Ready Meals in The United Arab Emirates

Ready Meals in the United Arab
Emirates
Euromonitor International
November 2020
READY MEALS IN THE UNITED ARAB EMIRATES Passport i
LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2020 IMPACT ............................................................................................................................... 1
Slowdown for retail sales as more consumers cook from scratch at home ............................... 1
Higher growth for categories which allow long storage ............................................................. 1
Stronger competition as brands expand their portfolios into ready meals................................. 2
RECOVERY AND OPPORTUNITIES .......................................................................................... 2
Growth expected as post-COVID-19, consumers will look for convenient food options............ 2
Health trend set to lead prepared salads to see the highest growth ......................................... 3
New healthy but tasty product launches expected, including from private label ....................... 3
CATEGORY DATA ....................................................................................................................... 3
Table 1 Sales of Ready Meals by Category: Volume 2015-2020 .............................. 3
Table 2 Sales of Ready Meals by Category: Value 2015-2020 ................................. 4
Table 3 Sales of Ready Meals by Category: % Volume Growth 2015-2020 ............. 4
Table 4 Sales of Ready Meals by Category: % Value Growth 2015-2020 ................ 4
Table 5 Sales of Chilled Ready Meals by Ethnicity: % Value 2015-2020 .................. 5
Table 6 Sales of Frozen Ready Meals by Ethnicity: % Value 2015-2020.................. 5
Table 7 NBO Company Shares of Ready Meals: % Value 2016-2020...................... 5
Table 8 LBN Brand Shares of Ready Meals: % Value 2017-2020 ............................ 6
Table 9 Distribution of Ready Meals by Format: % Value 2015-2020 ....................... 6
Table 10 Forecast Sales of Ready Meals by Category: Volume 2020-2025 ............... 7
Table 11 Forecast Sales of Ready Meals by Category: Value 2020-2025 .................. 7
Table 12 Forecast Sales of Ready Meals by Category: % Volume Growth
2020-2025 .................................................................................................... 7
Table 13 Forecast Sales of Ready Meals by Category: % Value Growth 2020-
2025 ............................................................................................................. 8
© Euromonitor International
READY MEALS IN THE UNITED ARAB EMIRATES Passport 1
READY MEALS IN THE UNITED ARAB

EMIRATES
KEY DATA FINDINGS
▪ Ready meals sees slightly slower retail growth rates in 2020, as more consumers cook from
scratch due to spending more time at home to avoid COVID-19, whilst foodservice sales also
see a slow decline due to fewer consumers visiting foodservice outlets
▪ Ready meals records a 2% increase in retail volume terms in 2020 to reach 2,100 tonnes, and
a 3% increase in retail current value terms to reach AED75 million
▪ Frozen ready meals sees the fastest growth rate in 2020, with a retail current value increase
of 5% to reach AED14 million
▪ The average unit price sees an increase of 1% in current terms in 2020, although chilled
ready meals and prepared salads see price declines
▪ Transmed Overseas remains the leading player in ready meals in 2020, with a 37% retail
value share
▪ Ready meals is expected to post a 6% current value CAGR (4% 2020 constant value CAGR)
over 2020-2025
2020 IMPACT
Slowdown for retail sales as more consumers cook from scratch at

home
In 2020, ready meals has seen its slowest retail volume and current value growth rates in the
review period. In fact, this is only a small category, as these products are not widely consumed
due to the proliferation of takeaway and home delivery foodservice options in the country. With
more consumers working from home due to measures taken to limit the spread of COVID-19,
they have had more time to cook from scratch, rather than needing the convenience of a ready
meal to warm up quickly when they get home. However, some categories have been impacted
more adversely then others. For instance, prepared salads and chilled ready meals have
experienced the slowest retail volume growth rates, far lower than those seen in the review
period, with chilled ready meals even seeing a slight decline after previous years of dynamic
growth. These products do not have a long shelf life, and consumers have wanted to minimise
trips to grocery retailers to avoid contracting the virus. Foodservice volume sales, which are
almost exclusively of frozen pizza, have also experienced a decline in 2020, as many
consumers have avoided eating outside of the home due to the risk of contracting COVID-19.
However, sales of ready meals via foodservice are negligible so this has not had a major
impact.
Higher growth for categories which allow long storage

