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"Plant-based products in UAE to reach $15 mn in 2023"
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Monday, 07 August, 2023, 08 : 00 AM [IST]
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 Established in 1975, IFFCO is a multinational group based in the United Arab Emirates which manufactures and markets a well-integrated range of mass-market food products, related derivatives, intermediates, and services. IFFCO runs 95 operations in 49 countries around the world and employs more than 12,000 people. Its products reach five continents. With a portfolio of 80+ brands, it has firmly established itself as one of the main and most diversified groups in the Middle-East.
Andrew Dribny, CEO, culinary, IFFCO Group, talks about the meat industry in depth and shares about plant-based meat industry in Dubai region in an email interaction with Aanchal Chaudhary. Excerpts:
How has the food & beverage industry changed in the past few years?
Due to the Covid-19 pandemic, the global food and beverage industry has undergone a significant transformation, one that is unlike any other in recent years. The market has become highly dynamic, and as a result, all industry players have been significantly impacted. The industry has had to adapt to changing trends, shifting consumer preferences, and evolving worldviews towards food groups, as well as increasing interest in new culinary adventures, and opinions regarding health and wellness. Health and well-being have been integral to the industry's development for some time now, with the increased organic movement, which began approximately 30 years ago, and clean labels having an immense impact on the development of better-for-you products.
The pandemic has further reinforced the importance of these trends, with people becoming more conscious of their immunity and physical activity. Consequently, it has changed the way we perceive and make choices regarding food. However, both consumers and the industry have adapted to these changes, with products that not only provide good nutrition but also contribute to building immunity and delivering a balanced diet, at the forefront of the markets today. Despite these changes, the key to satisfying consumers' palates still lies in the taste of the food. Thus, delicious-tasting food will continue to be the cornerstone of the industry for generations to come.
Give us details about the demand and growth of the plant-based meat industry in the Dubai region.
Over the past few years, it has become more than evident that health and sustainability trends are most definitely extending beyond just Dubai to the whole of the United Arab Emirates (UAE) and the Gulf Cooperation Council (GCC). This is evident in the rising demand for sustainable food sources among consumers in the larger Middle-East and North Africa (MENA) region that is seeing an increase in the consumption of plant-based meat products; the MENA market is expected to experience an annual growth rate of 6.01%.
Plant-based meat products are seen as a way to achieve a more sustainable and healthier lifestyle. Although this category is still in its infancy in the MENA region, the recent opening of the first factory for 100% plant-based products in the region by IFFCO has made locally-sourced products available, reducing the need for imports from far-off places such as North America and Northern Europe. The availability of local choices with local flavours and recipes is expected to drive further growth in the plant-based meat industry in the region.
The opening of the IFFCO factory represents a significant step towards developing a dynamic new industry that will enhance trade across the region. It is also a reflection of IFFCO’s commitment to utilising innovative technologies to provide sustainable solutions to real-world problems and play a key role in contributing to achieving global food security.
More consumers choose to reduce their meat and dairy consumption. Comment.
As consumers worldwide become more conscious of the food they consume and its impact on their health and the environment, the trend towards reducing meat and dairy consumption will continue to gain momentum. In fact, the World Health Organization recommends limiting red meat intake to 18 kilos per person, but many markets exceed this limit. However, we will most likely see a significant reverse here. Consumers today are increasingly conscientious of the benefits of plant-based products and are particular about choosing products that align with specific diets, lifestyles and value - all of these will lead to a boost in demand.
Elaborate on – Plant-based brands are seeing double-digit growth, leaving room for companies to enter Dubai market.
The growth of plant-based alternative brands in Dubai has been remarkable, with double-digit growth rates indicating the potential for companies to tap into this burgeoning market. Despite being in the nascent stage of development, the projected value of plant-based products in the UAE alone is expected to reach $15 million in 2023, a significant increase from $12 million in 2022.
This remarkable growth trajectory is attributable to several factors, including the education of consumers about the benefits of plant-based products, increased investment in communication and promotion by government organisations, and initiatives aimed at improving the overall balance of offerings that cater to the health-conscious consumer.
The increasing presence of plant-based options on restaurant menus in the UAE is a testament to the growing demand for healthier dining options. This trend indicates a shift towards a more health-conscious market, offering ample opportunity for companies to capitalise on this emerging trend and develop their presence in the region’s market.
What are the key driving factors and challenges in the industry?
Driven by several key factors, the plant-based industry is gaining traction in the UAE. One such factor is the increasing health-consciousness, which has led to a growing demand for healthier food products. The increasing popularity of flexitarian and vegan lifestyles is also contributing to the demand for plant-based meat alternatives.
Despite this growth, the plant-based market in UAE is relatively small in size, which has slowed the pace of development and made it challenging to achieve economies of scale and reduce costs. However, this challenge presents an opportunity for companies to tap into the growing interest among consumers and make the plant-based industry more accessible and affordable in the coming years.
To overcome this challenge, companies like IFFCO are investing in the development of new recipes, products, and packaging options that not only deliver better products but also help to mitigate cost impacts. As the industry continues to evolve, it is expected that these efforts will lead to greater innovation and improved cost efficiencies, making plant-based products more widely available and affordable for consumers.
What is the growth opportunity for locally produced, high-quality products at lower price tags, in local markets?
The Midwest region is experiencing impressive growth rates compared to other markets, and consumers and traders alike appreciate high-quality locally produced products. These products are advantageous over imported ones due to their freshness and proximity to consumers, as well as the absence of import-export costs. The region's growing consumer base, market stability, and favourable conditions create a significant growth opportunity for locally produced, high-quality products at lower price points. This offers the prospect of introducing better food items and further expanding the market for high-quality products.
Any plans on new collaborations with Indian markets?
We are currently engaged in intensive efforts to extend our reach beyond the GCC region, and India has been identified as a key market for the plant-based category. We are carefully examining various market options in India to establish our presence there, leveraging our strong distribution partners to meet the surging demand for plant-based products in this vast market. We recognise that it is crucial to cater to the unique taste preferences of Indian consumers and offer them high-quality products that meet their needs. We are confident that in the near future, our plant-based products will be widely available on store shelves across India.
How will Indian plant-based meat companies benefit from this opening?
As the plant-based industry continues to grow and expand into new markets, there are many benefits to be gained by Indian plant-based meat companies. With each new facility and product launch, the industry gains expanded knowledge and technological developments, which can be shared among companies to help improve their own products and processes. As the market grows, there will also be more opportunities for research and development of new recipes and technologies behind plant-based meat, providing companies with the tools they need to create high-quality products that meet the needs and tastes of Indian consumers.
The launch of the Thryve factory in the UAE is particularly significant, as it offers locally-inspired plant-based meat products that are both nourishing and good for health. This innovative food technology will be seen as a positive initiative for the industry as a whole, providing a model for other companies to follow in terms of sustainable and healthy food production. Ultimately, the expansion of the plant-based category in India and other markets will benefit everyone involved, from producers to consumers, by offering healthier, more sustainable food options that are better for the environment and our overall wellbeing.
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