Dubai, United Arab Emirates, –Frost & Sullivan’s recent analysis, The KSA and the UAE’s Health & Wellness Food & Beverage Industry Outlook, 2020, highlights changing consumer habits and regulatory agencies in the Gulf Cooperation Council (GCC), emphasizing a healthy lifestyle. By the end of 2020, the health & wellness F&B market in this region is estimated to reach $14.56 billion at a compound annual growth rate (CAGR) of 10.9%. The United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA), combined, account for nearly 85% of the GCC health & wellness market. Further, the GCC health beverages segment is growing at a comparatively faster rate than the global health & wellness F&B market at 6.2%. The snacks and savories segment is expected to exhibit the highest health and wellness CAGR at 7.2%, closely followed by the readymade and processed goods segments.
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While global giants such as Nestle Middle East, Doux, Global Foods, and Hunter Foods have adopted a wait-and-watch approach to see the potential of the market, regional players, including in the food services sector, have clear-cut strategies mapped out to respond to the growing demands of the consumer base, which is more connected and health-conscious.
“Proactive efforts by the GCC governments have formulated regulations to enhance awareness about healthier food that provides medical benefits because of the recent upsurge in incidences of lifestyle disorders in the region, such as cardiovascular, bone and joint disorders, and diabesity (the combination of diabetes and obesity),” said Satvik Jaitly, Chemicals, Materials and Nutrition Consultant at Frost & Sullivan. “We expect the next five years to be critical, with the H&W F&B market becoming more mainstream thanks to rising consumer awareness influenced by social media and connected consumers.”
To take advantage of this market, vendors and new entrants should:
- Capitalize on the calorie-conscious and organic trends to reformulate the current product matrix to prepare for consumers’ move away from processed foods and snacks.
- Focus on the reduction of salt and fat through use of R&D–based solutions in categories such as snacks, cereals, and confectionaries.
- Establish distinctive products and marketing strategies focused on the growing sub-segment of H&W F&B.
- Introduce the idea of baked goods as a healthier alternative to fried products for foods that fall into the “snacks” category.
- Understand consumer behavior and trigger points through a deep dive into current consumer preferences.
The KSA and the UAE’s Health & Wellness Food & Beverage Industry Outlook, 2020 is the latest addition to Frost & Sullivan’s Chemicals, Materials and Nutrition research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
*Source: AETOSWire