Frozen ready meals and frozen pizza have seen the strongest retail volume and current value
growth rates in 2020. The most important reason is that some panic-buying was seen at the
beginning of the pandemic due to fears of being locked down for a long period of time.
Consumers who stockpiled ready meals turned to frozen ready meals and frozen pizza, as well
as shelf stable ready meals, as they allow for long storage. Other characteristics of these
categories is that they offer convenience, which has remained relevant as many younger
consumers want easy to prepare meals, and these categories deliver in this regard. Also, the
innovations seen in these categories over the last couple of years helped to increase the growth
rate in 2020. For instance, brands have worked on the localisation of tastes to satisfy different
consumers through products such as frozen Shish Barak, Okra with Tomatoes, and Paneer and
Lamb Kabsa, all of which are becoming increasingly visible in the main hypermarkets. In
addition, several foodservice outlets, such as TGI Fridays and Little Bangkok, have launched
some of their most famous starters as frozen meals.
Stronger competition as brands expand their portfolios into ready meals

Transmed Overseas has continued to lead ready meals in value terms in 2020, with its Dr
Oetker brand. Dr Oetker was one of the first frozen pizza brands in the United Arab Emirates,
and it leads the category through different variants of its product Ristorante. Whilst this has been
the case for the last couple of years, it is expected that its ranking might fluctuate over the
forecast period, primarily due to the rapid growth within ready meals overall and the interest this
has been creating amongst local and regional brands. Brands across the food market are
researching ways in which their existing product portfolios can be customised to penetrate the
ready meals category. One brand that has successfully done this is Sirena Tuna, which has
launched a series of shelf stable ready meals using its core product tuna. It is expected that
many more companies will follow this route, leveraging economies of scale in their current
product ranges, with the main competition coming from brands moving into frozen ready meals
and prepared salads.
E-commerce has seen an increase in its share of sales of ready meals in 2020, with stronger
value growth than in other years of the review period, which is accelerating the move to
shopping online. More consumers have used e-commerce retailers for shopping and home
delivery to avoid leaving the house and minimise the chances of contracting COVID-19 in this
year. Nevertheless, modern grocery retailers such as hypermarkets and supermarkets remain
the main distribution channels for ready meals.
RECOVERY AND OPPORTUNITIES
Growth expected as post-COVID-19, consumers will look for convenient

food options
Ready meals is expected to return to higher retail volume and current value growth rates in
2021 and for the rest of the forecast period, with population growth accounting for part of the
rise. In addition, the impact of COVID-19 is likely to start to fade as restrictions are eased. As
consumers spend less time at home, they are likely to look for convenient, easy to prepare
products when they get home from work. Meanwhile, the drop in foodservice consumption
occasions has created a gap, and brands are starting to realise this, shifting their investments
towards DIY kits and frozen ready meals, which will stimulate higher growth. Nevertheless,
home cooking and economic pressures will continue to limit growth, with the forecast period
CAGRs expected to be lower than those seen in the review period. Meanwhile, foodservice
volume sales are set to return to growth from 2021 as restrictions on capacity in restaurants
ease and consumers feel more comfortable eating out once again. Frozen pizza is the most
popular ready meal via foodservice, and it is anticipated that pizza limited service and full
service restaurants will see a quicker recovery compared with other consumer foodservice
outlets, due to their popularity and more affordable price ranges.
Health trend set to lead prepared salads to see the highest growth
Prepared salads is expected to see the highest growth in ready meals in the forecast period,
picking up strong momentum from 2021 as consumers are increasingly interested in their
health. These products are likely to see particularly strong growth for lunches. Most of the
players within prepared salads are local, and given the logistical issues associated with the
basic need for freshness, this is expected to remain the case for years to come. Creativity in
terms of the range of products is on the rise as salads have gradually evolved from traditional
vegetable ingredients to include more pulses, seeds, premium vegetables and fruits, in addition
to a protein source. Growth in chilled ready meals is also set to bounce back from 2021, for the
same reason. Chilled ready meals are considered fresher and healthier than shelf stable ready
meals, for instance.
Nevertheless, frozen ready meals is also set to maintain strong growth in the forecast period,
due to recent product innovations and the convenience of having products which can be stored
for a long time already at home, rather than having to go shopping. Towards the end of the
review period the range of cuisines covered by chilled and frozen ready meals broadened to
include sushi, fettuccini, sweet and sour chicken, fish with sayadeih rice and Mexican chicken,
and more types of dishes are expected to be launched in the forecast period. The United Arab
Emirates has a wide diversity of expatriate workers, and therefore the product range is widening
to meet the needs of all these consumers.
New healthy but tasty product launches expected, including from private
label
Brands are continuously striving to achieve the right balance between product quality, portion
size, nutritional value and convenience in their product ranges. Key players in ready
meals, especially producers of prepared salads, and frozen and chilled ready meals, are
therefore expected to continue introducing new and improved products which do not
compromise on taste to meet the diverse consumer preferences in the country. Many
innovations are likely to be seen, for example manufacturers are set to introduce ready meals
with shorter heating times and more convenient packaging to meet the
consumer demand for greater convenience. Furthermore, players are predicted to enhance the
nutritional value in ready meals by adding fresh ingredients such as seeds, pulses and
vegetables to add flavour and taste to the existing offer of ready meals. For instance, retailers
such as Spinneys are trying to make healthy meal choices more readily available, and have
ventured into numerous product lines within ready meals with well-sealed hygienic packaging,
especially in areas where most of the residents are single and are not able to or do not want to
cook all their meals from scratch. It is expected that over the forecast period such private label
ready meals will see higher growth rates, given that they are sold at more affordable prices.
CATEGORY DATA
Table 1 Sales of Ready Meals by Category: Volume 2015-2020
tonnes
2015 2016 2017 2018 2019 2020
Shelf Stable Ready Meals - - 48.9 47.5 48.3 49.0

