Report Overview

Rising consumer shift towards healthy and nutritious food with zero chemicals, deepening penetration of organic food products, and government regulations regarding the safety and quality standards of organic food are expected to drive the UAE organic food market growth during the forecast period between 2023 and 2029.

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

UAE organic food market size was estimated at USD 38.60 million in 2022. During the forecast period between 2023 and 2029, the UAE organic food market size is projected to grow at a CAGR of 6.1% reaching a value of USD 55.08 million by 2029. The market is growing owing to the rising consumer shift towards healthy and nutritious food with zero chemicals and the rising penetration of organic food products. Furthermore, government regulations regarding the safety and quality standards of organic food are further anticipated to influence the UAE organic food market growth in the forecast period.

UAE Organic Food Market – Overview

Organic food is the type of food produced with the standards and methods of organic farming, which eliminates the use of chemical fertilizers, hormones, and pollutants. Organic food is largely driven by animal and plant wastes and nitrogen-fixing cover crops. Several studies have revealed that organic food may have more nutrients in quantity compared to non-organic foods and thus it is beneficial for health. Additionally, organic foods contain higher levels of micro-nutrients and antioxidants due to the absence of chemicals, hormones, and other substances.

UAE Organic Food Market

Growth Drivers

Increasing Health Awareness among Consumers

The growing health focus among consumers is rising as a main driving factor for the UAE organic food market. In terms of nutrients, organic food contains no more vitamins than conventionally grown meals. They do, however, incorporate fewer chemicals and are beneficial to human fitness. Furthermore, organic food is more energizing because it's free from preservatives and genetically modified organisms (GMOs). Moreover, organic meals can frequently lessen the signs of allergies due to certain foods, chemicals, or preservatives. Such advantages appeal to health-aware clients, boosting its marketplace increase.

Restraint

High Cost of Organic Food Products

The price of organic food is one of the major constraints for the growth of the market since the UAE is a highly price-sensitive market. Organic food is costlier than regular food products. This is because the elimination of chemical fertilizers decreases production output severalfold. Along with this, the price of organic food also carries other factors such as environmental enhancement and protection costs. This limits the adoption of organic food among high and upper-middle-income groups, negatively impacting the market growth.

Impact of COVID-19 on UAE Organic Food Market

The pandemic heightened consumer awareness of health and wellness. As a result, there has been a growing interest in organic foods perceived to be healthier and potentially boost immunity. Lockdown, travel restrictions, and disruptions in global supply chains affected the availability of certain organic products. This led to challenges in sourcing and distribution of organic food, impacting the range of products available in the market. Changes in consumer behavior, including a preference for online shopping and home cooking, influenced the demand for organic foods. Online platforms and delivery services gained prominence as consumers seek contactless shopping options.

UAE Organic Food Market

Segmental Coverage

UAE Organic Food Market – By Product

Based on product type, the UAE organic food market is segmented into dairy, bakery products, fruits & vegetables, snacks, meats/fish & poultry, sauce & condiments, processed food, packaged food, and others. The meats/fish & poultry segment accounts for the largest market share owing to the increasing consumer demand for pasture-raised eggs. Furthermore, the organic meat/fish sellers offer natural, grass-fed, and hormone-free meats and poultry products that contain higher nutritional value compared to regular meat available in the market.

UAE Organic Food Market – By Distribution Channel

Based on distribution channels, the UAE organic food market is bifurcated into online channels and offline channels segments. The online channels are the primary distribution channels for organic food in UAE. This is because organic food products are easily available through e-commerce platforms such as Amazon.in, Flipkart, and others. The availability of a wide range of products in these online stores acts as a major driving factor for the growth of the online sales channel segment.

Competitive Landscape

Major players operating in the UAE Organic Food market include Hain Celestial, Nestle, Whole Foods Market L.P., Dole Food Company, Inc., General Mills Inc., Danone, United Natural Foods, Inc., Amul, and The Hershey. 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 2023 - The UAE Ministry of Climate Change and Environment launched a campaign to promote organic food. The campaign aims to raise awareness of the benefits of organic food and to encourage consumers to switch to organic products. The campaign is being rolled out across the country through print, television, and social media channels.

Scope of the Report

By Product

• Dairy

• Bakery Products

• Fruits & Vegetables

• Snacks

• Meats/Fish & Poultry

• Sauce and Condiment

• Packaged Food

• Others

By Distribution Channel

• Online Markets

• Offline Channels