Market Trends of UAE Fruits And Vegetables Industry
Rising Global Population and Favorable Government Initiatives
The UAE has experienced significant population growth in recent years, driven by factors such as immigration and a high birth rate. According to the World Economic Outlook database, the population of the UAE increased from 9.3 million in 2018 to 9.8 million in 2022. As a result, there has been a rise in the demand for agricultural produce, mainly fruits and vegetables, as they are essential to a balanced diet. Moreover, the government is heavily investing in food security initiatives to reduce its reliance on imports, incentivize local production, and promote the fruit and vegetable market. The National Food Security Strategy and the Emirates Authority for Food Security are key policies driving the market. Moreover, the government focuses on streamlining trade processes through free trade agreements and investments in ports and logistics infrastructure. For instance, the Free Trade Agreement with Israel in 2022 opened direct trade access to Israeli fruits and vegetables, adding new options to the market.
Increasing Production of Vegetables
Tomatoes are commonly cultivated in different parts of the UAE, such as Ras Al Khaimah, Fujairah, and Al Ain. Moreover, advancements in hydroponic technology in vertical farms and greenhouses allow tomato cultivation beyond areas with underground water accessibility. Furthermore, cucumbers are gaining popularity among growers in the country, especially with the growing consumer preferences for organic and green produce. To meet this demand, a large number of farms are adopting high-tech techniques to meet consumer demand in the country. Besides this, the popularity of dietary diversity and cultural cuisine in the country ensures a steady market for bell peppers, as they are widely used in salads, main dishes, and traditional recipes. Moreover, the government is actively working toward domestic lettuce production, utilizing agricultural technology to meet the increasing local demand. This, in turn, is anticipated to boost the production of vegetables in the country and impel the overall market.
