International

Markets
Bureau
MARKET INDICATOR REPORT | JUNE 2012

Consumer Trends
Ice Cream in the
United Arab Emirates

Source: Shutterstock Source: Shutterstock

 Consumer Trends
Ice Cream in the United Arab Emirates

EXECUTIVE SUMMARY INSIDE THIS ISSUE

The United Arab Emirates (U.A.E.) is highly dependent on Executive Summary 2

imported food products. Locally processed food is mostly made
from imported ingredients, of which the United States (U.S.) is a Categories 2
large supplier. Although locally produced foods only represent
about 20% of all retail products, they are slowly on the rise. Market Trends 3
Consumers in the U.A.E. have varied tastes and preferences
that are often a mix between Western and Middle Eastern, as Impulse Ice Cream 5
about 85% of the population is composed of expatriates.
Artisanal Ice Cream 6
The consumption of ice cream in the U.A.E. is growing,
reaching an estimated value of US$56.6 million in 2011.
Take-Home Ice Cream 6
Canada exported US$16.8 million worth of ice cream to the
U.A.E. in 2011, or over 4 million kilograms. The value of
Frozen Yogurt 7
Canadian ice cream exports to the U.A.E. has doubled
since 2006.
New Product Examples 8
Canada also exports some ingredients that can be used in the
production of ice cream such as skim milk powder, whey
protein, and whey powder.

There is potential for new Canadian ice cream companies to The U.A.E. is dependent on
enter the market if their products are marketed strongly and
effectively. Ingredients such as milk powder are not present in
imports for 80% to 90% of its
significant amounts in the U.A.E., but there is good sales
potential for these products, as the U.A.E. has eight major ice
cream processing firms. food needs.

CATEGORIES

For the purposes of this report, ice cream will be defined by the
following four categories:

 Artisanal: ice cream manufactured by small local

producers for sale on the premises.
 Impulse: dairy and water-based novelties such as ice
cream sandwiches, cones, ice lollies, and sorbets that are
sold for on-the-go consumption. This category also
includes single-serving ice cream tubs, and
chocolate-coated ice cream bars.
 Take-Home: dairy or water-based multi-serving ice
cream tubs, ice cream cakes and sorbet tubs.
 Frozen Yogurt: a soft frozen dessert.

PAGE 2
MARKET TRENDS

The U.A.E. has one of the most advanced dairy sectors in the Middle East and
currently has a number of dairy and ice cream processing plants and trading companies.
Some manufacturing or processing companies are domestically owned, such as the United Kaipara Dairies
Company (Unikai International) in Dubai, as well as the Pure Ice Cream Company, and International Foodstuffs
Co. (IFFCO), which are both based in Sharjah.

Hypermarkets and supermarkets are very popular in the U.A.E., with much of the country’s grocery retail growth
occurring in large-sized stores. Although small neighbourhood stores, convenience stores, and forecourt
retailers are more numerous than hypermarkets and supermarkets, the latter account for 50% of all retail sales
in the U.A.E.

The top five grocery retailers in the U.A.E. are the Emke Group, Spinneys, Carrefour, Consumer Co-op U.A.E.
and Al Safeer. Most of the main grocery retailers are centred around major cities such as Dubai, Abu Dhabi
and Sharjah.

Many ice cream franchises currently have operations in Dubai, such as Baskin Robbins, Cold Stone Creamery,
Dairy Queen, Minimelts kiosks, and Häagen-Dazs. These artisanal ice cream retail outlets are very popular in
Dubai along the Palm strip, as well as in city centres and malls.

Ice cream is primarily purchased from specialist retailers and supermarkets in the U.A.E., because the market
is split between impulse and take-home ice creams. In 2011, 33% of all ice cream value sales were from
specialist retailers, while supermarkets/hypermarkets held a 30% market share. Convenience stores held an
18% share, and independent retailers held 13.2% of the market for ice cream.

In 2011, an estimated 52% of all ice cream sales in value terms, (or 43.5% by volume) were impulse buys.
Take-home ice cream was also popular in 2011, representing 18% of value sales (or 44.5% by volume).

The top companies in the ice cream market in 2010 were the IFFCO Group with their Igloo and London Dairy
brands, which held a combined 39.5% of the market. The United Kaipara Dairies Company followed with 5.5%
of the market with its Royal Treat brand, as well as another 1.3% of the market with its Unikai brand. Other top
brands included Häagen-Dazs, Baskin Robbins, Del Monte, and multiple brands from Unilever and Nestlé.
In 2010, artisanal producers held 15.5% of the total ice cream market in the U.A.E., while private label
held 5.9%.

Ice Cream Market Value in the U.A.E.

