Market Trends of Middle East and Africa Bakery Products Industry
This section covers the major market trends shaping the MEA Bakery Products Market according to our research experts:
Specialty Stores and Supermarkets to become the Fastest-growing Segment
- Buyers of specialty foods stores use many more channels than convenience stores. Supermarkets and mass merchandisers have been investing heavily in specialty food stores, as specialty food stores are growing faster than convenience food stores each year.
- Bakery products are available in specialty stores, thus increasing the availability of bakery products. These specialty stores mainly include artisanal bakers/small bakeries/home-based bakers, which supply the products to cafe chains, kiosks, traditional trade/wet markets, offices, and general consumers. Constant product innovation is a significant challenge for specialist retailers.
- Given that many of the product types offered at artisanal bakeries are best enjoyed by fresh, efficient production and inventory management. Moreover, supermarkets and hypermarkets tend to propel the market in a positive direction for their collection of various products from different brands, consumers can choose better-quality products.
- Additionally, in recent times the extensive expansion of hypermarkets in the region is encouraging consumers for their convenience and ease of availability. For instance, in November 2022 Lulu hypermarket expanded its presence in Saudi Arabia by opening an outlet in Saihat. These establishments often provide a dedicated sections for bakery products in their outlets.
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South Africa to Dominate the Regional Market
- South Africa's economy is booming, and there is a considerable demand for bread products. The bakery products market in South Africa is expanding due to changing consumer lifestyles, increased snacking and indulgence consumption, rising demand for multi-grain and whole wheat bread products with low trans-fat content, and improved living circumstances.
- Bread is an important staple food in South Africa and ensures national food security. Consumers, particularly those in middle and upper-income groups, are willing to pay higher prices for bakery products with a low GI (Glycemic Index), high fiber content, or fortification with added vitamins.
- Domestic biscuit brands are witnessing higher retail sales due to the affordability of their brands. Price competitiveness is expected to be a deciding factor for the sale of biscuits and cookies during the forecast period.
- Health and Wellness are expected to drive the sales of morning goods in the South African market during the forecast period. Consumers are increasingly cautious about ingredient formulations, and the demand for the clean label is gaining traction among health-conscious consumers.
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