oriented beverages is witnessing the biggest growth potential in the Arab market influenced greatly by rising awareness on health issues across the region. One of the key indicators of a shift in consumer preference has been the increase in incidence of consumption of plain milk, which doubled from 16 percent in 2003 to 33 percent in 2005; and flavored milk, which increased to 10 percent in 2005 from just three percent in 2003. Moreover, studies have shown that milk consumption among children has registered the biggest increase at 56 percent, while adult consumption went up 24 percent in 2005. “The last couple of years have shown a gradual transition in beverage consumption habits of consumers in the Gulf market. Research shows that more and more consumers are taking into account the health effects of the beverages that they buy. This is understandable, considering the intensified campaign by both the public and private sectors to promote a healthy lifestyle,” said Sharaf Dabbagh, president, Ta'aheel, the region's premier events management company and consultant for the beverage industry. “The Arab World's beverage industry offers huge growth potential for both local and international players,” he said on Wednesday. “Accordingly, Ta'aheel has participated in various initiatives such as the Arab Beverage Forum and the Arab Beverage Association designed to help consolidate the region's booming beverage industry. We believe that it is important to create a platform that promotes quality, innovation and dynamism to ensure high consumer satisfaction and to address new market requirements,” he added, saying that “the forum and the ABA have been established primarily to serve this purpose.” Health-related issues are again expected to be among the critical topics in the upcoming forum, particularly in view of rising incidence of various diseases. In the UAE for instance, it has been reported that around 30 percent of children have been diagnosed with diabetes, prompting many parents to be more selective on the beverages they buy for their children. The current focus on health benefits has also helped increase the demand for fruit juices, which have achieved an annual growth rate of 10-12 percent. The Arab Beverage Association (ABA) is an alliance comprising top-level executives from the beverage industry in the Arab World that promotes advanced innovation, packaging, flavoring, retail strategies, trends, new products and technology, market and consumer studies. The association also offers specialized studies and consultancies to the beverage industry. The second four-day conference starting on June 15 also served as a first-of-its-kind high-level networking platform among the MENA region's industry leaders along with renowned international and regional beverage industry executives and consultants. Drawing strength from the success of the 2007 edition, Ta'aheel is organizing the 2nd Arab Beverages Forum on June 15, 2008 is aimed at discussing the latest market trends, strategies and best practices, and a range of critical issues that affect suppliers, retailers, creative marketers, managers and consumers in the beverage industry. The forum will be held concurrently with both the first Bottled Water Forum and the first Flavors and Food Additives Exhibition at the Dubai International Convention and Exhibition Center. __