US$ Millions, Historic/Forecast

65.3 68.3
68.3
62.4 65.3
59.4
59.4 62.4
56.6
50.9 53.7
48.4

2008
2008 2009
2009 2010
2010 2011 2012
2012 2013
2013 2014
2014 2015
2015

Source: Datamonitor 2012

PAGE 3
MARKET TRENDS (CONTINUED)

Volume Sales of Ice Cream in the U.A.E.

Historic/Forecast
14 12.7
12 12.3
11.4 11.7
12 10.7 11
10.4
Millions of Litres

10

0
2008
2008 2009 2010 2011
2011 2012 2013
2013 2014
2014 2015
2015
Source: Datamonitor 2012

Ice
Ice cream
Cream Sales sales channel
in the U.A.E. in the
by Channel, 2010
U.A.E
Service
Stations
5%
Independent Specialist
retailers Retailers
13% 33%

Convenience Supermarkets
stores /
19% hypermarkets
30%

Source: Datamonitor 2012

PAGE 4
IMPULSE ICE CREAM

From 2008 to 2011, value sales of dairy-based and water-based impulse ice cream saw
similar growth, with averages of 6.9% and 6.7%, respectively. Both categories are expected
to see sales growth slow in the coming years, with dairy-based impulse ice cream growing an average of 6.2%
over the forecast period of 2012 to 2015, compared to 5.2% for the water-based products.

Impulse Ice Cream Sales in the U.A.E.

Historic/Forecast in $US millions

30 Dairy-based Ice Cream 27.4

25.9
Water-based Ice Cream 24.4
25 22.9
2 1.5
20.1
$US Millions

18.8
20 17.7

15
8.9 9.3 9.8
10 8 8.5
6.6 7.1 7.5

0
2008
2008 20 09
2009 2010 2011 2012
2012 2013 2014 2015
2015

Source: Datamonitor 2012.


Company Share by Value % of Impulse Ice Cream Market in 
Company Shares (% Value) in the U.A.E. Impulse Ice Cream Market 
2008-2010
the U.A.E 2008-201 



Private Label
Private Label
2010 United Kaipara Dairies
Company (PSC)
United Kaipara Dairies 
Company (PSC)
Unilever

2009 Unilever
Other
Artisanal Products
Other
IFFCO Group
2008
Artisanal producers

0% 10% 20% 30% 4 0% 50% IFFCO Group

% Market Share

Source: Datamonitor 2012

PAGE 5
ARTISANAL ICE CREAM

The artisanal ice cream market grew by a compound annual growth rate (CAGR) of 4.8%
from 2008 to 2011 and is expected to continue growing, with a forecast CAGR of 3.2% from
2012 to 2015. Volume-wise, artisanal ice cream sales are expected to grow at a CAGR of 2.5% from 2012 to
2015.

Data on the top companies producing artisanal products are unavailable, as the market is highly fragmented
and includes many small local producers. All impulse ice cream purchases in the U.A.E. are from
specialist retailers.

Artisanal Ice Cream Sales in the U.A.E.

Historic/Forecast in US$ Millions
12
9.5 9.8
10 8.8 9.1
8.1 8.5
7.5 7.8
US$ Millions

0
2008 2009
2008 2009 2010
2010 2011
2011 2012
2012 2013
2013 2014
2014 2015
2015

Source: Datamonitor 2012

TAKE-HOME ICE CREAM

Dairy-based, take-home ice cream is Take-Home Ice Cream Sales in the U.A.E.
a much larger category than the Historic/Fore cast in US$ Millions
water-based segment. Sales of the
former grew an average of 4.1% in 25
Dairy‐based
Dairy-based
value from 2008 to 2011, while Water-based
Water‐based
water-based recorded a 2.9% 19 19.6
20 1 7.7 18.4
average growth rate. Over the 17
forecast period of 2012 to 2015, 15.8 16.4
n 15.2
US$ Millions

dairy-based, take-home ice cream is io

lli 15
expected to slow to an average m
growth rate of 3.6%, while water-  S
U
based sales will decrease to 2.1%.  S 10
n
i
In terms of volume sales,
dairy-based, take-home ice cream is 5
expected to reach 4.7 million litres by 1.2 1.2 1.2 1.3 1.3 1.3 1 .4 1.4
2012. Volume sales of water-based 0
ice cream are forecast to reach
 2008      2009      2010      2011      2012     2013      2014      2015 
2008 2009 2010 2011 2012 2013 2014 2015
0.4 million litres by 2012.
Source: Datamonitor, 2012.

