Packaged Food Market Analysis GCC - Size and Forecast 2024-2028

GCC Packaged Food Market Size 2024-2028

The GCC packaged food market size is forecast to increase by USD 3.89 billion, at a CAGR of 5.45% between 2023 and 2028.

• The market is experiencing significant growth due to several key factors. Urbanization and lifestyle changes are driving the demand for convenience and ready-to-eat food options. Additionally, there is a rising trend towards clean-label products as consumers become more health-conscious and aware of the ingredients In their food. Strict food regulations in GCC countries further ensure the safety and quality of packaged food products. Frozen foods, meal replacement options, and snacks, including plant-based, vegan, and dairy-free products, are popular choices among consumers seeking healthier, more sustainable food options. These factors are expected to boost market growth In the coming years. The market analysis report provides an in-depth examination of these trends and their impact on the packaged food industry In the GCC region.

What will be the size of the GCC Packaged Food Market during the forecast period?

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• The market region continues to experience strong growth, driven by the region's hectic lifestyle and increasing demand for convenience food. The snacking trend is particularly strong, with consumers opting for nutritious, protein-rich snacks to fuel their active lifestyles. The dairy segment of the packaged food market is also seeing significant growth, as consumers look for alternatives to traditional dairy products. Healthier packaged food products made with quality ingredients are in high demand, as consumers prioritize good health and wellness.
• The rise of online grocery shopping and eco-friendly packaging trends are also influencing the market, with consumers increasingly seeking out sustainable and eco-efficient packaged food products. In the GCC region, the packaged food market encompasses a wide range of food and beverage categories, including snacks, sweets, biscuits, and ready-to-eat meals (RTEs). As the vegetarian population continues to grow, there is a greater demand for vegetarian and vegan options, further expanding the market's scope. Supply-chain resilience and sustainability are also key considerations for companies operating in this market, as they strive to meet the evolving needs and preferences of health-conscious consumers.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Distribution Channel
  • Supermarket and hypermarket
  • Convenience store
  • Online
• Product
  • Bakery and cereals
  • Dairy products
  • Processed and canned Food
  • Meat and fish
  • Others
• Geography
  • GCC
    • Saudi Arabia
    • Kuwait
    • Oman

By Distribution Channel Insights

• The supermarket and hypermarket segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth, driven by hectic lifestyles and increasing demand for convenience food. Supermarkets and hypermarkets dominate the distribution landscape, catering to the diverse tastes of the region's population. Frozen foods, meal replacements, and snacking trends are popular, with plant-based, vegan, and dairy-free products gaining traction due to health concerns and ethical considerations. Health benefits, fortified foods, and natural disasters have further fueled the demand for packaged food.

The dairy segment, including snacks, sweets, biscuits, and ready-to-eat meals, is a significant contributor to the market. Consumers prefer healthier packaged food made from quality ingredients, leading to the rise of online grocery shopping and eco-friendly packaging. The market is expected to continue growing due to the convenience and accessibility offered by supermarkets and hypermarkets, the popularity of convenience food, and the availability of plant-based options that cater to various dietary preferences and health-conscious consumers.

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The supermarket and hypermarket segment was valued at USD 5.97 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of GCC Packaged Food Market?

Urbanization and lifestyle changes is the key driver of the market.

• The hectic lifestyle of the growing urban population in the GCC region is fueling the demand for packaged food, particularly In the areas of frozen foods, meal replacement, and snacking. Convenience is a significant factor, with consumers seeking quick and easy meal solutions for their busy lives. This trend is reflected In the popularity of microwaveable meals, ready-to-eat snacks, and pre-packaged salads or sandwiches. Furthermore, there is a rising preference for plant-based food, vegan food, and dairy-free products, driven by health benefits and ethical considerations. These alternatives cater to the vegetarian population and those with lactose intolerance or dietary restrictions.
• Protein sources derived from plants, such as soy, quinoa, and lentils, are increasingly being used to fortify food products. Healthier packaged food options, including low-calorie products and natural disasters like kombucha, are also gaining traction as consumers become more health-conscious. The convenience food market, including snacks, sweets, biscuits, and ready-to-eat meals, is expected to continue its popularity. As the demand for packaged food grows, there is a focus on quality ingredients, ecofriendly packaging, and sustainable packaging solutions. Online grocery shopping is becoming increasingly popular, and e-commerce platforms are offering a wider range of packaged food products. The plant-based food market is expected to offer significant growth opportunities, with vegan-friendly standards becoming more prevalent.

What are the market trends shaping the GCC Packaged Food Market?

Increasing consumer awareness about clean-label products is the upcoming trend In the market.

