Exorbitant Healthcare Costs compelling GCC Consumers to adopt Healthy Diets, Spurring the Functional Foods Market across the region - Future Market Insights
Tuesday, June 30, 2020 10:30 AM
Initially only popular within the developed world, the functional foods fad is acquiring momentum across the entire world. Rising disposable incomes combined with increased health consciousness have pushed GCC consumers towards adopting more sustainable and life-prolonging foods.
DUBAI, UAE / ACCESSWIRE / June 30, 2020 / The GCC functional foods market surpassed a valuation of ~US$ 5 Bn in 2014, and expanded healthily across the historical period 2015-2020. Rising consumer awareness regarding health and fitness benefits has ushered in an era of scientific food consumption. This has translated into rising demand for functional foods and dietary supplements, expected to continue in the future.
When compared to each other, the dietary supplements market has reached a maturity stage, implying that further growth would result in limited value addition. Therefore, the potential for functional foods seems promising in the long-run. Further traction is being provided by COVID-19 as consumers are investing in foods which helps them boost immunity. Prominent brands are constantly launching new products, keeping the market afloat.
"Prominent brands are leveraging hypermarkets and A-class stores to expand their outreach to potential customers across the GCC countries. Additionally, online retailing is proving to be an equally effective method of marketing functional food products, especially in the wake of the current situation," concludes an FMI analyst.
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GCC Functional Foods Market- Key Takeaways
- The GCC functional foods market expanded at a robust CAGR of 10.9% during the historical period (2015-2020). This trend shall continue in the future.
- Cereals, flakes and confectionaries shall remain the most frequently consumed functional foods across the GCC region. The segment account for over 2/5th of the total market share in 2014.
- The consumer co-operatives and grocery stores segment diminished in popularity in the wake of growing importance of hypermarkets due to their greater outreach.
- Functional-dairy products were the second-most dominant, expanding at a CAGR of ~13% across the historical period. The most dominant dairy products include probiotic yogurt and milk.
- Kuwait and Qatar shall remain the most lucrative markets for functional food products when compared to other GCC countries. However, Saudi Arabia recorded the highest sales revenue in the historical period.
GCC Functional Foods Market- Prominent Drivers
- Rising prevalence of chronic diseases is encouraging consumers across the region to adopt healthier lifestyles, thereby augmenting functional foods consumption.
- Consumers are increasingly leveraging the information technology platform to purchase products. This has encouraged GCC functional food providers to introduce online shopping, broadening their customer base.
GCC Functional Foods Market- Key Constraints
- Strict government regulations regarding product approvals result in delays in new launches, resulting in loss of revenue for market players. In addition, the approval process is time-consuming and quite expensive.
- High prices of functional foods can render them unaffordable to lower and middle-income families in the GCC region, thus restraining market penetration.
Anticipated Impact of the COVID-19 Outbreak
The coronavirus pandemic has ushered in an unprecedented era of uncertainty. With no possible cure or eradication technique in sight across the near-term forecast, countries are resorting to strict social distancing measures. Additionally, individuals have become highly conscious about their health, religiously observing basic hygienic measures and shifting towards healthier diets. Against this background, the consumption of functional foods and dietary supplements across the GCC countries has gathered momentum in the first two quarters of 2020. Most of these sales occurred on online shopping platforms, given the closure of groceries, departmental stores and supermarkets to enforce social distancing.
As leading brands continue to produce more goods, consumers' tastes are top priorities for them. While ensuring good health and immunity is important, customers also crave for different flavors in order to satiate their taste buds. Therefore, leading brands are experimenting with different flavors in order to retain customer base, particularly in the wake of the pandemic.
Explore the GCC functional foods market report with 29 illustrative figures, 2 data tables and the table of contents. You can also find a detailed market segmentation on https://www.futuremarketinsights.com/askus/rep-gb-sa-28
Some prominent players profiled for the GCC functional foods market are: Danone, AL Rawaby Dairy, Anchor, Kraft Foods, Nestle, Oman Flour Mills Company, Almarai, Al Jazira Poultry Farm LLC, ZAD Industries & Trading Co., Alyasra Foods and Savola Foods. Launching different flavored functional foods and adoption of aggressive marketing campaigns to spread awareness about these foods is opening up new avenues for growth.
More Insights on the GCC Functional Foods Market
FMI's in-depth analysis of the GCC functional foods market provides an unbiased analysis on the prominent growth dynamics such as the drivers, restraints and opportunities for the period 2015-2020. The market incorporates a detailed segmental analysis based on product type, distribution channel and region. By product type, the GCC functional foods market is segmented into functional dairy products, cereals, flakes & confectionaries, iodized salt, fortified eggs, fish & meat and oil & margarine. By distribution channel, the market is divided into hypermarkets/A-class stores, self-service & B-class chains, consumer co-operatives & groceries and others. Regionally, the market is divided into Saudi Arabia, UAE, Oman, Kuwait, Qatar and Bahrain.
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