Middle East and Africa Fermented Drinks Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Middle East and Africa Fermented Drinks market is projected to grow at a CAGR of 7.70% during the forecast period.

Key Highlights

• The market witnessed an increase in the number of health-conscious consumers who have been looking for ways of mitigating the negative health effects of increasingly stressful lifestyles and unhealthy eating habits. Moreover, a growing number of consumers are using probiotics drinks such as yogurt, sour milk, kombucha etc. to prevent and manage their digestive and general health issues, which is leading to benefit the fermented drinks market, in terms of sales.
• Furthermore, there is an increase in the number of cases of diabetes, obesity, and gastrointestinal in Middle Eastern countries. Owing to such factors, the global brands are focusing on launching innovative products to cater to the growing demand.

Key Market Trends

Non-Alcoholic Beverages Remained the Most Promising Segment

Owing to highly scrutinized alcoholic beverages market in Middle Eastern countries, the sector has not been able to out-perform in the region. Nearly all gulf countries possess strict ban on alcoholic beverages consumption resulting in lower sales revenue of overall fermented drinks. However, this gives an upper hand to non-alcoholic beverage sector, pushing manufacturers to bring development and introduce innovative products in the market. Moreover, fermented drinks such as laban and ayran, being native to the region have strong foothold in the marketplace. Consumers are well aware of the product differentiation among fermented drinks and continue to raise demand for regional delicacies.

United Arab Emirates to Foster Market Growth

The rising preference for functional foods to control health disorders is likely to boost the overall fermented drinks industry in the country. The key players are focusing on R&D and targeting fermented drink production, especially kombucha and probiotic drinks through holistic approach, in order to provide product differentiation and propel consumer loyalty. In 2017, Japan-based probiotic drink maker, Yakult, opened its first office in the United Arab Emirates and it is currently planning to expand its distribution network across the GCC. Al Rawabi is a leading fermented dairy products company in United Arab Emirates, which sells milk, yogurt, and functional products across the country, with more than 13,000 stores.

Competitive Landscape

Middle East and Africa Fermented Drinks market is consolidated among key players like Yakult, PepsiCo and Danone, owing to their high market penetration and diverse portfolio offered to consumers. There are many country level manufacturers like Nourish Kefir mushrooming the market in order to establish their presence in the growing market of kefir and other Fermented Drinks. Manufacturers are relying on strategies like repositioning their products in the supermarket shelves to increase visibility and more convincing to be bought.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support