The UAE frozen food market was valued at USD790.7m in 2020 and is projected to grow at a CAGR of 4.87% during the forecast period (2021-2026), according to a new report by Mordor Intelligence.
The “UAE Frozen Food Market – Growth, Trends, COVID-19 Impact, and Forecasts” report shows that the frozen food market has been performing well, following the onset of COVID-19. The fact that frozen food products can retain the nutritional value for a long period and, in turn, help bring down the number of times consumers have to visit a shop or outlet also works in favor of the market. Although the impact of COVID-19 on the cold chain supply has been significant, the evolving buying patterns of consumers, with more inclination toward health, have helped the frozen food market develop faster than expected.
According to the study, the consumers’
demand for a year-round supply of seasonal produce and ready-made
meals remains the driving force behind innovation and sales in frozen
food technologies. Frozen ready meals are alluring people with hectic
lifestyles and consumers who do not want to invest much time in
preparing full meals. Additionally, the increasing number of modern
retail formats in the country and the availability of a greater
variety of frozen ready-to-eat meals have attracted time-conscious
consumers who are seeking convenient food products, thereby leading
to a noticeable increase in the demand. Furthermore, the growing
influence of western food habits among the consumers in the country
has increased the demand for packaged food products. This is further
supported by high urbanization, the presence of a high percentage of
expatriates, tourism, as well as young consumers, driving the demand
for ready-to-eat, canned, processed, preserved, and frozen foods.
The frozen ready meals represent a
convenient alternative to cooking and are thus, increasingly
preferred by working-population, with the total labor force in the
United Arab Emirates at 7.384 million in 2018 (as per the UAE
Government) and also by the increasing expat population in the
country, the Mordor Intelligence report shows.