Organic farming in the GCC is set to enjoy considerable growth in the coming years, driven by evolving consumer tastes and government support, according to new research from the consultants Frost and Sullivan.
The market for organic food across the Arabian Gulf region is estimated to reach US$1.5 billion by 2018, the consultants predict.
This follows initiatives taken by governments in the region to establish organic farming departments within ministries of agriculture, as well as farming associations to develop local farms.
In the UAE the number of organic farms rose to 39 at the end of last year, covering a total of 3,920 hectares, compared with just 218 hectares in 2007.
Government initiatives to encourage the growth of organic farming run in parallel to growing consumer demand for organic food and beauty products.
This month there was the well-received launch of the weekly Ripe Food and Craft Market at The Collection on St Regis Saadiyat Island Resort in Abu Dhabi, building on the long-running success of similar markets in Dubai and Sharjah.
The publication of Frost & Sullivan’s report coincides with the 13th edition of the Middle East Natural and Organic Products Expo being held at the Dubai International Convention and Exhibition Centre.
The three-day event was opened on Tuesday by Dr Rashid bin Fahad, the UAE Minister of Environment & Water.
“The organic and natural products movement in the Middle East is now very diversified and it embraces the need for a sustainable lifestyle,” said Nadim Al Fuqaha, managing director of the event organiser Global Links.
“The product categories in this segment have expanded to include cosmetic, beauty and lifestyle products as well, which in itself is a huge market.”
Frost & Sullivan noted that the packaged food industry across the GCC – dominated by bakery and dairy products – was valued at US$25 billion last year, and is projected to increase at a compound annual growth rate of 8.5 per cent until 2018.
The region currently imports an estimated 70 per cent of its food products, 55 per cent of which are cereals, according to the consultants.
jeverington@thenational.ae
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