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GCC food and beverage industry enters new phase of growth
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Friday, 28 August, 2026, 08 : 00 AM [IST]
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Anurag More, Mumbai
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The GCC food and beverage industry is entering a new phase of growth, driven by rising demand for specialty coffee and tea, healthier fast-casual concepts, authentic regional cuisines, premium bakery offerings and brands that can operate across both dine-in and delivery channels.
According to Vish Narain, Executive Chairman of Ambrosia Foods, consumers across the region are increasingly seeking products and experiences built around provenance, craft and authenticity. The shift is also expanding the definition of premium food and beverage consumption beyond occasional luxury dining to everyday categories such as coffee, casual dining and bakery.
“Consumers, particularly a younger, well-travelled and digitally native demographic, are far more willing to pay a premium for provenance, craft and storytelling than they were even five years ago,” Narain said.
Specialty coffee remains one of the key growth areas identified by Ambrosia Foods. Narain believes the category in the Middle East is still at an early stage compared with more mature specialty coffee markets in the US and parts of Europe.
While a significant share of consumption continues to be driven by commodity coffee and established café chains, opportunities exist in consumer education, at-home consumption, direct relationships with coffee-growing regions and community-led coffee culture. “The opportunity is in consumer education—helping people understand origin, roast profile and brewing method,” he said.
Ambrosia Foods' partnership with Blue Tokai represents a significant step in bringing Indian specialty coffee to the GCC. Narain said Blue Tokai's direct sourcing from Indian coffee estates, in-house roasting and focus on consumer education made it a strong fit for the company's portfolio.
The partnership also provides an opportunity to bring a distinctly Indian proposition into a specialty coffee market that has traditionally been dominated by Western and regional players.
Over the next three to five years, Ambrosia Foods plans to build Blue Tokai's presence across the GCC, beginning with the UAE as an anchor market. The company intends to use the market to refine the format, sourcing and supply chain before expanding into other GCC countries with strong specialty coffee demand.
The expansion strategy will include company-operated flagship cafés, grab-and-go formats, retail products and a wholesale business.
Ambrosia Foods is building a diversified regional portfolio spanning multiple cuisines, formats and consumption occasions. Alongside Blue Tokai, its portfolio includes Biryani By Kilo, Furn Beaino and Mr. Brown.
Narain said each brand serves a distinct role. Blue Tokai focuses on specialty coffee, while Biryani By Kilo brings a premium made-to-order Indian regional cuisine proposition. Furn Beaino contributes its Lebanese culinary heritage and Levantine cuisine, while Mr. Brown operates in the all-day American diner segment.
Together, the brands allow the company to address multiple dayparts, from morning coffee to lunch, dinner and other dining occasions, while benefiting from shared infrastructure, sourcing capabilities, real estate relationships and operational talent.
Ambrosia Foods is also continuing to evaluate additional Indian and international brands for the region, although Narain said the company is focused on selecting concepts that demonstrate authenticity, scalability and long-term partnership potential.
Innovation across menu development, customer experience and technology will remain critical for foodservice brands seeking to stay competitive, according to Narain.
For Ambrosia Foods, innovation involves continuously evolving the menu, adapting store design and service models to changing consumer behaviour, and using technology to improve kitchen efficiency and digital ordering.
“Technology, from kitchen efficiency to digital ordering, determines whether a brand can grow profitably rather than just grow,” he said.
Digital ordering platforms, delivery aggregators and loyalty programmes are also providing companies with faster access to customer insights. Ambrosia Foods uses this information to identify potential expansion locations, assess regional menu preferences and personalise offers for different consumer segments.
The availability of data also allows the company to test formats such as smaller-footprint stores and delivery-focused kitchens before making larger investments in flagship locations.
For international brands entering the GCC, localization remains important, but Narain believes it must be carefully balanced with maintaining the brand's original identity.
Adjustments may include spice levels, portion sizes, halal compliance and store designs suited to the Gulf's climate and mall-based retail environment. However, the visual identity, menu architecture and core customer experience should remain recognisable.
“The goal isn't to change what makes a brand distinctive; it is to remove friction for the local consumer,” Narain said.
He added that over-localisation could be as risky as failing to adapt altogether, as excessive changes could dilute the characteristics that made the brand attractive in the first place.
Narain sees significant opportunities for Indian food and beverage brands looking to expand into the Middle East, particularly beyond the conventional perception of Indian cuisine as limited to curry-focused dining.
Specialty coffee, regional biryani concepts, artisanal bakery and modern Indian dining formats all have growth potential, supported by the large South Asian diaspora as well as increasing interest among other consumer groups.
“The opportunity is to position Indian brands as premium and craft-led, the same way brands from Italy or Japan are positioned, rather than as budget or ethnic-only categories,” he said.
However, brands entering the region must navigate challenges including regulatory and licensing requirements, real estate economics, supply chain adaptation, import logistics and ingredient availability. Companies also need to account for the GCC's multicultural consumer base, mall-centric retail landscape and seasonal changes in footfall.
Narain said Ambrosia Foods aims to act as a long-term operating and brand-building partner for companies entering the market, supporting areas such as site selection, landlord negotiations, supply chain localisation and workforce development.
As the GCC foodservice market continues to evolve, Narain expects the next phase of growth to be shaped by brands that combine strong product propositions with operational scalability, technology, localisation and authentic brand storytelling.
For Ambrosia Foods, the strategy is to build category-focused brands and long-term partnerships rather than simply expand the number of outlets or add new names to its portfolio.
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