UAE Frozen Food Market Outlook to 2030

UAE Frozen Food Market Overview

• The UAE Frozen Food market is valued at USD 720 million, according to a five-year historical analysis. The market is driven by increasing demand for convenience foods as the urban population grows, and consumers prefer ready-to-eat products due to busy lifestyles. The rise in the expatriate population has also contributed significantly to the demand for frozen foods, especially meat, vegetables, and ready meals.

• Dubai and Abu Dhabi dominate the market due to their large urban populations, high disposable incomes, and developed retail infrastructure. These cities have a strong presence of hypermarkets and supermarkets, which are the primary distribution channels for frozen foods. Additionally, the significant presence of international expatriates in these cities drives the demand for a diverse range of frozen products.
• In 2024, the UAE government invested over AED 3 billion in its National Food Security Strategy, promoting the development of local food production and encouraging the growth of industries like frozen food. This initiative is designed to reduce import dependency and encourage innovation in food preservation and production techniques, creating opportunities for local frozen food manufacturers.

UAE Frozen Food Market Segmentation

By Product Type: The market is segmented by product type into ready meals, frozen vegetables, frozen meat & poultry, frozen seafood, and frozen bakery products. Recently, ready meals have dominated the market share due to their convenience and the growing demand from working professionals and expatriates who prefer quick and easy meal options. The availability of a wide variety of cuisines and the increasing penetration of Western food habits have boosted the segments growth.

By Distribution Channel: The market is segmented by distribution channel into supermarkets/hypermarkets, convenience stores, online retail, specialty stores, and foodservice (HoReCa). Supermarkets and hypermarkets have a dominant market share in the distribution channel segment, mainly due to their wide availability, accessibility, and the variety of frozen food options offered. These large retail outlets allow customers to explore different frozen food categories, encouraging them to make bulk purchases.

UAE Frozen Food Market Competitive Landscape

The market is dominated by a few major players, including both domestic and international brands. Companies like Al Islami Foods and National Food Products Company (NFPC) lead the market due to their established local presence and product diversity. These players are known for their wide range of frozen products, meeting the demands of both local consumers and expatriates.

UAE Frozen Food Market Analysis

Market Growth Drivers

• Increase in Cold Storage Infrastructure: The UAE has witnessed investments in cold storage facilities over the past few years, growing the market for frozen food. As of 2024, there are over 650 cold storage units across the UAE, primarily in Dubai and Abu Dhabi. This expansion has allowed businesses to stock and distribute frozen food more effectively, meeting the growing demand from supermarkets and restaurants. The food and beverage sector is highly reliant on such infrastructure, and with the ongoing projects, this number is expected to increase further, creating a robust foundation for frozen food consumption.
• Rising Tourism Industry and F&B Demand: In 2024, UAE is projected to host around 23 million tourists, creating high demand for food services, particularly in the hotel and restaurant sector. A large proportion of this demand is for frozen food products, as they are easier to manage in bulk. This influx of tourists, especially in major cities like Dubai, has fueled the need for quick, ready-to-cook frozen meals, supporting both international and local brands to expand their frozen food offerings.
• Health and Safety Regulations Encouraging Frozen Food: The UAE government has put stringent regulations on food safety, prompting businesses to adopt frozen food alternatives due to their longer shelf life and better ability to meet health standards. As of 2024, the UAE has enforced over 200 new food safety regulations, focusing on imported food products and maintaining stringent standards for frozen food. This has driven food producers and retailers to shift towards frozen food products as they ensure better compliance with government regulations.

Market Challenges

• Fluctuating Energy Costs: Cold storage and transportation of frozen food require a stable and cost-efficient energy supply. As of 2024, the UAEs energy consumption for the food storage sector stood at approximately 45 terawatt-hours annually. However, fluctuating energy prices can directly impact the cost of maintaining cold chains, pushing businesses to pass on these additional costs to consumers, making frozen food less competitive against fresh alternatives.
• Consumer Perception and Preferences: In 2024, a survey conducted among 5,000 UAE residents showed that nearly 40% of consumers still prefer fresh food over frozen options due to the perception of higher nutritional value. This strong preference for fresh, locally sourced food, especially within the Emirati population, continues to challenge the growth potential of the frozen food sector, limiting its appeal to certain market segments.

UAE Frozen Food Market Future Outlook

Over the next five years, the UAE Frozen Food industry is expected to exhibit steady growth driven by increasing consumer demand for convenient and time-saving food products, the rising number of supermarkets and hypermarkets, and growing consumer awareness of the health benefits of frozen foods.

Future Market Opportunities

• Increase in Vegan and Plant-Based Frozen Food Offerings: By 2029, the UAE is projected to see a five-fold increase in the availability of plant-based and vegan frozen food products, as consumers shift toward healthier and sustainable eating habits. Retailers such as Carrefour and Lulu are expected to expand their product lines to include more frozen vegan meals, contributing to the diversification of the market and catering to evolving consumer preferences.
• Growth in E-Commerce for Frozen Food Delivery: The online food delivery sector is set to grow rapidly in the UAE, with e-commerce platforms focusing on frozen food sales. By 2029, e-commerce sales of frozen food are expected to double, driven by the convenience of home delivery and advancements in cold chain logistics. Companies like Noon and Amazon UAE are already investing in frozen food logistics, paving the way for further expansion in the coming years.