Report by Frost & Sullivan reveals consumers in the GCC are now more health-conscious
By the end of 2020, the health and wellness F&B market in Saudi Arabia and the UAE is estimated to reach $14.56 billion at a compound annual growth rate (CAGR) of 10.9%, according to a recent analysis by Frost & Sullivan.
The industry outlook highlights changing consumer habits, where customers in the GCC are more connected and health-conscious, and where the two countries account for nearly 85% of the region's health & wellness market.
It also reveals the GCC health beverages segment is growing at a comparatively faster rate than the global market at 6.2%, with the snacks and savories segment expected to exhibit the highest health and wellness CAGR at 7.2%, closely followed by the readymade and processed goods segments.
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 have clear-cut strategies mapped out to respond to the growing demands of the consumer base.
“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 the market, vendors and new entrants should capitalise on the calorie-conscious and organic trends; focus on the reduction of salt and fat in snacks, cereals, and confectionaries; establish distinctive products and marketing strategies focused on the growing sub-segment; introduce baked goods as a healthier alternative to fried products; and understand consumer behavior and trigger points.
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 organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.