Grocery sales to drive 5-6% Middle East food industry growth as dining out slumps post COVID-19
The GCC food and beverage market is expected to increase between 5 to 6% this year, largely driven by retail sales amid the ongoing COVID-19 pandemic.
Traditionally, retail accounts for about 70% of GCC’s F&B market, with hotels, restaurants and cafés (HORECA) accounting for the other 30%. Post-COVID-19, retail is expected to increase to 90%, while contribution of HORECA is expected to dip to 10%.
This is according to Frost & Sullivan’s analysis on the processed F&B markets in Middle East.
The processed F&B market include bakery, cereals, fruits, vegetables, dairy, meat, beverages, snacks, and condiments. The analysis covered retail including local grocery stores, supermarkets and hypermarkets as well as HORECA channels.
