Online F&B sales in UAE rise 255% in 2020 – Dubai Chamber

Online sales within the UAE’s food and beverage sector reached $412m in 2020, recording a year-on-year upsurge of 255 per cent, a new study by Dubai Chamber of Commerce and Industry has revealed.

Furthermore, the value of online food and beverage sales in the country is expected to reach $619m by 2025, recording a compound annual growth (CAGR) of 8.5 per cent over the 2020-2025 period.

The figures, based on data from Euromonitor, were released by the Chamber during the Gulfood Breakfast Briefing event, organised on the sidelines of the Gulfood 2021 exhibition in Dubai, and attended by 270 participants from 43 countries.

Hassan Al Hashemi, vice president of International Relations at Dubai Chamber, identified the Covid-led digital transformation as a key factor driving the exponential growth in F&B e-commerce sales last year. Elements such as the underlying technology infrastructure, logistics facilities, high-Internet penetration rate and high disposable income among consumers supported the upward trend.

UAE recorded 6 per cent growth in sales of fresh food products locally in 2020, which reached $7.9bn. It recorded 4 per cent growth in sales of canned food products during the same year.

India stood out as Dubai’s top food trade partner in 2020, with food products imported from the Asian country accounting for 19 per cent of all food imports, followed by New Zealand (13 per cent), Pakistan (9 per cent), the US, Egypt and Canada (4 per cent).

Legumes accounted for about 17 per cent of the total food products imported by Dubai during 2020, followed by powdered milk (14 per cent), rice (13 per cent), sugar (9 per cent), onions (7 per cent) and potatoes (5 per cent).