UAE has solidified its position as a culinary hub of exceptional calibre because of its outstanding restaurant concepts. With international tourism on the rise, the country maintains its prominent role in the GCC’s food and beverage market.
Today, the UAE’s food and beverage industry represents a crucial foundation of the hospitality sector. Projections indicate that the total expenditure on F&B is expected to reach an impressive sum of US$ 44.5 billion by the end of 2023.
Dubai’s Department of Economy and Tourism (DET) has launched the inaugural Dubai Gastronomy Industry Report, a comprehensive study of the city’s gastronomy scene, further reinforcing Dubai’s position as a much sought-after global destination for food tourism.
The market is being driven by factors such as increasing health consciousness, the need for product differentiation, and the convenience offered by online food platforms. These factors are shaping the hospitality sector and giving rise to stronger, more sustainable, and innovative business models.
Dubai’s F&B market is projected to grow at a robust rate of 26.22% from 2022 to 2023. This positive outlook is driven by increased demand across all segments of the UAE’s food service market, including full-service restaurants, fine dining establishments, fast-casual eateries, fast-food chains, cloud kitchens, cafes, street kiosks, and home delivery services.
The dominant segment in the market is Restaurant-to-Consumer Delivery the revenue of which is projected to reach US$0.80bn in 2023. As a result, numerous restaurant operators are implementing online ordering options through their websites, social media platforms, or mobile applications. Some are even setting up delivery-only restaurants and cloud kitchens, often referred to as dark, satellite, virtual, or ghost kitchens. In addition to technology-driven advancements, there is a growing trend of experiential dining in the UAE, where food and beverage offerings are combined with entertainment elements.
Ahmed Al Khaja, the CEO of Dubai Festivals and Retail Establishment (DFRE), expressed pride in the continuous growth of Dubai’s thriving gastronomy industry, which is making a positive contribution to the global expansion of food tourism. He highlighted the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in further enhancing Dubai’s standing as a renowned global hub for quality of life.
In recent years, the UAE and Saudi Arabia have witnessed a growing trend of revitalizing and reinventing F&B businesses, following the introduction of pop-up retail. With an increase in face-to-face events and out-of-home activities, there is a rising demand for pop-up outdoor cafes, dining areas, street stalls, kiosks, and express take-out zones. Simultaneously, there is a surge in popularity for “chef-driven” establishments and customized food options, including curbside pick-up trucks, to cater to the demand for high-end, authentic artisanal tastes and flavour.
Dubai’s rich culinary landscape showcases the fusion of cultures and traditions from over 200 nationalities, creating a diverse and vibrant dining scene throughout the city. We are delighted to witness Dubai’s increasing recognition as a globally renowned destination for food enthusiasts, revolutionizing the realm of food tourism. Our recently launched report is a unique and comprehensive study that offers valuable insights and information concerning the city’s flourishing gastronomy sector. The report highlights the remarkable success of Dubai’s gastronomy industry, as reflected in high satisfaction ratings across various aspects of the dining experience. Notably, there has been a significant enhancement in food choices and overall restaurant experiences, benefiting both residents and visitors alike.
During the initial quarter of 2023, Dubai greeted a staggering 4.67 million overnight visitors, positioning itself on track to become the leading international destination for tourism. This figure demonstrates a significant increase compared to the 3.97 million tourists recorded in the corresponding period of 2022. With tourism witnessing this hike, the F&B Industry in the UAE is undergoing a remarkable evolution, demonstrating its adaptability by reimagining its business models. This transformative journey is just beginning, and it is expected that emerging trends and concepts will continue to evolve and shape the industry further.
