Middle East & Africa clean label ingredients market is expected to grow with a CAGR of 7.34% during the forecast period (2020 - 2025).
Key Highlights
- The major factor driving the growth of the market is the increasing demand for convenience foods. Young consumers spend most of their income on convenient, ready-to-eat food products, which are evolving with the invasion of the healthy ingredients concept, thus, promoting clean label ingredients in return. Other factors affecting the market are increasing urbanization and western culture replication, which is the market of clean label ingredients in the region, as the awareness increases.
- In the present scenario, unmonitored diet patterns have resulted in increased health complexities in regional countries. Obesity and overweight rates are soaring, as fast food and sedentary lifestyles replace a life of manual labor fed by rice and vegetables, in turn, increasing the demand for clean label ingredients to ensure healthy eating.
- Vast opportunities for clean label food are hence, anticipated to exist in the region as brands are compelled to meet consumer demands for clean, simple, and safe products.
Key Market Trends
Processed Foods are Likely to Foster the Market Growth in the Region
The countries of the Middle East have a strong economy and thus, the people have a high disposable income due to which they can afford the healthiest foods for themselves. The influence of Western culture has brought in the concept of processed foods strongly as young adults have a hectic lifestyle and find it difficult to find spare time to cook healthy food for themselves. The rising criticism of junk food that has led to a rise in the obesity rates in the region and has been welcoming the clean label concept wholeheartedly in the region. Similar is the concept in African countries with the penetration of the Western ideas of healthy eating. Thus, the increasing demand for clean label flavors, colors, and other additives in processed foods is anticipated to catalyze the market growth in the near future.
South Africa is the Fastest Growing Market in the Region
South Africa is rapidly evolving with the up-gradation of society and the improving economy. The increasing urbanization and industrialization have been educating more and more people about the latest technology and healthy eating concepts which has further been driving people to adopt veganism and other healthy and sustainable consumption patterns, especially in the large towns. However, despite the suburban people being still unaware of the concepts, the internet is playing a crucial role in passing on the information, which is likely to surge the demand for more clean label foods in the country, in turn, regulating the market of clean label ingredients in the country in the near future.
Competitive Landscape
The global market giants have been expanding their geographical presence by strengthening their distribution channels in the regional market as the demand for healthier food increases. Expansion is the most preferred growth strategy followed by new product developments in the regional clean label ingredients market. The cost of processing plays a major role in African countries as society is not so developed and the countries are economically weak. Thus, the domestic players have an upper hand opportunity to penetrate into the remote regions and cater to the demand and also, generate the demand by spreading awareness regarding the benefits of clean label foods.
Additional Benefits:
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Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Archer Daniels Midland Company
- Chr. Hansen Holding A/S
- Cargill, Inc.
- JJT Group
- Bell Flavors & Fragrances GmbH
- Sensient Colors LLC
- Givaudan
- Firmenich SA
- D.D. Williamson & Co.
- GNT Group B.V.
Methodology
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