Middle East Momentum: Ten Food and Beverage Shifts Reshaping Growth in 2025
- PYD
- 21 hours ago
- 4 min read
In 2025, the Middle East has emerged as one of the most strategically important food and beverage growth arenas globally. Rapid market liberalisation, large-scale manufacturing investment, and shifting consumer expectations around health, affordability, and localisation are converging—positioning the region as both a demand engine and a production hub for global and Asian players alike.
Insights & Strategic Moves
Spicy Asian foods ride Middle East demand to export growth.
South Korea’s food export performance in 2025 has been increasingly fuelled by spicy ramen, sauces, and processed foods—alongside accelerating demand from the Middle East. According to the Ministry of Agriculture, Food and Rural Affairs, exports to the Gulf Cooperation Council (GCC) market grew 37.9% year-on-year to US$81m, making it the country’s fastest-growing regional destination. This highlights the Middle East’s rising appetite for bold flavours and its growing role as a growth pillar for Asian food exporters.
Manufacturing scale becomes a competitive weapon in MENA.
A joint venture between Americana Foods and Farm Frites has resulted in a US$100m frozen fries manufacturing plant in Saudi Arabia. Located at Sudair Industrial and Business City near Riyadh, the facility spans over 100,000 square metres and is expected to be operational in Q1 2026. With an initial annual capacity of 70,000 metric tonnes, it will become the largest frozen fries manufacturer in the region—underscoring Saudi Arabia’s ambition to localise food production at industrial scale.
Beverage innovation blends heritage, health and technology.
Across Asia and the Middle East, beverage brands are maintaining competitiveness by fusing culturally familiar ingredients with health-led positioning and digital engagement. Traditional and herbal ingredients are being reintroduced through modern formats, reflecting a broader consumer shift where trust in heritage-based remedies meets demand for convenience, personalisation, and tech-enabled experiences.
Organic and A2 dairy gain traction in the Gulf.
In the UAE, Meliha, owned by Sharjah Agriculture and Livestock Production (Ektifa), has launched a packaged laban drink to meet rising demand for organic dairy. Meliha’s portfolio is differentiated by A2A2 protein, which is more easily digested and absorbed. The laban, available in 2L, 1L and 180ml formats, has been on sale at Sharjah Co-operative Society outlets since 22 January, with broader distribution planned—signalling growing sophistication in regional dairy preferences.
Affordable premiumisation reshapes snacking across AMEA.
Mars Wrigley has identified affordable premiumisation, holistic wellness, and local flavour focus as core strategies across Asia, the Middle East and Africa (AMEA). Internal data shows 41% of consumers are eating fewer traditional meals, while 81% are snacking differently, with greater emphasis on wellbeing. As ageing populations intersect with lifestyle shifts, snacking is evolving from indulgence to functional nourishment.
RTD mocktails target younger, moderation-minded consumers.
At Gulfood 2025 in Dubai, Barakat Group spotlighted its ready-to-drink mocktail range as a growth driver. Launched six months earlier, the beverages come in four flavours and are available in 500ml bottles and 330ml cans. The move reflects increasing demand among younger consumers for alcohol-free, experience-led beverages that align with social occasions without alcohol consumption.
High-protein dairy underpins regional expansion strategies.
Qatari dairy leader Baladna is doubling down on high-protein products and geographic diversification following the end of a Malaysia joint venture. With dominant domestic market shares—96.1% in fresh milk and 92.5% in UHT milk—Baladna has entered a landmark partnership with the Algerian National Investment Fund to establish the world’s largest vertically integrated dairy farm in Algeria, exporting its self-sufficiency model beyond Qatar.
The Middle East emerges as an R&D growth frontier.
Global ingredients leader Kerry is expanding its R&D and production footprint in the Middle East to capture start-up momentum and evolving consumer needs. Despite operating in only 16 of 81 countries across its India, Middle East and Africa remit, Kerry sees strong opportunity to combine multiple technologies into locally relevant solutions, reinforcing the region’s role as an innovation testbed rather than a downstream market.
Saudi Arabia cements its role as the region’s growth engine.
Saudi Arabia’s rapid emergence as a high-potential F&B market is being driven by favourable demographics, rising disposable incomes, and government reform. Policies under Vision 2030, including retail liberalisation and trade openness, have positioned the Kingdom as a priority entry point for international brands seeking scale in the Middle East. Success increasingly depends on understanding local demand patterns, regulatory expectations, and speed-to-market requirements.
AI and cloud adoption accelerate food system modernisation.
The UAE is rapidly embedding AI and cloud technologies across its food sector, supported by the national UAE Artificial Intelligence Strategy 2031. Government-led investment aims to modernise operations, reduce costs, and enhance supply chain efficiency, positioning the UAE as a potential regional leader in food-tech adoption and a “dark horse” in applied AI for food systems.
The Middle East’s food and beverage evolution in 2025 reflects more than demand growth—it signals a structural shift towards localisation, industrial-scale manufacturing, health-led consumption, and technology-enabled resilience. For global brands, the region is no longer peripheral, but central to next-phase growth strategy.
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