The health & wellness foods and beverages (F&B) market in the UAE and Saudi Arabia is estimated to reach $14.56 billion by the end of 2020 growing at a compound annual growth rate (CAGR) of 10.9 per cent, a report said.

Combined, the two countries account for nearly 85 per cent of the GCC health & wellness market, added the report titled “The KSA and the UAE’s Health & Wellness Food & Beverage Industry Outlook, 2020” from growth partnership company Frost & Sullivan.

 Further, the GCC health beverages segment is growing at a comparatively faster rate than the global health & wellness F&B market at 6.2 per cent. The snacks and savouries segment is expected to exhibit the highest health and wellness CAGR at 7.2 per cent, closely followed by the readymade and processed goods segments.

While global giants such as Nestle Middle East, Doux, Global Foods, and Hunter Foods have adopted a wait-and-watch approach to see the potential of the market, regional players, including in the food services sector, have clear-cut strategies mapped out to respond to the growing demands of the consumer base, which is more connected and health-conscious.

“Proactive efforts by the GCC governments have formulated regulations to enhance awareness about healthier food that provides medical benefits because of the recent upsurge in incidences of lifestyle disorders in the region, such as cardiovascular, bone and joint disorders, and diabesity (the combination of diabetes and obesity),” said Satvik Jaitly, Chemicals, Materials and Nutrition Consultant at Frost & Sullivan.

“We expect the next five years to be critical, with the H&W F&B market becoming more mainstream thanks to rising consumer awareness influenced by social media and connected consumers.”

According to the report, to take advantage of this market, vendors and new entrants should:

•    Capitalize on the calorie-conscious and organic trends to reformulate the current product matrix to prepare for consumers’ move away from processed foods and snacks.
•    Focus on the reduction of salt and fat through use of R&D-based solutions in categories such as snacks, cereals, and confectionaries.
•    Establish distinctive products and marketing strategies focused on the growing sub-segment of H&W F&B.
•    Introduce the idea of baked goods as a healthier alternative to fried products for foods that fall into the “snacks” category.
•    Understand consumer behaviour and trigger points through a deep dive into current consumer preferences. – TradeArabia News Service