UAE Organic Food Market to Grow with a CAGR of 4.56% through 2029
Increasing
health-consciousness and prevalence of lifestyle related diseases to drive UAE
organic food market
According
to TechSci Research report, “UAE
Organic Food Market By Type (Fruits and Vegetables), By Region, Forecast & Opportunities, 2019-2029F””, the UAE organic food market stood at USD 42.57 million in 2023 and is anticipated to grow with a CAGR of 4.56% through 2029, the market is anticipated to
witness a healthy CAGR during the forecast period owing to increasing
health-consciousness, especially among younger population of the country. The UAE organic food market has experienced significant growth over the past few years, driven by increasing consumer demand for healthier and more sustainable food options. With a growing population of health-conscious consumers, the UAE’s affluent society has shown an increasing preference for organic produce, which is free from pesticides, chemicals, and genetically modified organisms (GMOs). The rising awareness of health and wellness, coupled with a shift toward eco-friendly consumption patterns, has been a key driver in this market’s expansion. Government initiatives supporting sustainable agriculture and food security have also contributed to the growth of the organic food market. The UAE’s National Food Security Strategy 2051 aims to promote sustainable agricultural practices and reduce dependency on imported foods. Additionally, local organic farming has been supported by government programs and incentives, allowing for greater availability of fresh organic produce in the market.
Despite these positive drivers, challenges persist in the market. The UAE’s arid climate makes large-scale organic farming difficult, resulting in higher production costs. Most organic food is imported, leading to increased prices, which can be a deterrent for price-sensitive consumers. Moreover, the lack of clear regulations and standards specific to organic labeling can create confusion for consumers and limit trust in the authenticity of organic products. Additionally, the market faces competition from conventional foods, which are often perceived as more affordable and readily available. The limited shelf-life of organic products, due to the absence of preservatives, also poses logistical challenges in terms of distribution and storage, further driving up costs.
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The UAE
organic food market is segmented based on product type, distribution
channel, region and company. Based
on distribution channel, the organic food sector in the UAE is primarily divided into several retail formats, including supermarkets/hypermarkets, grocery stores, online, convenience stores, and other outlets. Supermarkets/hypermarkets are currently the dominant channel in the market, a trend that is projected to continue until 2029. This is attributed to the widespread presence of organic products across major supermarket and hypermarket chains. On the other hand, the e-commerce channel is anticipated to experience a significant compound annual growth rate (CAGR) in the coming years. This surge is linked to the expanding digital marketplace and the increasing number of retailers moving their organic offerings online. The convenience and growing consumer preference for online shopping are key factors driving this segment's growth. Overall, while traditional brick-and-mortar stores remain prevalent, the digital shift is creating new dynamics in the UAE's organic food market landscape.
Key market players in the UAE Organic Food Market include:
- LuLu Group International
- Union Coop
- Abu Dhabi Cooperative Society
- Emirates Coop
- Park N Shop LLC
- Nesto Hyper Market LLC
- Greenheart Organic Farms Trading LLC
- Ripe Fresh Trading LLC
- NRTC Trading Company
- Organic Foods and Café
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“One key trend shaping the UAE organic food market is the rising demand for organic fruits and vegetables. Consumers are increasingly prioritizing fresh, nutrient-rich options, aligning with the global push towards plant-based diets. The focus on sustainable consumption, driven by both environmental and health concerns, is expected to continue pushing demand for organic produce, especially in the urban areas of Dubai and Abu Dhabi.,” said Mr. Karan Chechi, Research
Director of TechSci Research, a research based global management consulting
firm.
“UAE Organic Food Market By Type (Fruits and
Vegetables), By Form (Fresh and Frozen), By End User (Residential and
Commercial), By Distribution Channel (Supermarkets/Hypermarkets, Grocery
Stores, E-Commerce, Convenience Stores and Others), By Region, Forecast & Opportunities,
2029F” has evaluated the future growth potential of UAE organic
food market and provides statistics & information on market size, structure
and future market growth. The report intends to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges and opportunities in UAE organic food market.
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