Chilled Lunch Kits - - - - - -
Chilled Pizza - - - - - -
Chilled Ready Meals 235.6 244.7 253.2 261.2 269.8 272.6
Dinner Mixes - - - - - -
Dried Ready Meals - - - - - -

Frozen Pizza 921.2 969.0 1,017.2 1,040.6 1,061.5 1,084.5
Frozen Ready Meals 299.4 311.0 320.3 328.4 337.4 348.0
Prepared Salads 287.6 303.5 320.7 336.3 350.6 354.4
Ready Meals 1,743.9 1,828.3 1,960.2 2,014.1 2,067.6 2,108.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Sales of Ready Meals by Category: Value 2015-2020
AED million
2015 2016 2017 2018 2019 2020
Shelf Stable Ready Meals - - 5.5 5.5 5.7 5.9

Frozen Pizza 24.6 26.4 28.2 29.8 30.5 31.6
Prepared Salads 13.0 13.6 14.6 15.8 16.5 16.6
Ready Meals 54.1 57.7 67.0 70.8 73.2 75.3
Table 3 Sales of Ready Meals by Category: % Volume Growth 2015-2020
% volume growth
2019/20 2015-20 CAGR 2015/20 Total
Shelf Stable Ready Meals 1.3 - -

Chilled Lunch Kits - - -
Chilled Pizza - - -
Chilled Ready Meals 1.1 3.0 15.7
Dinner Mixes - - -
Dried Ready Meals - - -
Frozen Pizza 2.2 3.3 17.7
Frozen Ready Meals 3.2 3.1 16.2
Prepared Salads 1.1 4.3 23.2
Ready Meals 2.0 3.9 20.9
Table 4 Sales of Ready Meals by Category: % Value Growth 2015-2020
% current value growth

2019/20 2015-20 CAGR 2015/20 Total
Shelf Stable Ready Meals 3.4 - -

Chilled Pizza - - -
Chilled Ready Meals -0.1 5.0 27.7
Dinner Mixes - - -

Table 5 Sales of Chilled Ready Meals by Ethnicity: % Value 2015-2020
% retail value rsp

2015 2016 2017 2018 2019 2020
Chinese 9.9 10.0 10.0 10.1 10.1 10.1

Indian 50.1 50.0 50.0 50.0 50.5 49.8
Italian 9.8 10.0 10.0 10.0 10.0 10.1
Japanese 9.7 10.0 9.9 9.9 9.9 9.9
Other Ethnicities 20.5 20.0 20.1 20.0 19.5 20.1
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 6 Sales of Frozen Ready Meals by Ethnicity: % Value 2015-2020
% retail value rsp

