Middle East and Africa Ready-To-Eat Food Market - Growth, Trends, and Forecasts (2023-2028)

Over the next few years, the Middle East and Africa Ready-to-Eat Food Market is expected to register a CAGR of 7.58 %.

The major factor driving the growth of the ready-to-eat food market is convenience. Young consumers spend most of their income on convenient, ready-to-eat food products. Other factors affecting the market are the changing food consumption patterns due to increasing urbanization, which is driving the ready-to-eat food market in the region. In addition, a high focus on exports, the adaptation of new technologies, innovative promotional techniques, gaining special attention in retail format stores, retailers going for private label ready-to-eat meals, launching innovative and region-specific products, and frozen ready-to-eat products gaining popularity are other factors fueling the market's growth.

The demand for healthy convenience foods and processed foods such as ready-to-eat foods is increasing. To take advantage of such opportunities in the market, new players have been entering it. For example, in March 2022, the startup company Nowadays Trading launched FatBroccoli products, which offer naturally sourced, locally manufactured, nutritious frozen foods. The healthful fast food was initially sold in places with heavy foot traffic, such as schools, gyms, universities, hospitals, gas stations, government buildings, service centers, airports, and others. To further its reach beyond the United Arab Emirates, FatBroccoli revealed its plans to open 20 additional locations in other GCC regions. With the rise in urbanization, a growing middle-class population, an increase in the number of working women, and a rise in disposable income, the region has been witnessing a rising demand for ready-to-eat products such as biscuits, cakes, breakfast cereals, and other such items as they are more convenient than complex traditional home-made items, which take much longer to prepare. Further, new hybrid working patterns and significant investments people made in their homes in the post-pandemic era point to a larger number of ready-to-eat food products consumed at home for the foreseeable future.

Middle East and Africa Ready-To-Eat Food Market Trends

Inclination Towards Healthier and Organic Ready-to-Eat Products

Although the demand for convenience food on-the-go is increasing, several groups of consumers are more conscious of their health. They are inclined toward healthy snack products, aiding the growth of healthy ready-to-eat food products. The growing prevalence of lifestyle disorders such as atherosclerosis, stroke, diabetes, and obesity has increased the inclination toward healthy ready-to-eat products such as nuts, fruit snacks, snack bars, and other confectionery snack products. Hence, the players in the market have been introducing healthy food products to cater to the demand for healthy convenience foods. For example, in February 2022, the United Arab Emirates-based food company Freakin' Healthy announced that it would be adding a new plant-based cheese spread to its line of healthier foods.

Consumers have had a significant demand for natural and organic food products in recent years. Consumers are becoming more aware of the adverse health effects associated with the consumption of various synthetic food ingredients, such as colorants, flavors, texturizers, fat replacers, and sweeteners, owing to multiple research projects and bans introduced by governments. These health issues have led to a consumer shift toward natural additives. According to the Dubai Chamber of Commerce and Industry, the value of free-from food sales in the United Arab Emirates will amount to over USD 33 million in 2020. The CAGR was projected to reach 10% between 2020 and 2025.

Rising Demand for Baked Goods in the Region

The market for ready-to-eat bakery products in the Middle East and Africa is being driven by people's growing interest in wheat products and their desire for easy-to-eat baked goods.The manufacturers are also providing customers with clean labels for better transparency. This provides the customers with a clear picture of what is used in making the products they consume. In addition, products such as preservative-free, gluten-free, cholesterol-free, GMO-free, and low sodium products are being frequently launched by the leading baked goods players that are suitable for diabetics and are rich in fiber, protein, and calcium to meet the consumers' demand, especially those who are health-conscious. According to UN Comtrade data, the imports of bakery products, such as bread, cakes, and other products, into Saudi Arabia increased from USD 668.7 million in 2020 to USD 727.75 million in 2021.

Furthermore, the inclusion of pulses, seeds, and beans, such as broad beans, fava beans, and kidney beans, in cookies provides consumers with the necessary proteins. Domestic players dominate the market, with many small and medium-sized companies competing for market share. For instance, Al Meera, one of Qatar's largest hypermarket and supermarket retail companies, has its bakery product manufacturing plant at Al Oumara Bakeries Company W.L.L. Owing to the growth of the demand for baked goods in the market, new players have been entering the market to take advantage of the opportunities offered by the region's market. For example, in March 2022, the online channel sales company of Yldz Holding expanded its business by entering the United Arab Emirates with the products of the leading Turkish confectionary maker's biscuit brand Ülker.

Middle East and Africa Ready-To-Eat Food Market Competitor Analysis

The Middle East and African ready-to-eat food markets are highly fragmented, with a large number of domestic and multinational players competing for market share. Product innovations and partnerships were the two strategic approaches widely adopted by the leading companies across the region to boost their brand presence among consumers. Key players dominating the regional market include Mondelez International, Inc.; Conagra Brands, Inc.; Grupo Bimbo; and McCain Foods Limited. In addition, companies operating in the market studied, such as Siwar Foods, Rhodes Food Group, and others, build the equity of their brands over time with strong consumer-directed marketing, innovative new products, and effective merchandising. As these companies believe the brand-building approach is the key to winning and sustaining leading share positions in markets around the region, they have been consistently investing in advertising expenses to further spread knowledge of RTE food and other food categories among consumers.

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