Sector Trend Analysis – Meat trends in the Gulf Cooperation Council

Gulf Cooperation Council (GCC) trends

The six Gulf states that constitute the GCC produce oil and gas, have the highest standards of living in the Middle East and are relatively stable and wealthy. Traditional independent retailers selling halal meat remain important shopping destinations in developing markets with low proliferation of modern retail formats, such as supermarkets, convenience stores and discounters (Modern supermarkets and hypermarkets have modern butcheries). Anyone interested in exporting halal products to the GCC should have an understanding of the halal certificates required and that they need to work with an accredited halal certification body. For example, for the United Arab Emirates, any product labelled halal needs to be accompanied with a halal certificate from an accredited halal certification body. The Ministry of Industry and Advanced Technology is the authority in the United Arab Emirates responsible for overseeing halal. Anyone interested in exporting halal products to the GCC should have an understanding of the halal certificates required and that they need to work with an accredited halal certification body.

Meat and poultry exported to the GCC countries must be certified halal. There are a few halal certification bodies in Canada that are accredited to certify meat exports to countries in the Gulf. However, exporters should inquire about market coverage directly with the certification bodies, as the accreditation is delivered per country (and not for the entire region. For example, certification body A may be accredited for United Arab Emirates and KSA, whereas certification body B only for Kuwait. While the market of Saudi Arabia offers growth opportunities, Canada is currently negotiating full access for red meat.

The high income in GCC has created a high demand for imported goods and foods. In fact, almost 90% of foods are imported due to the agricultural limitations of the region.

While GCC countries are considered more food-secure per the Global Food Security Index than many other countries, the region has a relatively high reliance on imported food. In the GCC, about 12% of all imported goods are food products, with Kuwait and Saudi Arabia having higher shares of food imports. GCC countries import about 85% of their food consumption, with cereal imports accounting for over 90% and almost all rice consumption imported. The Arab Coordination Group (ACG) recently announced financial support of US$10 billion to overcome regional and international food security challenges. Over the medium term, lifting agricultural productivity and accelerating climate-resilient agriculture would be key. That includes helping increase the productivity of local farmers, facilitating imports, reinforcing supply chains, and encouraging private sector involvement in climate-smart investments in agriculture, food production systems and technologies (IMF eLibrary 2022).

Increasing urbanization in the GCC countries, diversified lifestyles, growing popularity of large modern food retail formats and the presence of multinational food companies in the region, are the main factors in increasing the popularity of convenience foods among consumers. Moreover, the affluent local population has shifted its consumption patterns from a carbohydrate-based diet to protein-based diet. This has increased the demand for meat, meat products and health and wellness products.

In addition to the domestic consumption, the GCC is now among the world's top tourism destinations. The United Arab Emirates is amongst the top ten destinations and the most popular in the Arab World according to the United Nations World Tourism Organization for many factors: Rich Cultural Heritage, Modern Infrastructure, Diverse Landscapes, Shopping Destination, Safe and Stable Environment, Warm Weather and Multicultural Society. There are several reasons why the United Arab Emirates is a preferred place for business leaders. First, it has a stable political environment and pro-business policies that encourage entrepreneurship and investment. Second, it has a strategic location at the crossroads of Asia, Europe, and Africa, making it a gateway to international markets. Third, the United Arab Emirates has a diverse and skilled workforce and advanced infrastructure, including world-class airports, seaports, and telecommunications networks. Finally, the country has a low-tax regime that attracts both individuals and businesses, making it an attractive destination for investment and expansion. (Succes Point College 2022).

Sales of meat in the Gulf Cooperation Council countries

The total volume sales of meat (beef and veal, lamb, mutton and goat, poultry and other halal meat) in the GCC increased to 2.8 million tonnes in 2022 from 2.5 million tonnes in 2018. Saudi Arabia had the highest total volume sales of meat: 1.6 million tonnes in 2022, representing 58.0% of the total volume sales in the GCC. This is mainly due to its large population (36.9 million), representing 62.6% of the total GCC population (58.9 million) in 2022.

