Retail Sector

Euromonitor has indicated that the market size of the packaged food retail business in The Bahamas was US$427.7 million in 2020, an increase of 15.5% from 2016, or US$57.3 million.  They also forecast growth of 15.6% to 2025, or another US$67.5 million during the period for a total of US$499.6 million. 

High growth categories in the forecast include:

• Cheese
• Baby Food
• Pet Food
• Processed Meat & Seafood
• Other Dairy Products
• Savory Snacks
• Sauces Dressings & Condiments
• Ready Meals
  

Post reports that the majority of supermarkets in The Bahamas are located in Nassau, on the island of New Providence, which is home to roughly 80% of the country’s population. Supermarkets are also located in Freeport on Grand Bahama Island.  Deli counters are present in most supermarkets, and a few supermarkets have bakeries and seafood departments.  Although large-chain supermarkets are located in the populated areas, smaller independent grocers maintain a strong presence in the market.  While these retail outlets carry a more limited inventory than the larger supermarkets, they are conveniently located throughout the main islands of The Bahamas and typically offer products at lower prices and a wide selection of ethnic condiments and spices.

Wholesale club stores in Nassau, Freeport, and Abaco are usually located in major shopping centers.  These outlets carry a full line of food products in club and institutional-sized packs, in addition to apparel, appliances, and home furnishings.  Gas marts obtain practically all of their products from local importers/distributors.  Seldom will convenience stores buy direct from overseas suppliers, as their limited product mix is usually readily available from local distributors.  The best method of targeting gas marts is through local distributors.

The Bahamas has a wide variety of products available. However, importers and consumers are always interested in new food and beverage alternatives.  Although not present in large quantities, the health food trend has recently been on the rise in the Bahamian food market.  Some of the more affluent areas of The Bahamas, like Cable Beach, on New Providence Island, have witnessed a small surge in health and gourmet food stores openings. Supermarkets have widened their offerings of food and beverages for the health-conscious consumer and tourist.

Best Product Prospects:

Post reports that market opportunities exist for practically all high/value consumer-oriented foods and beverages and seafood products in The Bahamas.  In Pre-Covid 2019, the following product categories had record export levels: syrups and sweeteners, processed vegetables and pulses, chocolate and confectionery, dog and cat food, baby food, snack foods, condiments and sauces, beer and wine and distilled spirits and other alcoholic beverages.

Food Service Sector

Post reports that unfortunately, the COVID-19 pandemic has had a huge impact on the Caribbean, especially on the region’s hotel, restaurant and institutional (HRI) food service sector. Bahamas did not escape the wrath of the pandemic.  March 2020 saw lockdowns implemented throughout the region and an abrupt halt to tourist arrivals, bringing practically the entire HRI sector to a standstill.  As a result, many people in the sector lost their jobs or were furloughed, especially those employed at hotels and resorts.

Beginning in May 2020, markets throughout the Caribbean gradually began reopening. However, reopening has been uneven throughout the region, as governments have based their reopening plans on their individual situation in relation to the pandemic.  Just how severe the economic decline in 2020 and how robust the upswing in 2021 remains largely dependent on the recovery of the tourism sector, which in turn hinges largely on tourist confidence in travel and mitigation measures.

At last report which is Pre-Covid and therefore temporarily affected, Post advised that with a well-developed tourism infrastructure, proximity to the U.S. the Bahamas is the perfect Caribbean playground for U.S. tourists.  Nearly 1.5 million stop-over tourists (with nearly 80% coming from the U.S.) and over 4.5 million cruise passengers visit The Bahamas annually.  For U.S. food service suppliers, this translates into excellent opportunities in the food service sector, especially since The Bahamas has very little domestic food production of its own.  

The larger hotels and resorts purchase roughly 40% of their food and beverage needs through local importers, while 60% is purchased directly from U.S. suppliers.  Some hotels have even positioned offices in south Florida to facilitate shipment to the seaports of the Bahamas.  Moreover, the chained food service establishments located in the Bahamas typically import directly from U.S. buying offices.  Most restaurants turn to local importers, which also serve as wholesalers/distributors, to source their imported food and beverage supply, while the majority of the seafood, bottled beverages, and seasonal fruits and vegetables tend to be bought directly from vendors on the island.  

The competition between the U.S. and other nations varies between product categories.  It is also worth noting that many products from other countries are transshipped through the U.S., meaning the market share of other countries may be understated.  The close proximity of the U.S. to The Bahamas allows for quicker and less expensive means of transport of U.S., as well as other foreign products.  Nevertheless, it is assumed that the U.S. dominates in all major food categories.