulnerable water and soil resources are the major constraints faced by the agriculture sector in Kuwait; hence, the country is mostly dependent on import of fruits and vegetables.
The government of Kuwait is encouraging agricultural companies to invest in foreign countries that have a comparative advantage in producing certain crops and import their products back into Kuwait. The crops targeted by this initiative include wheat, rice, barley, yellow corn, soybeans, and green forage. The Kuwaiti government is providing financial incentives to encourage investors in the country to take part in this food security initiative and invest overseas.
Market Segmentation - By Fresh Fruits and Vegetables
The agricultural market in Kuwait is segmented by type of products into fruits and vegetables. These are sub-segmented into onions, potatoes, tomatoes, garlic, cauliflower, cucumber, cabbage, beans, eggplant, lemons, apples, bananas, oranges, grapes, strawberry, watermelon, grapefruit, dates, and olives.
About the Market
Your report will be delivered with in 24-48 hours, after including the new developments in the market.
Your report will be delivered with in 24-48 hours, after including the new developments in the market.
