GCC market seeks healthier choices

CONSUMERS in the GCC are becoming more selective about their food, and are encouraged to nourish themselves with healthier products to prevent obesity and lifestyle diseases. Familiarity with the latest food trends across the globe has roused their interest in the diverse range of natural foods available, including organic, and Paleo and gluten-free products. Furthermore, consumers are beginning to appreciate sustainability in food production and consumption, and would like to be able to be part of this initiative. 

Concern for overall wellbeing amongst consumers is likewise driving manufacturers and F&B operators to put better safety checks in their production and service standards.  Retail-wise, the region remains dynamic, with even greater demand for higher quality and innovative dining options.

Price, quality and availability

When it comes to knowing what is good for the health, many consumers can find it difficult to make out information that is based on scientific evidence versus those that are driven by commercial interests. In general, however, consumers are familiar with global trends, and see natural and organic foods as new and better options. They are willing to embrace these if the quality is good, the price is reasonable, and if the products are readily available. If these conditions are met, organic foods may stand a chance against conventional food products.

“Social media has made the consumer more engaged; consumers have a larger choice of outlets, thus making them more demanding and to a certain extent more educated. Also, there is definitely a shift towards healthy and organic food, and I believe in the coming three years it will become more prominent,” said Abdel Kader Al Saadi, managing director at Glee Hospitality, a leading hospitality company in the UAE.

Abdel Kader Al Saadi, managing director of Glee Hospitality

From a consumer perspective, he said that dining out at mega malls, high streets or communal malls are stronger than ever. In particular, Peruvian (South American) cuisine is in fashion and consumers are becoming more inclined toward eating gluten-free food. 

Piyush Mahesh, director at National Food Industries (NFI) LLC said healthy snacking options remains a major consumer trend. “The major trend is to move towards health-oriented foods or foods containing a healthy substitute, for example chips processed using hot air expansion instead of conventional frying methods. Our markets of focus remain the MENA and LEVANT region,” he said.

Food retail issues

From an F&B operator’s perspective, Mr Al Saadi cited rent, retail space and qualified staff as still identifying factors in the F&B industry. He explained that new retail space coming on line translates into more competition and at the same time more opportunities for the company’s growth. The ongoing rent hikes will affect the bottom line. However, he added that more outlets or more hotel openings meant shortage of qualified and technically trained staff. 

With several successfully opened restaurants in Dubai and Abu Dhabi, as well as a couple in Baghdad, Glee Hospitality Solutions is in the midst of creating and opening many more outlets in the region. It has ownership in concepts such as Gramercy, Rice Creamery, Gourmet District, Urban Bites and Burger Joint. 

The company also considers the region dynamic and has over six concepts coming in 2015 such as a new Japanese bakery concept, a Chinese outlet, and a waffle concept. It also plans to consolidate its existing brands by opening Urban Bites and Rice Creamery in Bahrain & Kuwait. Mr Al Saadi is looking at the Saudi market whilst franchising its own concepts’ agreements across the region. 

“Game-changing factors” in food production

From a producer’s point of view, Mr Mahesh, added that costs of raw material in global markets, major changes in local legislation affecting the food industry and additional taxes/charges are major game-changing factors which could affect the costing and as a result, the selling price of their products, in the coming years.

NFI is a snack manufacturer in Dubai that offers fresh potato chips, corn curls, potato pellets and corn tortilla chips. The has plans of expansion on a commercial basis. Its new state-of-the-art facility in Technopark – Jebel Ali South ready by early 2015, will set a standard in production automation and food safety. Amongst the company’s new offerings are Mr. Krisps Cocktail Mix in Salsa, Nacho Cheese, Salted and Sour Cream and Onion flavours.  

Trends influencing the food business

According to Jess Sawyer, a registered dietitian with the Primavera Medical Centre in Dubai Healthcare City, specific trends continue to change the way food and beverage companies operate. This is so as obesity has become an issue. Statistics from the Global Burden of Disease Study 2013 reveal that in the UAE alone, more than 66% of men and 60% of women are either overweight or obese, as a result of sedentary lifestyles and unhealthy eating habits that raise the number of those with Type 2 diabetes. 

The trends that Ms Sawyer point out include the following: 

Belief in the ‘wheat belly’.  Although there may be conflicting evidence to support wheat-free and gluten free diets for weight loss, Paleo and gluten-free diets will remain the most popular for those looking to control their weight. We’ll see more and more Paleo items on menus.

Locally sourced organic produce. More consumers want to source fresh, local and organic produce in farmers’ markets, or via home delivery, instead of the supermarket.

The low fat trend is falling apart. Recent studies suggest that eating a low fat meal does not necessarily lead to a reduction in body fat. Therefore consumers are adding fat back into their diets.

Information on mobile apps. Consumers want more food information, and several mobile apps can provide data, including farm to fork facts. 

Demystifying food labels. Consumers want to understand food labels better in order to make more educated purchases at the supermarket. Food packaging, labels and health claims will need to move to reflect this. -ZAINAB MANSOOR