Showing posts with label 2030. Show all posts
Showing posts with label 2030. Show all posts

Saturday, 30 August 2025

Upbeat outlook for UAE catering services

The UAE catering services market is set for sustained expansion from 2025 to 2030 with a CAGR of about 6% over the forecast period.

According to a report from MarkNtel Advisors, the momentum is underpinned by the UAE's growing tourism base, more international events and exhibitions, a rebound in air travel, and the presence of globally-recognised catering service providers. 

At the same time, changing consumer preferences—toward healthier, fresher, and premium dining options—are reshaping menu innovation and pushing operators to differentiate through compliance, customer experience, and sustainable practices, the consultancy said. 

MarkNtel Advisors said the UAE catering industry is witnessing a new phase of growth, driven by shifting consumer preferences, technological advancements, and rising demand across the events, tourism, and corporate sectors. 

Customers are increasingly seeking hygienic, health-conscious, and customised meal options, while caterers are integrating innovations like digital ordering, cloud kitchens, and automation to enhance efficiency. 

With the country strengthening its position as a global hub for weddings, exhibitions, and meetings, incentives, conferences, and exhibitions (MICE), opportunities for catering providers are expanding rapidly. At the same time, sustainability initiatives such as ecofriendly packaging and dietary flexibility—including vegan, organic, gluten-free, and halal-certified menus—are reshaping offerings, making adaptability and innovation essential for market competitiveness. 

Drivers of market growth include:  

Tourism and events

The UAE's global positioning as a tourism hub is a central growth pillar. Large-scale international events—such as Expo, Intersec, and GITEX—alongside year-round trade fairs, conventions, and exhibitions generate steady demand for banquet and corporate catering. With Dubai and Abu Dhabi cementing their reputations as regional MICE capitals, event-driven catering volumes are expected to remain robust.  

Non-contractual catering is primarily linked to events, weddings, and short-term engagements. While cyclical and seasonal, it remains lucrative during peak tourism and event cycles.   

Aviation and in-flight catering

The UAE is home to leading global carriers such as Emirates and Etihad Airways. The surge in air passenger traffic, coupled with fleet expansion initiatives, translates directly into higher demand for in-flight catering. 

Emirates Flight Catering (EKFC), for instance, operates one of the world's largest culinary facilities, producing more than 250,000 meals daily across 160,000 sq m of space. Partnerships between airlines and catering providers are set to deepen, with opportunities for service differentiation around menu innovation and sustainability.  

Corporate and institutional demand

The rapid pace of corporate expansion in the UAE—driven by free zones, low corporate tax regimes, and foreign direct investment—has fuelled demand for contract catering in office complexes, schools, and hospitals. Contract-based catering services are particularly favoured for their long-term cost efficiency, menu flexibility, and reliability.  

The corporate segment is largest in this market, fuelled by the increasing establishment of MNCs and regional HQs. Caterers targeting corporates are increasingly offering customised, health-focused menus to match employee wellness initiatives. 

Healthcare growth

The healthcare sector is becoming a powerful demand centre for catering services. Hospitals are increasingly outsourcing patient meals, clinician catering, and canteen management to specialised providers. Post-COVID, the emphasis on nutrition, hygiene, and timely delivery has become even more prominent, positioning hospital catering as both a growth driver and a compliance-critical domain. 

Hospitals are emphasising specialised dietary plans aligned with patient recovery and clinical nutrition requirements, MarkNtel Advisors said.

Other significant sectors include:

Education

Schools and universities are investing in nutritious meal programs, particularly in Abu Dhabi and Dubai.
Healthcare: 

Defense and offshore

Demand for robust, HACCP-compliant food solutions in defense bases, mining, and offshore oil rigs.
Event Management & Leisure: Weddings, conferences, sports events, and cultural festivals drive this segment. 

Mining and engineering, procurement and construction (EPC) projects

Contracted services for remote sites, particularly for oil and gas exploration as well as infrastructure projects. 

With UAE's active oil and gas as well as EPC projects, remote and industrial catering demand is expected to rise further. 

Top players mentioned in the report include EKFC, ADNH Catering, Royal Catering, National Catering Company (NCC), Abela & Co., WLL, KEITA, Al Jazeera International Catering, Kelvin Catering, Baguette Catering Services, and Emirates Catering Services.

This diverse roster of players compete across corporate, healthcare, aviation, hospitality, and remote site catering. Competition is increasingly driven by menu innovation, compliance excellence, sustainability commitments, and ability to scale across multiple sites. 

On the geographical front, Dubai is the lead region due to its strong tourism ecosystem, the presence of major catering companies like EKFC, and an active events calendar. Urban lifestyles and casual dining trends also fuel catering demand here.

