Kuwait Food and Drink Report Q1 2013

We continue to hold to our positive outlook for consumer spending in Kuwait owing to factors such as continued economic growth, elevated oil prices and household incomes boosted by wage and benefit hikes. Even though food prices remain the key driver of inflation, amelioration in this area has been noted in H212. We note, however, that Kuwait imports the vast majority of its food items for domestic consumption, making it particularly vulnerable to external pressure. This situation will continue to pose both upside and downside risks to our forecasts.

Headline Industry Data (local currency)

2013 food consumption growth = +3.7%; forecast compound annual growth rate (CAGR) to 2017 = +4.0%

2013 per capita food consumption growth = +1.3%; forecast CAGR to 2017 = +1.8%

2013 soft drinks value sales growth = +6.0%; forecast CAGR to 2017 = +6.1%

2013 mass grocery retail sales growth = +4.3%; forecast CAGR to 2017 = +4.3%

Key Industry Trends

Committee Formed to Stop Illegal Trade in Pork Products: Kuwaiti minister of commerce and industry Anas Al-Saleh was in September 2012 quoted by Arab Times as saying that the Kuwaiti ministry is forming a committee to fight the import of illegal foodstuffs that contain pork. Chairman of the Wazzaker Centre, Fuad Al-Rifaei, has threatened to release the names of companies that he claims have imported Brazilian pork products.

Foreign Fast-Food Outlets Continue Expanding in Kuwait: In August 2012, Canadian burger joint Big Smoke Burger was reported to be targeting Kuwait. The company plans to open the first restaurant outside its home continent within six months. Big Smoke Burger is reportedly to ‘hand-pick’ its franchise partners, which will be able to open three units in Kuwait. The brand’s owner, Mustafa Yusuf, is also eyeing new launches in Oman, the UAE and Bahrain, with plans including up to 30 outlets by 2015.

Key Risks To Outlook

Downside Risks Stemming From Political Impasse: The government has been at constant loggerheads with the legislature over spending and development plans. As a result of the deadlock between government and opposition blocs, the country’s KWD30bn four-year economic development plan remains in embryonic stage, despite being first announced in February 2010. Amid the political turmoil, we see persistent uncertainty over the country’s long-term economic future.

Table of contents

Chapter 1 - BMI Industry View

Chapter 2 - SWOT Analysis

Kuwait Food Industry SWOT

Kuwait Drink Industry SWOT

Kuwait Mass Grocery Retail Industry SWOT

Chapter 3 - Business Environment

BMI’s Core Global Industry Views

Table: Core Views

Middle East Food & Drink Risk/Reward Ratings

Table: Middle East And North Africa Q Risk/Reward Ratings

Table: Middle East & North Africa Q Food & Drink Risk/Reward Sub-Factor Ratings (scores out of )

Kuwait’s Food & Drink Risk/Reward Ratings

Macroeconomic Outlook

Table: Economic Activity

Chapter 4 - Industry Forecast Scenario

Consumer Outlook

Food

Food Consumption

Table: Food Consumption Indicators – Historical Data & Forecasts, -

Confectionery

Table: Confectionery Value/Volume Sales – Historical Data & Forecasts, -

Snack Food

Table: Snack Foods Volume Sales, Production & Trade – Historical Data & Forecasts, -

Dairy

Table: Dairy Volume Sales, Production & Trade – Historical Data & Forecasts, -

Drink

Soft Drinks

Table: Soft Drinks Value Sales – Historical Data & Forecasts, -

Hot Drinks

Table: Coffee Value/Volume Sales – Historical Data & Forecasts, -

Mass Grocery Retail

Table: Mass Grocery Retail Sales Value By Format – Historical Data & Forecasts, -

Table: Grocery Retail Sales By Format

Trade

Table: Trade Indicators – Historical Data & Forecasts, -

Chapter 5 - Food

Key Industry Trends And Developments

Committee Formed to Stop Illegal Trade in Pork Products

Armenia Looking to Get Involved in Kuwaiti Food Industry

Rising Food Safety Concerns

Growing Popularity Of Eating Out And Snack Foods

Non-Regional Multinational Companies Increase Their Presence

Market Overview

Agriculture

Table: Fish Volume Sales, Production & Trade – Historical Data & Forecasts, -

Food Production

Food Consumption

Halal Food

Chapter 6 - Drink

Key Industry Trends And Developments

Carbonates Lead Soft Drinks Sector

New-Product Launches And Greater Segmentation

Investments in Café Culture

Market Overview

Soft Drinks

Hot Drinks

Alcoholic Drinks

Chapter 7 - Mass Grocery Retail

Key Industry Trends And Developments

Increasing Foreign Investments Ahead?

Gulf-Wide Expansions

Market Overview

Table: Mass Grocery Retail Market Share By Retailer – Estimate

Table: Structure Of Kuwait’s Mass Grocery Retail Market By Number Of Outlets

Table: Structure Of Kuwait’s Mass Grocery Retail Market – Sales Value By Format (US$bn)

Table: Structure Of Kuwait’s Mass Grocery Retail Market – Sales Value By Format (KWTbn)

Table: Estimated Value Of Sales Per Outlet,

Chapter 8 - Competitive Landscape

Table: Key Players In Kuwait’s Food & Drink Sector

Table: Key Players In Kuwait’s Mass Grocery Retail Sector

Chapter 9 - Company Monitor

Food

Americana (Kuwait Food Company)

Kuwait Danish Dairy Corporation (KDD)

Kuwait Flour Mills & Bakeries Co

Unilever North Africa Middle East (NAME)

Drink

United Beverages Company WLL

Mass Grocery Retail

Union of Consumer Cooperative Societies (UCCS)

The Sultan Center (TSC)

EMKE Group

Chapter 10 - Demographic Outlook

Table: Kuwait’s Population By Age Group, - (‘)

Table: Kuwait’s Population By Age Group, - (% of total)

Table: Kuwait’s Key Population Ratios, -

Table: Kuwait’s Rural And Urban Population, -

Chapter 11 - Risk/Reward Ratings Methodology

Table: Rewards

Table: Risks

Weighting

Table: Weighting

Chapter 12 - BMI Food & Drink Industry Glossary

Food & Drink

Mass Grocery Retail

Chapter 13 - BMI Food & Drink Forecasting & Sourcing

How We Generate Our Industry Forecasts

Sourcing

Related research categories

By sector: General drinks

By market: Kuwait (in Asia)