Market Trends of middle east animal protein Industry
Inclination towards protein rich diet to support growing consumption
- The Iranian dairy industry is the largest in the Middle East. In 2014, dairy consumption per capita was 60 kg, which was extremely low and half the world's average. Saudi Arabia is the biggest dairy market, holding more than 70% of the market share in the Middle East. The key factors driving the growth of the animal protein market in the region are the rising demand for dairy ingredients, consumer awareness of a healthy diet, and the keen interest of youngsters in sports and nutrition. Flavors, nutritional values, ease of carrying, and perishable nature are making whey snacks a popular choice for millennials looking for quick snack options for full meals and older people looking for a protein-rich diet.
- The growing number of fitness clubs and gyms with personal training and the latest fitness equipment is attracting consumers to these clubs. Consumers are spending more on their fitness due to high disposable income in the region. Around 70% of men over the age of 15 and 67% of women in the United Arab Emirates are obese. Thus, sports nutrition accounted for 70% of consumption, primarily due to the rising obesity across the region.
- Among the Middle Eastern countries, the United Arab Emirates recorded the highest consumption of and demand for collagen-based functional food and beverages. High-protein collagen peptide energy and beauty drinks are gaining popularity in the United Arab Emirates, Tunisia, and Algeria, as they are often seen as substitutes for leisure drinks due to their high caffeine content. The country imports collagen from Japan and Australia, with a high import rate of sheep-based collagen. The marine-based products are priced heavily at USD 46.3 per kg, which is around 30-35% more than gelatin.
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GCC countries to focus more on increasing production capabilities of milk and meat
- The production of animal proteins is less compared to other types. The raw material used for animal protein manufacturing is milk, which is produced in the least amount in the region. The United Arab Emirates produced 164,934 TT of milk in 2020. The country's milk production increased significantly between 1971 and 2020, rising from 17,550 TT to 164,934 TT, with an increasing annual rate that peaked in 2009, at 22.05%, before declining to 1.06% in 2020. However, harsh climatic conditions and the infancy of cold chain technology in the region are some restraining factors for the segment.
- Besides leveraging the latest advancements in dairy farming technology, key herd and farm management techniques are also critical to overcoming these barriers. The lowest prices on dairy products are secured when large volumes are ordered. However, African buyers usually only place these large orders while asking for generous extended credit terms since they lack the up-front capital. The growth rate of animal protein increased by 10% in 2020 compared to 2016. Other animal proteins, such as collagen and gelatin, are manufactured using meat and marine industry waste. However, the reputation of slaughterhouses in the Middle East is poor among animal welfare campaigners in the region.
- Live animal exports to the Middle East have risen steadily over the past two decades, particularly from Europe and Australia. In 2019, Western Australia exported 1.0 million live sheep to nine countries, mostly in the Middle East, worth AUD 136 million. The three largest markets by volume were Kuwait (35%), Qatar (25%), and Jordan (19%), mainly due to the rising demand for meat and dairy products and the rapidly warming climate pressuring the water-stressed nations.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Low nutrition profile in babies is boosting the demand for baby supplements
- Declining alcohol consumption is highly driving the demand for healthy beverages
- Functional ingredients, rich sauces, dressings, and condiments attracting consumers' attention
- Health awareness is highly impacting the market
- Rising inclination toward camel meat
- Healthy snacking is increasing across the middle eastern countries
- Compound feed to hold major share
- Artisanal bakery products sales to drive bakery market
- On-the-go breakfast cereals on high demand
- Demand for chocolate is driving the confectionery segment
- Rising aging population is driving the market
- Dinner ready-to-eat (RTE) foods gaining prominence
- Initiatives of the middle eastern governments are boosting the growth
- Increasing spending on personal care is driving the market
