UAE Wholesale Market is projected to grow at a CAGR of 3.5% during 2024-2030

Food service industry by customer accomplished the highest revenue share in UAE Wholesale Market – 6Wresearch

In 2023, the UAE's food service sector held the highest market revenue share in wholesale food and beverages due to its strong hospitality sector, and high tourism activities. Additionally, the expanding food and beverage outlets, culinary diversity and frequent large-scale events and exhibitions, further drive the market growth for wholesalers.

According to 6Wresearch, the UAE Wholesale Market is projected to grow at a CAGR of 3.5% during 2024-2030. The UAE's wholesale market is growing due to its strategic location as a global trade hub which makes export business highly attractive and support the demand coming from exporters in the wholesale market of given products segment. Further, the country’s growing number of expat and urban population are driving the demand for retail food segments, propelling growth in wholesale revenues. The year COVID-19 was a breakthrough year for UAE food market as it encouraged impulse buying among the emirati consumers boosting the overall food retail sector. In 2021, the market witnessed high levels of growth in online food retail with e-commerce sales in the UAE reaching to $4.8 billion representing a year-on-year increase of 17.6 percent from 2020. This expansion in retail business was the prefix for increasing turnover for wholesale businesses. Additionally, the rising number of online b2b marketplace in UAE are opening new growth horizons for suppliers. The rising disposable incomes, increasing visitor numbers and a growing, diverse population drives innovation in the wholesale food and beverage market, positioning it for continued growth as wholesalers respond to the evolving preferences of this demographic.

According to Parth, Senior Research Analyst, 6Wresearch, grocery is dominating the current wholesale market scenario of UAE on account of bulk volume buying from UAE’s growing number of consumers including expats. Further, the country’s strong hospitality underpinned by robust tourism supports the grocery demand coming from hotels and restaurants.  In 2023, Grocery items dominate Abu Dhabi's wholesale sector due to their essential role in daily consumption, supported by a vast network of supermarkets and convenience stores. High consumer spending, frequent replenishment needs, and a diverse range of products contribute to substantial wholesale transactions. Additionally, the growth of retail outlets further drives demand, solidifying grocery items' leading market revenue share.

UAE Wholesale Market (2024-2030) report provides an in-depth analysis with 24 figures and 5 tables, covered in 70 pages. The report comprehensively covers the market by product, and Customer. The report provides a detailed as well as unbiased analysis of the ongoing drivers, opportunities/high growth areas, and trends of the sector which are projected to support the stakeholders to align as well as devise their market strategies as per the latest and future market dynamics.