Irish food and drink exports to the wider Middle East market are on target to top more than €364 million this year according to latest estimates.
Food and drink exports to the market grew by 20% in 2022 as demand increased for premium Irish brands.
This week Bord Bia is hosting a market study visit for 18 Irish food companies that want to do business in the region as one of the world’s largest food and beverage exhibitions takes place in Dubai.
Gulfood 2023 will feature a record 5000 exhibitors from over 125 countries this year and among them are 13 Irish companies, including Dairygold, Lakeland, Tirlán and Tipperary co-operative, who are showcasing their produce at Bord Bia’s Ireland pavilion in the world food hall.
According to Bord Bia the Middle East is an important market for Ireland with the United Arab Emirates (UAE) and Saudi Arabia – accounting for 50% of Ireland’s trade to the region -because 80-90% of all food is imported.
Kieran Fitzgerald, Bord Bia’s regional director, Middle East and Africa, said there are two big drivers in the market – healthy food and sustainable food.
“We have a huge amount of product on retail shelves in the UAE. There are particular retailers whose customer base is really demanding and their customers are looking for healthy products and they are also looking for sustainably produced products.
“What we’re also seeing from Saudi is a demand for increased options on shelves for customers – so we’re also seeing demand for new products there,” Fitzgerald said.
He said there are more Irish food products on supermarket shelves in the UAE than than in any other country outside the UK.
According to Bord Bia UAE has a very international population but in Saudi products like Flahavan’s, Keogh’s crisps, Butler’s chocolates have gained traction very quickly and there is a growing demand.
Fitzgerald said that feedback from retailers in the region suggests that while there are price pressures in the market and prices have increased and basket sizes have fallen consumers are still willing to spend on premium products.
“We’re seeing demand is still there for quality products but the basket size has dropped by 10%,” he added.
This week Bord Bia has also launched a Saudi Arabia accelerator programme which will provide Irish companies with local market intelligence, value chain analysis and customer data to support them entering the Saudi market.
“The premium level brand is relatively resilient in this affluent market and we know that people do value the quality and are spending. It is a good time in the Middle East for Irish products and it is a relatively easy market for Irish companies to do business in.
“It is a great opportunity at the moment, the direction of the curve is going up and the big focus is Saudi Arabia which is opening up at a fast rate,” Fitzgerald added.