By 2027, Kuwait Households Will Spend Kd 3.2 Billion On Food

According to Fitch Solutions, meat, fish, and dairy products will dominate household food spending in Kuwait by 2027, and households will spend about 18% of their budgets on food, down from 18.6% in 2007. The daily quoting the agency pointed out that the high levels of income among families Kuwaiti food will support increased spending in other categories, however, spending on food will be supported by demand for imported food with higher prices, given the relative weakness of Kuwaiti domestic food production. The agency said in its report that these factors will lead to the growth of household spending in Kuwait on food by 4.6% annually between 2008 and 2027, which exceeds the average annual inflation in the country of 3% recently.

By 2027, Fitch anticipates household spending on food in Kuwait will increase from 1.5 billion dinars in 2008 to 3.2 billion dinars, noting that when total food spending is divided, an average Kuwaiti family spends about 57% of its food budget on three categories, which include meat and poultry (32.6% of total food expenditure), fish (13.5% of total food expenditure), and dairy products (about 11% of total food expenditure).).

Other basic items, according to the agency, will constitute the other 43% of household spending in Kuwait on food, and fresh and preserved fruits and vegetables will constitute 9.6% of household food expenditure, while bread, rice, and cereals are expected to represent 9.4%. Fitch also said the household spending in Kuwait on meat and poultry will grow at an annual rate of 5.2% between 2007 and 2027, to rise from 451 million dinars in 2007 to one billion dinars by 2027, pointing out that supporting growth in spending on meat and poultry will be achieved through relatively high levels of income in the country. .

The annual average growth rate of fish in Kuwait between 2012 and 2027 is estimated to be 6.2%, according to Fitch Solutions, while household spending on fish is expected to increase by 13.5% by 2027, from 12% in 2007 to 13.5%. By 2027, total spending on fish and seafood is expected to reach 427.3 million dinars compared with 182 million dinars in 2012.

The agency went on to say, that despite the coastal geographical location of Kuwait, which is supposed to support the fishing sector, the local production, which represents 30% of the market’s supply, is not sufficient to meet the demand and added that support for food spending in Kuwait will increase through the increasing numbers of foreigners working in the country saying the number of the workforce in Kuwait increased by 63 thousand people, bringing the total workforce in the country to 2.9 million people.

According to the agency, sugar and its products will be Kuwait's fastest growing food category until 2027, where consumers will spend 6.5% more on them, increasing their spending on them from 44.3 million dinars in 2012 to 113.2 million dinars by 2027. In Kuwait, Fitch explained that the future growth of household spending is in danger due to fluctuations in the price of imported sugar. Noting that the price of a kilo of sugar imported to Kuwait amounted to 0.8 dollars, and reached 1.5 dollars in 2021, after rising to 2.5 dollars in 2015, and declining again in 2018 to 0.9 dollars. The agency said that labor shortages and environmental pollution pose risks to the fish sector in Kuwait, leading to pressure on fish and seafood prices. Poor production will increase the demand for imported fish. The Turkish, Iranian, Indian, and Pakistani markets are Kuwait's largest sources of fresh fish.

 

Get The Latest and important news on our Telegram Channel click here to join

Comments Post Comment

Leave a Comment

Submit