The United Arab Emirates breakfast cereal market is growing at a CAGR of 2.8% during the forecast period (2020 - 2025).
- The growth of the market is mainly driven by the changing food habits and influence of western culture on dietary patterns of consumers, as it provides a convenient solution to readily accessible food that optimizes the ease of consumption without further preparation. Also, an increase in health awareness among people globally, making consumers preferring towards highly nutritious food on a regular basis is further fueling the market. Also, the robust growth of convenience stores that promotes brand visibility is driving the growth of the breakfast cereals market.
- However, the market is stagnated due to the consumer's equal inclination towards traditional breakfast foods, which is therefor restraining the growth of the market.
Key Market Trends
Rising Demand For Convenience Food In The Region
The demand for convenience foods is growing at a faster pace due to changes in social and economical patterns, as well as an increase in urbanization, buying power and awareness about health foods, changes in meal patterns and existing food habits, desire to taste new products. They are becoming extremely popular especially among working-class people, teenage children, people living in hostels, bachelors, and so on. Furthermore, recent innovations have led to the use of many traditional technologies like fermentation, extraction, encapsulation, fat replacement, and enzyme technology to produce new healthy breakfast cereals products and reduce/remove undesirable food components, and add specific nutrients.
Convenience Stores Sales To drive The Regional Market
Convenience stores led the sale with a value share of 40%, which is followed by supermarkets/hypermarkets. Online retail sale constitutes a very small share in the market but is growing at a steady rate. Organic, natural and health claim on breakfast cereals offer a potential future for baked products. Furthermore, the expansion of retail distribution channels is another factor for rising sales in rural and tier-II cities. However, increased competition from artisanal, food service offering varieties of fresh breakfast affected the packaged breakfast cereals market sale in the region.
The United Arab Emirates market for breakfast cereals is highly fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the UAE market include Bobs Red Mill, Nestle, and Keya Foods among others.
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