2015 2016 2017 2018 2019 2020
Chinese 4.2 4.4 4.3 4.3 4.6 4.6

Indian 88.7 87.8 88.0 88.0 87.0 86.9
Mexican 1.1 1.1 1.0 1.0 1.0 0.9
Other Ethnicities 6.0 6.7 6.7 6.7 7.4 7.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 7 NBO Company Shares of Ready Meals: % Value 2016-2020
% retail value rsp

Company 2016 2017 2018 2019 2020
Transmed Overseas Inc SA 39.8 36.4 36.7 36.4 36.6

Del Monte Foods (UAE) FZE 11.3 10.2 10.7 10.8 10.6
Barakat Vegetables & 9.3 8.1 8.3 8.4 8.2
Fruits Co LLC
Sahar Enterprises LLC 3.3 3.1 3.1 3.1 3.7
Nomad Foods Ltd - - 3.1 3.0 3.0
Bolton Group, The - 1.6 1.7 1.7 1.7
Schwan Food Co, The 0.5 0.5 1.5 1.5 1.5
Al Islami Foods 1.3 1.2 1.2 1.2 1.3
Majid Al Futtaim 0.9 0.8 0.8 0.8 0.9
Hypermarkets LLC
Right Bite Nutrition & 0.6 0.6 0.7 0.7 0.7
Catering Services LLC,
The
Sunbulah Food & Fine - - 0.5 0.5 0.5
Pastries Mfg Co Ltd
Other Private Label 3.1 2.9 3.0 3.7 3.6

Others 29.8 34.5 28.9 28.3 27.7
Total 100.0 100.0 100.0 100.0 100.0
Table 8 LBN Brand Shares of Ready Meals: % Value 2017-2020
% retail value rsp

Brand (GBO) Company (NBO) 2017 2018 2019 2020
Dr Oetker (Oetker- Transmed Overseas Inc SA 36.4 36.7 36.4 36.6

Gruppe)
Del Monte (Del Del Monte Foods (UAE) FZE 10.2 10.7 10.8 10.6
Monte Pacific Ltd)
Barakat Barakat Vegetables & 8.1 8.3 8.4 8.2
Fruits Co LLC
Al Kabeer Sahar Enterprises LLC 3.1 3.1 3.1 3.7
Goodfella's Nomad Foods Ltd - 3.1 3.0 3.0
Rio Mare Bolton Group, The 1.6 1.7 1.7 1.7
Al Islami Al Islami Foods 1.2 1.2 1.2 1.3
Red Baron Schwan Food Co, The - 1.0 1.0 1.0
Carrefour (Private Majid Al Futtaim 0.8 0.8 0.8 0.9
Label) Hypermarkets LLC
Right Bite Right Bite Nutrition & 0.6 0.7 0.7 0.7
Catering Services LLC, The
Sunbulah (Sunbulah Sunbulah Food & Fine - 0.5 0.5 0.5
Group) Pastries Mfg Co Ltd
Tony's Schwan Food Co, The 0.5 0.5 0.5 0.5
Del Monte (Del Del Monte Foods (UAE) FZE - - - -
Monte Foods Co)
Other Private Label Other Private Label 2.9 3.0 3.7 3.6
(Private Label)
Others Others 34.5 28.9 28.3 27.7
Total Total 100.0 100.0 100.0 100.0
Table 9 Distribution of Ready Meals by Format: % Value 2015-2020
% retail value rsp

2015 2016 2017 2018 2019 2020
Store-Based Retailing 98.1 97.7 97.6 97.3 97.0 92.0

