Market Definition
Organic food is produced without using synthetic chemicals or genetically modified components during its cultivation. These foods have high nutrient quality with zinc, iron, and antioxidants. Hence, these food items are more preferred by the customers. The growing awareness about the advantages of organic food & the increased use of pesticides & fertilizers in conventional food crops is helping customers shift toward organic food.
Market Insights
The Middle East & Africa Organic Packaged Food Market is projected to grow at a CAGR of around 5.75% during the forecast period, i.e., 2022-27. During 2017-21, the organic packaged food industry in the Middle East & Africa gained traction due to the rising concerns of the population regarding health problems. The inclination of the population to adopt a healthy routine is one of the major factors driving the demand for organic packaged food products in the region. Additionally, owing to the rising economic development in the countries like Saudi Arabia, the UAE, Qatar, South Africa, Turkey, etc., led to the growth in the number of professionals in the Middle East & Africa region. Consequently, the rising number of professionals with changing lifestyles increases their dependency on packaged food products.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) |
5.75% |
| Country Covered | Saudi Arabia, The UAE, Qatar, Oman, Bahrain, Kuwait, Egypt, Israel, Turkey, South Africa |
| Key Companies Profiled | Hain Celestial Group, Nature's Path Foods, Danone Organic Valley, SunOpta, Danya Foods Ltd, Natureland, Holle Baby Food GmbH, Rachel's Organic Co Ltd, General Mills Inc, Hipp, ORYA Organik Yasam, Pinar Süt Mamülleri San ve Tic AS, Others |
| Unit Denominations | USD Million/Billion |
Moreover, the rising health concerns encouraged consumers to adopt healthy eating habits & chemical-free foodstuffs, thereby developing the market of organic packaged food products in the region. Furthermore, governments in the Middle East & Africa have taken necessary initiatives to encourage organic farming within the country, which has assisted organic food manufacturer companies in launching new organic packaged food products without the use of pesticides, additives, and other chemical residues to implement food safety requirements while also improving population health.
These initiatives thus pushed consumers to incline toward organic food products, thereby propelling the growth of organic packaged food in the Middle East & Africa region. For instance:
Key Trend in the Market
The launch of new organic products ranging from meals to snacks & drinks provides the customers with various options to choose from as per their convenience & affordability. Hence, the variety of products in the market cater to the demand of the customers of different age groups, helping the companies expand their customer base. Therefore, the launch of new products in the Middle East & Africa Organic Packaged Food market would help the market players to enhance their sales.
Impact of Covid-19 on the Middle East & Africa Organic Packaged Food Market
The Middle East & Africa region imports organic food products from the European & Western countries as they do not have high production of organic products in their regions. Hence, during the COVID-19 pandemic, due to the disruption in the supply chain across the region, the availability of organic food in the market was limited, whereas the demand kept growing due to the increasing awareness & customer's preference for organic food products in the region. Hence, propelling the growth of the Middle East & Africa Organic Packaged Food market in the coming years.
Market Segmentation
Based on Category:
Here, Organic Baby Food captures a significant share in the Middle East & Africa region. The major factors impelling the growth of the segment are growing awareness among consumers towards organic baby food products, thereby limiting their dependency on food products that contain pesticides, preservatives, chemicals, etc., that are harmful to their infant's health. Furthermore, with the growing population of working women in Middle Eastern and African countries such as the UAE, Saudi Arabia, South Africa, and Israel, the demand for packaged organic baby food has increased significantly, which has largely contributed to the growth of organic baby food products.
Further, based on the Annual Economic Report of the UAE, in 2019, the percentage of women working in the private sector was about 44.3% which was recorded to be 41.6 % in 2017 as per the World Bank database. Thus, the growing need for organic baby food by women professionals to feed their babies led companies to insert new product portfolios in the baby food segment, thereby accelerating the market of organic packaged food in the MEA region. For instance:
Based on Sales Channel:
Among them, the Supermarket & Hypermarket segment has shown considerable growth in the Organic Packaged Food market during 2017-19. Further, with the advent of the coronavirus pandemic, consumers are more prone to adopt online platforms due to worldwide COVID-19 restrictions. However, following COVID-19, as the restrictions were gradually eased, consumers preferred to purchase organic packaged food products from retail outlets, i.e., hypermarkets & supermarkets, due to the availability of large-scale organic food products manufactured by various companies, as well as the ease of purchase in the limited period.
Furthermore, the construction of new hypermarkets & supermarkets in the region provides a wider scope for organic food companies to sell their products & capture a large customer base. In 2017, Lulu Group launched the biggest 140th hypermarket in Sharjah. Hence, these factors would further escalate the demand for organic packaged food through the retail platform of sales channel during the forecast period.
Regional Landscape
Geographically, the Middle East & Africa Organic Packaged Food Market expands across:
Of all the regions, Saudi Arabia held a significant share in the MENA Organic Food market, owing to the increasing adult population & growing awareness about the food quality that is leading to the acceptance of chemical & synthetic-free food among them. The country primarily imports organic food products from the European region as the country has low production.
Furthermore, in response to the growing demand for organic food in the country, the government has launched several initiatives to increase the domestic production of organic foods. Hence, these factors are leading to the growth of organic food in the market. For instance:
Recent Developments by Leading Companies
Market Dynamics:
Key Driver: Growing Consumer Awareness Regarding Health Issues to Boost the Market
The growing awareness of the population regarding the health benefits as well as changing lifestyles are some of the dynamics driving the demand for organic packaged food in the Middle East & African nations. The number of working professionals in countries such as the UAE, Saudi Arabia, Qatar, South Africa, Turkey, and others is rapidly increasing due to the region's large expatriate population. Therefore, the growing workforce in the region has led the population to take a proper healthy diet, thus inclining their attention towards organic packaged food products as they are easy to cook & healthy, thereby saving time for professionals.
In addition, governments of the Middle East & African countries have taken necessary measures to enhance the production of organic farming, which, in turn, has created potential opportunities for new players to launch new healthy organic products in the market of the MEA region. Furthermore, it is expected that these factors would raise the demand for organic packaged food products in the region during the foreseen years. For instance:
Possible Restraint: High Cost of Organic Food Products to Hamper the Market Growth
Organic packaged food is more expensive than conventional food because organic food is grown without the use of pesticides and fertilizers & requires more involvement & additional time to grow. Moreover, the supply of organic packaged food is limited as compared to the demand in the market, hence, accelerating the cost of the products. Therefore, these factors lead to increased costs for organic packaged food thus, creating a challenge for the market.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Middle East & Africa Organic Packaged Food Market is expecting around 5.75% CAGR during 2022-27.
A. The Organic Baby Food segment is anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.
A. Increasing health consciousness among the young population is the growth opportunity leading the market growth during the forecast period.
