A new report recently released by The Arab Investment and Export Credit Guarantee Corporation (Dhaman) revealed that Arab countries in the Middle East import some US$139bn worth of foods and non-alcoholic beverages every year.
Further estimates from Fitch predicted a healthy 8.6% growth for this sector in this region last year, placing its value at an estimated US$430bn as of end-2025.
These numbers show that there is a lot of potential for food and beverage firms to unlock in these Arab countries – However, it is important to understand that at present, most of the growth is being seen in just five countries.
| Country | Est. value of food and drink sales in 2025 (US$bn) | Share of food and drink sales in 2025 |
|---|---|---|
| Egypt | 104.6 | 24.3% |
| Saudi Arabia | 90.2 | 21.0% |
| Algeria | 56.6 | 13.1% |
| UAE | 41.9 | 9.8% |
| Iraq | 37.0 | 8.6% |
These five markets made up 77% of the Arab region’s food and beverage sales in 2025, highlighting a great deal of concentration in this market.
There are a total of 16 market in this region, encompassing other names like Morocco, Kuwait, Qatar, Oman and Bahrain – but sixth-ranked Morocco made up just 3.5% of the market compared to fifth-ranked Iraq.
Egypt’s top-ranked position here is not without its woes though – according to the report authors, this high spend is being driven not only by population growth but also increased consumer spending due to high inflationary pressures.
Food and beverage categories leading growth
Nine main food product categories made up the bulk (96%) of food sales in this region last year: Meat and poultry products; grains, pasta and baked goods; dairy products; fresh vegetables; fruits; sugar and sweeteners; fish and fish products; oils and fats; eggs.
Of these categories, meat and poultry products carry the bulk of sales with over a quarter (27%) of total food sales in the Arab region at a whopping US$106bn, followed not-so-closely by grains, pasta and baked goods at 16% (US$63bn).
Similarly for beverages, four main beverage categories carried over 95% of sales in the Arab region in 2025: Coffee, tea and hot beverages; fruit and vegetable juices; mineral or spring water; soft drinks.
Despite the hot weather here, coffee, tea and hot beverages made up over half (52%) of all sales, whereas water trailed behind at 17%.
Both the food and beverage sectors are projected to continue seeing positive growth from now until the end of 2029, reaching values of US$515bn and US$43.5bn respectively.
That said, several categories are expected to take a hit as a result of ongoing consumer trends and government policies, particularly sugar and sugar-based products which are estimated to see a 2% or US$3bn decline.
What are the opportunities here for food and beverage firms?
Grilled meat is a major feature in Middle Eastern cuisine especially main dishes like shawarma and kebabs, hence it is no surprise that a great deal of sales is generated from this category.
In terms of immediate opportunities, the meat and poultry market is also the category most likely to see the fastest growth in the coming four years, estimated to grow 2.6% from its current 26.5% market share (US$105.7bn) to 29.3% (US$151.2bn) in 2029, so the lowest-hanging fruit can be found here.
This is especially so in the packaged ready-to-eat (RTE), ready-to-cook (RTC) or ready-to-heat (RTH) meat or poultry product categories, which provide an additional element of convenience.
While sugar is expected to take a dip, there is opportunity to be found in the reduced sugar and zero-sugar beverage category, especially with policies pushing for innovation and reformulation in this area.
This is particularly so in markets such as the United Arab Emirates (UAE), where the government enforced a tiered taxation model for sugary beverages starting on January 2026, where sugar-sweetened drinks will be taxed according to sugar content per 100ml in order to encourage firms to actively reduce the sugar content of their products.
