Market Trends of UAE Tomato Industry
Growing Consumer Preference for Local Fresh Produce
The increasing awareness regarding the high nutritional value of vegetables increased the local fresh produce consumption of vegetables, including tomatoes, to meet diverse dietary and nutritional needs. Thus, with the growing demand and attractive price, production, and acreage have also been growing to satisfy the need. According to FAOSTAT, the production of tomatoes in the United Arab Emirates increased from 60.1 million metric tons in 2019 to 70.6 million metric tons in 2022. Further, the appetite for local produce products is gaining traction among UAE consumers. Consumers perceive local produce as of better quality and are aware of the low carbon footprint of local products compared to imported products. The demand is particularly more for Fresh vegetable produce, including tomatoes.
As consumers become more aware of the health advantages of fresh, local produce—like tomatoes, which are packed with vitamins, minerals, and antioxidants—they're shifting their purchasing habits. This shift leans towards foods deemed more wholesome and beneficial for overall health. The farm-to-table movement is gaining momentum in the UAE, further driving the preference for fresh, local produce. Initiatives like farmers' markets, direct sales from producers, and collaborations between local growers and restaurants have amplified the appeal of locally sourced tomatoes. Even Hypermarkets like LuLu pledged to ramp up the number of locally-grown vegetables, including tomatoes, on its shelves and increase it to 15% by 2021.
To cater to this burgeoning demand, the UAE is leveraging cutting-edge agricultural methods, including hydroponics and vertical farming, to optimize space and enhance crop growth, particularly for tomatoes. These innovative techniques facilitate year-round production, ensuring a steady supply of fresh tomatoes. Furthermore, the adoption of technologies such as IoT (Internet of Things) and climate control systems has bolstered the efficiency and yield of local tomato farms. Such advancements guarantee that the quality and availability of locally sourced tomatoes meet the high standards of consumer demand for fresh produce.
Increasing Import of Tomatoes
The United Arab Emirates (UAE) has been increasing its tomato imports to meet rising demand driven by several factors, including a growing population, diverse culinary needs, and limitations in local tomato production due to the country’s arid climate. Local tomato production peaks during the cooler months (typically from November to April), but during the hotter summer months, imports are crucial to fill supply gaps. Imported tomatoes often meet higher quality standards and specific variety preferences. The UAE imports premium tomatoes from countries known for high-quality produce, such as the Netherlands, to cater to high-end restaurants, hotels, and retail stores.
The UAE has prioritized food security and resilience, with policies encouraging food imports to ensure stable supplies of essential goods like tomatoes. To maintain a stable supply chain and prevent dependence on a single source, the UAE has been expanding its network of tomato suppliers, importing from countries like India, Jordan, Egypt, Turkey, and the Netherlands. As per the data from the ITC trade map, the country imports tomatoes majorly from Iran, Jordan, Oman, Syria, Turkey, India, etc., and they accounted for an export percentage of 25.1%, 26.5%, 1.7%, 4.7%, 3.9 and 3.1% respectively, in 2023. The United Arab Emirates imported tomatoes of 209,864 metric tons in 2022, which increased to 221,389 metric tons in 2023.
