The edible oils category is predicted to record a 4% CAGR from 2017 to 2022 in the Middle East and Africa, a slightly higher growth than the world average. A slowdown in growth in Saudi Arabia due to unfavorable economic conditions led to slower overall growth.
While sunflower oil is forecast to remain the largest edible oil category, it is expected to remain outperformed by olive oil, with a CAGR forecast of 7%. Despite increasing unit process, olive oil is set to be the most dynamic edible oil category in the Middle East and Africa. In the United Arab Emirates, olive oil sales are driven by the increasing influx of Arab and Southern European expatriates. As olive oil is considered a staple in Mediterranean cuisine, this influx naturally increased demand for olive oil. Growth for olive oil in the United Arab Emirates and Saudi Arabia is also driven by consumers who are becoming more health-conscious, and deem this type of oil healthier than others. Sunflower oil is commonly blended with other types of vegetable and seed oils, with lower unit prices and appeal to price-conscious consumers.
Other edible oils are also expected to remain a dynamic category in the Middle East and Africa, with a 5% CAGR forecast.
In Egypt, edible oils recorded current value growth of 166% in 2017. This was mostly due to the high increase in the unit price after the floatation of the Egyptian pound, in addition to population growth and a wider availability of different types of edible oils in various marketing channels throughout the country. It remains an essential product for all Egyptian households since it is widely used in cooking, frying, and preparing different kinds of foods, including desserts.
*Source: Euromonitor International