PAGE 6
TAKE-HOME ICE CREAM (CONTINUED)

The IFFCO Group dominates the U.A.E. take-home ice cream market with its London Dairy
and Igloo brands, similar to the impulse ice cream market. However, global companies hold a
larger share of the take-home market than the impulse ice cream market. Unilever’s main brand is Selecta,
while General Mills controls the Häagen-Dazs brand. The Baskin Robbins brand name is licensed to the
BRIP Holder company.

Supermarket/hypermarket sales controlled 51% of the market by sales value, in 2011. Specialist retailers held
16.2%, convenience stores held 15.6%, and independent retailers held 13% of the market for take-home ice
cream in the United Arab Emirates.

Company Shares (% Value) in the U.A.E. Take-Home Ice Cream Market, 2011

10%
2% 42%
1% IFFCO
IFFCO
3% Unilever
Unilever
4% BRIP Holder
BR IP Holder
General
GeneralMills Inc.Inc.
Mills,
5%
Nestlé
Nestle
United
UnitedKaipara
KaiparaDairies
DairiesCompany
Company
9%
Glace Quality
Glace IceIce
Quality Cream
creamand Sorbet
& Sorbet
Saudi
SaudiBrothers’ Commercial
Brothers' Company
Commercial Company
Private Label
Private Label
11%
Others
Others
13%

Source: Datamonitor, 2012.

FROZEN YOGURT

Sales of frozen yogurt are expected to grow at a CAGR of 3.8% in

value terms from 2012 to 2015; however, frozen yogurt will
continue to represent less than 1% of total ice-cream value sales in
the U.A.E.

Most frozen yogurt is purchased from supermarkets/hypermarkets,

which held almost 70% of the frozen yogurt market in 2011.
Convenience stores held 12.6% and specialist retailers held 10% of
the market in same year. Independent retailers and service
stations combined, held less than 10% of the market for frozen yogurt
sales. Source: Shutterstock

PAGE 7
NEW PRODUCT EXAMPLES

New to U.A.E. consumers is Biologische Eiscreme (organic

ice cream) marketed under the Ice Cream Factory brand. This ice cream
comes in the following varieties: Vanilla Mood, Chocolate Hazelnut Mood,
Strawberry Mood and Stracciatella Mood. It is said to be made with all natural
ingredients, and retails in 1000 ml and 150 ml tubs (except for Stracciatella
Mood). It is manufactured by Van Scheijndel.

New to consumers in Germany, France, Spain and the United Arab Emirates is
Bio Ziegenmilch Eiscreme (organic goat's-milk-based ice cream) marketed under the Ice
Cream Factory brand. This ice cream comes in vanilla and chocolate varieties. It is said
to be made with all natural ingredients and is suitable for consumers who are allergic to
cow’s milk protein. The product retails in 500 ml tubs, and is manufactured by Van
Scheijndel Ice Cream Factory BV.

Unipex Dairy Products Co., Ltd, has added 15 new flavors to its range of ice
cream products in Saudi Arabia and the United Arab Emirates under the 'London
Dairy' brand. The new flavours are: Cafe Latte, Caramel Crunch,
Cookies & Cream, Pralines & Cream, California Raisins, Tiramisu, Strawberry
Cheese Cake, Mango Magic, Strawberry, Double Chocolate, Vanilla, Chocolate
Lite, Vanilla Lite, Raspberry Sorbet and Mango Sorbet. Each flavor is presented
in a 150 ml tub.

New individually wrapped ice cream cones have been added to the
existing line of London Dairy Ice Cream available in Saudi Arabia and
the United Arab Emirates. This new product is available in three
flavours: Pralines & Cream, Strawberry, and Double Chocolate. Each
retails in a 140 ml pack, from Unipex Dairy Products Co. Ltd.

Source for all information and images on this page: Datamonitor, Product Launch Analytics 2012.

PAGE 8
The Government of Canada has prepared this report based on primary and
secondary sources of information. Although every effort has been made to
ensure that the information is accurate, Agriculture and Agri-Food Canada
assumes no liability for any actions taken based on the information
contained herein.

Consumer Trends:
Ice Cream in the United Arab Emirates
© Her Majesty the Queen in Right of Canada,
represented by the Minister of Agriculture and Agri-Food Canada (2012).
ISSN 1920-6615
AAFC No. 11793E

Photo Credits
All Photographs reproduced in this publication are used by permission of
the rights holders.
All images, unless otherwise noted, are copyright
Her Majesty the Queen in Right of Canada.

For additional copies of this publication or to request an alternate format,

please contact:
Agriculture and Agri-Food Canada
1341 Baseline Road, Tower 5, 4th floor
Ottawa, ON
Canada K1A 0C5
E-mail: infoservice@agr.gc.ca

Aussi disponible en français sous le titre :

Tendances de consommation:
Crèmes glacées aux Émirats arabes unis