The total volume sale of meat grew the fastest in Kwait at a CAGR of 6.5% followed by Oman at a CAGR of 6.1% from 2018 to 2022. All countries grew positively between 2018 and 2022.

The total volume sale of meat are expected to grow positively ranging from 5.5% (Qatar) to 1.9% (Bahrain) from 2023 to 2027.

Among the top three meat products sold in the GCC, poultry is ranked the first based on both historical and forecast sales. Saudi Arabia's total volume sales of poultry reached 1.3 million tonnes in 2022, representing 65% of the total poultry sales in the region: 2.0 million tonnes. Oman had the highest compound annual growth rate of 6.6% from 2018 to 2022.

Kwait is expected to take the lead in the forecast total volume sale from 2023 to 2027, followed by Qatar. All GCC countries are expected to have steady increase in the next five years. This presents a great opportunity for Canadian meat suppliers.

Saudi Arabia had the highest total volume sales of beef and veal meat in 2022: 142.4 thousand tonnes, representing 43.0% of the total in the GCC and it is expected to lead the sales in the future. Kwait and Qatar enjoyed the 6.8% CAGR and 6.6% respectively from 2018 to 2022. Kwait is forecast to have the highest CAGR growth of 5.6% among all GCC countries from 2023 to 2027.

Saudi Arabia had the largest total volume sales of the lamb, mutton and goat meat in 2018: 139.2 thousand tonnes, accounting for 37.9% of the total volume sales in the region. Kwait had the highest CAGR of 7.7% from 2018 to 2022. Kuwait is forecast to have the highest CAGR of 4.6% from 2023 to 2027.

Spending and consumption

The top two countries consuming poultry per capita were Oman with 44.5 kilograms and Saudi Arabia with 41.1 kilograms in 2022. The fastest growth country was Oman at a CAGR of 4.8% followed by Kuwait at a CAGR of 4.5% from 2018 to 2022.

It is expected that all the GCC countries will continue to increase their per capita poultry consumption from 2023 to 2027. Population increase, growing tourism and transit passengers passing through GCC countries and active Hotel, Restaurants, and Institution (HRI) sectors contribute positively to increasing poultry consumption.

Kuwait was also the biggest consumer of beef and veal with 18.7 kilograms per person followed by Oman with 6.8 kilograms in 2022. Kuwait is also the fastest growing country in consuming beef and veal meat at a CAGR of 5.8% from 2018 to 2022.

It is projected that three countries grow at same CAGR of 4.2% from 2023 to 2027: Kuwait, the United Arab Emirates and Qatar.

Kuwait was the biggest consumer of lamb, mutton and goat in GCC countries with 16.9 kilograms per person in 2022. Qatar consumes the least lamb, mutton and goat annually but is the fastest growing country in this region at a CAGR of 7.5% followed by Kuwait at 6.8% from 2018 to 2022.

Qatar continues to be the fastest growing country in this region at a CAGR of 5.7% followed by Kuwait and the United Arab Emirates all at the same 3.2% from 2023 to 2027.

Top foreign suppliers of meat and meat products to the Gulf Cooperation Council

The total exporting value of meat and meat products to the GCC countries reached US$6,844.5 million in 2022. Brazil, Australia, India, Pakistan and Ukraine are major players. Although Canada was the twentieth largest meat supplier (US$43.0 million) to the GCC in 2022, its compound annual growth rate was the highest 50.0% among top ten from 2018 to 2022. Canada's share represents 0.6% of the region's total meat imports in 2022.

Meat and edible offal of fowls of the species gallus domesticus, ducks, geese, turkeys and guinea fowls, fresh, chilled or frozen was the biggest world export to GCC: US$3,301.9 million, representing 48.2% of the total meat exports in 2022. Meat and edible offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal had the highest compound annual growth rate of 14.7% from 2018 to 2022.

