UAE Sugar Market - Strategic Insights and Forecasts (2026-2031)

The UAE sugar market is expected to grow at a compound annual growth rate of 5.6% over the forecast period to reach a market size of USD 602.0 million in 2031 from USD 457.8 million in 2026.

There are two categories of sugars: naturally occurring sugars and added sugars. Simple sugars, often known as naturally occurring sugars, are present in foods like milk and fruits (lactose and fructose, respectively). Sugars or sweeteners that are added to food during processing or preparation are referred to as added sugars. UAE consumers consume more sugar than is healthy in the current environment. The UAE is the greatest sugar consumer in the world, with each customer using almost 214 kg of sugar per year.

Growth Drivers:

Along with the economy, rising income, and growing young and immigrant populations, the snacks and confectionery food segment, particularly chocolates, sweet biscuits, and sugar confectionery, continues to rise. Over the past ten years, the demand for packaged foods and snacks that are ready to eat has increased in the region due to factors like busy lives, an increase in the number of women working, and increased industrialization. Dual-income professional households have increased demand for snacks as a meal replacement, a reward after a long day at work, and a snack in between meals.

Market Restraints:

• Tax on sweetened beverages

It's been claimed that having too much of anything is bad. That includes sugar, which is currently regarded as an addiction and one of the main drugs that plagues modern man and causes physical waste. Everywhere, including in the UAE, governments implement policy through taxation. The UAE implemented a sugar tax in October 2017 that raised the price of carbonated soft drinks like Coca-Cola and Pepsi by 50%. As a powerful disincentive to reduce escalating sugar consumption, the UAE Cabinet announced an extended list of taxable products, including sugary drinks, in August 2020.

• Effect of Inflation

According to data from the National Bureau of Statistics of the United Arab Emirates, annual inflation rose to 2.58 percent in November 2021 from 1.86 percent the month before. Between May 2020 and February of this year, the FAO's Food Price Index jumped by 55.2%. This increase was mostly due to a 159.4% increase in the price of cooking oils, which was followed by major price increases for staples including sugar, dairy, and wheat.

The rising costs of ingredients and raw materials have presented significant issues for the food and beverage (F&B) industry. Due to this, it has become challenging for F&B businesses to maintain a competitive advantage and achieve sustainable profitability. As a result, businesses that are unable to handle the increased costs are forced to increase product prices, further burdening customers.

Key Developments:

• October 2026: Almarai participated as a Gold Partner in Future Food Forum 2026 in Dubai, supporting UAE food-system development, supply-chain resilience, innovation, and collaboration across the regional food industry.

• March 2026: Dubai-based Al Khaleej Sugar confirmed uninterrupted refinery operations and export/import continuity despite regional disruptions, leveraging strategic reserves and alternative ports to maintain global supply stability.

• January 2026: Dalmia Bharat Sugar & Industries received Abu Dhabi Global Market approval for its UAE-based subsidiary Eagle Agrotech Holdings, advancing regional sugar production investments and expanding UAE-linked global supply operations.

• January 2026: UAE implemented the new sugar-based volumetric tax system on beverages, directly impacting domestic sugar demand, pricing structures, and encouraging manufacturers to reformulate products with reduced sugar content.

• October 2025: UAE government finalized a tiered sugar-content excise tax framework on sweetened beverages, replacing the flat-rate system to reduce sugar consumption and reshape demand toward low- and zero-sugar products.

UAE Sugar Market Scope: