Market Trends of Saudi Arabia Fruit Concentrate Industry
This section covers the major market trends shaping the Saudi Arabia Fruit Concentrate Market according to our research experts:
Resurgence for Natural Sweetener, Colorant, and Flavor Additives Demand
Saudi Arabia has benefited from excise taxes imposed on carbonated and energy drinks in 2017. Thus, more functional food and drinks are popping up, while consumer above the age of 45 years prefer juices with no added sugar, 100% juice content, and with vitamins and minerals. On other hand, consumers over 65 years have increased by 88.59% since 2000, paying way for fruit concentrate as a major ingredient in their manufacturing process. Additionally, regulatory changes in the declaration of synthetic colorants are shaking the food industry, as of 1 January 2017, the government announced that all foods and beverages containing the colorants Allura Red AC (INS 129), Sunset Yellow (INS 110), Azorubine/Carmosine (INS 122), or Tartrazine (INS 102) would contain on-pack labeling/warning statement. Thus, to impart competitiveness, manufacturers were replacing synthetic dyes with natural solutions, such as coloring foods, and it includes concentrates made exclusively from fruits and vegetables.
Tropical Fruits Dominates the Market Share
Among fruit concentrates, tropical fruits top the list, with a higher share mostly relatable to consumer inclination and growing preference for tropical flavors. Thus, fruits such as mangoes are high in demand, and the country currently has a capacity of over 106 million liter of mango juice production. The year-round demand for tropical fruits across segments, such as beverages and frozen desserts, is rarely met due to the seasonal limit in global production, as well as a change in demand-supply gap. In such cases, tropical fruit concentrates manage to bridge the gap, while ensuring that the vitamins and minerals added to the packaged products remain intact. Fruit flavored cakes are becoming popular among Saudi nationals, mostly among the children. Additionally, the inclusion of topical concentrates to bakery products has gained momentum over the past years. Similarly, concentrated form of tropical fruits in beverages may require better brands with functional and healthful positioning, which may enable more sales through supermarkets and c-chain stores in the Kingdom.
