What factors have contributed to the growth of Italian food and beverages in the Emirates?
The Food & Beverage sector is of vital importance to Italy.
In a global context where the number of people suffering from (and dying of) malnutrition has been declining since 2001, the focus is shifting from the issue of survival and access to food to the themes of pleasure and health related to nutrition.
And on this subject, Italy boasts an incredible wealth of knowledge embedded in a culinary tradition that has benefited from the country’s geographical location: the climatic variety, which allows for diverse crops, and a history of continuous migrations, which have led to an unprecedented blend of techniques and knowledge.
According to the Gastronomy Industry Report 2023 issued by the Dubai Tourism Authority, Italian cuisine is the most appreciated in the country. Approximately 50% of orders include products characteristic of Italian cuisine.
The growth has been primarily driven by the global recognition of Italian cuisine as healthy, delicious, and accessible to everyone. In a country predominantly inhabited by expatriates, this has provided a common language and a way for people from diverse cultures to come together and enjoy the same dishes.
Italian products are highly valued in the Emirati market for their quality, authenticity, and the rich cultural heritage they represent. Italian cuisine is synonymous with healthy and gourmet dining, attracting a broad audience, both among locals and expatriates. The emphasis on fresh, high-quality ingredients and traditional preparation methods further enhances the perception and value of the entire range of products.
How is the market?
In the business world, there are many successful Italian experiences that draw from this heritage today. The challenge set to Italy by today’s globalized world is the speed. The country known for its slowness, for savoring life, and for the progressive development of products matured in the production traditions of generations within the same family, must learn to move at a new pace.
How to be faster than? First and foremost, by sharing, trying to speak a common language that can start from traditions and be infused into a local context.
The United Arab Emirates has a population of approximately 11 million inhabitants, of which 89% are expatriates and only 11% are Emirati citizens. The population is highly diverse and includes residents from about 200 nationalities, with the largest groups being Indians at 38%, Pakistanis at 17%, Filipinos at 7%, and Egyptians at 4%. Italian resindents in the Emirates are next to 15.000 poeple.
These demographic data are crucial for defining marketing strategies. Italian companies study the market to identify their target customers, understand where they shop, and what they generally purchase. Adapting marketing and distribution strategies based on this knowledge has been fundamental to their success.
Our clients typically ask us to support them in finding the right partner for market entry. In the food industry, this can involve working with food distributors or directly with major retail chains. Kelmer, thanks to its two decades of presence in the country, relies on a network of local contacts and partners who help us conduct a qualitative analysis of the sector.
In recent years, the import of food and beverage products from Italy to the United Arab Emirates has seen significant growth, driven by the increasing global attention towards this expanding market. According to Istat data, the export of the Food & Beverage (F&B) sector to the UAE grew by 6.83%, with a particular increase in fresh products such as fish, processed fruits and vegetables, dairy products, flours, and oils.
One sector that has experienced extraordinary growth is wine, which recorded an increase of 117% compared to the previous year, indicating a strong interest and growing demand for high-quality Italian wines.
It is important to note that in the territory of Dubai alone, government reports indicate the presence of over 13,000 commercial establishments, including restaurants and cafés, representing a huge potential market for Italian products. These numbers underscore the strategic importance of Dubai as a commercial hub and access point for the entire UAE market.
The Power of a Good Commercial Strategy
Kelmer Group’s internationalization and marketing services are valuable tools for companies and entrepreneurs, helping them conduct commercial analysis essential for making informed decisions. Often, our clients need support from market experts who live and breathe the internal dynamics of the market, study these dynamics, and make their insights available to the clients.
Our clients come to the UAE with the aim of expanding their commercial network into new countries, to understand if their products can be successful in different contexts from their home market. However, they often lack the necessary tools to mitigate entrepreneurial risks.
This is where Kelmer steps in.
When we talk about internationalization, we refer to all activities that help transition a company from a national to an international scale.
This involves corporate strategies aimed at achieving the company’s defined goals, which can be both economic and non-economic.
Our Marketing encompasses all activities useful to define: Product, Price, Place, and Promotion. This involves market analysis, competitor analysis, price optimization, distribution optimization and consumer behavior analysis.
Kelmer Group services are designed to support the companies with all the tools and knowledge useful to navigate international markets successfully, reducing risks and maximazing growth opportunities.
Notes:
Gastronomy Industry Report 2023 – Dubai Tourism Authority
Ministry of Cabinet Affairs – United Arab Emirates
Marketing per il Food 2016