The Middle East & Africa functional beverage market is expected to grow at a CAGR of 8.87%, during the forecast period, 2020-2025.
- Reduced-sugar beverages are likely to gain popularity as the people make a consumption-pattern shift to avoid diabetic symptoms.
- The probiotic drinks segment is also expected to witness a considerable number of new buyers due to the growing concern of strengthening immunity.
- However, the market of the functional drinks might observe a retarded growth in the weaker economies of the region due to their higher prices over the conventional drinks.
Key Market Trends
Increased Demand for Dairy-based Probiotic Drinks
Drinkable yogurt, Kefir, Buttermilk, and other fermented and functional probiotic beverages are some of the natural sources of probiotic drinks among the consumers in the regoin, while fortification of probiotic cultures in fruit ad vegetable juice is one of the key factors driving the market. Drinkable yogurt remain the most popular choice among consumers of Middle East. However, manufacturers are also seeking to provide probiotics in traditional products, such as labneh. Some of the domestic probiotic companies include Danisco, Yakult, Tak Gene Bio Company, Sina Probiotics among others.
Middle East Region Remains the Fastest Growing Markets
Energy Drinks are becoming popular in the region as the people are developing a mindset of indulging more into physical activities. The number of gym memberships has been increasing in the countries of the Middle East which is a depiction of the growing interest of the people in staying fit. As the need arises, the channel of distribution is also widening. Supermarkets have dedicated sections for similar products from multiple brands. This gives an opportunity for the buyer to go through the labelling, compare the products, and buy the best one in terms of price and quality. The self-satisfaction in this kind of comparative shopping is already gaining more customer attraction and increasing the supermarket count in the region, regulating the market of energy drinks, correspondingly.
The market of functional beverages in the region is fragmented to an extent due to the restricted approach of players towards the diversely categorized beverages, in terms of functionality. However, some of the major players have estimated the caliber of the market and have come up with innovations that might attract a large consumer base, regulating the overall market of functional beverages in the region. Alternatives to dairy-based functional beverages are one such segment whose demand is increasing due to the consumer shift toward veganism. Nestle SA, Coca Cola Company, and PepsiCo are among the market leaders in the region.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support