2013-02-27 03:13:15 - New Food research report from Business Monitor International is now available from Fast Market Research

We remain broadly positive on Kuwait's consumer outlook, as the country's economic outlook heading into 2013 looks fairly bright. Robust domestic consumption has been strengthened by loose fiscal policy backed by elevated oil prices. We maintain our forecast for real GDP growth to expand by 3.7% in 2013, and we see household consumption continuing to power economic growth through to the end of 2013. Government current spending expanded at the beginning of 2012: A 25% wage rise to all government employees - of whom the majority are Kuwaiti nationals - was approved in March, as was a 15% increase to pension entitlements. The wage and benefit increases are expected to provide a strong boost to retailers and the consumer goods

sector, and we are forecasting domestic consumption growth of 4.5% in 2013.

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 = +6.2%; forecast CAGR to 2017 = +6.3%
* 2013 mass grocery retail sales growth = +4.3%; forecast CAGR to 2017 = +4.3%


Full Report Details at
- www.fastmr.com/prod/541229_kuwait_food_drink_report_q2_2013.aspx


Key Industry Trends:

Kuwait Tightens Energy Drinks Laws: In October 2012 Kuwait's Ministry of Commerce and Industry introduced new regulations on the sale of energy drinks, reported Arab Times Online. The new laws ban energy drink companies from making misleading advertising claims and impose a minimum age restriction of 16. Labels must also be placed on the products warning pregnant women, diabetics, children with behavioural problems and individuals with high blood pressure or caffeine allergies of the risks of consuming the product. Energy drinks are forecast to experience strong growth in the Kuwaiti market, but such legislation could potentially curtail this.

Vivartia to Enter JV with Exeed Industries: In late 2012 the Greece-based dairy group Vivartia announced that it will enter a joint venture (JV) with UAE-based Exeed Industries to expand its presence in the Middle East and North Africa. The new JV will construct a EUR70mn (US$90.0mn) production base in Abu Dhabi, which is set to start in early-2013. Through the JV, the companies aim to establish a business in the UAE with sales of more than EUR165mn (US$212.2mn) per year. Under the deal, Exeed will take over all of Vivartia's products, including Delta, Barba Stathis and Chrysi Zymi and foodservice brands, like Goody's and Everest.

Key Risks To Outlook:

Economic Risks To The Upside: We regard economic risks to our forecasts as lying predominantly to the upside. Given the size of the fiscal surplus and elevated oil prices, there is plenty of room for a higher-thanexpected ramping up of spending on subsidies, social spending or fixed investment, and any significant increase in these areas would leave our projections looking overly pessimistic. However, as ever, we must note that given the economy's heavy dependence on oil, any sustained downturn in global energy prices would prove disastrous, though this risk currently appears minimal.

Partial Table of Contents:

BMI Industry View
SWOT
- Food
- Drink
- Mass Retail Grocery
Industry Forecast
- Consumer Outlook
- Food
- Food Consumption
- Table: Food Consumption Indicators - Historical Data & Forecasts, 2010-2017
- Confectionery
- Table: Confectionery Value/Volume Sales - Historical Data & Forecasts, 2010-2017
- Snack Food
- Table: Snack Foods Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
- Dairy
- Table: Dairy Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
- Drink
- Soft Drinks
- Table: Soft Drinks Value Sales - Historical Data & Forecasts, 2010-2017
- Hot Drinks
- Table: Coffee Value/Volume Sales - Historical Data & Forecasts, 2010-2017
- Industry Forecast Scenario
- Table: Mass Grocery Retail Sales Value By Format - Historical Data & Forecasts, 2010-2017
- Table: Grocery Retail Sales By Format
- Trade
- Table: Trade Indicators - Historical Data & Forecasts, 2010-2017
Macroeconomic Forecast
- Table: Kuwait - Economic Activity
Industry Risk Reward Ratings
- Kuwait
- Middle East and North Africa
- Table: Middle East & North Africa Food & Drink Risk/Reward Ratings Q213
- Table: Middle East & North Africa Food & Drink Risk/Reward Ratings Sub-components Q213 (out of 10)
Market Overview
- Food
- Agriculture
- Table: Fish Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
- Food Production
- Food Consumption
- Halal Food
- Drink
- Soft Drinks
- Hot Drinks
- Alcoholic Drinks
- Mass Grocery Retail
- Table: Mass Grocery Retail Market Share By Retailer - 2012 Estimate
- Table: Structure Of Mass Grocery Retail Market By Number Of Outlets
- Table: Structure Of 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, 2012
Industry Trends And Developments
- Food
- Drink
- Mass Grocery Retail
Competitive Landscape
- Food & Drink
- Table: Key Players In Kuwait's Food & Drink Sector
- Mass Grocery Retail
- Table: Key Players In Kuwait's Mass Grocery Retail Sector
Company Profile
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Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=541229&dt=t

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