Mays Ibrahim (ABU DHABI)
The UAE food service market size is expected to reach $50.21 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 12.20%, according to recent research by IMARC Group, a global management consulting firm.
Its report titled "UAE Food Service Market Report and Forecast 2025-2023", revealed that the market reached $16.58 billion in 2024.
IMARC attributes this to a combination of factors, such as the country's thriving tourism sector, consumers' demand for diverse culinary experiences, urbanisation, and the expansion of online food delivery services.
Other key elements propelling this market growth include the UAE's robust infrastructure, expanding international restaurant chains, and a consumer shift towards healthier dining options, in addition to government initiatives promoting food security and sustainable practices.
The adoption of advanced technologies in food delivery services is also driving significant growth in the sector.
User-friendly mobile applications and digital platforms have made ordering meals more convenient. "This shift is further supported by an increasing number of tech-savvy consumers who prefer online food delivery for its ease of use and speed," the report stated.
"Moreover, the growing proliferation of food delivery aggregators and platforms, offering varied cuisine options from international and local restaurants is impelling the market growth."
The report also pointed out that the integration of artificial intelligence (AI) and data analytics by such platforms is enabling personalised experiences, ultimately supporting market expansion through encouraging customer engagement and repeat orders.
The UAE's multicultural fabric has also contributed to the market's expansion through driving demand for diverse and international cuisine.
The report said: "Restaurants and food service providers are continually innovating their menus to cater to the tastes of expatriates and local Emiratis, offering various options in Asian fusion, European fine dining, and traditional Middle Eastern fare. This variety caters to the cosmopolitan nature of the market, drawing in the residents and tourists who seek unique and culturally rich dining experiences."
According to the report, international chains are increasingly recognising the region's potential and are establishing their presence in the UAE.
The report also observed an increased focus on health-conscious and sustainable dining options in the UAE, a trend aligned with consumers increased awareness of the impact of their food choices on personal health and the environment.
"Operators are sourcing locally produced ingredients to promote sustainability and reduce environmental impact, reflecting the preferences of eco-conscious consumers," it added.