The GCC functional food market is projected to expand from USD 18.2 billion in 2025 to USD 51.7 billion by 2035, registering a robust compound annual growth rate (CAGR) of 10.9%. This significant growth is driven by increasing health awareness, government-led nutrition initiatives, and a regional shift toward preventive healthcare.
Functional foods-such as fortified dairy products, probiotic yogurts, omega-3 enriched beverages, and plant-based protein snacks-are gaining popularity among consumers in Gulf Cooperation Council (GCC) countries who are increasingly mindful of diet-related health outcomes.
Countries like Saudi Arabia, the United Arab Emirates, and Kuwait are at the forefront of this trend, propelled by high incidences of lifestyle-related diseases such as diabetes, obesity, and cardiovascular disorders.
In response, regional health authorities are implementing public health campaigns and regulatory frameworks to promote the consumption of functional ingredients and reduce the intake of sugar and processed foods. These measures are fostering market development and enhancing consumer confidence in fortified products.
Food and beverage companies in the GCC are investing in localized research and development to create functional products tailored to cultural preferences and regional health needs. Innovations in functional dairy products, heart-healthy oils, protein-enriched beverages, and herbal-infused foods are particularly notable. The growing demand for clean-label, organic, and naturally sourced ingredients is further influencing product innovation and marketing strategies in the region.
In a 2023 interview, Peder Tuborgh, CEO of Arla Foods, emphasized the company's commitment to health and nutrition, stating, “We are deeply rooted in nature and committed to natural principles - the two are inherently intertwined.
This commitment extends to our belief in green labels, non-GMO products and a focus on health and nutrition.” His statement reflects the increasing importance of value-added nutrition in the GCC's evolving food ecosystem.
With rising disposable incomes, supportive policy frameworks, and a youthful, health-conscious population, the GCC functional food market is poised to play a significant role in the region’s long-term food security and wellness strategies.
Key Industry Attributes
| Attribute | Detail |
|---|---|
| Industry Size (2025) | USD 18.2 billion |
| Industry Size (2035) | USD 51.7 billion |
| CAGR (2025 to 2035) | 10.9% |
The GCC functional food market is seeing significant growth, particularly in functional dairy products, fortified eggs, and iodized salt, driven by increasing consumer demand for health-conscious and nutrient-enhanced foods. The rise of organized retail channels is further boosting the accessibility and market reach of these products.
Functional dairy products are expected to dominate the GCC functional food market, accounting for 36.5% market share in 2025. The growing awareness of the benefits of probiotics, enhanced vitamins, and minerals in dairy products has led to their increased consumption. Functional dairy, including products like yogurt, kefir, and fortified milk, is recognized for its role in improving gut health, boosting immunity, and supporting overall well-being.
The shift towards healthier lifestyles and the rise of preventive healthcare are major factors contributing to the growth of functional dairy products in the region. Probiotic-enriched dairy products are increasingly sought after by consumers for their gut-health benefits.
Additionally, with the GCC region’s rising population of health-conscious individuals and growing demand for products with added health benefits, the functional dairy segment is well-positioned for sustained growth.
Retailers are expanding their portfolios to include probiotic and fortified dairy options, further supporting the growth of this category. As the market for functional foods continues to expand, functional dairy products will remain a key contributor to the region’s dietary transformation.
In terms of distribution channels, hypermarkets and A-class stores are expected to capture 40.2% of the market share in 2025, making them the dominant retail format for functional foods in the GCC region. These stores offer a wide variety of products, including premium functional food options, making them a preferred choice for consumers looking for convenient access to high-quality, health-focused products.
The convenience of shopping in hypermarkets and A-class stores, coupled with the wide availability of functional foods, has led to the growth of this distribution channel. These stores not only provide an extensive selection of products but also offer consumers easy access to information about the health benefits of functional foods through in-store signage and product labeling.
