Demand for European organic products on the rise in the Middle East

The Organic F&B market in the Middle East is expected to be worth $18.42 Billion by 2022, showing a 14.4% CAGR growth from 2015. Dubai, the global F&B destination, has more restaurants per million than New York, and organic and natural is on the rise in the region, if the 60% increase in shelf space over the last four years is any indication.

Another fast-growing sector in the Middle Eastern and African market is natural and organic beauty; estimated to be worth $2.5 billion in 2017, experts predict a 12-15% growth per year for another 5 years. This indicates that the market would almost double by 2022, reaching $5 billion in value by then.

Dubai holds the position as the third largest re-exporter in the world, with over $546 Billion worth of goods being sent out from the trade hub. Its unique location allows it to link hemispheres together, making it a popular center for re-export. The city is also ranked first globally for its tea re-export.

The region, specifically Saudi Arabia and Dubai, has seen a marked growth of the organic industry over the past four years, and looks poised to grow even further. This has attracted the attention of European suppliers, who have collectively devoted 13.5 million hectares to organic farming, and who are looking to develop into new markets such as the Middle Eastern one.

The demand for European products being so high in the can be attributed to the rise in the spending power of millennials, who prioritize healthy eating and clean product consumption over cost in a region where food imports are expected to grow by $53.1 Billion by 2020. The favorable population growth of 18.9 in the region also fuels their entry into the market.

This trend is reflected strongly in the Middle East Organic and Natural Expo Dubai; the region’s sole business event that focuses on natural products which has been connecting suppliers with buyers for 15 years. Held under the patronage of the Ministry of Climate Change and Environment UAE and supported by International Federation of Organic Agriculture Movements (IFOAM), the success of its 2017 show has led to it doubling in size this year. It drew over 6500 industry buyers in 2017 and expects over 9500 specialized visitors from 18th-20th November 2018, in Dubai World Trade Center, home to the expo.

The event’s Exhibition Director, Shinu Pillai, casts light on the show’s success. “The new online to offline strategy O2O Connect’ that we initiated last year was hugely successful and delivered over 865 pre-arranged meetings with qualified buyers. Our Hosted Buyer and VIP programs delivered business on the floor which amounted to approximately $317 Million being generated in those 3 days. The launch of organic247 - the Middle East’s only e-commerce platform that facilitates bulk organic and natural trade and which connects suppliers and buyers throughout the year is also part of what proved to be an effective combination for our exhibitors, because 22% of last year’s exhibitors confirmed their attendance for 2018 on the spot.”

These benefits have proven to be quite compelling, especially when it is coupled with the chance to get into a burgeoning market, where the demand for organic products are so high that 25% of consumers believe there aren’t enough healthy alternatives available in stores.

This year will see the return of a group of Armenian companies, joining to form a country pavilion at the Middle East Organic and Natural Expo Dubai. As David Muckenhuber, the Project Team leader of the Armenian pavilion puts it, “We decided to present our products at the expo in Dubai to capture the growing organic market opportunities there, as UAE is a big market and also has a very convenient geographic location for re-export.”

The Armenian organic producers under its country pavilion are introducing products such as dried and fresh fruits and vegetables and beverages such as herbal tea amongst others to the region at the Middle East Organic and Natural Expo Dubai.

The expo is also showcasing growing European companies such as Jutta Fink GmbH, Stutenmilch Tochterlehof GmbH from Austria, Raw and Wild and Bentley Organic from UK, SMS Evrodom, SK Beverage and Smart Organic from Bulgaria, Ecoagri Serbia from Serbia, Bioquantum from Switzerland, Lean & Six Sigma Expert SRL and Pronat Srl from Romania, Delouis S.A. and SDMR from France, Ekolife Natura d.o.o from Slovenia and AlmaWin Reignigungskonzentrate GmbH from Germany, amongst others.

Christophe Noblet, the General Manager of international grocery chain 7-Eleven in UAE is a keen visitor of the show. He stated that "[7-Eleven] certainly feel that the organic and natural industry is headed in the right direction. We are expanding in the region, and people want to see healthy and organic products on display. We are on the lookout for snacks, confectionary protein bar, drinks and more from European suppliers."

The ease of organic food import in to the region has more relevance now than ever, with the Gulf Cooperation Council countries signing international agreements to promote sustainability and passing stricter laws regarding the produce that is imported into the region and specific limitations were passed on chemical traces. In effect, this opens the doors to sellers of healthier, cleaner produce such as organic or natural ones. And low food security has led to the Middle East importing 70%-90% of its food needs.

To develop business in the emerging market in the Middle East, click here to register for the Middle East Organic and Natural Products Expo or contact the sales team at info@naturalproductme.com.

For more information;

Gayathry Radhakrishnan

Global Links Exhibition Organizers & Conferences LLC

Tel: +971 4 8747 528
gayathry@naturalproductme.com
www.naturalproductme.com
www.organic247.net