FOOD RETAIL: FROM MAINSTREAM TO GOURMET

SANA TOUKAN - RESEARCH MANAGER - 21 NOVEMBER 2011

WHO IS EUROMONITOR INTERNATIONAL OVERVIEW OF CURRENT FOOD RETAIL MARKET MAIN TRENDS IN THE PACKAGED FOOD MARKET GROWTH OF LUXURY FUTURE RECOMMENDATIONS Q&A

WHO IS EUROMONITOR INTERNATIONAL OVERVIEW OF CURRENT FOOD RETAIL MARKET MAIN TRENDS IN THE PACKAGED FOOD MARKET GROWTH OF LUXURY FUTURE RECOMMENDATIONS Q&A

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

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WHO IS EUROMONITOR INTERNATIONAL OVERVIEW OF CURRENT FOOD RETAIL MARKET MAIN TRENDS IN THE PACKAGED FOOD MARKET GROWTH OF LUXURY FUTURE RECOMMENDATIONS Q&A

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

Euromonitor International Packaged Food Research Coverage

SEGMENTS COVERED: ALL CHANNELS COVERED: Noodles Baby Food Supermarkets/Hypermarkets Oils & Fats Bakery Discounters Canned/Preserved Pasta Convenience Stores Chilled Processed Ready Meals Independent Small Grocers Sauces, Dressings & Confectionery Forecourt Retailers Condiments Dairy Confectionery Specialists Snack Bars Dried Processed Health and Beauty Retailers Frozen Processed Soup Homeshopping Spreads Ice Cream Internet retailing Meal Replacement Sweet/Savoury Snacks Direct selling Other grocery and nongrocery retailers

Euromonitor International

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

MEA Packaged Food Retail Distribution by Channel: 2005-2010

50 45 40 35 30 25 20 15 10 5 0 2005
Euromonitor International

% retail value

2006

2007

2008

2009
Others

2010

Supermarkets/Hypermarkets

Small Grocery

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

UAE Packaged Food Retail Distribution by Channel: 2005-2010

90 80 % retail value 70 60 50 40 30 20 10 0 2005
Euromonitor International

2006

2007

2008

2009
Others

2010

Supermarkets/Hypermarkets

Small Grocery

WHO IS EUROMONITOR INTERNATIONAL OVERVIEW OF CURRENT FOOD RETAIL MARKET MAIN TRENDS IN THE PACKAGED FOOD MARKET GROWTH OF LUXURY FUTURE RECOMMENDATIONS Q&A

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

10

Higher Quality for At-home Consumption

Recession

Lower disposable incomes Savings rate increasing

Home cooking

Decrease in number of restaurant outings

To compensate Increase in demand for high for drop in restaurant quality snacks outings

Euromonitor International

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

11

Latest Trends in Packaged Food

Indulgence

Specialisation Organic
Health and Wellness
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FOOD RETAIL: FROM MAINSTREAM TO GOURMET

12

Examples from the UAE Market

Euromonitor International

WHO IS EUROMONITOR INTERNATIONAL OVERVIEW OF CURRENT FOOD RETAIL MARKET MAIN TRENDS IN THE PACKAGED FOOD MARKET GROWTH OF LUXURY FUTURE RECOMMENDATIONS Q&A

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

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Are Hypermarkets the Future of Food Retailing in MEA?

MEA Hypermarkets Total Retail Value Sales: 2010-2015 30 25 US$ billion 20 15 10 5 0 2010 2011 2012 2013 2014 2015
Hypermarkets are key driver of regional packaged food growth More growth expected as format expands into new markets Hyperstar now has licenses for 11 outlets in major Iranian cities
Euromonitor International

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

15

Traditional Retailers in the UAE

Forecast for Traditional Retailers in the UAE
2,500.0 US $ Million (Fixed Ex. Rate)

2,000.0

1,500.0

1,000.0

500.0

0.0 2011 2012 2013 2014 2015 2016

Traditional Grocery Retailers Food/Drink/Tobacco Specialist

Euromonitor International

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

16

Recommendations for the Future

Gourmet Retailing
Premiumisation Specialisation Innovation

Euromonitor International

FOOD RETAIL: FROM MAINSTREAM TO GOURMET

17

Thank you! Questions?

Sana Toukan Research Manager- Middle East Euromonitor International

Euromonitor International