Saudi Arabia imported the largest amount of meat with a value of US$2,975.4 million in 2022, representing 57.1% of the GCC's total meat imports worth US$5,206.8 million in 2022. The United Arab Emirates had the highest compound annual growth rate of 10.2% from 2018 to 2022.

Competitive landscape

The GCC region is a significant poultry meat market, a destination for over 9.4% (US$3,307.1million) of world exports in 2022 (US$35,033.4 million). 38.4% of the shipment was sent to Saudi Arabia while 34.8% went to the United Arab Emirates in 2022. Demand for poultry meat imports is strong for two main reasons: low domestic production, and re-exports.

Livestock trends

The food consumption pattern is steadily changing from carbohydrate-based staple foods (such as cereals) to protein-rich diets including meat and dairy products. This pattern combined with growth in population and visitors alike, are boosting the demand for livestock products.

The available data from the Food and Agriculture Organization of the United Nations (FAO) shows that bovine, sheep and goat production numbers are increasing year-over-year. Saudi Arabia was the largest producer of goat, sheep and beef cattle in the GCC.

Jordan, Romania and Kwait were the top three live animal suppliers to the GCC: US$326.1 million in 2022, accounting for 37.2% of the total live animal supply worth US$876.5 million to the GCC. Canada was the thirty second top live animal supplier in 2022 with a value of US$0.7 million in 2022. Romania had the highest compound annual growth rate of 203.6% from 2018 to 2022.

Canada's performance

Quebec exported the most quantity of meat (2,682.9 metric tonnes, US$31.98 million) to the GCC. It has the second fastest growth at a CAGR of 24.6 % in volume and the fastest growth at 84.4% in value from 2018 to 2022.

Quebec: top two exports are all bovine, US$21,237 thousand (HS020130) and US$9,571 thousand (HS020230) in 2022. accounting for a combined 96.3%.

Ontario: top 1, 3 and 4 exports are bovines, US$2,914 thousand (020110) , US$468 thousand (020230) and US$146 thousand (020130) in 2022, accounting for a combined 60.3%.

Alberta: top four exports are bovines, US$2,402 thousand (020130), US$1,764 thousand (020622), US$259 thousand (020110) and US$105 thousand (020120) in 2022, accounting for a combined 99.2%.

Quebec exported the most quantity of beef (2,046.8 metric tonnes, US$30.8 million) to the GCC. It has the fastest growth at a CAGR of 98.0% in volume and 123.4% in value from 2018 to 2022.

Alberta is the only province that exported the sheep to the GCC at 8.0 metric tonnes in volume and US$39.7 thousand in value in 2022.

Ontario is the only province that exported poultry to GCC at 100.8 metric tonnes in volume and US$128.6 thousand in value in 2022. The growth for volume was 235% and growth for value was 62.2% in 2022.

Conclusion

The GCC has an increasing population, limited local agricultural production, a growing demand for imported food products, and a strong re-export market. Canadian agri-food products are perceived as being high-quality and safe.

The GCC countries demand for halal meat in particular, continues to rise both in quantity and quality. With local meat supply and herd expansion being constrained by arid land, feed and water shortages, the GCC will continue to import a significant proportion of meat from the world.

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For more information on the 2024 Gulfood exhibition in Dubai, please contact:

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Resources

• Euromonitor International (2023)
• Euromonitor International (2023), Income and Expenditure Dashboard
• Food and Agriculture Organization of the United Nations (FAO), 2023
• Global Trade Tracker 2023
• IMF eLibrary Nov, 2022): Gulf Cooperation Council: Economic Prospects and Policy Challenges for the GCC Countries
• Succes Point College 2022

Sector Trend Analysis – Meat trends in the Gulf Cooperation Council
Global Analysis Report

Prepared by: Hongli Wang, Market Analyst

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