The demand for plant-based food is growing in the Middle East, especially in the United Arab Emirates (UAE). The increasing consumer demand for alternative meat is primarily motivated by health reasons, while the ethical and environmental impact of growing traditional meat products also remains a crucial factor. Over the last few years, these factors have made inroads in the plant-based diet among consumers in the UAE.
The plant protein market in United Arab Emirates has recorded a strong growth with a CAGR of 31.7% during 2018-2020. According to ConsumerIntel360’s Q4 2020 Global Plant Protein Survey, Plant protein industry is expected to continue to grow in United Arab Emirates over the forecast period. It is expected to record a CAGR of 21.4% during 2021-2027. The plant protein consumption in the country will increase from US$ 67.3 million in 2020 to reach US$ 276.0 million by 2027.
While the plant-based industry is still in the nascent stage of its development, the consumption of alternative meat products is increasing in UAE. Rising numbers of people suffering from diabetes, obesity, and cardiovascular diseases are driving the demand for healthier products. In addition to this, factors such as migration, urbanization, and increasing income in the country are also supporting the growth of the plant-based industry.
Higher disposable income among the expanding middle-class population in the country is disrupting food consumption trends while driving the demand for plant-based products. Moreover, more aware consumers in the UAE are starting to evaluate the ethical credentials of the brands - including their sustainability policies - before purchasing the products.
Key Drivers
Growing flexitarians and vegans driving the market for plant based meat alternatives
In recent years, increasing number of people in the UAE are turning to flexitarian, vegan, or vegetarian diet due to health or ethical reasons. This trend further accelerated due to the pandemic. To cater to this trend, food companies as well as restaurants have been launching plant based products. For instance, in November 2020, Subway introduced meat-alternative sandwiches at select outlets at Dubai.
Availability of plant-based dining in food and beverages outlets driving the demand
The availability of quality plant-based products in food and beverage outlets have improved in the last few years. The ease of availability alone encourages more consumers to give meatless products a try. With the market finally recognizing the growing demand for meatless alternative products, it has become easier for consumers to include plant-based products in their diet regularly. This is supporting the growth of the market in the UAE.
Bareburger, a fast food restaurant chain, serves meatless burgers from Beyond Meat. These burgers were available to its customers at three outlets in Dubai and one in Abu Dhabi. Since its launch, the meatless burger has been their bestseller. According to Bareburger, the outlets are selling more Beyond Burger than beef in the UAE. Due to this growing demand, the restaurant chain launched a completely new vegan menu in the country alongside the traditional animal-based products. Moreover, the sales of their vegan burgers accounted for 50% of all burgers sold at Dubai outlets during the pandemic.
Key Trends
Plant-based meatless burgers gaining traction in the UAE
Plant-based meatless burgers have been gaining traction in the UAE as consumers choose a healthy lifestyle. To cater to this need, companies have been launching plant based meatless burgers. In February 2021, Global Food Industries (GFI), a value-added food manufacturing company, introduced Al Areesh plant-based burgers patties made from pea protein. The patty is soy-free, antibiotics-free, gluten-free and does not comprise whey or egg-based protein powders. The company plans to offer Al Areesh plant-based burgers across retail outlets from May 2021.
AI Islami Foods rolled out a plant based burger in January 2021. The burger is made of sunflower seeds, fava beans, and peas and was launched as a response to increasing demand for vegan options. The company plans to further extend its portfolio across supermarkets and hypermarkets in the UAE. It also plans to collaborate with restaurants, hotels, and cafes, to further expand its reach across Middle East.
Key players
Key players in the market include The Meatless Farm Co., Impossible Foods, Tofurky, Healthy Farm, Plant Power, and Bareburger. Several international plant-based brands such as Beyond Meat and VBites have launched their product offerings in the UAE. As the plant-based economy continues to grow in the country, many international companies are anticipated to bring their product offerings. The presence of one of the largest foods and beverage trade exhibition is also supporting the market growth.
VBites, the UK based vegan food brand, debuted in the UAE with the launch of plant based products including nine frozen products such as V Bites Mega Burger, at Spinnneys outlets across the country and Waitrose Dubai, as well as vegan mince, chicken and fish products, January 2021.
Further, retailers are also focusing on strengthening their plant based meat portfolio by either launching their own brands or partnering with food companies to distribute such products. Spinneys supermarket for instance, introduced Power of Plants initiative as part of its corporate sustainability programme, January 2021. The programme intends to encourage customers to make healthy choices such as plant-based products including meat-free and dairy-free alternatives.
Demand for plant-based diets was already increasing even prior to COVID-19, but the pandemic has further shifted consumer preference towards healthy and environmental friendly products. This trend is likely to remain post COVID, and companies will focus on offering innovative plant-based products that promote healthy living. For example, Spinneys is believed to expand its range of plant based food offerings as well as locally produced products including its SpinneysFOOD plant-based products that includes recipes using Beyond Meat burger and sausages. The supermarket offers plant based products including VMega Burger, Meat-Free Chicken Nuggets. Apart from this, it also offers other plant-based products from brands such as Linda McCartney, Meatless Farm, Omnimeat Violife, Quorn and Beyond Meat.
The advancement in technology in imitating the texture of traditional meat and enhancing the taste profile of meatless alternatives is resulting in growing consumer demand. Foodservice channels and restaurants have been the dominant source of revenue for the plant protein industry in the UAE. For instamce, Beyond Meat offers meatless burger in partnership with Bareburger for consumers. The meatless burger is available at all outlets of Bareburger in the country. Similarly, Impossible Foods partnered with Black Tap foodservice channels to offer Impossible Burger in the country. The meatless burger is available at all of the Black Tap outlets across the UAE. However, in the wake up of the global coronavirus outbreak, e-commerce is expected to emerge as a new leader in the sales of meatless products.
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