Market Trends of UAE Snack Bar Industry
Surge in Popularity of Snack Bars as Meal Replacement
- The United Arab Emirates is a country with a high disposable income. The United Arab Emirates also has more millennials and a young population. Due to jobs and college, people live alone without their families.
- Due to their busy schedules, they do not have time to cook or eat. Consuming snack bars between meals to gain energy is a convenient option for them. Also, an increase in the number of health and fitness centers in the region is driving the market. Market players are preparing snack bars with various nutrients that give instant energy, which is why snack bars are also growing in the fitness industry.
- In addition, Western-style snacks are becoming more popular among consumers, who also want healthier options for snacking. The demand for packaged foods with health benefits has just begun to increase nationwide. According to Interpack data from 2021, 5% of packed food in the world is consumed in the Middle East and is expected to rise by 19% in the United Arab Emirates.
- Moreover, an article published in May 2022 highlighted the findings of a recent survey conducted by the Ministry of Health and Prevention in collaboration with the Ministry of Education and the Abu Dhabi Public Health Centre. The survey revealed that 46% of children were experiencing decreased physical activity levels compared to before the Covid-19 outbreak.
- The children's food and beverage market is inundated with snack and meal replacement options filled with highly processed ingredients and alarmingly high levels of sugar, salt, trans-fats, additives, and stabilizers. These statistics highlight a concerning lack of nutritional adequacy in meeting the needs of its target population.
- As a result, an Indian startup company is bringing nutritious snacks to children in the United Arab Emirates. Keeping the above-mentioned concerns in consideration, companies like Slurrp Farm claim to provide a safe, nutritious snack and mealtime options for young children and their parents. Hence, expanding their market in the United Arab Emirates. Therefore, these factors act as major market drivers in this region.
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E-Commerce Sales is the Fastest Growing Segment
- E-commerce sales of snack bars have registered a considerable growth rate in the past few years, owing to the increasing internet penetration rate in the country. The country has gained several recognitions in the field of digital transformation. For instance, according to the World Bank's GovTech Maturity Index 2021, which measures the maturity levels of digital transformation, the UAE has been ranked among the world's best countries in digital government transformation.
- As urbanization and the working population in the United Arab Emirates are increasing, consumers are opting for e-commerce websites like Noon.com, Carrefour.com, Amazon, and many more. In June 2022, Slim Secrets, an Australian snacking brand, launched its range of protein bars on Noon.com. Market brands like TNF, Glanbia PLC, Clif Bar, and many more are available on e-commerce websites like Carrefour, Amazon, Namashi, and many more. E-commerce in the region is growing owing to its convenience and faster delivery services, offers, and discounts.
- Furthermore, consumers' preference for e-commerce over traditional convenience stores is growing due to their busy lifestyles and increased spending power. For instance, in November 2021, a Dubai-based quick-commerce startup, YallaMarket, announced a plan for expansion in the United Arab Emirates and will be stepping into Saudi Arabia and Qatar in the coming year to scale its grocery shopping. Furthermore, as Internet subscriptions are increasing, the use of e-commerce websites is also increasing in the region, which is likely to drive the market over the medium term.
