Market Trends of Middle-East and Africa Ready-to-eat Food Industry
This section covers the major market trends shaping the MEA Ready-to-eat Food Market according to our research experts:
Inclination Towards Healthier and Organic Ready-to-Eat Products
Although the demand for convenience food on-the-go is increasing, several groups of consumers are more conscious of their health. They are inclined toward healthy snack products, aiding the growth of healthy ready-to-eat food products. The growing prevalence of lifestyle disorders such as atherosclerosis, stroke, diabetes, and obesity has increased the inclination toward healthy ready-to-eat products such as nuts, fruit snacks, snack bars, and other confectionery snack products. Hence, the players in the market have been introducing healthy food products to cater to the demand for healthy convenience foods. For example, in February 2022, the United Arab Emirates-based food company Freakin' Healthy announced that it would be adding a new plant-based cheese spread to its line of healthier foods.
Consumers have had a significant demand for natural and organic food products in recent years. Consumers are becoming more aware of the adverse health effects associated with the consumption of various synthetic food ingredients, such as colorants, flavors, texturizers, fat replacers, and sweeteners, owing to multiple research projects and bans introduced by governments. These health issues have led to a consumer shift toward natural additives. According to the Dubai Chamber of Commerce and Industry, the value of free-from food sales in the United Arab Emirates will amount to over USD 33 million in 2020. The CAGR was projected to reach 10% between 2020 and 2025.
Rising Demand for Baked Goods in the Region
The market for ready-to-eat bakery products in the Middle East and Africa is being driven by people's growing interest in wheat products and their desire for easy-to-eat baked goods.The manufacturers are also providing customers with clean labels for better transparency. This provides the customers with a clear picture of what is used in making the products they consume. In addition, products such as preservative-free, gluten-free, cholesterol-free, GMO-free, and low sodium products are being frequently launched by the leading baked goods players that are suitable for diabetics and are rich in fiber, protein, and calcium to meet the consumers' demand, especially those who are health-conscious. According to UN Comtrade data, the imports of bakery products, such as bread, cakes, and other products, into Saudi Arabia increased from USD 668.7 million in 2020 to USD 727.75 million in 2021.
Furthermore, the inclusion of pulses, seeds, and beans, such as broad beans, fava beans, and kidney beans, in cookies provides consumers with the necessary proteins. Domestic players dominate the market, with many small and medium-sized companies competing for market share. For instance, Al Meera, one of Qatar's largest hypermarket and supermarket retail companies, has its bakery product manufacturing plant at Al Oumara Bakeries Company W.L.L. Owing to the growth of the demand for baked goods in the market, new players have been entering the market to take advantage of the opportunities offered by the region's market. For example, in March 2022, the online channel sales company of Yldz Holding expanded its business by entering the United Arab Emirates with the products of the leading Turkish confectionary maker's biscuit brand Ülker.
