Middle Eastern nutraceutical market to break $9bn in 2015

By Eliot Beer

- Last updated on GMT

Middle Eastern nutraceutical market to break $9bn in 2015

Related tags Nutrition

The Middle East and North Africa (MENA) nutraceuticals market will be worth US$9.1bn this year, with growth set to accelerate up to 2020, according to a new report from Future Market Insights.

Growth from 2011 until now averaged 6% a year, taking the market from US$8bn in 2011. But in the next few years the market should see growth of around 7.1%, with FMI forecasting its total value at US$12.8bn by 2020.

Poor health drives growth

Growth of this market is primarily attributed to widespread obesity and diabetes among the consumers in the region. In addition, food products enriched with omega-3 are gaining visibility among consumers, thus the demand for such products is expected to grow at a healthy rate in the next five to six years​,” said FMI analyst Rahul Pandita.

He added the MENA region would see more growth than other more established markets such as Europe, and would also see a different product focus: “In MENA the consumers are inclined towards general wellbeing supplements to meet nutritional deficiencies prevalent in the population​.”

FMI’s research shows the GCC makes up the largest share of the regional market, a position it is expected to not just hold, but enhance over the next few years, with the firm saying other markets in the region will see their percentage market share slip. Pandita suggests this is largely because of high diabetes rates in the GCC, which will drive the consumption of nutraceutical products.

Beverages pumped, supplements flat

In terms of different product segments, functional beverages is expected to register the highest CAGR of around 8% in the next five to six years. However other product segments such as dietary supplements and functional food products are collectively expected to show stagnant growth in the nutraceutical market across the region​,” said Pandita.

Moreover, vitamins and minerals supplements, the sub segment of dietary supplements, is expected to account for the major market share during the forecast period. Consumer preference for cheaper alternatives to traditional medical care such as visiting doctors or prescription medication is fuelling the market for vitamin and mineral supplements​,” he added.

But while the outlook for the regional nutraceutical market is largely positive, a number of potential factors could limit its growth in the coming years. According to Pandita, the largest threats to the market include an absence of well-defined regulations, a poor distribution and procurement network, and a fragmented buyer and supplier base.

However providing fortified dairy and cereal-based convenience food through school canteens could create an opportunity for players entering into the market. Also, governments in MENA are likely to allocate contracts to health food providers as strict laws are in place regarding food sold in school canteens​,” he added.

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