Abu Dhabi and Al Ain host significant demand from the healthcare, defence, and corporate sectors, complemented by megaproject activity.

Sharjah and the Northern Emirates may have a smaller share but are also growing, supported by regional universities, mid-size corporates, and community events. 

Opportunities and trends in the UAE catering services industry include: 

Growing air traffic

With iconic tourist attractions such as Burj Khalifa, Sheikh Zayed Mosque, and Palm Jumeirah, alongside rising business travel, UAE's air traffic is expanding rapidly. This directly boosts the demand for in-flight catering, positioning it as one of the most dynamic sub-segments of the market.  

Health and wellness revolution

Caterers are rapidly adapting to the shift toward healthier meals. Trends include: 

  • Organic and locally sourced ingredients
  • Vegan and plant-based options
  • Reduced reliance on frozen/prepared foods
  • Customised dietary menus for corporate and hospital clients

Automation and technology

The adoption of automated kitchens and digital tools for menu planning, inventory, and HACCP compliance logging is transforming operations. Internet of Things (IoT)-enabled fleet management and kitchen robotics are gradually being tested to reduce turnaround time and enhance food safety.  

Sustainability 

UAE catering operators are integrating sustainable practices, including waste reduction programmes, ecofriendly packaging, and local sourcing partnerships (e.g., vertical farms like Bustanica). These initiatives align with both corporate environmental, sustainability and governance (ESG) mandates and government sustainability agendas.  

On the down side, input cost volatility, which can include imported food items and energy prices, are impacting pricing models. There are also labour management challenges due to the reliance on an expatriate workforce, as well as seasonal volatility linked to event-driven catering cycles. Caterers also need to navigate complex compliance requirements with multiple regulatory bodies and legislation: the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), Dubai Municipality, and the Federal Food Safety Law among them. 

Details

Explore the UAE Catering Services Market Research Report at https://www.marknteladvisors.com/research-library/uae-catering-services-market.html

Saturday, 26 July 2025

Significant growth projected for the MENA halal food industry

BCC Research's Halal Food Regional Market Analysis: Middle East and North Africa (MENA) is projected to grow from US$253.9 B in 2025 to US$380 B by the end of 2030, with a CAGR of 7.1% from 2025-2030. Countries covered include Bahrain, Egypt, Iran, KSA, Kuwait, Oman, Qatar, and the UAE.

KSA has the largest market share, which is expected to be worth US$72.7 B by 2030, at a CAGR of 8% over the forecast period.

Distribution channels include hypermarkets and supermarkets, departmental stores, as well as online, while product types include meat and meat products, dairy products, fruits and vegetables, and grain products. The meat and meat product segment will continue to dominate through the end of the forecast period.

According to BCC Research, investment and funding in the MENA halal food sector are accelerating, driven by strong government support and interest from international companies. Governments are streamlining approval processes and strengthening regulations to foster a more business-friendly environment. Rising consumer demand for food safety, ethical consumption, and Islamic lifestyle products, amplified by social media, is fuelling market growth. Additionally, strategic collaborations among governments, regulators, and research institutions are advancing innovation, ensuring global compliance, and promoting sustainable development within the halal food ecosystem.

Growth drivers include:

A growing population: The MENA region has a rapidly expanding Muslim population, which naturally sustains and increases demand for halal food. As religious dietary laws are central to daily life, this demographic growth ensures a steady and loyal consumer base for halal-certified products.

E-commerce: The rise of digital platforms and online food delivery services has made halal food more accessible than ever. Consumers can now easily find and purchase halal products online, boosting market reach and convenience, especially among the tech-savvy younger generation.

Increased investment: Governments and private investors are pouring resources into the halal food sector, supporting infrastructure, certification, and innovation. This financial backing is helping local producers scale up and attract global interest, positioning MENA as a key player in the global halal market.

Trends identified by BCC Research include:

Digitally-influenced halal choices: The halal food market in MENA is experiencing rapid growth, largely fuelled by the rising impact of Islamic lifestyle content on social media. Millennials and Gen Z are especially responsive to online trends and influencers, often basing their food choices on digital recommendations.

Ethical and clean eating trends: A growing regional focus on ethical consumption and clean eating is further accelerating the expansion of the halal food market, aligning with global health-conscious and sustainability-driven consumer behaviours.

BCC Research also highlighted Halal Products Development Company (HDPC), a KSA-based startup and a subsidiary of the Public Investment Fund (PIF). The company is dedicated to developing a robust halal ecosystem within the kingdom and promoting the localisation of halal production.

HPDC supports international players in expanding their footprint in the Saudi market and invests in the halal industry to enhance the country's production capacity. Its overarching goal is to position KSA as a global hub for the halal sector. Additionally, HPDC offers advisory services to industry stakeholders seeking to navigate the halal market landscape.