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Friday, June 25, 2021

Report: Qatar’s grocery bill climbs to US$11 billion in 2014

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Mangos at Wholesale Market
Mangos at Wholesale Market

More meat, fruit and organic foods are landing in shopping carts across Qatar as residents develop a greater appetite for pricey and healthy fare from supermarkets, a new study has found.

Financial advisory firm Alpen Capital recently released a report on the GCC food industry that found Qatar residents spent US$11 billion (QR40.4 billion) on food in 2014, up 13.1 percent over the previous year.

An oversized shopping cart, since removed, was parked at the Hyatt Plaza.
An oversized shopping cart, since removed, was parked at the Hyatt Plaza.

The country consumed some 1.4 million metric tonnes of food in 2012 (the most recent year for which such statistics are available), or the equivalent of 7,600kg per resident. That’s up from one million metric tonnes – the equivalent weight of some 1.84 million cows – in 2006 and is expected to climb to 2.2 million metric tonnes by 2019, the fastest growth rate in the GCC.

According to the report, the nation’s rapidly rising population and growing number of tourists are two major reasons why demand for food in Qatar keeps increasing.

And at the same time, the country’s young, wealthy, urban – and increasingly obese – population also appear to be altering their shopping and eating habits.

This means residents are buying more packaged food from supermarket chains, the report says.

It also means that consumers have more money to spend on pricier food items such as meat and fruit, respective consumption of which grew at 19.6 percent and 9.1 percent annually between 2006-12, Alpen Capital said.

On the other hand, the increasing prevalence of obesity and related ailments such as diabetes and cardiovascular disease in Qatar and across the GCC also means more consumers are looking to improve their diet, the report’s authors added.

“High health awareness and a developing taste for a westernized diet, introduced by the increasing expatriate population, are bringing about a change in the region’s dietary habits, creating demand for organic and international foods,” Rohit Walia, Alpen Capital’s executive chairman, said in the report.

Stocking up

Qatar’s severe water shortage and lack of farmable land means that the country’s rising demand for food must be met primarily through imports.

This leaves the country’s consumers vulnerable to sharp swings in global food prices and supply disruptions.

Alpen Capital said Qatar currently faces a supply shortage of poultry, something shoppers most recently saw first-hand earlier this year when fresh chicken all but disappeared from grocery store shelves.

Photo for illustrative purposes only.
Photo for illustrative purposes only.

In a bid to boost its domestic supply of poultry and eggs, Qatar had planned to construct a new 5.7-square-kilometer mega-farm, but subsequently put its plans to publicly finance the project on hold earlier this year.

However, last month, government officials indicated that private investors could still bid on the license to operate the facility.

In the meantime, the country has looked to source new supplies of poultry from Portugal and, more recently, Russia.

While Qatar is looking to boost its domestic food production, the high financial and environmental cost of desalinating water can make growing crops and raising livestock an expensive proposition.

As an alternative, officials in Qatar and other GCC countries are also making investments and buying up farmland abroad as a way of boosting their food security.

Al Mazrouah Yard farmers' market
Al Mazrouah Yard farmer’s market

But there’s still interest in increasing the supply of food grown – or caught – close to home. Various fish farms and aquaculture research projects have been proposed in recent years to protect Qatar’s dwindling fish stocks.

Meanwhile, Qatar has expanded the number of seasonal farmer’s markets selling locally grown produce. And Alpen Capital says that across the region, agricultural experts are experimenting with hydroponic growing techniques that produce fresh herbs and vegetables that use a fraction of the water as traditional farming methods.

Thoughts?

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MIMH
MIMH
6 years ago

I miss the giant shopping cart. Does Qatar not respect its cultural heritage. Heathens!

The Reporter
The Reporter
6 years ago

If there’s one thing about Qatar it’s that the range of fresh produce in the supermarkets is absolutely fantastic, and if obesity levels are rising then it’s a shame that the residents (do they mean Qatari?) don’t take advantage of the opportunity.

Michael L
Michael L
6 years ago
Reply to  The Reporter

Don’t know where you are from but neither the range and certainly not the quality matches the UK, the UAE or indeed many countries in the Far East

Grantley
Grantley
6 years ago
Reply to  Michael L

I agree. I buy from a range of supermarkets and the quality is very poor for the price in every single one. However, in Bahrain the prices are similar to Qatar but the quality matches that of the UK.

Michael L
Michael L
6 years ago
Reply to  Grantley

I suspect the quality issue is to do that little food is imported directly to Qatar, it is all ‘second hand’ and has been standing around in Saudi and Dubai as Qatar does not have sufficient storage/warehousing facilities. Pretty obvious point for improvement and a dead easy one to accomplish surely?

Simon
Simon
6 years ago
Reply to  Michael L

Obvious solution – yes.

Dead easy to improve – yes.

(And money no object – yes, within reason).

So the authorities will obviously take early action to make things better for everyone.

Oh, hang on, this is Big Q – so we won’t be holding our breath!

desertCard
desertCard
6 years ago
Reply to  The Reporter

Even the QR 30/K tomatoes are not that good here. Picked too early and the QR 5 from Jordan look like the farmer threw them at something before boxing them.

Dominic James
Dominic James
6 years ago

Can someone please explain to me more about this new driving laws :No talking while driving and right over taking

Chipper fluffypants
Chipper fluffypants
6 years ago

Our grocery bill is our biggest monthly expense. It is 4 times that of our grocery bill back home. But, I do admit we buy a lot of the packaged brands from the U.S. But, recently, I spent 150qr on fresh berries. (Blueberries, strawberries, raspberries and blackberries.) That’s crazy! but I did it as they are so good for growing kids’ brains.

desertCard
desertCard
6 years ago

Same here. Crazy what I spend on groceries when I go to pick up a “few things”. I can eat for week or two back home with the “few things” amount.

Simon
Simon
6 years ago

Better give Megamart a miss then!

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