• In the GCC region, the packaged food market is witnessing significant growth due to the hectic lifestyles of consumers. The demand for convenience food, such as frozen meals and snacks, is on the rise. This trend is particularly noticeable In the dairy segment, with an increasing preference for plant-based milk alternatives, vegan food, and dairy-free products due to lactose intolerance and ethical considerations. Healthier packaged food options, including meal replacement shakes and fortified cereals, are also gaining popularity as consumers prioritize good health. The snacking trend is another driver of the market. Consumers are seeking out healthy snacking options, such as nuts, seeds, and fruit, as well as low-calorie and natural products.
• Kombucha and other functional beverages are also becoming popular. Plant-based protein sources, such as legumes and nuts, are increasingly being used as alternatives to animal protein. Food companies are responding to these trends by offering plant-based options that meet vegan-friendly standards. They are also focusing on using quality ingredients and eco-friendly packaging to appeal to health-conscious consumers. Online grocery shopping is becoming increasingly popular, and companies are investing in sustainable packaging solutions to reduce their environmental impact. The convenience food market's popularity is expected to continue, with ready-to-eat (RTE) meals and snacks remaining in high demand. However, natural disasters and supply-chain disruptions can impact the availability and affordability of packaged food products.

What challenges does GCC Packaged Food Market face during the growth?

Strict food regulations in GCC countries is a key challenge affecting the market growth.

• The market faces unique challenges due to strict food regulations, hectic lifestyles, and evolving consumer preferences. The region's population adheres to various dietary restrictions, necessitating the production of halal-certified, plant-based, vegan, and dairy-free products. The convenience of frozen foods, meal replacement options, and healthy snacking trends cater to the busy lifestyles of consumers. Frozen snacks, plant-based food alternatives, and dairy alternatives are gaining popularity due to health benefits and the increasing vegetarian population. The snacking trend is driving the demand for low-calorie products, fortified foods, and natural disasters like kombucha. Lactose intolerance and the need for dairy alternatives are also influencing the dairy segment's growth.
• Manufacturers must prioritize quality ingredients, eco-friendly packaging, and sustainable packaging solutions to cater to the adventurous food culture and eco-efficiency demands. The convenience food market's popularity is driving the demand for ready-to-eat (RTE) food and processed food products. Online shopping and e-commerce platforms offer a solution to the challenges of supply-chain resilience and accessibility. The market is evolving to meet the changing consumer demands, with a focus on healthier packaged food, vegan-friendly standards, and good health. Food and beverage companies are investing in research and development to create innovative, nutrient-dense products that cater to the diverse population's needs.

Exclusive GCC Packaged Food Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Al Ain Farms
• Al Kabeer Group ME
• Al Rawabi Dairy Co L.L.C.
• Almarai Co.
• Americana Foods Inc
• Arla Foods amba
• Balade Farms Food Industries LLC
• Baladna
• Danone SA
• Emirates Food Industries
• Fash Fash Foodstuff Factory Co.
• Forsan Foods and Consumer Products Ltd.
• General Mills Inc.
• Global Food Industries LLC
• Mondelez International Inc.
• Nestle SA
• Reesha General Trading L.L.C.
• Saudia Dairy and Foodstuff Co.
• Savola Group
• Unikai Foods PJSC

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market has witnessed significant growth in recent years, driven by the hectic lifestyle of consumers and the increasing popularity of convenient food solutions. Frozen foods have gained prominence as they offer the convenience of ready-to-eat meals and extended shelf life. Moreover, the trend towards plant-based food, vegan food, and dairy-free products has gained momentum due to health and ethical considerations. The snacking trend is another factor fueling the growth of the packaged food market In the GCC. Consumers are increasingly opting for healthier snacking options, including those fortified with essential nutrients.

Further, the vegetarian population In the region is also growing, leading to an increased demand for protein sources that do not originate from animal sources. Plant-based food alternatives have gained popularity due to their health benefits and ethical considerations. These products offer consumers a way to maintain a balanced diet while adhering to their ethical beliefs. The health benefits of plant-based food are well-documented, and many consumers are turning to these options to improve their nutrient intake. The dairy segment of the packaged food market is also witnessing growth due to the increasing prevalence of lactose intolerance and the availability of dairy alternatives.

In addition, these alternatives offer consumers the taste and texture of dairy products without the associated discomfort. Frozen snacks are another popular category within the packaged food market, as they offer convenience and a wide range of flavors and textures. The packaged food market In the GCC is also being driven by the adoption of eco-friendly packaging solutions. Consumers are increasingly conscious of the environmental impact of their food choices and are looking for packaging that is sustainable and reduces waste. The trend towards online shopping and e-commerce is also influencing the packaged food market, as consumers seek out convenient and efficient ways to purchase their groceries.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across GCC
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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