Middle-East and Africa Bakery Products Market - Growth, Trends, and Forecast (2023 - 2028)

Middle-East and Africa Bakery Products Market - Growth, Trends, and Forecast (2023 - 2028)

The Middle-East and Africa bakery product market is expected to register a CAGR of 2.2% over the forecast period.

• The market is primarily driven by convenience, accessibility, and nutrition profile. Moreover, due to urbanization, the increasing working population, the growth of out-of-home consumption, and increased demand for instant and nutritious products, the sales of bakery products increased in recent times. Convenience and nutrition being the priority, consumers are looking for ready-to-eat bakery products with the incorporation of nuts and fruit pieces to maintain the balance in the nutrition profile of the product.
• Additionally, premium bakery places and artisanal baking has gained importance in the region for their unique taste and exclusivity of the product. Consumers in the market often prefer personalized pastry and other artisanal baking products over conventional products.
• Bread consumption in Africa is expected to be majorly in the form of packaged products in the coming years. Corn, sorghum, and starchy plant roots are mainly preferred in Sub-Saharan Africa, particularly in rural regions. Thus, bread consumption is expected to grow slightly during the forecast period. Although the demand for healthier snacking options is increasing, sweet baked goods remain popular and the preferred item in African markets.
• Most bakery product launches in African countries belong to sweet segments, strongly led by biscuits and cookies. Biscuits and cookies were among the commonly consumed products in the market for their ease of availability and affordable price. Additionally, these products are retailed on a unit basis which encourages consumers in the region to opt for single units or small quantities; these factors tend to drive the market in a positive direction in the coming years.

• Buyers of specialty foods stores use many more channels than convenience stores. Supermarkets and mass merchandisers have been investing heavily in specialty food stores, as specialty food stores are growing faster than convenience food stores each year.
• Bakery products are available in specialty stores, thus increasing the availability of bakery products. These specialty stores mainly include artisanal bakers/small bakeries/home-based bakers, which supply the products to cafe chains, kiosks, traditional trade/wet markets, offices, and general consumers. Constant product innovation is a significant challenge for specialist retailers.
• Given that many of the product types offered at artisanal bakeries are best enjoyed by fresh, efficient production and inventory management. Moreover, supermarkets and hypermarkets tend to propel the market in a positive direction for their collection of various products from different brands, consumers can choose better-quality products.
• Additionally, in recent times the extensive expansion of hypermarkets in the region is encouraging consumers for their convenience and ease of availability. For instance, in November 2022 Lulu hypermarket expanded its presence in Saudi Arabia by opening an outlet in Saihat. These establishments often provide a dedicated sections for bakery products in their outlets.

• South Africa's economy is booming, and there is a considerable demand for bread products. The bakery products market in South Africa is expanding due to changing consumer lifestyles, increased snacking and indulgence consumption, rising demand for multi-grain and whole wheat bread products with low trans-fat content, and improved living circumstances.
• Bread is an important staple food in South Africa and ensures national food security. Consumers, particularly those in middle and upper-income groups, are willing to pay higher prices for bakery products with a low GI (Glycemic Index), high fiber content, or fortification with added vitamins.
• Domestic biscuit brands are witnessing higher retail sales due to the affordability of their brands. Price competitiveness is expected to be a deciding factor for the sale of biscuits and cookies during the forecast period.
• Health and Wellness are expected to drive the sales of morning goods in the South African market during the forecast period. Consumers are increasingly cautious about ingredient formulations, and the demand for the clean label is gaining traction among health-conscious consumers.

The Middle East and African market for bakery products is fragmented due to the presence of large regional and domestic players in different countries. Companies are involved in mergers, expansions, acquisitions, partnerships, and product developments as strategic approaches to boost their brand presence among consumers. The key players dominating the regional market include Bimbo QSR, Puratos Group, Modern Bakery LLC, Amarai Group, and Anat Foods.

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