The Health and Wellness sector is forecast to grow at 4% globally over the next five years. In the MENA region, CAGR between 2016 and 2021 is higher than that of the rest of the world, growing at 7% over the same period. In an effort to align with increased health awareness amongst consumers, a wave of food and beverage products are being ‘fortified’, with sales of Fortified Functional food and beverages expected to rise, at constant 2016 prices, by US$48 billion over 2016 to 2021.
While Free-From products continue to gain market share on a global scale, they are still considered a relatively niche category within the MENA region. In the United Arab Emirates, consumers’ rising health awareness remained to be the key driver for health and wellness products in 2016, however other countries in MENA such as Egypt are yet to fully perceive the value of health and wellness F&B over basic alternatives.
Importantly, the key consumers of this segment are those who perceive Free-From products as being beneficial to their health - and not those who are medically intolerant. This reveals good growth potential, with more consumers expected to get on board with the associated benefits of the Health, Wellness and Free From category in the future.
*Source: Euromonitor International