Italian Food Importers: New opportunity in the Middle East food market
The Middle East food market is developing great potential regarding the food market and the related sectors like restoration and food equipment. The reasons of this growth can be find in the huge pro capita income, often tax free, that temp consumer to spend money for food products, and in the even larger investment of western companies in the countries of the Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates (UAE).
For Agrelma the potential of this market are supported from different factors like the minimal trade barriers, the different nationalities present in the region, the growth of shopping malls and restaurant chains, young people has money to spend, growth of supermarkets, development of the tourism with the building of hotels, tourist centres and shopping malls. This development can be obstruct from reason: the difficulty of delivery in the region, from the concentration in few hands of the food retailing and from the dependence of a centralised market for the supplying of the multinational franchise chains present on the territory.
The GCC countries have very small trade barriers and are very open to western products. These countries import more than 90% of food products and equipment because the duties on food products range are from 0 % to 12%.
Moreover the presence of a great rate of foreign workforce in the area contributes to the growth of the Italian food importers to satisfy the different eating habits of the people living there. Also for this reason even more multinational restaurant chains decide to open restaurants and fast food there: more then 50% of the franchise market is represented from restaurant chains. Middle Eastern consumer are attracted from the western eating habits and also from the efficiency of the western franchise model. Many of Middle eastern inhabitants have travelled in Europe and USA to study or for pleasure and when they return home, they like to find western food and eating habits also in their countries. That's is important for the Italian food importers. Related to the spreading of fast foods and franchise restaurant is the development of shopping malls where the restoration point are very important to attract customers. They prefer to eat in fast food then in traditional restaurant because of convenience, consistency and above all the high persuasive image of western foods. This persuasion is persuade especially young people under 25 years that have money to spend in shopping centres and in fast food chains. In the last years the majority of customer in the region are in this age band and their foods needs are different from that of their parents, the young are oriented to western life style and consequent eating habits. This growing demand for western food, specialty from Italy, and the high disposable income of the customer promote also the spread of large supermarkets, related also to the climate condition of the region the demand of beverage increases every year and there is the necessity of new retail points. Another factor that increase the potential of the Italian food market in Middle East is the growing of the tourism industry, 25 % of tourism comes from Europe and consequently the visitors have pleasure to find their own dishes when they eat in the holiday village on the coast. But also the internal tourist flow increase the growth of restaurant chains and hotels. This can be a good opportunity to invest in Middle East, to work with the Italian product.
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Article Source: ArticlesBase.com
