Browse the complete Report on: Kuwait Food and Drink Report Q4 2010
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The outlook for Kuwait’s food and drink sector appears to be improving as consumer confidence looks to be on the rise. However, it still remains some way off its pre-downturn 2009 peak with discretion still carrying a marked influence on spending. While spending on food and drink in Kuwait is fairly high, the small size of the market means that long-term volume growth opportunities are limited, as reflected in our forecast figures. While Kuwait does not have as large a high-spending expatriate population as other Gulf Cooperation Council (GCC) markets such as Qatar and the UAE, significant economic development over the past decade has led to an influx of high income expatriates, bringing with them spending power and western tastes and preferences. Nevertheless, while some expansion oriented food and drink companies may consider market entry, Kuwait’s investment appeal is unlikely to stretch beyond Gulfbased firms intent on diversifying regionally.
Headline Industry Data
Regional Retail Moves - In June 2010 it was announced that premium UK supermarket retailer Waitrose is to launch its first store in Bahrain in a bid to strengthen its position in the high-spending Gulf region. Waitrose is attracted by the Gulf region’s high-spending, expatriate-heavy population and the fact that organised retail remains an only modestly developed channel, particularly outside Dubai. This marks Waitrose's second foray into the Gulf, with the retailer believed to be aiming to grow its international business to about 10% of annual sales over the next 10 years. Having so far focused store launches solely on the Gulf region and with further launches likely to be in the offing, the region will become increasingly important strategically.
Key Risks to Outlook
Dependent on Oil - The maintenance of the current political and economic system which gives the country a great deal of stability, depends on money continuing to flow in, and this in turn depends on high oil prices. If the global economy slows down again and prices fall, or even, over the longer term, alternative fuels take the place of crude, it is unclear as to how accepting to change the population would be.
Inflation Threat Remains - While inflation seems to be under control at the moment, thanks to subdued demand and a strong dollar (to which the Kuwaiti dinar is de facto pegged), it remains a risk on the distant horizon and would have a considerable negative impact on consumer spending.
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Original Source : Market Research
Browse All Business Monitor International Market Research Reports
The outlook for Kuwait’s food and drink sector appears to be improving as consumer confidence looks to be on the rise. However, it still remains some way off its pre-downturn 2009 peak with discretion still carrying a marked influence on spending. While spending on food and drink in Kuwait is fairly high, the small size of the market means that long-term volume growth opportunities are limited, as reflected in our forecast figures. While Kuwait does not have as large a high-spending expatriate population as other Gulf Cooperation Council (GCC) markets such as Qatar and the UAE, significant economic development over the past decade has led to an influx of high income expatriates, bringing with them spending power and western tastes and preferences. Nevertheless, while some expansion oriented food and drink companies may consider market entry, Kuwait’s investment appeal is unlikely to stretch beyond Gulfbased firms intent on diversifying regionally.
Headline Industry Data
- 2010 food consumption = +3.0%; forecast to 2014 = +18.9%
- 2010 per capita food consumption = +0.58%; forecast to 2014 = +6.74
- 2010 soft drink sales = +3.8%; forecast to 2014 = +21.7%
- 2010 mass grocery retail (MGR) sales = +3.33%; forecast to 2014 = +22.6%
- Key Company Trends
Regional Retail Moves - In June 2010 it was announced that premium UK supermarket retailer Waitrose is to launch its first store in Bahrain in a bid to strengthen its position in the high-spending Gulf region. Waitrose is attracted by the Gulf region’s high-spending, expatriate-heavy population and the fact that organised retail remains an only modestly developed channel, particularly outside Dubai. This marks Waitrose's second foray into the Gulf, with the retailer believed to be aiming to grow its international business to about 10% of annual sales over the next 10 years. Having so far focused store launches solely on the Gulf region and with further launches likely to be in the offing, the region will become increasingly important strategically.
Key Risks to Outlook
Dependent on Oil - The maintenance of the current political and economic system which gives the country a great deal of stability, depends on money continuing to flow in, and this in turn depends on high oil prices. If the global economy slows down again and prices fall, or even, over the longer term, alternative fuels take the place of crude, it is unclear as to how accepting to change the population would be.
Inflation Threat Remains - While inflation seems to be under control at the moment, thanks to subdued demand and a strong dollar (to which the Kuwaiti dinar is de facto pegged), it remains a risk on the distant horizon and would have a considerable negative impact on consumer spending.
About Us
ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
Contact:
Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
http://reportsandreports.proarticles.co.uk/
http://reportsnreports.wordpress.com/
Original Source : Market Research
