Alpen Capital’s latest report forecasts the GCC’s food consumption to grow by 4.6 million MT to reach 55.5 million MT by 2029. While overall food consumption is expected to increase in line with population growth, changing consumer preferences, rising nutritional awareness and healthier eating habits are expected to influence the mix of food categories that are consumed in the coming years. This evolving landscape is likely to compel operators to adapt as well as create opportunities to strengthen their market presence.
UAE-based investment banking advisory firm, Alpen Capital, launched its latest GCC Food Industry report which features forecasts on the sector along with recent analysis on trends, growth drivers and challenges facing the segment. It also profiles some of the key food companies in the region.
The report was launched over a webinar followed by a panel discussion featuring Kenneth D’Costa, Managing Director, Barakat Group; Garry Walsh, CEO, Investor and Strategic Advisor; Somit Banerjee, Head of Trading, Al Khaleej Sugar Co. and Rajan Gupta, Managing Director, Alpen Capital. Sameena Ahmad, Managing Director, Alpen Capital moderated the discussion.
“Food consumption in the GCC is projected to grow on the back of demographic expansion, rising spending power and burgeoning tourism activity. National strategies and shifting dietary preferences toward health-conscious alternatives are collectively reshaping the sector. Food producers and service providers are diversifying their offerings by adopting digital and operational innovations to meet the evolving needs of their consumers. While food security remains a priority, governments are seeking to reduce reliance on imports by investing in technologies such as vertical farming, hydroponics, and smart agriculture to build a more resilient food ecosystem.”, says Sameena Ahmad, Managing Director, Alpen Capital.
“The GCC food industry is experiencing an upward trend for convenience and tech-enabled services such as online food delivery, health apps, and cloud kitchens that combine choice with cost-effectiveness. Demand for healthier, fresh, and nutrient-rich foods, including organic and clean-label options is driving investment and innovation across the GCC’s food sector. Regional players are responding to this evolving consumer landscape by boosting local production, expanding capabilities and enhancing competitiveness. As margin pressures mount and technology reshapes consumer engagement, we expect further consolidation in high-growth areas such as agritech, digital F&B, and smart supply.” says Sharmin Karanjia, Executive Director, Alpen Capital
According to Alpen Capital, food consumption in the GCC is projected to grow at a CAGR of 1.7% to reach 55.5 million MT by 2029 from an estimated 50.9 million MT in 2024. This growth is expected to be driven by an increasing population, high per capita incomes and rising tourism. Additionally, the heavy investments being made by the regional governments to strengthen food security is likely to support a sustainable supply of food items to meet the rising demand.
The report states that the growth across different food categories is expected to range between 1.4% and 1.9% over 2024 to 2029. The cereals food category is projected to secure the highest CAGR at 1.9%, followed by the ‘others’ category, consisting of fish, eggs, pulses, honey, potato, oil and fats, which is expected to witness at a CAGR of 1.8%. Other major food categories such as vegetables, milk/dairy, fruits and meat are estimated to grow at similar paces due to evolving dietary preferences and high spending power.
The country-wise food consumption share in the GCC is projected to change marginally through 2029. Saudi Arabia and the UAE are expected to remain the largest food-consuming nations, and their combined share of total GCC food consumption is forecasted to reach 73.8% by 2029. Oman is set to witness the highest CAGR at 3.8%, followed by Bahrain with a CAGR of 3.3% during the forecast period. The remaining GCC countries are expected to register growth rates between 0.1% and 1.8%.
The GCC’s economy underpins steady growth in food consumption, powered by oil wealth, diversification efforts and a surge in tourism. The region’s strong focus on broadening its economic base, alongside ongoing structural reforms and increased private sector engagement to enhance competitiveness, is expected to sustain long-term growth. Additionally, the expanding population base naturally increases overall food demand, with working age professionals holding immense influence over food consumption trends, retail formats, and technology adoption in the food ecosystem. Governments are actively championing agritech and innovation as strategic tools to enhance food security, reduce import dependence, and promote sustainable food consumption. They also continue to intensify their investments in overseas agricultural lands to diversify and secure supply chains.
Since the GCC remains heavily reliant on food imports, it is exposed to supply chain disruptions, geopolitical risks, and price volatility. Moreover, limited arable land, scarce water resources, and harsh climatic conditions constrain domestic production, making self-sufficiency an ongoing challenge. Although strategic initiatives and technological interventions are underway, rising population and escalating food demand continue to intensify pressure on the food system. Food waste further challenges the region’s food security and sustainability goals.
The report highlights that the GCC food market is being shaped by health-conscious consumption, driven by rising rates of obesity, diabetes, and lifestyle-related diseases. Consumers are increasingly seeking low-sugar, high-protein, organic, and plant-based options, prompting food manufacturers to reformulate products, expand health-focused portfolios, as well as adopt advanced technologies and sustainable practices. Consumer preferences are also being driven by a strong focus on convenience, cost and value-based choices, which continues to support the expansion of online food delivery, quick-commerce grocery apps, and cloud kitchens.
Governments and operators are swiftly responding to an ecosystem characterized by rising health consciousness, growth of digital ordering, and demand for sustainable, high-quality products. To stay ahead, they are acquiring capabilities and assets that can fast-track innovation and accelerate market penetration. Going forward, consolidation is expected to continue, especially in agritech, digital F&B, and last-mile delivery, where technology integration and supply chain resilience are becoming critical differentiators.
