MENA’s snack market is poised for significant growth, with a projected CAGR of 4.6% - higher than the 2.5% global average.
This expansion is driven by economic, demographic and cultural factors that set the region apart from global trends. A large, youthful population and rapid urbanization are boosting demand for convenient and indulgent snack options while maintaining an increasing interest in healthier alternatives.
Despite economic pressures, MENA shoppers favor premium and branded sweets and snacks. Social media plays an instrumental role, with platforms like TikTok fostering viral trends that influence product innovation and purchasing decisions. Additionally, the region's diverse and multicultural population is prompting producers to offer a diverse range of flavors and ingredients.
Monique Naval, senior research analyst for Euromonitor International, will be exploring these insights at the upcoming ISM Middle East (September 24-26; Dubai World Trade Centre, Dubai, UAE). Bakery&Snacks caught up with her to find out more.
How do the region’s key drivers differ from global trends?
Globally, health and sustainability trends dominate, but in MENA, indulgence remains a key factor. A Euromonitor Voice of the Consumer: Lifestyles Survey found 30.3% reported to typically eat snacks to treat or reward themselves.
However, the line between completely healthy and indulgent is expected to blur further as consumers continue to act on their standards of health. But as marketing and regulated claims create confusion, they are relying more on their intuition to guide them to what looks, feels and tastes good.
This has led to the rise of ‘permissibly indulgent’ snacks – products that emulate traditional sweets and snacks but with added health benefits.
How are consumers reconciling their preference for premium products with the ongoing economic pressures?
Some are opting for private labels or seeking out discounted options through promotions. Others are purchasing smaller quantities, prioritizing quality over quantity and making trade-offs in other areas of spending.
Price sensitivity remains a major concern, but many consumers are willing to invest in high-quality products. Manufacturers must navigate this duality by offering affordable options while maintaining the appeal of premium.
Seizing opportunities in sweets & snacks
ISM Middle East 2024 is set to be a pivotal event for the region this year. According to Mark Napier, VP of Portfolio Growth Food & Hospitality at the Dubai World Trade Center, the industry faces significant challenges, including supply chain disruptions, rising raw material costs and economic uncertainties. However, exciting opportunities are emerging, particularly in the growing demand for healthier, sustainable products and the integration of AI and technology to improve product offerings and operational efficiency.
This year’s event will host over 500 exhibitors from more than 50 countries, showcasing over 50,000 confectionery and snack products. With expanded exhibition space and the introduction of new features like the Expert Stage and the Festive Showcase, the premier trade event offers a platform for industry leaders to discuss cutting-edge trends. Attendees can also participate in the Meetings Program and compete for the prestigious ISM Middle East Awards in categories such as Best Organic Product and Best Healthy Snack.
Napier highlights the increasing consumer interest in mindful snacking.
“Consumers are leaning towards healthier, more mindful confectionery and snack options these days – think lower sugar, less fat and avoiding artificial additives,” he told Bakery&Snacks.
“There is also a growing interest in ethical sourcing and personalized products, where custom touches and unique flavors are becoming the norm.”
He added, “If you're curious about how these trends are shaping the industry, our expert summit is a must. We’ve got leaders like Mazen Kanaan, the cofounder and CEO of House of Pop, and Solène Limongi, a market analyst for Innova Market Insights, lined up to share their insights. It will be a great chance to dive deeper into these evolving consumer preferences. Another highlight is The Taste FutureS of Snacking! discussion, led by futurist and strategist Luke Tay, founder of Cornucopia FutureScapes.”
How is the youthful population influencing product innovation?
This cohort is a key force behind flavor and format differentiation. They are more open to multicultural experiences and seek out novel flavor combinations, especially when it comes to blending local and global ingredients. For instance, flavors like za’atar or sumac are growing in popularity.
How is social media shaping consumption trends?
Consumers are flocking to social media platforms such as TikTok that have embraced short-form video content. Brands strive to promote their products and services on these platforms, but some of the viral trends that are doing the most to boost brand sales have emerged organically from users on those platforms, without any direct brand involvement.
As seen by brands like Fix Dessert Chocolate, which gained popularity through social media-driven demand for its unique regional flavors, such as kunafah and karak. Its limited production capacity of 500 bars per day also enhances its exclusivity and allure.
These types of grassroots TikTok campaigns may yield higher sales growth than what a brand could muster through its own social media efforts.
How are MENA producers creating portfolios to appeal to the diverse population?
Manufacturers are embracing this multicultural nature by incorporating a variety of global and local flavors into their product lines.
Heat levels, for example, has been a rising trend for a while: catalyzed by Latin cuisines and transformed by Asian and African tastes. Spicy flavors such as Takis have become so popular they made up nearly 20% of tracked new salty snack product launches in 2023.
Meanwhile, brands are also tapping into regional flavors like tahini, dates and cardamom to create products that appeal to both expatriate and local populations.
What are the opportunities and challenges for manufacturers looking to capitalize on the growing demand for natural, earth-based foods?
Consumers are increasingly drawn to clean label snacks that are perceived as healthier. Euromonitor’s Health and Nutrition Survey found that 15% of global consumers believe clean label is an important factor; however, attributes like organic, all-natural and free of preservatives are much more important. Health claims are ever more important for parents wanting the best nutrition possible for their children; those with particular dietary needs or concerns; and the growing set of health-conscious consumers.
Products integrating whole fruit, vegetable, grain and seeds have seen growth. Manufacturers in both sweet and savory domains have been establishing plant-based lines to position brands closer to nature and health. Newer brands are at the forefront of being not only better for you (BFY) but also better for nature.
The challenge lies in balancing the price point of these premium, natural products with the region’s value-driven consumer base.
