Gulf States Flag

INTERNATIONAL MARKET REPORT

10/31/2024

GULF STATES

Bahrain, Egypt, Jordan, Kuwait, Qatar, United Arab Emirates, Yemen

MARKET PULSE

CURRENT EXCHANGE RATE: 3.67
CHANGE FROM LAST MONTH: 0.00%
VOLUME TO DATE: 0 BOXES
CHANGE FROM LAST YEAR: -100%

(SOURCE: WSTFA)

Feedback from the Trade on Their Plans and Interest in the USA Pear Season:

Trade has shown repeated interest in the USA Pear season, and have begun asking about the crop and potential exports to the Gulf States region. A few importers are already trying to contact buyers in order to place orders ahead of time.

Expectations for Any Freight or Logistics Challenges:

After almost a year since the war in Gaza began, Houthi attacks continue to threaten Red Sea trade. Despite the low frequency and sporadic nature of the attacks, they have proven effective at increasing shipping costs and insurance. As of mid-September, average daily transits through the Suez Canal stood at 29, compared with about 80 last October. In mid-August, Dubai-owned ports and logistics company DP World reported a 59% drop in first-half profit.

Opportunities in Your Market for Specific Varieties, Sizes, and Grades:

There are good opportunities in the Gulf States market for USA Pears, which are well-regarded in the Gulf States for their high quality, excellent taste, and large size. Importers in the Gulf States are always looking for new varieties, even those at a higher price point which can be marketed as a premium product. New (to the Gulf States market) varieties from the Netherlands and South Africa performed well in 2023. According to feedback received during in-store promotions, Red Anjou pears were a favorite among consumers. Pears with a blush are a growing trend in the market.

Update on the Competition in the Market:

South Africa continues its dominance in the Gulf States pear market. Forelle and Vermont are common in all hypermarket chains. Some quantities of regional producers (Lebanon, Jordan, and Turkey) were seen in greater numbers this year. EU and South Africa are expected to continue to push for increased volumes to the market.

Political or Economic Issues Impacting Imports, Retail, or Consumer Behavior:

American goods are still perceived favorably in the Gulf States region. The effect of boycotts on consumer items such as pears from the USA has been negligible. Gulf States governments have reigned in spending in the past year, but Gulf States consumers kept their high spending habits in the second quarter of 2024. According to a recent study on MENA grocery market trends by McKinsey, high-income consumers still want to save (54%), but are increasingly confident with spending more on premium products (44%). Almost 40 percent of Generation Zers and 41 percent of millennials express an intention to spend more on quality products compared with 29 percent of Generation X consumers and 24 percent of baby boomers. 60% of high-income UAE consumers expressed a demand for healthy and organic produce.

Other Brief Comments:

Some trade expressed that the increase of South African pear exports to China might alleviate some of the pressure and high volume of South African pears in the UAE market. However, considering the UAE's nature as a premium market and the geographical proximity of South Africa to the UAE, this remains to be seen.

USA PEARS: RETAIL PRICING, SIZES, AND GRADES

PRICE RANGE (per lb)
SIZE RANGE
anjou
$0 $11.95 $11.95 $4.50
150 120 100 80 60
GRADES FOR ALL VARIETIES
  • US1: 80%
  • Fancy: 20%
  • 3rd Grade: %

COMPETITION: RETAIL PRICING AND SIZES

PRICE RANGE (per lb)
SIZE RANGE
COUNTRY
Forelle
$0 $10.00 $11.00 $4.50
150 120 100 80 60
South Africa
Vermont
$0 $9.75 $10.70 $4.50
150 120 100 80 60
South Africa
Nashi
$0 $8.95 $12.95 $4.50
150 120 100 80 60
China