Additionally, the increasing number of health-conscious consumers in the GCC region, especially among the middle and upper-income groups, has further fueled the demand for functional foods in these retail outlets. With the rise in consumer awareness and the increasing trend of health-focused consumption, hypermarkets and A-class stores will continue to dominate the functional food distribution market in the GCC region.
Currently, the sales of functional foods through hypermarkets & A-class stores is estimated to account for the highest value share, and they are expected to remain dominant during the forecast period.
The retail industry is growing at a significant rate in the GCC countries, which has enabled manufacturers to increase the availability of functional food products in hypermarkets & A-class chains, and this is promoting the growth of this segment of the GCC functional food market.
On the other hand, consumer co-operatives and grocery stores are losing their popularity in the GCC functional food market across the region.
Overall, these distribution channels are contributed a 28.3% share of the GCC functional food market in 2020, however they are expected to lose their share in 2020 due to higher consumer preference towards hypermarkets & A-class stores.
In-store promotions of functional food products, which include allocating budgets for generating awareness through branding, sampling or other means, tie-ups with school canteens and creating a whole new category of health foods in retail stores in co-operation with manufacturers & retailers, are among the key differentiating strategies adopted by manufacturers in the GCC functional food market.
This is generating awareness and driving the overall demand for functional food in the GCC countries.
For instance, modern food retailers, such as Lulu Hypermarket, Al Maya Group, Al-Othaim Supermarket, Carrefour, Spinneys and Choithrams, are expanding in Saudi Arabia and promoting functional food.
With a rise in per-capita GDP in the Middle East region, there has been a significant increase in the purchasing power of the people. The middle-class population in the region is experiencing rapid growth, which has helped transform the country's consumer market.
Healthcare spending in GCC is expected to increase at a double-digit growth rate between 2015 and 2020 due to the rising concerns about health and wellness.
Thus, rising purchasing power, coupled with increasing awareness about the consumption of fortified food products among consumers, is expected to support the growth of GCC functional food market.
For instance, the demand for yogurt/frozen yogurt in convenient packs and fresh fruity frozen yogurt has witnessed double-digit growth since 2011.
Beautiful Brands Internationals (BBI) FreshBerry Frozen Yogurt Cafe in Makkah, Saudi Arabia, recorded sales of USD 11,000 on its opening day.
On the basis of product type, the GCC functional food market is segmented into functional dairy products,cereals, flakes & confectioneries, iodised salt, fortified eggs, fish & meat and oil & margarine. In 2022, the cereals, flakes & confectioneries segment in the GCC functional food market accounted for almost 41% market share in terms of value.
The region has witnessed an increase in the number of gymnasiums, diet centres and fitness centres, which promote the consumption of health food such as oat flakes, cereal bars and energy drinks.
The robust growth of these segments can also be attributed to the novel varieties available in the functional food market in addition to customer preference for convenience foods such as yogurt, cornflakes and cereal bars.
In the region, 80% of the cereal products are being imported. Cereal bars, fortified pasta, noodles and corn/oat flakes are among the functional food products in demand in GCC countries.
Al Ghurair Foods, one of the country’s leading fortified or functional food product producers, set up an oat plant in UAE in February 2011 after realising that there was higher demand for oat products in the functional food market.
Wheat flour fortification takes place in most of the GCC countries, however, the level of fortification is far less than that in the OECD countries, which indicates that there is scope for value addition in the fortification of cereals in GCC countries.
Functional dairy products is projected to be the second-largest segment in the GCC functional food market by 2020, and the fastest-growing one across the functional food category in GCC. It is projected to increase at a CAGR of 12.8% between 2015 and 2020.
In the GCC region, most dairy products are manufactured domestically, however, the fortification trend is only limited to milk and yogurt. Some companies voluntarily fortify cheese with calcium and vitamins. Probiotic yogurts still dominate the dairy segment in the functional food market.
Dubai-based Al Rawabi Dairy Co. LLC plans to launch a range of healthy fruit yogurt products after launching omega-3 fresh milk in September 2020. IFFCO launched its premium range of Noor Lite Mayonnaise in April 2014 with olive oil for health-conscious consumers and labneh to cater to the preferences of consumers for functional food products in the Middle East.
