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Embracing the growing trend for organic foods in UAE
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Thursday, 01 February, 2018, 08 : 00 AM [IST]
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Amrin Walji
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The organic sector in the UAE is on an upward trajectory, following stringent government regulations. However, the country is hungry for more organic products.
New pesticide ban introduced in the UAE
The UAE has introduced a ban on imported fruits and vegetables that exceed maximum pesticide residue limits. This is highly likely to have a positive impact on the local organic market.
Greater retail space
Given that the awareness around the benefits of organic food remains on an upward trajectory, there is an opportunity for retailers to expand the range of organic offerings in-store.
Market organic explicitly on-pack
While the majority of food and drink operators in the market focus on marketing wider natural and free- from claims, there is a definite opportunity for companies to stand out from the crowd by promoting the organic claim.
The ministry of climate change and environment in the UAE recently issued an advisory noting that it has banned imports of certain fruits and vegetables from countries including Egypt, Oman, Lebanon and Yemen, as produce has been found to contain pesticide residues in excess of permissible limits. The ban, which came into effect in mid-2017, reflects how food safety has become a core priority of the country's food security system, and is said to continue until necessary safety requirements are being met.
Retailers expand shelf-space for organic products
The newly introduced ban certainly reflects how organic food is becoming an area of increasing interest in the Middle-East. According to a study conducted by Global Links, the approximate retail space stocking organic products in the UAE has increased by 60% over the last four years. This trend is also replicating itself in other markets of the region, particularly in Saudi Arabia, Qatar and Kuwait.
Organic food is indeed on the agenda of food and drink operators, but only a few are promoting the organic claim on-pack. Just 2% of food and drink launches in the UAE were positioned as organic in the year leading to October 2017, according to Mintel Global New Products Database (GNPD). Instead, the majority of operators focus on wider natural and free-from claims, with 'no additives and preservatives' being the most used 'natural' claim in the market.
According to data Mintel GNPD, Israel and Egypt lead in organic-certified food and drink innovation in the Middle-East but the UAE's share has grown in the last few years.
Arla Foods has launched its first branded organic milk in the UAE. The launch of Arla Organic Milk forms part of the overall company's ambitious business strategy which entails to become ‘the number one organic dairy brand in the Middle-East and North Africa by 2020.’
According to an executive of Arla's operations in the Middle-East, the UAE is typically a first-mover country in the region when it comes to consumer trends, and it is where Arla first spotted the organic trend in the region. They have reportedly noted a general trend towards organic, especially in the fruit and vegetables category. By initially launching Arla Organic Milk in the UAE, the company is looking to tap into this growing trend and gather crucial information about organic consumers, which they can then leverage as they enter the neighbouring markets. In fact, there are plans for Arla to expand the product’s penetration in Saudi Arabia and Kuwait this year.
Other international companies tapping into the organic trend and expanding into the UAE region include international giants like American food processing company Heinz, British company Lizi’s, and American business Mama Chia.
Organic ketchup: Heinz Organic Tomato Ketchup
Launched in the UAE, Heinz Organic Tomato Ketchup contains no artificial colours, flavours, preservatives or thickeners. This organic product is formulated with tomatoes that have been grown, and not made. This features the EU Green Leaf logo.
Organic granola: Lizi's Organic Granola
Also launched in the UAE, Lizi’s Organic Granola is a high fibre wholegrain cereal made with the finest organic ingredients. It is said to be tested for the glycemic load and provides slow energy to sustain throughout the day. The manufacturer also states that with the purchase of this item, consumers are helping to support organic farming.
Organic vitality beverage: Mamma Chia Organic Blackberry Hibiscus Chia Vitality Beverage
Launched in the UAE, this product is said to be a delicious way to enjoy a powerful synergy of nutrients that naturally provide vitality for active souls of all ages, offers natural healing powers, and is suitable for vegans. The product contains Omega-3, complete protein, and claims to be an excellent source of fibre and is free from caffeine and gluten.
The recently introduced ban on fruits and vegetables exceeding maximum limits of pesticide residue is likely to elevate the status of organic claims, and help consumers to acknowledge the health and environmental benefits of buying and eating organic foods. Leading retailers have a role to play in raising consumer awareness of organic food and drink, and in continuing to increase the shelf space available for these products. This will encourage local food and drink producers to commit to developing new organic lines as well as open the door for more imported organic brands from more developed organic markets, like the US or the UK.
(The author is senior innovation analyst at Mintel)
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