UAE consumers spending more on soy, dairy

Ranking fifth in terms of per capita expenditure in the soy and dairy food sector, the UAE is expected to witness strong growth with a CAGR of 6.8% over 2016 to 2021. Consumer spending on dairy and soy is growing fast.

The report "Top Growth Opportunities: Dairy & Soy Food in the UAE" provides an overview of the market. The report mentions that value for money is a major driver in the dairy and soy market.

Dairy & soy food products with health and wellness claims were worth nearly US$400.0 million in 2016, and this market is expected to grow at a 24.9% increase over the next five years.

UAE consumers are concerned about the fat and cholesterol content of the food and drink they take in, according to the report. For these consumers, brands are launching low fat and fat free dairy options.

The dairy market must focus on consumer needs and how these can cater for lifestyles with financial and time constraints. About 62% of UAE consumers claim that food products that align with their time and money constraints would often or always influence their product choice.

The economy of the UAE is the second largest after Saudi Arabia in the Arab world, and it continues to rely on oil revenues. Trade plays an important role in the country, as the value of import and export makes up the majority of GDP.

Additionally, the UAE has a strong economy with a high per capita income. This is due to increased spending on job creation and infrastructure expansion, which is opening up utilities to greater private sector involvement.

The UAE's dependency on oil trade forms an unstable condition, sorely relying on global fluctuations in supply and demand. Though the non-oil economy is growing, it is currently not creating enough revenue to sustain government spending in the event of a downturn. Despite strong growth projections for the Dairy industry, its revenue will remain relatively small, and it will likely to remain so for a while, leaving it somewhat exposed to economic fluctuations. – Report Buyer