Dairy products score the highest in terms of profit margins in the functional food market. However, cold storage facilities and refrigerated vans are required to import and transport dairy products, which makes these products expensive for consumers seeking dairy-based functional food.
However, the oil & margarine segment is expected to witness favourable growth rates in the GCC functional food market as the awareness about omega 3-fortified oil is rising in the region.
Regionally, the GCC functional food market is segmented into Saudi Arabia, United Arab Emirates (UAE), Oman, Kuwait, Qatar and Bahrain. Sales revenue of functional food in KSA has been estimated to account for the largest market value share of 48.3% in 2014.
The country is expected to represent an incremental opportunity of USD 1,879.10 Mn between 2014 and 2020. Sales revenue of the functional food market in the UAE was valued at USD 1,390.5 Mn in 2014 and is expected to increase by 1.8X over the forecast period.
Kuwait & Qatar are among the most lucrative markets for functional food products as compared to other GCC countries. Qatar is one of the most robust economies in the rest of the GCC, which can directly affect the per-capita food expenditure of consumers.
Qatar has the highest per-capita income in GCC, which is likely to drive the buying pattern of premium health food, thus fuelling the growth of the functional food market in the country.
Newer varieties of functional foods with convenient packaging have started attracting health-conscious people in the rest of the GCC countries, thus transforming this niche sector into the mainstream. Kuwait is expected to be the most lucrative market for functional food with a CAGR of 12.2% over the forecast period.
Detailed profiles of companies are also included in the GCC functional food market report to evaluate their strategies, key product offerings and recent developments.
Some of the key players profiled in the GCC functional food market study include Almarai, Danone, AL Rawaby Dairy, Pinar, Anchor, Kraft Foods, IFFCO, Nestlé, Oman Flour Mills Company, The Modern Flour Mills and Macaroni Factories, Al Ghurair Foods, Alyasra Foods, AL Jazira Poultry Farm LLC NEZO,ZAD INDUSTRIES & TRADING CO and Savola Foods.
To increase sales revenue, the majority of players are focusing on generating awareness and launching new functional food product variants in the region.
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 18.2 billion |
| Projected Market Size (2035) | USD 51.7 billion |
| CAGR (2025 to 2035) | 10.9% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD billion for value |
| Product Types Analyzed (Segment 1) | Functional Dairy Products, Cereals, Flakes & Confectioneries, Iodised Salt, Fortified Eggs, Fish & Meat, Oil & Margarine |
| Distribution Channels Analyzed (Segment 2) | Hypermarkets/A-Class Stores, Self-Service & B-Class Chains, Consumer Cooperative & Groceries, Others |
| Regions Covered | GCC Countries (Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain, Oman) |
| Countries Covered | Saudi Arabia, UAE, Kuwait, Qatar, Bahrain, Oman |
| Key Players Influencing the Market | Almarai, Danone, AL Rawaby Dairy, Pinar, Anchor, Kraft Foods, IFFCO, Nestlé, Oman Flour Mills Company, The Modern Flour Mills and Macaroni Factories, Al Ghurair Foods, Alyasra Foods, AL Jazira Poultry Farm LLC, NEZO, ZAD INDUSTRIES & TRADING CO, Savola Foods |
| Additional Attributes | Total market size in dollar sales and CAGR, product type dollar sales breakdown (dairy, cereals, snacks), ingredient-wise dollar sales (probiotics, omega-3), regional dollar sales trends (Saudi Arabia, UAE), distribution channel dollar sales (hypermarkets, e-commerce), competitor market share, health trend impacts (immunity, weight management), and regulatory developments affecting labeling and fortification. |
Government healthcare spending drives the market.
The market will grow at a CAGR of 10.9% through 2032.
The market will reach USD 51.7 billion by 2035.
The market recorded a value of USD 18.2 billion in 2025.
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GCC Functional Food Market
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