As a staple product, bread continued to grow in the Middle East and Africa region in 2020, in spite of the presence of Coronavirus (COVID-19), ensuring a positive performance by baked goods as a whole. In some countries, bread is a subsidised product, so that the economic impact of the pandemic has not suppressed sales, even if this can act as a drag on value growth. Further growth is expected across the whole of baked goods over the forecast period.
This report comes in PPT.
Bread is a staple across much of Middle East and Africa, including Saudi Arabia, Morocco, Egypt, Algeria and South Africa, often eaten with at least one of the main meals of the day. In Saudi Arabia, the region’s biggest market, baked goods are one of the most prominent offerings in the packaged food industry, with bread and pastries being consumed daily. The consumption of bread is part of Moroccan culture and tends to be eaten daily with all meals. Pastries are also often consumed at breakfast time, served to welcome guests when they visit or during religious holidays in Morocco.
Governments in a number of countries in Middle East and Africa subsidise or cap the price of bread to ensure that it remains affordable for all consumers. However, one country was going in a different direction, with Saudi Arabia introducing a steep increase in VAT in summer 2020, helping boost the attraction of cheaper products such as private label lines.
There is a burgeoning HW trend across the region, with consumers in Saudi Arabia, for example, increasingly choosing wholewheat bread over white flour products. In Algeria, its healthy historic period CAGR was partly due to the launch of new HW products, such as organic and gluten-free bread, helping to drive value growth rates. In addition to new products appearing, the rapid expansion of organic stores – such as La Vie Claire in big cities in Morocco – is also increasing consumers’ access to healthier products.
As a staple in many countries, bread will continue to record positive growth in the region over the forecast period. Rising populations, increasing urbanisation and the continued expansion of modern grocery retailers – although small bakeries will also remain popular across the region – will help to drive growth.
In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.
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