Market Trends of Qatar Bakery Product Industry
Bread Dominated the Qatari Bakery Goods Market
- Due to the high consumption of bakery products in the country, bread has successfully gained the largest share of the market over the past few years. Additionally, the rising trends of "natural nutrition," "healthy living," and "organic products" have significantly increased consumers' demand for whole wheat, light, natural, and additive-free products. This factor is leading bread manufacturers to focus on value-added functional bakery products.
- In recent years, the growth in sales of packaged whole wheat, whole-meal, gluten-free, and natural products has been an important indication of the rise of a new and healthy living trend in the country. Therefore, bread manufacturers are leveraging the acceptance of regional bread specialties to create nutritional-added products to diversify their assortments.
- Fortified, clean-label, and organic bread are the preferred bread categories across the region, with the rise in health-conscious consumers. Furthermore, consumers are looking for hygienic, safe, quick, and convenient access to products, particularly considering their increasingly hectic lifestyles.
- In 2022, a Frontiers in Sustainable Food Systems research paper stated that adding buckwheat flour to bread can increase its antioxidant characteristics and sensory quality since it has the highest phenolic and flavonoid content. Consequently, the antioxidant properties of date pits could be utilized to increase the shelf life of food products.
- Therefore, there is an increasing demand for greater varieties of bread, such as ethnic bread and whole-meal bread, made with ingredients like oats, bran, seeds, etc. Baked goods such as bread and biscuits continue to enjoy their status as household staples, and their sales are driven by the fact that they constitute an essential part of the diet of time-poor consumers. Hence, these factors drive the market in this region.
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Online and In-store bakery Stores Outpaced Other Distribution Channels
- A significant factor that has contributed to the growth of sales of bakery products through online retailing is the convenience it offers to consumers. With the online platform, consumers find it easier to choose their preferred brands and have access to a wide variety of flavors and product choices. In recent years, online stores have established themselves as convenient marketplaces that offer a wide range of bakery products, from cheaper local options to expensive imported ones.
- Online shopping has become increasingly popular for ordering bakery products such as cakes, bread, sweet biscuits, savory biscuits, and others. The COVID-19 pandemic boosted online businesses and sales, with people getting used to the convenience of online shopping and amplifying the overall sales of e-commerce platforms.
- As a result, companies are developing their website marketing strategies for bakery goods or collaborating with prominent online ordering and delivery platforms. However, offline retail stores are struggling to cope with the booming demand and long-term supply challenges. Therefore, brand manufacturers are increasing their online presence and collaborating with domestic suppliers to maximize their consumer base and reduce the supply-demand gap of frozen bakery products in the market.
- For example, the retail department of the multifaceted international LuLu Group International, LuLu Hypermarket, has established itself as a regional leader in the retail sector, with 201 outlets offering high-quality retailing to discerning customers throughout the Gulf area. LuLu's online channel offers various bakery products to its customers, delivering them right to their doorstep.
- In recent years, artisanal bakeries and cafes have gained prominence among upper- and middle-class consumers. Artisanal bread, pastries, and cakes have significantly benefited from their expansion into in-store bakeries in supermarkets, which play a pivotal role in driving the sector. In-store bakeries position artisanal products in prominent displays in attractive multi-portion packaging, aiming to generate impulsive purchases.
- Therefore, both in-store shopping and quick commerce are growing at a noteworthy pace in the region and holding a substantial market share. The above-mentioned factors act as major drivers for the market segment.
