Report Overview

The growing food and beverages industry in the UAE and the rising demand for processed and convenience foods are projected to propel the expansion of the UAE Food Preservatives Market during the forecast period between 2023 and 2029.

UAE Food Preservatives Market - Industry Trends & Forecast Report, 2029

UAE Food Preservatives Market size was estimated at USD 43.11 million in 2022. During the forecast period between 2023 and 2029, the size of UAE Food Preservatives Market is projected to grow at a CAGR of 11.59% reaching a value of USD 83.23 million by 2029. Major growth drivers for the UAE Food Preservatives Market include growing population diversity, growing demand for a varied range of preserved food products and a rising tourism sector, reflecting a fusion of cultures and culinary traditions. The preserved food products not only meet stringent food safety standards but also cater to a wide spectrum of taste preferences. The geographical positioning of the UAE, characterized by extreme temperatures and a significant reliance on food imports, has accentuated the importance of food preservation in the nation's culinary landscape. To tackle these challenges, the UAE Food Preservation Market adeptly integrates traditional preservation methods with cutting-edge technologies. This strategic approach underscores the country's commitment to preserving culinary authenticity while embracing advancements in food technology. The industry's emphasis on sustainability, the production of clean label products, and the utilization of natural preservation methods aligns with the worldwide movement toward making healthier and more environmentally conscious food choices. The growth of the UAE Food Preservatives Market is further propelled by the increasing need to extend the shelf life of perishable products, reduce food waste, and ensure food security in this economically affluent and bustling country. Adaptable and responsive to evolving consumer preferences and regulatory standards, the UAE Food Preservatives Market positions itself as a dynamic hub for food innovation and preservation excellence.

Food Preservatives – Overview

Food preservatives are substances added to food products to extend their shelf life by inhibiting spoilage, decay, or bacterial growth. These additives play a vital role in maintaining the safety, quality, and freshness of food, reducing the risk of contamination and foodborne illnesses. Common preservatives include antioxidants, antimicrobials, and chemical compounds that inhibit the enzymatic processes responsible for food deterioration. By preventing microbial activity and oxidation, food preservatives help minimize food waste, enhance storage stability, and ensure products remain safe for consumption over an extended period. Their use is widespread in the food industry to meet consumer demands for convenience and longer-lasting products.

UAE Food Preservatives Market

Growth Drivers

Thriving Food and Beverages Industry in UAE

The thriving food and beverages industry in the UAE is a catalyst for the growth of the UAE Food Preservatives Market. Fueled by a constant influx of year-round tourists and the dynamic culinary preferences of a diverse population, the food and beverage sector in the UAE has become a key driver for the increased demand in food preservatives. Projections suggest a robust 7% year-on-year growth in the overall food industry, reflecting a vibrant landscape that includes food trading, food trucks, cloud kitchens, catering services, restaurants, and bakeries in Dubai. This surge in activity not only underscores the resilience of the food and beverage market but also amplifies the importance of food preservation in maintaining quality, safety, and longevity in a bustling and competitive environment.

Restraints

Regulatory Compliance and Consumer Awareness

Regulatory compliance and increasing consumer awareness act as dual constraints on the Food Preservatives Market in the UAE. Stringent regulations, notably under the Food Safety Law No. 2 of 2017 in the UAE, present challenges for businesses, requiring meticulous adherence to standards and obtaining permits for the use of preservatives. It can pose administrative burdens and potentially hinder smaller enterprises. Simultaneously, heightened consumer awareness regarding health and environmental considerations fuels a demand for clean label products, favoring natural preservation methods over traditional preservatives. The market is thus compelled to balance adherence to regulations and evolving consumer preferences, reflecting the delicate equilibrium between industry growth and compliance challenges.

Impact of COVID-19 on UAE Food Preservatives Market 

COVID-19 pandemic adversely affected the UAE Food Preservatives Market, causing extensive disruptions across the supply chain. Global supply chain interruptions, increased transportation costs, and labor shortages have led to significant food loss. This disruption has rippled through the entire business process, impacting suppliers to consumers. Retail businesses grappled with supply issues, inducing consumer stress about food availability. This, in turn, negatively influenced the quantity, quality, freshness, safety, market access, and affordability of food in the UAE. The pandemic underscored the vulnerability of the food preservatives market to external shocks and highlighted the need for resilience in the face of global crises. As recovery efforts took hold, the industry demonstrated its capacity for innovation and flexibility, contributing to a positive trajectory for the UAE Food Preservatives Market in the post-pandemic landscape.

UAE Food Preservatives Market

Segmental Coverage

UAE Food Preservatives Market – By Type

By type, the UAE Food Preservatives Market is bifurcated into Natural and Synthetic segments. The synthetic segment holds a higher share in the UAE Food Preservatives Market by type, due to its cost-effectiveness and widespread availability in various forms. The UAE Ministry of Health and Prevention (MoHAP) has approved synthetic preservatives, ensuring their safety in food products. They are commonly used in processed meats, bread, beverages, and canned goods, showcasing their versatility.

UAE Food Preservatives Market – By Function

By function, the UAE Food Preservatives Market is bifurcated into Antimicrobials and Antioxidants segments. The antimicrobials segment holds a higher share in the UAE Food Preservatives Market by function. Antimicrobials are widely utilized in the UAE, particularly for extending the shelf life of processed foods. The flourishing population and robust economy of the UAE drive the demand for processed meals, making antimicrobial preservatives essential in preserving a diverse range of food products in the country's vibrant culinary landscape.

UAE Food Preservatives Market – By Application

Based on application, the UAE Food Preservatives Market is divided into Meat, Poultry & Seafood; Bakery, Confectionery, Snacks, Dairy & Frozen Products, Beverages, Fats & Oils segments. The meat, poultry & seafood segment holds the highest share in the UAE Food Preservatives Market by application. Food preservatives are primarily employed to preserve meat, poultry, and seafood products in the UAE. These items, characterized by high moisture content and a nutrient-rich composition, are inherently perishable. Without effective preservation methods, rapid deterioration and bacterial growth become likely. Food preservatives play a crucial role in inhibiting microbiological development, thereby extending the shelf life of these products while upholding their quality and safety standards. The hot and humid climate of the UAE poses challenges for storing fresh meat, poultry, and shellfish, making the use of food preservatives imperative to ensure the safety and acceptability of these items for consumption in such harsh environmental conditions.

Competitive Landscape

Major players operating in the UAE Food Preservatives Market include Al Khowahir Chemicals, Trice Chemicals Sharjah - UAE, Sun Impex, Chemway Chemicals, and Dubichem. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2023 - iD Fresh Food, renowned for its ready-to-cook idli and dosa batter, revealed that within six months of entering the UAE market, it secured one-third of its total revenue.

• In May 2023 - iD Fresh Food introduced iD Frozen Fruit Blend to the UAE market, signaling its innovative approach to consumer needs. The Frozen Fruit Blend addresses the inconvenience of fruit preparation for shakes/smoothies, ensuring year-round availability without compromising nutritional quality.

Scope of the Report

By Type

• Natural

• Synthetic

By Function

• Antimicrobials

• Antioxidants

By Application

• Meat & Poultry & Seafood

• Bakery

• Confectionery

• Snacks

• Dairy & Frozen Products

• Beverages

• Fats & Oils