Nutraceuticals are food that are prepared from natural sources to provide medicinal benefits. They are also used in the prevention and treatment of various chronic illnesses. Nutraceuticals are highly rich in nutrients or medicinally active food or it may be a particular component of food such as omega-3 fish oil that is extracted from cold-water fish. They can be classified into dietary supplement, functional food, and functional beverages.
The MENA nutraceuticals market was estimated to be valued more than US$ 11.0 billion in terms of revenue in 2019 and is predicted to grow at a CAGR of 7.1% during the forecast period (2020 to 2027)
Rise in the health expenditure by the government of the MENA region is estimated to fuel the market growth. According to Business Monitor International, in 2017, healthcare expenditures in the U.A.E. touched US$ 17 billion and are projected to rise to US$ 21.3 billion by 2021. Overall healthcare spending is expected to account for 4.6% of a country’s GDP by 2026 from 4.2% in 2016. Thus, growth in the healthcare sector is expected to fuel the market growth of the nutraceuticals.
Growth in the geriatric population in the North Africa region and this age group is highly prone to chronic illness such as diabetes and cancer. Thus, growing preferences for dietary supplements by the geriatric population for maintaining good health is further projected to foster market growth over the forecast period.
New entrants in the MENA nutraceuticals market are expected to face stiff competition from well-established FMCG and pharmaceuticals organizations that have diversified their product ranges under various brand names. This is expected to hinder the market growth. According to the Coherent Market Insights analysis, BASF introduced its nutritional brand under the brand name, Live Newtrition, to offer its customers with healthy food and supplements.
On the basis of product type, dietary supplements dominated the MENA nutraceuticals market in 2019 with around 37% of market share in terms of revenue, followed by functional food and functional beverages, respectively
The rising trend of consuming natural products in the MENA region due to growing awareness regarding the side-effects of the artificial additives and chemicals used in the products is fueling demand for nutraceuticals. This is turn propelling the market growth of the nutraceutical. For example, rising awareness regarding artificial sweeteners that cause cancer has encouraged the manufacturer to introduce stevia natural sweeteners.
Trade liberalization in the MENA region has tremendously changed the consumption pattern and supply chain of the food products. Change in trade policies has increased the availability of such products in the MENA region. Thus, trade liberalization is expected to foster market growth over the forecast period.
Legal Bodies Responsible For Regulating & Influencing Food Laws In MENA
Key players are operating in the MENA nutraceuticals market are BASF SA, DANONE, Kellogg’s, Arla Foods, Nestle SA, General Mills, and AMWAY Malaysia Holdings Bhd
Few Recent Developments
By Product type