Cooking Ingredients and Meals in Middle East and Africa

January 2024

Preparing and eating more meals at home meant that cooking ingredients and meals saw a spike in demand when the pandemic hit Middle East and Africa in 2020. However, in recent years, including 2023, volume sales have been struggling in the face of rising costs and prices due to the inflationary global environment as well as more localised problems, such as the rolling blackouts across South Africa. From 2024, positive value and volume growth is expected in the region.

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Key findings

Olive oil gaining share in Algeria

As in a number of markets, when disposable incomes allow, consumers are increasingly favouring healthier products in Algeria. This is seeing a growing emergence of products with a healthier positioning, such as a lower fat, salt or sugar content. It is also seeing olive oil gaining share in edible oils, as it is perceived as healthier than other oils. Increased local production of olive oil is also supporting sales of this product, as local olive oil is more affordable.

Private label share reaches 30% in South Africa

Brand owners have been facing strong competition from private label in South Africa, which increased its value share to reach 30% in 2023. Not only can private label offer value, variety and quality, but retailers like Checkers, Pick ‘n Pay, Woolworths or Spar have also been prioritising their private label portfolios in terms of promotions and shelf space.

Modern grocery retailers lead sales in Middle East markets

While small local grocers still lead in many African nations, modern grocery outlets, notably supermarkets and hypermarkets, dominate distribution in cooking ingredients and meals in Saudi Arabia. This is thanks to their broad coverage of all household supplies, not just packaged food, promotional activities and private label lines, which appeal to budget-conscious households.

South Africa planning front-of-pack warning labels for unhealthy products

The South African government is planning mandatory warning labels on packaged food products that contain added sugar, saturated fats, sodium or artificial sweeteners over proposed cut-off values as part of its draft Regulations Relating to the Labelling and Advertising of Foodstuffs. The labels would have to cover at least 25% of the pack front and products with these warning labels would not be allowed to be marketed towards children.

Scope
Key findings
Middle East and Africa has the lowest per capita consumption of cooking ingredients
Positive and relatively consistent growth expected in the coming years
Edible oils the biggest cooking ingredients and meals category in Middle East and Africa
Steep dip in demand for edible oils in South Africa in 2023
Strong value growth but declining volume sales for edible oils in Egypt in 2023
Edible oils dominate the new sales in cooking ingredients and meals 2018-2023
High inflation and rising costs an ongoing trend in the late review period
Small local grocers still the major distribution channel at a regional level
Retail e-commerce gaining share but still a minor sales mode
Private label gaining share in South Africa
Major international players losing share in Middle East and Africa
Multinationals Unilever and Nestlé present across much of the region
Afia continues to head up the rankings in Middle East and Africa
Positive value and volume growth expected throughout the forecast period
Potential labelling and advertising regulations for South Africa
Algeria: Market Context
Algeria: Competitive and Retail Landscape
Cameroon: Market Context
Cameroon: Competitive and Retail Landscape
Egypt: Market Context
Egypt: Competitive and Retail Landscape
Israel: Market Context
Israel: Competitive and Retail Landscape
Kenya: Market Context
Kenya: Competitive and Retail Landscape
Morocco: Market Context
Morocco: Competitive and Retail Landscape
Nigeria: Market Context
Nigeria: Competitive and Retail Landscape
Saudi Arabia: Market Context
Saudi Arabia: Competitive and Retail Landscape
South Africa: Market Context
South Africa: Competitive and Retail Landscape
Tunisia: Market Context
Tunisia: Competitive and Retail Landscape
United Arab Emirates: Market Context
United Arab Emirates: Competitive and Retail Landscape
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