Plant-based, healthy food, and so-called “clean” foods have become more popular since the onset of the global coronavirus pandemic as consumers, particularly in the younger generation, are increasingly concerned with what they eat and where it comes from.
“As the emerging generation comes through, they’re more concerned with things like sustainability, quality of ingredients, and healthy eating, and it’s forecast to continue in the coming years,” Alex Mitchell, the investment director at Abu Dhabi Catalyst Partners said during a webinar that launched Alpen Capital’s GCC Food Industry 2021 report.
Covid-19 was a catalyst for burgeoning trends across sectors, and the food industry was no exception, with the pandemic fuelling a rise in healthy eating as well as home delivery. Overall, food demand in the GCC is expected to grow moderately at 2.3 percent to reach 52.4 million metric tonnes by 2025.
In 2020, more than $20 billion was invested in agri-food technology, including investments in dairy alternatives and novel proteins. With Covid-19 severely disrupting supply chain lines, logistics has also received a significant portion of that investment, said Mitchell.
The onset of the Covid-19 pandemic, coupled with high-incidence of lifestyle diseases, is encouraging healthy food habits in the GCC region, which has led to a boost in demand for organic food, with consumers seeking more home-cooked dishes and plant-based products with high nutritional value, Alpen Capital’s report said.
Beyond the shift to prioritising healthy eating, the way people eat has also changed. E-commerce and grocery delivery, especially in the GCC, expanded rapidly over the last 18 months. According to market experts, the e-grocery sector’s gross merchandising value grew from $478m in the first quarter of 2020 to $1.12bn in the third.
“Grocery e-commerce really became the norm here in the GCC during lockdown, and that’s a behavioural change that’s likely to remain once Covid-19 is in the rear-view mirror,” Mitchell said.
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