- Grocery Retailers 98.1 97.7 97.6 97.3 97.0 92.0
-- Modern Grocery 94.4 94.0 94.0 93.6 94.2 89.4
Retailers
--- Convenience Stores 0.1 0.1 0.1 0.2 0.3 0.2
--- Discounters - - - - - -
--- Forecourt Retailers 1.0 1.0 0.9 1.0 1.1 1.0
--- Hypermarkets 63.0 63.2 60.1 60.3 60.0 57.1
--- Supermarkets 30.3 29.7 32.8 32.2 32.8 31.0
-- Traditional Grocery 3.7 3.8 3.6 3.7 2.8 2.6
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 3.7 3.8 3.6 3.7 2.8 2.6
Grocers
--- Other Grocery - - - - - -
Retailers
- Non-Grocery Specialists - - - - - 0.0
-- Health and Beauty - - - - - -
Specialist Retailers
-- Other Foods Non- - - - - - 0.0
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing 1.9 2.3 2.4 2.7 3.0 8.0
- Vending - - - - - -
- Homeshopping - - - - - -
- E-Commerce 1.9 2.3 2.4 2.7 3.0 8.0
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 10 Forecast Sales of Ready Meals by Category: Volume 2020-2025
tonnes
2020 2021 2022 2023 2024 2025
Shelf Stable Ready Meals 49.0 50.1 51.2 52.0 52.8 53.4
Frozen Pizza 1,084.5 1,115.6 1,151.7 1,187.2 1,227.4 1,263.9
Prepared Salads 354.4 364.5 377.9 398.1 420.5 445.6
Ready Meals 2,108.5 2,168.7 2,237.9 2,314.9 2,398.3 2,482.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 11 Forecast Sales of Ready Meals by Category: Value 2020-2025
AED million
2020 2021 2022 2023 2024 2025
Shelf Stable Ready Meals 5.9 6.0 6.2 6.3 6.4 6.5
Frozen Pizza 31.6 32.6 33.3 34.5 35.5 36.6
Prepared Salads 16.6 17.0 17.7 18.5 19.7 20.9
Ready Meals 75.3 77.6 79.9 82.9 86.0 89.1
trade sources
Table 12 Forecast Sales of Ready Meals by Category: % Volume Growth 2020-2025
% volume growth
2020/21 2020-25 CAGR 2020/25 Total
Shelf Stable Ready Meals 2.3 1.7 9.0

Chilled Pizza - - -
Dinner Mixes - - -
trade sources
Table 13 Forecast Sales of Ready Meals by Category: % Value Growth 2020-2025
% constant value growth

2020/2021 2020-25 CAGR 2020/25 Total
Shelf Stable Ready Meals 2.5 2.1 10.7

Chilled Pizza - - -
Dinner Mixes - - -
trade sources

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LIST OF CONTENTS AND TABLES

READY MEALS IN THE UNITED ARAB

Slowdown for retail sales as more consumers cook from scratch at

Higher growth for categories which allow long storage

Stronger competition as brands expand their portfolios into ready meals

RECOVERY AND OPPORTUNITIES

Growth expected as post-COVID-19, consumers will look for convenient

Shelf Stable Ready Meals - - 48.9 47.5 48.3 49.0

Dried Ready Meals - - - - - -

Table 2 Sales of Ready Meals by Category: Value 2015-2020

Shelf Stable Ready Meals - - 5.5 5.5 5.7 5.9

Table 3 Sales of Ready Meals by Category: % Volume Growth 2015-2020

Shelf Stable Ready Meals 1.3 - -

Table 4 Sales of Ready Meals by Category: % Value Growth 2015-2020

% current value growth

Shelf Stable Ready Meals 3.4 - -

Frozen Pizza 3.6 5.2 28.6

Table 5 Sales of Chilled Ready Meals by Ethnicity: % Value 2015-2020

% retail value rsp

Chinese 9.9 10.0 10.0 10.1 10.1 10.1

Table 6 Sales of Frozen Ready Meals by Ethnicity: % Value 2015-2020

% retail value rsp

Chinese 4.2 4.4 4.3 4.3 4.6 4.6

Table 7 NBO Company Shares of Ready Meals: % Value 2016-2020

% retail value rsp

Transmed Overseas Inc SA 39.8 36.4 36.7 36.4 36.6

Other Private Label 3.1 2.9 3.0 3.7 3.6

Table 8 LBN Brand Shares of Ready Meals: % Value 2017-2020

% retail value rsp

Dr Oetker (Oetker- Transmed Overseas Inc SA 36.4 36.7 36.4 36.6

Table 9 Distribution of Ready Meals by Format: % Value 2015-2020

% retail value rsp

Store-Based Retailing 98.1 97.7 97.6 97.3 97.0 92.0

Table 10 Forecast Sales of Ready Meals by Category: Volume 2020-2025

Table 11 Forecast Sales of Ready Meals by Category: Value 2020-2025

Table 12 Forecast Sales of Ready Meals by Category: % Volume Growth 2020-2025

Shelf Stable Ready Meals 2.3 1.7 9.0

Table 13 Forecast Sales of Ready Meals by Category: % Value Growth 2020-2025

% constant value growth

Shelf Stable Ready Meals 2.5 2.1 10.7

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