Market Trends of United Arab Emirates (UAE) Disposables (Single-Use) Packaging Industry
This section covers the major market trends shaping the UAE Disposables (Single-Use) Packaging Market according to our research experts:
Increasing Demand for Online Food Delivery Service
- Online food delivery services are burgeoning in the country with the entry of CareemNOW, Deliveroo, Talabat, and others. Foodonclick.com was the first company to develop the concept of online food delivery in the United Arab Emirates. For instance, Carrefour, a retail stores chain, witnessed its online marketplace demand by 6-fold.
- According to Talabat, in Q1 2021, Talabat accounted for the largest share of the food delivery market in the United Arab Emirates, at 74%. Talabat is one of the Middle East's largest online food delivery platforms.
- In response to the growing demand, new players are also entering the industry through various online channels. F&B vendors are going the technology way to win the competition by launching food apps with multiple options for consumers. For instance, Abu Dhabi-based food and beverage maker Agthia Group PJSC is shifting to online sales and home deliveries to help offset the COVID-19 pandemic's impact on its business. The company has introduced its e-commerce channel, and sales through retailers' online platforms are growing.
- Further, new limited-service restaurants have succeeded in establishing cloud or ghost kitchens. The trend of third-party online food ordering services is expected to rise as these enable many small and independent restaurants to reach out to the wider population. Moreover, the rise of quick service restaurants (QDR), such as food trucks and online deliveries, would further contribute to the demand for food service disposables.
- Moreover, In February 2021, Noon, a UAE-based online marketplace, announced to enter the online food delivery market in the country. This move has been financed by the Public Investment Fund (PFI) of Saudi Arabia.
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Quick Service Restaurants (QSRs) Segment Driving the Market Growth
- Quick service restaurants (QSRs) offer low-cost food options, focusing on speed of service. The minimal table service and emphasis on self-service make this different from traditional restaurants. Moreover, at QSRs, food, and beverages are paid for before consumption. Over the last decade, the food service market in the country witnessed the growth of several international QSR chains and home-grown brands offering varied cuisines suiting the changing consumer preference.
- QSRs offer a wide variety of menu items, and almost all the menu items are intended to be eaten on the go, meaning they do not require the use of cutlery. Therefore, most food products in QSRs are consumed directly from a container or package.
- Single-use food service packaging in QSRs has become an incredibly important part of the fast-paced life in the region. With less time for meal preparation at home, more people are relying on fast food for meals. Single-use packaging allows food service establishments to package meals in a sensible, safe, and cost-effective manner while providing customers with a convenient and efficient way to transport meals.
- The country has a fast-expanding fast-food restaurant business. The high disposable incomes of the UAE residents and the large number of shopping malls in the country are the two key driving factors that make the United Arab Emirates an attractive market for gauging consumer demands for particular fast-food businesses and act as a launching pad for these businesses' regional operations.
- According to a survey in 2021, Posist, a cloud-based restaurant technology platform, in collaboration with Dubai Restaurants Group, anticipated that more than 75% of restaurant operators could increase their revenue to higher than pre-COVID-19 times. According to the survey, quick service restaurants would potentially increase unit growth by exploring investments in cloud kitchens as well as building an efficient delivery setup.
