Demand for Nutraceuticals on the Rise in Middle East and North Africa (MENA)

Awareness plays a key role in the purchasing decisions of consumers. The digitisation of information has meant that a reservoir of information is available to the consumers. The easy dissemination of information has also meant that awareness about health issues has also increased.

Owing to the rising awareness among consumers, demand for natural, organic, and clean label products is on the rise. Consumers are also demanding more functional foods and dietary supplements in an effort to compensate for the lack of nutrients in their daily diet.

The demand for nutraceuticals is also being witnessed in the emerging nations of North Africa. Many North African countries have lagged in terms of economic prosperity and standard of living, however, the situation has improved in the recent past, owing to political stability in the region.

Middle East, home to some of the world’s largest oil-exporting countries, is also witnessing a surge in demand for nutraceuticals. The per capita income in many Middle East countries is comparable to those of western countries, however, lack of awareness has created entry barriers for various products. Today, with rising smartphone ownership, combined with proliferation of high-speed internet, demand for health foods is witnessing an upsurge.

Children in the age group 0-10 and the elderly above 65 years of age are the target audience for nutraceutical companies. Parents, concerned about the nutrients in the daily intake of their children, are relying on nutraceuticals as a supplement.

The healthy ingredients in nutraceuticals has also appealed to the elderly population in Middle East and North Africa. Deteriorating oral health and prevalence of diabetes and hypertension among the elderly prevents them from eating certain nutritious foods. This is where nutraceuticals prove to be beneficial, as they can be consumed in liquid as well as powdered form.

Large pharmaceutical companies are looking to tap into the lucrative nutraceutical market in MENA, and have launched several products in this market. Nutraceuticals can be broadly classified into dietary supplements, functional foods, and functional beverages. Among these, dietary supplements is the most lucrative segment for nutraceutical companies. This category accounted for the largest share in revenue in 2014.

Although all of MENA is witnessing demand for nutraceuticals, the Gulf Cooperation Council (GCC) is of particularly significant for nutraceutical companies. Saudi Arabia, UAE, Oman, Kuwait, Bahrain, and Qatar are some of the richest nations in the world, with high per capita income. Furthermore, these countries have high expat population, and the demand for nutraceuticals is high among this segment. It is expected that the growth of the nutraceuticals market will be higher in GCC countries vis-à-vis other countries in Middle East and North Africa. Nutraceuticals market in GCC was worth US$ 3.53 Bn in 2014, and it is expected that by 2020, the market will be worth US$ 5.32 Bn.

Weight management and digestive health nutraceuticals are expected to witness robust demand in the MENA nutraceuticals market. However, one key parameter that leading brands should focus on in the emerging markets is satisfying the local taste preferences. Those companies that bring in the local flavour in their offerings will have a greater chance of appealing to consumers in Middle East and Africa.

Overall, the demand for nutraceuticals in Middle East and North Africa is anticipated to increase in the next five years. Future Market Insights estimates the MENA nutraceuticals market to expand at a CAGR of 7.1% during the forecast period. Key stakeholders in the MENA nutraceuticals market should look at consolidating their position to tap into this lucrative market.

Related market research report for Nutraceuticals Market: Middle East and North Africa (MENA) Industry Analysis and Opportunity Assessment, 2015 – 2020