DOHA: Food consumption in Qatar is expected to witness highest growth in the GCC in the next five years driven by rising population.
Qatar’s food consumption is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.5 percent during 2014-19, according to Alpen Capital’s GCC Food Industry report.
The report, released yesterday, said food consumption in the GCC is expected to grow at a CAGR of 3.5 percent between 2014 and 2019 to reach 51.9 million metric tonnes.
Saudi Arabia is the largest food consuming nation in the GCC and expected to remain so for the foreseeable future. Food consumption in Saudi Arabia is estimated to show an annual average growth of 3 percent from 2014. Oman, Kuwait and Bahrain show similar growth patterns ranging from 2.7 percent to 3.2 percent.
The report said the Qatari food industry is strengthened by factors such as rising expatriate population, tourism and a developing taste for Western foods. The country’s 2014 food retail sales are estimated at $11bn, showing a 13.1 percent year on year increase and accounting for 46.4 percent of total retail sales.
Qatar’s food production and consumption stood at 0.1m MT and 1.4m MT, respectively, in 2012, the report said.
“Demand for food in the GCC is driven by factors, including a growing population base, increasing affluence and rising tourist inflow within the region. High health awareness and a developing taste for a westernised diet, introduced by the increasing expatriate population, are bringing about a change in the region’s dietary habits, creating demand for organic and international foods,” said Sameena Ahmad, Managing Director, Alpen Capital (ME) Limited.
“In contrast, GCC food production is restricted due to its arid climate, less arable land and water scarcity, making it heavily reliant on imports.
“However, the region’s abundant oil revenues have supported its food imports and enabled the governments to make multi-billion-dollar investments to improve food security,” said Ahmad.
As per the report, cereals are likely to remain the most consumed food category, accounting for 46.5 percent of the region’s total food consumption in 2019.
However, rising consumption of high-priced protein-rich and healthy foods is expected to gradually eat into the share of cereals in the total food consumption.
Cereals consumption is expected to show an annualised growth of 3 percent between 2014 and 2019, compared to 4.4 percent and 3.8 percent annual rise in meat and fruit consumption, respectively. Qatar has initiated food security plans. The Qatar National Food Security Programme (QNFSP) was established in 2008 to develop a master plan for food security. Supported by a sovereign investment of $25bn, QNFSP involves the development of 1,400 farms, water desalination projects, a solar park, waste water treatment and renewable energy projects. Qatar invested $5.1bn in QNFSP in 2012, as part of a 10-year plan to improve food security and self-sufficiency. Another food security master plan was launched in July 2013, to achieve 40-60 percent self-sufficiency in the short to medium term, up from less than 10 percent in 2012. The plan includes the development of a large agro-industrial park as a designated area for the country’s food processing industry.
The Peninsula
