The Philippines Department of Trade and Industry promoted Filipino food through its “Outbound Business Matching Mission” in Kuwait, Qatar, and the UAE in February 2023. The trade body aims to tap the growing demand for healthy convenience foods in the Middle East. The demand in the region is spurred by strong household purchasing power despite high inflation, with consumers willing to pay more for food and beverages with greater health benefits and functionality, says GlobalData, a leading data and analytics company.
The mission attracted extensive participation from the Philippines’ exporters, with halal-certified consumer packaged goods (CPG) offerings targeting both nationals and Filipino expatriates in the Middle East. Going forward, the trade department plans to take its mission to larger markets, such as Saudi Arabia.
Bobby Verghese, Consumer Analyst at GlobalData, comments: “The COVID-19 pandemic and the ‘sin tax’ imposed on sugar-sweetened beverages have accentuated consumer demand for healthy foods in the Middle East. Moreover, over the last decade, governments in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE have accelerated the nationalization of the labor pool. With more nationals entering the workforce, demand is on the rise for food and drinks that align with their health goals and hectic lifestyles. This resonates with the findings of GlobalData’s Q4 2022 survey, wherein 66% of UAE consumers are often or always influenced by how the product/service impacts their health and well-being when purchasing products. Additionally, 55% said the same for how well the product/service aligns with their time and money constraints*.”
Isha Varma, Senior Business Development Manager, GlobalData Dubai, adds: “With rising household incomes, Middle Eastern consumers are willing to pay more for food and drinks with healthier recipes and time-saving features. For instance, at least a quarter of UAE respondents in GlobalData’s Q4 2022 consumer survey connote good value for money with high-quality products/ingredients for dairy products, savory snacks, prepared meals, bakery items, cereals, and morning foods.”
Verghese notes: “GlobalData’s market research indicates that products with ‘naturally healthy’, ‘reduced fat’, and ‘all natural’ attributes are popular among UAE and Saudi consumers**. Similarly, products that contribute to general well-being or weight management have gained more traction**. The outlook is thereby bright for Filipino better-for-you products with less fat, sodium, and refined sugar, fortified products with more protein and fiber, and free-from products without allergens or chemical additives.”
Isha concludes: “Despite the surge in inflation levels and value-added tax over the last year, inflation in the Gulf Cooperation Council countries lags that in most developed and emerging economies. Moreover, strong economic growth and job creation are bolstering consumer confidence in the region. Rising household purchasing power will offset the impact of inflation and thereby sustain spending on food and drinks with more health and functional benefits. Also, the sin tax will further elevate the consumer appeal for health foods.”
* GlobalData Q4 2022 Consumer Survey–UAE, with 541 respondents, published in November 2022
** GlobalData Consumer Intelligence Center—Market Analyzers, accessed in March 2023
